EP Infrastructure, a.s.
Annual financial report for the year
2025
CONTENT
I. Introduction by the Chairman of the Board of Directors
II. Independent Auditor´s Report to the Annual Financial Report
III. Other Information
IV. Report on relations
V. Consolidated Financial Statements and Notes to the Consolidated
Financial Statements
VI. Independent Auditor´s Report to the Statutory Financial Statements
VII. Statutory Financial Statements and Notes to the Statutory Financial
Statements
VIII. Sustainability – Management Review
IX. Independent Auditor´s Report to the Sustainability Statement
X. Consolidated Sustainability Statement
I. Introduction by the Chairman of the Board of Directors
INTRODUCTION BY THE CHAIRMAN OF THE BOARD OF DIRECTORS AND
THE CHIEF EXECUTIVE OFFICER
Dear Investors, Business Partners, Colleagues and Friends,
2025 was a year in which Europe’s energy priorities, security of supply, affordability and
decarbonisation, were tested in real time. As a long-term owner and operator of essential
infrastructure, EPIF’s role is to keep energy moving safely and reliably, while investing
selectively to strengthen the resilience and future readiness of our networks. Our strategy
remains focused on regulated and long-term contracted assets that translate operational
excellence into predictable cash generation, supporting disciplined dividends, safeguarding our
investment grade credit profile and enabling continued investment throughout the cycle.
From a market perspective, 2025 highlighted how quickly Europe’s gas system can change.
The halt of Russian gas transit via Ukraine on 1 January 2025 removed a long-standing routing
option and accelerated the shift toward LNG and alternative pipeline corridors. REPowerEU
continued to drive diversification away from Russian fuels alongside efficiency improvements,
renewable deployment and electrification. This produced pricing patterns that differed from
traditional seasonal dynamics, with summer prices at times trading above winter levels due to
regulatory storage filling requirements. More recently, heightened geopolitical tensions
involving Iran have further illustrated the fragility of global energy supply chains and the
potential for volatility, particularly where LNG shipping routes could be affected. Against this
backdrop, the strategic importance of well-maintained networks and storage infrastructure has
increased, as policymakers and market participants prioritise security of supply and system
resilience. At the same time, the resilience of regulated networks became even more visible:
stable tariff frameworks and inflation indexation support predictable returns and limit exposure
to commodity price movements.
Against this backdrop, the European gas market began to rebalance, with demand up around
three percent on higher gas burn in the power sector and colder temperatures early in the year.
Total EU imports of pipeline gas and LNG rose by six percent year on year to approximately
312 billion cubic metres, supported by stronger LNG inflows from the United States and Africa,
while Russian pipeline deliveries declined materially. Storage remained a critical balancing
tool: inventories started the year well below prior year levels and ended 2025 still around
thirteen percent lower than in 2024. For EPIF, this backdrop highlighted the essential role of
our transmission, distribution and storage assets in supporting stability across the regional
energy system.
Despite these market conditions, EPIF delivered a resilient operating performance. Group´s
Adjusted EBITDA
1
driven by the expected structural transition in Gas Transmission following the cessation of
Russian flows via Ukraine and by weaker than expected spreads in Gas Storage. Nevertheless,
the Group’s results were broadly in line with expectations and in several areas slightly above
them. Strong cash generation, including Adjusted Free Cash Flow
2
enabled EPIF to pay EUR 320 million in dividends while maintaining solid liquidity and
financial flexibility. These outcomes demonstrated the robustness of our predominantly
regulated and long-term contracted business model and the resilience of our diversified asset
base. Across our four business segments, performance in 2025 reflected both the structural
changes in Europe’s energy system and the strength of EPIF’s portfolio.
The Gas Transmission segment operated in fundamentally different conditions. Eustream’s role
shifted to a predominantly regulated transmission system operator serving domestic and
regional flows. Transported volumes reached 4.9 bcm and Adjusted EBITDA amounted to EUR
171 million, representing 17 percent of Group´s Adjusted EBITDA. Although materially lower
transit volumes reflect a permanent change in regional flow patterns, Eustream’s network
remains vital for the region, supporting the integration of alternative supply sources and
reinforcing energy security. Strategic investments, including the Slovak-Polish interconnector,
have increased system flexibility and enabled multi directional gas flows that strengthen
regional resilience. The segment continues to be an important and stable part of EPIF’s
portfolio.
While Gas Transmission adapted to its new operating model, the Gas and Power Distribution
segment continued to provide a stable foundation for the Group. Adjusted EBITDA reached
EUR 572 million, representing 56 percent of Group´s Adjusted EBITDA and a slight decline
of one percent year on year. Gas distribution volumes increased by four percent to 49.1 TWh
and electricity distribution volumes also rose by four percent to 6.4 TWh. Operating within a
transparent and supportive regulatory framework in Slovakia, this segment continues to form
the core of EPIF’s stable earnings profile.
In contrast to the stability of distribution activities, the Gas Storage segment operated in a
weaker commercial environment. Adjusted EBITDA amounted to EUR 191 million,
representing 19 percent of Group´s Adjusted EBITDA and a year-on-year decline of 31 percent.
Narrower winter to summer spreads and lower volatility reduced market opportunities. Despite
this backdrop, our storage portfolio maintained high utilisation and continued to play a critical
role in balancing the regional gas system. With nearly 62 TWh of working gas capacity and
strong technical capabilities, EPIF operates one of the largest and most strategically relevant
storage systems in Central Europe. While market conditions can fluctuate, we remain confident
in the long-term importance of storage within an energy system that increasingly depends on
flexibility and security of supply.
Alongside these segments, Heat Infra remained an important contributor. Adjusted EBITDA
reached EUR 88 million in 2025, representing 9 percent of Group´s Adjusted EBITDA. The
disposal of selected assets early in the year enabled EPIF to focus more closely on core heat
infra activities supported by long-term contracts. As an operator of critical district heating
systems in the Czech Republic, EPIF provides reliable heat for more than 150,000 end
consumers and dispatchable electricity that contributes to grid stability. Operational
performance remained stable and was supported by increased biomass utilisation in Plzeňská
teplárenská that already operates a diversified generation fleet combining lignite with waste to
energy and biomass. EPIF is advancing the construction of a new CCGT unit that will enhance
efficiency, improve system flexibility and support the long-term decarbonisation pathway of
the asset base. As the European energy mix incorporates more intermittent renewables, the
flexibility of these assets will become increasingly important. During the transition, natural gas
will continue to play a role, with technology capable of combusting renewable gas blends from
the outset and scalable toward full substitution as markets develop.
EPIF also strengthened its capital structure through a combination of long dated green bond
issuances and targeted repayments of shorter-dated debt. Under its EMTN Programme, the
Group issued EUR 600 million of green notes maturing in 2033 and, in January 2026, EUR
500 million of green notes maturing in 2034. Both transactions attracted strong institutional
demand and provided substantial long-term liquidity ahead of the EUR 600 million bond
maturing in July 2026. At the same time, EPIF voluntarily repaid Schuldschein tranches
totalling EUR 285 million. This approach reduced refinancing risk, extended the Group’s
maturity profile and reinforced long-term financial flexibility. EPIF’s solid credit standing was
reaffirmed by all three major rating agencies. Fitch and S&P maintained EPIF at BBB, and
Moody’s at Baa3, equivalent to BBB. The agencies highlighted the Group’s strong liquidity,
the diversification benefits of its regulated and contracted portfolio and its prudent capital
management.
In summary, 2025 was a year shaped by structural change, but also by resilience, stability and
continued strategic progress for EPIF. Our diversified asset base, strong liquidity and
disciplined capital allocation enabled us to navigate a shifting market landscape while
advancing our transition agenda.
We remain grateful to our employees, partners and investors for their ongoing trust and support,
and we are committed to delivering reliable performance, prudent financial management and
long-term value creation.
1
Adjusted EBITDA represents Underlying EBITDA adjusted by adding back the deficit from the purchase of electricity to cover network
losses in 2022 stemming from the difference between (i) regulated price of electricity to cover network losses valid for 2022, which was a
fixed price calculated in line with the Slovak Decree of the Regulator No. 18/2017 Coll., Article 28 or any other applicable decree or law
replacing it (the Decree), and (ii) spot market price at which electricity was being bought to cover network losses in 2022; and deducting the
one-off correction amount set by the Decree which is supposed to compensate for the difference between the regulated price and spot market
purchase price (2025: EUR 0 million; 2024: EUR 19 million)
For definition and reconciliation of Underlying EBITDA refer to Note 5 - Operating segments in EPIF´s consolidated financial statements
2025. Reconciliation of Adjusted EBITDA is as follows:
Key Metrics | Gas and Power Distribution | Gas Transmission | Gas Storage | Heat Infra | Total segments | Other | Inter-segment eliminations | Consolidated financial information |
Year 2025 | ||||||||
Underlying EBITDA | 572 | 171 | 191 | 88 | 1,022 | (4) | - | 1,018 |
One-off network losses correction | - | - | - | - | - | - | - | - |
Adjusted EBITDA | 572 | 171 | 191 | 88 | 1,022 | (4) | - | 1,018 |
Key Metrics | Gas and Power Distribution | Gas Transmission | Gas Storage | Heat Infra | Total segments | Other | Inter-segment eliminations | Consolidated financial information |
Year 2024 | ||||||||
Underlying EBITDA | 597 | 413 | 278 | 95 | 1,383 | (4) | - | 1,379 |
One-off network losses correction | (19) | - | - | - | (19) | - | - | (19) |
Adjusted EBITDA | 578 | 413 | 278 | 95 | 1,364 | (4) | - | 1,360 |
2
Adjusted Free Cash Flow represents Cash flows generated from (used in) operations, less Income taxes paid and less Acquisition of property,
plant and equipment, investment property and intangible assets, and disregarding Changes in restricted cash as presented in the Consolidated
statement of cash flows of the Group, adjusted for: (i) working capital impact of the systems operation tariff (2025: EUR 0 million; 2024:
EUR (11) million), (ii) Underlying EBITDA effect of the network losses correction (2025: EUR 0 million; 2024: EUR 19 million )
II. Independent Auditor´s Report to the Annual Financial Report
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Deloitte Audit s.r.o. Churchill I Italská 2581/67 120 00 Prague 2 – Vinohrady Czech Republic Tel: +420 246 042 500 DeloitteCZ@deloitteCE.com www.deloitte.cz Registered by the Municipal Court in Prague, Section C, File 24349 ID. No.: 49620592 Tax ID. No.: CZ49620592 | |
INDEPENDENT AUDITOR’S To EP Infrastructure, |
Having its registered office at: Pařížská 130/26, Josefov, 110 00 Prague 1
REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Opinion
We have audited the accompanying consolidated financial statements of EP Infrastructure, a.s. (the “Company”)
and its subsidiaries (the “Group”)
prepared on the basis of International Financial Reporting Standards (IFRS®
Accounting Standards) as adopted by the European Union, which comprise the consolidated statement of financial
position as at 31 December 2025, consolidated statement of comprehensive income, consolidated statement
of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated
financial statements, including material accounting policy information.
In our opinion, the accompanying consolidated financial statements give a true and fair view of
the consolidated
financial position of the Group as at 31 December 2025, and of its consolidated financial performance and its
consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards as adopted by
the European Union.
Basis for Opinion
We conducted our audit in accordance with the Act on Auditors, Regulation (EU) No. 537/2014 of the European
Parliament and the Council and Auditing Standards of the Chamber of Auditors of the Czech Republic, which are
International Standards on Auditing (ISAs), as amended by the related application guidelines. Our responsibilities
under this law and regulation are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are independent of the Group in accordance with the Act on Auditors
and the Code of Ethics adopted by the Chamber of Auditors of the Czech Republic, as applicable to audits of financial
statements of public interest entities. We have also fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the consolidated financial statements of the current period. These matters were addressed in the context of our
audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
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Other Information in the Annual Financial Report
In compliance with Section 2(b) of the Act on Auditors, the other information comprises the information included in
the Annual Financial Report other than the financial statements, consolidated financial statements and auditor’s
reports thereon. The Board of Directors is responsible for the other information.
F100A834DABEAA4F043B627CFE80E28B
Our opinion on the consolidated financial statements does not cover the other information. In connection with our
audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the consolidated financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. In addition, we assess whether
the other information with the exception of the sustainability statement has been prepared, in all material respects, in
accordance with applicable law or regulation, in particular, whether the other information with the exception
of the sustainability statement complies with law or regulation in terms of formal requirements and procedure for
preparing the other information in the context of materiality, i.e. whether any non-compliance with these
requirements could influence judgments made on the basis of the other information.
Based on the procedures performed, to the extent we are able to assess it, we report that:
●
The other information describing the facts that are also presented in the consolidated financial statements is, in
all material respects, consistent with the financial statements, consolidated financial statements; and
●
The other information with the exception of the sustainability statement is prepared in compliance with
applicable law or regulation.
In addition, our responsibility is to report, based on the knowledge and understanding of the Group obtained in
the audit, on whether the other information contains any material misstatement of fact. Based on the procedures we
have performed on the other information obtained, we have not identified any material misstatement of fact.
Responsibilities of the Company’s Board of Directors and Supervisory Board for the Consolidated Financial
Statements
The Board of Directors is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance IFRS Accounting Standards as adopted by the European Union and for such internal
control as the Board of Directors determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
The Supervisory Board is responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with the above law or regulation, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
●
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
●
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Group’s internal control.
●
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Board of Directors.
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●
Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in
the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
●
Evaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
●
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the group as a basis for forming an opinion on the group
financial statements. We are responsible for the direction, supervision and review of the audit work performed for
purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Board of Directors, the Supervisory Board and the Audit Committee regarding, among
other matters, the planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Board of Directors, the Supervisory Board and the Audit Committee, we
determine those matters that were of most significance in the audit of the consolidated financial statements
of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless
law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
Information required by Regulation (EU) No 537/2014 of the European Parliament and of the Council
In compliance with Article 10 (2) of Regulation (EU) No. 537/2014 of the European Parliament and the Council, we
provide the following information in our independent auditor’s report, which is required in addition to the
requirements of International Standards on Auditing:
Appointment of the Auditor and the Period of Engagement
We were appointed as the auditors of the Group by the General Meeting of Shareholders on 5 March 2020 and our
uninterrupted engagement has lasted for 6 years.
Consistence with the Additional Report to the Audit Committee
We confirm that our audit opinion on the consolidated financial statements expressed herein is consistent with
the additional report to the Audit Committee of the Company, which we issued on 19 March 2026 in accordance with
Article 11 of Regulation (EU) No. 537/2014 of the European Parliament and the Council.
Provision of Non-audit Services
We declare that no prohibited non-audit services referred to in Article 5 of Regulation (EU) No. 537/2014
of the European Parliament and the Council were provided. In addition, there are no other non-audit services which
were provided by us to the Group and which have not been disclosed in the consolidated financial statements.
Report on Compliance with the ESEF Regulation
We have conducted a reasonable assurance engagement on the verification of compliance of the financial
statements included in the Annual Financial Report with the provisions of Commission Delegated Regulation (EU)
2019/815 of 17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council
with regard to regulatory technical standards on the specification of a single electronic reporting format
(the “ESEF Regulation”) that apply to the financial statement.
Responsibilities of the Board of Directors
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The Company’s Board of Directors is responsible for the preparation of the financial statements in compliance with
the ESEF Regulation. Inter alia, the Company’s Board of Directors is responsible for:
●
The design, implementation and maintenance of the internal control relevant for the application
of the requirements of the ESEF Regulation;
●
The preparation of all financial statements included in the Annual Financial Report in the valid XHTML format; and
●
The selection and use of XBRL mark-ups in line with the requirements of the ESEF Regulation.
Auditor’s Responsibilities
Our task is to express a conclusion whether the financial statements included in the Annual Financial Report are, in
all material respects, in compliance with the requirements of the ESEF Regulation, based on the audit evidence
obtained. Our reasonable assurance engagement was conducted in accordance with the International Standard on
Assurance Engagements 3000 (Revised) Assurance Engagements Other Than Audits or Reviews of Historical
Financial Information (hereinafter “ISAE 3000”).
The nature, timing and scope of the selected procedures depend on the auditor’s judgment. A reasonable assurance
is a high level of assurance; however, it is not a guarantee that the examination conducted in accordance with the
above standard will always detect a potentially existing material non-compliance with the requirements of the ESEF
Regulation.
As part of our work, we performed the following procedures:
●
We obtained an understanding of the requirements of the ESEF Regulation;
●
We obtained an understanding of the Company’s internal control relevant for the application of the requirements
of the ESEF Regulation;
●
We identified and evaluated risks of material non-compliance with the ESEF Regulation, whether due to fraud
or error; and
●
Based on this, we designed and performed procedures responsive to those risks and aimed at obtaining
a reasonable assurance for the purposes of expressing our conclusion.
The aim of our procedures was to assess whether:
●
The financial statements included in the Annual Financial Report were prepared in the valid XHTML format;
●
The disclosures in the consolidated financial statements were marked up where required by the ESEF Regulation
and all mark-ups meet the following requirements:
o
XBRL mark-up language was used;
o
The elements of the core taxonomy specified in the ESEF Regulation with the closest accounting meaning were
used, unless an extension taxonomy element was created in compliance with the ESEF Regulation; and
o
The mark-ups comply with the common rules for mark-ups pursuant to the ESEF Regulation.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Conclusion
In our opinion, the Company’s financial statements for the year ended 31 December 2025 included in the annual
financial report are, in all material respects, in compliance with the requirements of the ESEF Regulation.
In Prague on
19 March 2026
Audit firm: | Statutory auditor: |
Deloitte Audit s.r.o. registration no. 079 | David Batal registration no. 2147 |
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III. Other Information
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
1)
Development of the EP Infrastructure, a.s. Group ("EPIF Group" or “Group”)
Recent developments and key events for EPIF Group
Following the transitional year of 2024, the natural gas market in 2025 moved toward looser fundamentals as a
surge in global LNG production began easing the supply shocks experienced in previous years. Global gas demand
growth slowed to less than 1% in 2025, a marked deceleration from the previous year driven by a weaker
macroeconomic environment and relatively high spot LNG prices during the first half of the year. However, the
global market remained fragile and sensitive to weather impacts; notably, a mid-November cold spell across
Europe caused daily residential and commercial gas demand to surge by over 70%, highlighting the continued
importance of gas for security of heat supply.
In OECD Europe, natural gas consumption rose by 3% (approximately 12 bcm) in 2025, marking its strongest
increase since 2021. This growth was primarily concentrated in the first quarter and driven by an 11% surge in
gas-to-power generation. This increase was necessary to compensate for a 12% drop in hydropower and a 1%
decline in wind output, which more than offset a 24% rise in solar generation. In contrast, industrial gas use fell
by 3% as higher prices led to reduced consumption in countries like the Netherlands, France, and Spain. Despite
steady injections during the summer, European storage levels entered the 2025/26 winter at approximately 13%
below 2024 levels, missing the EU’s 90% fill target and ending the year at their second-lowest level in over a
decade.
The European supply mix underwent a significant structural shift on 1 January 2025 with the interruption of
Russian gas flows via Ukraine (the Brotherhood pipeline) following the expiration of the transit agreement. This
contributed to a 45% decline in Russian piped deliveries to the EU, which now account for only 8% of total
European gas demand. To reinforce these efforts, the EU presented a REPowerEU Roadmap in May 2025 and
reached a legally binding agreement in December 2025 to fully phase out all Russian gas imports by November
2027 at the latest. While piped imports fell, LNG imports hit an all-time high of over 175 bcm, with the United
States providing nearly 60% more LNG than in 2024 and accounting for almost all incremental growth.
In response to these shifting flows and the changing role of transit infrastructure, a new transmission tariff
structure became effective in Slovakia at the start of 2025, significantly improving earnings from domestic gas
flows and providing more predictable cash flows with better credit quality. Consequently, Eustream has evolved
into a predominantly regulated TSO focused on servicing the domestic Slovak market and supporting
neighbouring countries.
Furthermore, on 31 March 2025, the Group divested its 100% interest in two CHPs, Elektrárny Opatovice and
United Energy, along with other non-core entities to the broader EP Group. This strategic disposal reinforces the
focus on infrastructure assets that are predominantly regulated or long-term contracted. Following this divestment,
the Group's near-term decarbonization activities are now concentrated primarily in Plzeňská teplárenská, where
lignite-based units will be phased out and replaced by biomass, waste-to-energy, and hydrogen-ready CCGT
technology. These projects are supported by approved investment subsidies from the EU Modernization Fund and
15-year cogeneration subsidies, which provide stability against fluctuating power spreads while ensuring the
continued delivery of heat under long-term contract.
Expected development for the EPIF Group
The European gas market in 2026 is set to be defined by an "unfolding LNG wave" as global supply growth
accelerates to its fastest pace since 2019. While the total halt of Russian gas transit via Ukraine from January 2025
has already reshaped regional supply routes, the arrival of significant new liquefaction capacity, primarily from
North America, is expected to further ease market fundamentals. Despite this improving supply outlook, the
market remains sensitive to geopolitical tensions and weather-driven demand spikes, which may continue to cause
periods of price volatility.
1
Based on IEA’s Gas Market Report, Q1 2026 available at https://www.iea.org/reports/gas-market-report-q1-2026
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
European gas inventories started 2026 at a challenging level, remaining at a deficit of approximately 14%
compared to the previous year. This inventory gap, combined with higher piped gas export requirements to
Ukraine, is expected to drive a record-high demand for LNG imports to Europe, projected to exceed 185 bcm in
2026. Consequently, the need for robust storage injections during the summer remains a priority for regional
supply security, even as natural gas demand in OECD Europe is forecast to decline by 2% due to the continued
expansion of renewable energy and the strategic objectives of the REPowerEU plan to permanently reduce
reliance on fossil fuels.
For the Group’s infrastructure assets, the focus remains on leveraging its reshaped business model to ensure long-
term stability and energy security. By streamlining the portfolio to focus on high-quality, regulated, and long-
term contracted infrastructure, the Group is well-positioned to manage current market dynamics. Gas
Transmission is forecast to further stabilize its operations around evolving supply patterns, as the Group continues
to replace traditional Russian transit with growing LNG reliance and alternative pipeline routes. Gas Storage is
expected to remain a critical asset for supply security in a potentially volatile market, despite relatively weak
summer-winter spreads, a role confirmed by the new storage regulations in Slovakia. Meanwhile, Gas and Power
Distribution continue to deliver steady performance anchored by a stable regulatory environment.
In the Heat Infra segment, the Group is actively executing its decarbonization strategy through focused investment
in Plzeňská teplárenská. This transformation involves the phased replacement of lignite-based generation with a
modern mix of biomass, waste-to-energy, and hydrogen-ready CCGT technology. These strategic projects,
supported by 15-year cogeneration subsidies, are central to the Group’s transition to modern, low-carbon energy
solutions while ensuring the continued delivery of heat under long-term contracts.
EPIF appears well-positioned to navigate these ongoing challenges, leveraging its resilient infrastructure, stable
regulatory environment, and strategic market adaptation to maintain energy security in Central Europe. While
prudent financial policies further anchor the Group’s position, supply and demand uncertainties persist globally,
contributing to potential price fluctuations. Factors such as geopolitical developments and shifting weather
patterns may lead to deviations from the current outlook, but EPIF’s management remains agile, continuously
monitoring the landscape to ensure continued resilience and operational stability.
Other information about subsequent events that occurred after the reporting date
Except for the subsequent events described in the Note 32 of Consolidated Financial Statements as of and for the
year ended 31 December 2025, EPIF´s management is not aware of any additional subsequent events that occurred
after the reporting date.
2)
Management and Governance
EPIF has a two-tier management structure consisting of its board of directors (the “Board of Directors”) and its
supervisory board (the “Supervisory Board”). The Board of Directors represents EPIF in all matters and is charged
with its day-to-day business management (together with the Senior Management), while the Supervisory Board
is responsible for the supervision of EPIF’s activities and of the Board of Directors in its management and resolves
on matters defined in the Czech Corporations Act and the Articles of Association. The Supervisory Board does
not make management decisions.
The Audit Committee is established as a separate corporate body of the Company responsible for performance of
controlling functions in the field of audit (both internal and external including statutory) and accounting.
The Risk Committee is responsible for overseeing risk management policies and practices of the Group’s
operations, implementing a monitoring compliance with the Group’s risk management procedures and risk control
infrastructure.
The Safety, Health and Environmental Committee is responsible for developing and overseeing of health and
safety policies and procedures, improving work health and safety environment within the Group’s operations, and
monitoring compliance with Group’s health and safety policies. In addition, the Safety, Health and Environmental
Committee monitors physical climate risks associated with more extreme and frequent weather events and review
the related adaptation measures.
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
The Green Finance Committee is responsible for selecting and evaluating projects eligible for green financing
under the EPIF’s Green Finance Framework.
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.
Senior Management
The senior management of the Group consists of the CEO, the CFO, the Director of Financing and four segment
directors.
Václav Paleček
CFO
Mr. Paleček has been overseeing the financial management and strategic planning of the Company since
1 June 2020. He has been with the EPH group since 2014. He is a member of several committees, including the
Risk Committee and Green Finance Committee, Safety, Health and Environmental Committee and
SPP Infrastructure, a.s. Audit Committee. He also serves on the boards of EOP Distribuce, a.s., Stredoslovenská
energetika, a.s., and POWERSUN a.s., among others, and is a member of the supervisory board of EP Energy,
a.s. and of Plzeňská teplárenská, a.s.
In his previous role as the Head of Group Controlling and Financial Reporting in EP Power Europe, a.s., Mr.
Paleček established a central controlling function and introduced a new group-wide reporting tool. Before joining
EPH, Mr. Paleček spent five years at KPMG, focusing on financial reporting under IFRS, US GAAP and Czech
accounting standards. His portfolio of clients included energy, utility, telco and automotive sectors.
Mr. Paleček holds a master’s degree in economics from the University of Economics in Prague, is a fellow of
Association of Chartered Certified Accountants (ACCA) and holds an Advanced Diploma in Accounting and
Business.
With over 15 years of experience in corporate finance, Mr. Paleček has led or participated in significant projects
involving M&A, corporate restructuring, refinancing, cooperation with credit rating agencies or ESG initiatives
in EPIF. He also oversees the financial management and strategic planning of the Group, ensuring compliance
with regulatory requirements, managing financial risks, and driving ESG initiatives.
Peter Ďurík
Director of Financing
Mr. Ďurík has been the Director of Financing since February 2024.
Mr. Ďurík is also Director of Financing of EPH and holds other positions outside of the Group. He has been
employed in the EPH group since August 2015. Mr. Ďurík also serves on the Company’s Risk committee and
Green Finance Committee. Since 2015, as part of the Group, Mr. Ďurík worked on many of the Group’s financing
transactions. Mr. Ďurík subsequently participated in designing the financing strategies of the Group and EPH,
including its subsidiaries. The scope of Mr. Ďurík practice covers bank debt, bonds, working capital lines, rating
and all related activities, including managing the legal streams in cooperation with legal teams. Apart from
financing, Mr. Ďurík actively participates in the Group’s risk management and its ESG initiatives. Mr. Ďurík
holds a master’s degree in finance from the University of Economics in Prague.
Tomáš Mareček
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
Director of the Gas Transmission Business
Mr. Mareček has been the Director of Gas Transmission Business since 24 January 2013. He also serves as
chairman of the board of directors of eustream, a.s. since 2013.
Mr. Mareček is also a member of the board of directors of Košík Holding a.s.; managing director of MFresh
Holding 1 s.r.o.; and a member of the supervisory board of Košík.cz s.r.o.
Mr. Mareček has more than 15 years of experience and in his previous roles he also served in the supervisory
board of EP Industries, a.s. and held the positions of senior analyst of mergers and acquisitions at J&T and
financial officer at Kablo Vrchlabí a.s.
Mr. Mareček holds a master’s degree in finance from the University of Economics in Prague.
David Onderek
Director of the Heat Infra Business
Mr. Onderek has been the Director of the Heat Infra Business since 9 May 2016.
Mr. Onderek has also been the director of heat and cogeneration division and the head of investment committee
of EP Energy since March 2013.
Mr. Onderek is also a chairman of the board of directors of United Energy a.s., Severočeská teplárenská, a.s. and
Elektrárny Opatovice a.s., a member of the board of directors of Plzeňská teplárenská a.s., EP Sourcing, a.s. and
EP Cargo a.s. ; a managing director of AISE, s.r.o. He also serves on the boards of several companies that are
affiliated with EPIF.
Mr. Onderek has more than 20 years of experience and prior to joining the Group he worked as the head of
portfolio development at ČEZ, a.s., a leading Czech energy company.
Mr. Onderek holds a M.Sc. degree in management of power generation and distribution from the Faculty of
Electrical Engineering of the Czech Technical University in Prague and a master of business administration degree
from the University of Pittsburgh.
František Čupr
Director of Gas and Power Distribution Business
Mr. Čupr is the Director of Gas and Power Distribution Business since 2 January 2013. He also serves as chairman
of the board of directors of Stredoslovenská distribučná, a.s. and SPP - distribúcia, a.s. since 2013. He also serves
on the Company’s Risk committee.
Mr. Čupr is also a chairman of the board of directors of SPP Infrastructure, a. s. and ACS PROPERTIES, a.s.,
vice-chairman of AC Sparta Praha fotbal, a.s.; a member of the board of directors of EP Sport Holdings, a.s.,
1890s holdings a.s.; and manager responsible predominantly for renewable energy sources.
Mr. Čupr has more than 20 years of experience in the business.
Mr. Čupr holds a master’s degree in economics from the Faculty of Business and Economics of the Mendel
University in Brno and a master of business administration from the Nottingham Trent University.
Martin Bartošovič
Director of Gas Storage Business
Mr. Bartošovič is the Director of Gas Storage Business since 9 May 2016. Mr. Bartošovič is also chairman of the
Board of Directors of NAFTA a.s.
Prior to joining the Company, Mr. Bartošovič held the position of a member of the board of directors of SPP -
distribúcia, a.s. and the position of division director of Slovenský plynárenský priemysel, a. s. Prior to that, he
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
worked for six years at A.T. Kearney, a leading global management consulting firm and for two years at ING
Bank, a leading international bank.
Mr. Bartošovič has more than 20 years of experience in the energy industry in addition to the background in
management consulting and banking. Prior to joining the Group, he held various positions at A.T. Kearney and
ING Barings with focus on strategy, restructuring, post-merger-integration and mergers and acquisitions.
Mr. Bartošovič holds a Dipl. Ing. degree in corporate finance from the Faculty of Economics and Finance at the
Slovak Agricultural University and took part in several study programs at the West Virginia University, University
of Delaware and Cornell University.
Board of Directors
The Board of Directors has seven members. Members of the Board of Directors are elected by the EPIF’s general
meeting of shareholders (the “General Meeting”) for a term of office of three years. Re-election of the members
of the Board of Directors is permitted. Members of the Board of Directors are obliged to discharge the office with
the necessary loyalty as well as the necessary knowledge and care and to bear full responsibility for such tasks,
as required by the Czech Corporations Act.
The Board of Directors is the EPIF’s statutory body, which directs its operations and acts on its behalf. No-one is
authorised to give the Board of Directors instructions regarding the business management of the EPIF, unless the
Czech Corporations Act or other laws or regulations provide otherwise. The powers and responsibilities of the
Board of Directors are set forth in detail in the Articles of Association. The Board of Directors meets regularly,
usually once a month.
The members of the Board of Directors are engaged in the daily management of the Company and authorised to
decide on the business management of the Company or its parts. Responsibilities for daily management of
principle business activities of the Company are allocated to appropriate members of the Board of Directors based
on their primary business focus and expertise. Each member of the Board of Directors is obliged to inform the
Board of Directors how the Company’s affairs are managed. The responsibility for decisions about the basic focus
of business management and basic focus of supervision over the Company’s activities rests with all members of
the Board of Directors and the separation of powers between members of the Board of Directors does not release
the other members of the Board of Directors from the equal responsibility for all decisions of the Board of
Directors, or obligation to supervise how the Company’s affairs are managed.
The Board of Directors constitutes a quorum if at least six directors are present at the meeting. In accordance with
the EPIF’s articles of association, if a Board of Directors meeting fails to constitute a quorum, there shall be an
adjourned meeting within one week after the original meeting (or on another date agreed by the Chairman and
both Vice-Chairmen), where the same quorum requirement will apply. If this first adjourned meeting also fails to
constitute a quorum, there shall be a second adjourned meeting on or after the next business day following the
first adjourned meeting, where the presence of at least four directors will constitute a quorum. Decisions of the
Board of Directors are made by simple majority vote of all the members of the Board of Directors. Each member
of the Board of Directors has one vote. With the consent of all members, per rollam voting is also allowed.
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
Members of the Board of Directors
Daniel Křetínský
Chairman of the Board of Directors
Mr. Křetínský has been the Chairman of the Board of Directors since December 2013.
Mr. Křetínský was involved through his role as a partner in the J&T Group in the founding of EPH, the EPIF’s
parent company, where he has served as Chairman of the Board of Directors since 2009 and currently is also the
majority owner of EPH. Mr. Křetínský serves on the boards of several companies that are affiliated with EPIF,
including its parent company EPH, and its sister company EP Investment Advisors, s.r.o. He also holds positions
at companies unaffiliated to EPIF, including Chairman of the Board of AC Sparta Praha fotbal, a.s.
Mr. Křetínský holds a bachelor’s degree in political science as well as a master’s degree and a doctorate in law
from Masaryk University in Brno.
Gary Wheatley Mazzotti
Vice-chairman of the Board of Directors and Chief Executive Officer
Mr. Mazzotti has been a member and Vice -Chairman of the Board of Directors since June 2017, and the Chief
Executive Officer since August 2021. He also serves on the Company’s Audit Commitee, Risk Committee, Green
Finance Committee and Safety, Health and Environmental Committee.
Mr. Mazzotti is also a member of the board of directors of United Energy, a.s., EOP Distribuce, a.s., Severočeská
teplárenská, a.s., EP Power Europe, a.s. and a member of the supervisory board of NAFTA a.s., SPP - distribúcia,
a.s., Stredoslovenská distribučná, a.s. . and Plzeňská teplárenská, a.s.
Mr. Mazzotti has more than 30 years of experience in finance and operations, having joined the Company from
Vienna Insurance Group where he was a member of the board and chief financial officer of Kooperativa
pojišťovna, a.s., Vienna Insurance Group and Česká podnikatelská pojišťovna, a.s., Vienna Insurance Group and
was responsible for VIG groups operations in Ukraine. Prior to this Mr. Mazzotti held the positions of senior
investment director and chief financial officer of PPF Private Equity Division as well as chief financial officer
and chief operating officer of AAA Auto a.s.
Mr. Mazzotti graduated in economics from the University of Reading in the United Kingdom, and is also
a member of the Institute of Chartered Accountants (ACA).
Stéphane Brimont
Vice-chairman of the Board of Directors
Stéphane Brimont is a representative of CEI Investments S.à r.l., a consortium managed by Macquarie Asset
Management (MAM), which owns a 31% stake in EPIF.
Mr. Brimont has been a member of the Board of Directors since February 2017 with a short break in 2020 and
2021, he was reappointed in November 2021 as a Vice-chairman. Mr. Brimont is the head of MAM’s French and
Benelux operations and is also a director of MEIF Power Romania, Hedno, Reden and APEX Energies and
Renewi. He began his career with the French government where he spent a total of eight years. In 2004, he joined
Gaz de France as chief strategy officer and became their chief financial officer in 2007. Following the integration
of Gaz de France and Suez, Mr. Brimont moved into a general management role in charge of GDF SUEZ Energy
Europe business
Mr. Brimont graduated from École Polytechnique and the École Nationale des Ponts et Chaussées, France.
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
Pavel Horský
Member of the Board of Directors
Mr. Horský has been a member of the Board of Directors since December 2013.
Mr. Horský is a member of the board of directors of EPH and chief financial officer of EPH and holds a number
of other positions within the Group as well as outside the Group. At the same time, Mr. Horský serves as a member
of the Company’s Risk committee. Prior to joining the Company, Mr. Horský held a market risk advisory position
at the Royal Bank of Scotland.
Mr. Horský serves on boards of directors and supervisory boards of several of EPH’s subsidiaries and affiliates,
including EP Infrastructure a.s. and EP Power Europe a.s.
Marek Spurný
Member of the Board of Directors
Mr. Spurný has been a member of the Board of Directors since December 2013. Currently, Mr. Spurný is the chief
legal counsel and a member of the board of directors of EPH and serves on multiple boards of companies within
the Group, as well as outside the Group.
Prior to joining EPIF, Mr. Spurný held various positions within EPH, its subsidiaries and the J&T Group (prior
to the formation of EPH). Between 1999 and 2004, Mr. Spurný worked for the Czech Securities Commission (the
capital markets supervisory body at that time).
His background is legal. As such, he holds the position of Chief Legal Counsel of the Group, with main
responsibilities for transaction execution, negotiations and implementation of merger and acquisition transactions,
restructurings, and legal support in general. Mr. Spurný holds several positions in the corporate bodies of the
group companies on the parent holding levels (member of the boards of directors of EPH), as well as the
subsidiaries of EPH group, including subsidiaries in EPIF. Before joining the group, Mr. Spurný had been working
for five years for the Czech Securities Commission, the former capital markets regulatory authority in the Czech
Republic.
Mr. Spurný holds a law degree from Palacky University in Olomouc.
William Price
Member of the Board of Directors
William Price is a representative of CEI Investments S.à r.l., a consortium managed by Macquarie Asset
Management (MAM), which owns a 31% stake in EPIF.
Mr. Price has been a member of the Board of Directors since October 2020. Before October 2020, he was a
member of the Supervisory Board since February 2017 and its Vice Chairman since June 2017. Mr. Price is also
a member of the board of directors of EP Energy, a.s.
Mr. Price has over 15 years of experience in infrastructure investment and management, primarily in the utilities
and energy sector. This experience is primarily across the UK, Germany and Central Europe.
He also holds non-executive board positions at various other MAM-managed investments.
Mr. Price holds a bachelor’s degree in economics and politics from the University of Bristol and a master of
finance degree from INSEAD Business School.
Milan Jalový
Member of the Board of Directors
Mr. Jalový has been a member of the Board of Directors since February 2017.
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
Mr. Jalový holds the position of controlling director at EP Power Europe, a.s., and is the head of analytical team
at EPH. He has been working within the EPH group since its establishment.
Mr. Jalový is also a managing director of LEAG GmbH and EP Mehrum GmbH, a member of the supervisory
board of EP Energy a.s., Heureka Group a.s., Lausitz Energie Bergbau AG and Lausitz Energie Kraftwerke AG.
Mr. Jalový holds a master’s degree from the University of Economics in Prague and also the CEMS MIM degree.
Supervisory Board
The Supervisory Board has six members elected by the General Meeting. Members of the Supervisory Board are
elected for a three year term and may be re-elected.
The Supervisory Board is responsible for the supervision of activities of EPIF and of the Board of Directors in its
management of EPIF and resolves on matters defined in the Czech Corporations Act and the Articles of
Association. The Supervisory Board’s powers include the power to inquire into all documents concerned with the
activities of the EPIF, including inquiries into the EPIF’s financial matters, review of the financial statements and
profit allocation proposals.
No-one is authorised to give the Supervisory Board instructions regarding their review of the Board of Directors
in its management of EPIF. The Supervisory Board shall adhere to the principles and instructions as approved by
the General Meeting of shareholders, provided these are in compliance with legal regulation and the Articles of
Association.
The Supervisory Board constitutes a quorum if at least five members are present at the meeting. In accordance
with the EPIF’s articles of association, if a Supervisory Board meeting fails to constitute a quorum, there shall be
an adjourned meeting within one week after the original meeting (or on another date agreed by the Chairman and
the Vice-Chairman), where the same quorum requirement will apply. If this first adjourned meeting also fails to
constitute a quorum, there shall be a second adjourned meeting on or after the next business day following the
first adjourned meeting, where the presence of at least four Supervisory Board members will constitute a quorum.
Decisions of the Supervisory Board are made by simple majority vote of all Supervisory Board members. Each
Supervisory Board member has one vote. With the consent of all members, per rollam voting is also allowed.
Members of the Supervisory Board as at 31 December 2025 were:
Jan Špringl (chairman)
Martin Gebauer (vice-chairman)
Petr Sekanina (member)
Jiří Feist (member)
Jan Stříteský (member)
Viktor Schuh (member)
Audit Committee
The Audit Committee’s authority and responsibilities are determined by the Czech Act No. 93/2009 Coll., on
Auditors, as amended (the “
Czech Auditors Act
”) and the Articles of Association as well as the Terms of
Reference approved by the General Meeting. The Audit Committee mainly oversees the financial reporting and
risk management of the Company and reviews internal financial controls (including internal audit) and the process
of statutory audit of the Company. The Audit Committee makes recommendations in respect of selection of
external auditor and its remuneration, as well as in respect of policy for awarding non-audit services to external
auditor.
The Audit Committee has three members. Meetings of the Audit Committee are held not less than two times in
each financial year. With the consent of all members,
per rollam
informs the Board of Directors and Supervisory Board about its activities and, with respect to areas within its
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
remit, submits recommendations to the Supervisory Board as it deems appropriate. The Audit Committee adopts
a decision by a majority vote of all its members. The quorum for a meeting of the Audit Committee is a simple
majority of all its members.
Members of the Audit Committee as at 31 December 2025 were:
Václav Moll (chairman)
Gary Wheatley Mazzotti (member)
Jakub Šteinfeld (member)
Risk Committee
EPIF approaches the risk management with due diligence. Market, credit, operational and business risks are
continuously identified and evaluated in terms of the probability of occurrence and extent of possible damage and
reported to the internal Risk Management Committee. The Risk Committee is an advisory body to the Board of
Directors and submits regular reports to the Board of Directors. Existing risks are continuously monitored and
updated. The committee's scope includes, in particular, discussing the Group's identified risks and approving their
management strategy. The Committee also regularly evaluates the overall risk situation of the Group. The aim of
the risk management system is to protect the value of the Group while taking on an acceptable level of risk.
Members of the Risk Committee as at 31 December 2025 were:
Michal Buřil (chairman)
Gary Wheatley Mazzotti (member)
Pavel Horský (member)
Peter Ďurík (member)
Václav Paleček (member)
František Čupr (member)
Jana Cínová (member)
Safety, Health and Environmental Committee
The Safety, Health and Environmental Committee is responsible for developing and overseeing of health and
safety policies and procedures improving work health and safety environment within the Group operations and
monitoring compliance with Group’s health and safety policies. The Safety, Health and Environmental Committee
has seven members. The Safety, Health and Environmental Committee submits regular reports to the Board of
Directors.
Members of the Safety, Health and Environmental Committee as at 31 December 2025 were:
František Kajánek (chairman)
Václav Paleček (member)
Marek Bobák (member)
Martin Kollár (member)
Petr Horák (member)
Tomáš Matula (member)
Gary Wheatley Mazzotti (member)
Green Finance Committee
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
The Green Finance Committee was established in 2023 to select and evaluate projects eligible for green financing
under the EPIF’s Green Finance Framework established in July 2023.
The Members of the
Green Finance Committee as at 31 December 2025 were:
Gary Wheatley Mazzotti (chairman)
Peter Ďurík (member)
Václav Paleček (member)
3)
ESG and sustainability
Throughout 2025, EPIF continued to focus on its performance in the environmental, social and governance
(“ESG”) matters, acknowledging its responsibility for the environment, employees, communities, and all other
stakeholders.
For the year 2025, EPIF reports on its sustainability matters in accordance with the Corporate Sustainability
Reporting Directive. This information is presented in greater detail in the Sustainability statement, which is an
integral part of the EPIF Annual Report.
4)
Other Information
Branches
The EPIF Group has the following organizational units abroad:
●
AISE, s.r.o., organizačná zložka located in Slovakia;
●
EP ENERGY TRADING, a.s., organizačná zložka located in Slovakia
●
EP Cargo a.s., organizačná zložka located in Slovakia
●
Karotáž a cementace s.r.o., organizační složka located in Slovakia
●
NAFTA a.s. – organizační složka located in the Czech Republic
Research and development activities
In 2025, 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 2025, 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.
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
5)
Statutory Declaration by Person Responsible for the EPIF Group 2025 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 2025 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.
In Prague, on 19 March 2026
IV. Report on relations
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
REPORT ON RELATIONS
between the controlling and controlled entities and on relations between the controlled entity and other entities
controlled by the same controlling entity (related entities)
prepared by the Board of Directors of
EP Infrastructure, a.s.
, (“the Company”) with its registered office at
Pařížská 130/26, Josefov, 110 00 Praha 1, ID No: 024 13 507, in accordance with Section 82 of Act No.
90/2012 Coll., on Business Corporations, as amended
(“
the Report
”)
__________________________________________________
I.
Preamble
The Report has been prepared pursuant to Section 82 of Act No. 90/2012 Coll., the Business
Corporations Act, as amended (“
BCA
”).
The Report has been submitted for review to the Company’s Supervisory Board in accordance with
Section 83 (1) of BCA and the Supervisory Board’s position will be communicated to
the Company’s General Meeting deciding on the approval of the Company’s financial statements and
on the distribution of the Company’s profit or the settlement of its loss.
The Report has been prepared for the 2025 reporting period.
II.
Structure of relations between the entities
CONTROLLED ENTITY
The controlled entity is EP Infrastructure, a.s. with its registered office at Pařížská 130/26, Josefov, 110
00, Praha 1, corporate ID: 024 13 507 recorded in the Commercial Register maintained by the Municipal
Court in Prague, File B, Insert 21608.
DIRECTLY CONTROLLING ENTITIES:
EPIF Investments a.s.
Registered office: Pařížská 130/26, Josefov, 110 00 Praha 1,
Czech Republic
Corporate ID: 057 11 452
INDIRECTLY CONTROLLING ENTITIES:
Energetický a průmyslový holding, a.s.
Registered office: Pařížská 130/26, Josefov, 110 00 Praha 1,
Czech Republic
Corporate ID: 283 56 250
EP Group, a.s.
Registered office: Pařížská 130/26, Josefov, 110 00 Praha 1,
Czech Republic
Corporate ID: 086 49 197
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
EP Investment S.à r.l.
Registered office: 2 Place de Paris, L – 2314,
Luxembourg, Luxembourg
Reg. No.: B 184488
OTHER CONTROLLED ENTITIES
The structure of relations between the controlling entity EP Investment S.à r.l. and groups
of controlled entities controlled by this controlling entity is specified in Appendix 1 to
the Report. The appendix, therefore, does not include the complete ownership structure
of EP Investment S.à r.l., nor does it include shareholders holding non-controlling interests.
III.
Role of the controlled entity; method and means of control
Role of the controlled entity
●
strategic management of the development of a group of directly or indirectly controlled entities
●
providing financing and developing financing systems for group entities
●
optimising the services utilised/provided in order to improve the entire group’s performance
●
managing, acquiring and treating the Company’s ownership interests and other assets
Method and means of control
The controlling entities hold a majority share of voting rights in EP Infrastructure, a.s. over which they
exercise a controlling influence.
IV.
Overview of acts made in 2025 pursuant to Section 82 (2) (d) of Act No. 90/2012
Coll., the Business Corporations Act
In 2025, no actions were taken at the initiative or in the interest of the controlling entity in respect of
assets exceeding 10% of the controlled entity’s equity as determined from the most recent financial
statements with the exception of the declaration and payment of dividends.
V.
Overview of agreements concluded by EP Infrastructure, a.s. pursuant to Section
82 (2) (d) of Act No. 90/2012 Coll., the Business Corporations Act
In 2025, the following loan agreements concluded by companies in the EP Infrastructure, a.s.
Group were effective:
On 30 June 2023, a loan agreement was signed between EP Infrastructure, a.s. as the creditor and
Elektrárny Opatovice, a.s. as the debtor.
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
In 2025, the following agreements on the assignment of receivables and the set-off of receivables
and liabilities concluded by companies in the EP Infrastructure, a.s. Group were effective:
On 31 March 2025, an Agreement on the Assignment of Receivables was entered into between EP
Infrastructure, a.s. and EP Energy, a.s.
On 31 March 2025, an Agreement on a Capital Contribution in excess of the Registered Capital was
entered into between EP Infrastructure, a.s. and EP Energy, a.s.
On 31 March 2025, an Agreement on the Set-off of Mutual Receivables was entered into between EP
Infrastructure, a.s. and EP Energy, a.s.
On 1 August 2025, an Agreement on the Set-off of Mutual Receivables was entered into between EP
Infrastructure, a.s. and EP Energy, a.s.
In 2025, the following operating contracts concluded by companies in
the EP Infrastructure, a.s. Group were effective:
Professional Services Agreement signed between AISE, s.r.o. and EP Infrastructure, a.s.
on 12 April 2022.
Data Processing Agreement signed between AISE, s.r.o. and EP Infrastructure, a.s.
on 12 April 2022.
Professional Services Agreement signed between Alternative Energy, s.r.o.
and EP Infrastructure, a.s. on 12 April 2022.
Data Processing Agreement signed between Alternative Energy, s.r.o.
and EP Infrastructure, a.s. on 12 April 2022.
Professional Services Agreement signed between ARISUN, s.r.o. and EP Infrastructure, a.s.
on 12 April 2022.
Data Processing Agreement signed between ARISUN, s.r.o. and EP Infrastructure, a.s.
on 12 April 2022.
Professional Services Agreement signed between Dobrá Energie s.r.o.
and EP Infrastructure, a.s. on 12 April 2022.
Professional Services Agreement, including effective amendments, signed between
Elektrárny Opatovice, a.s. and EP Infrastructure, a.s. on 12 April 2022.
Data Processing Agreement signed between Elektrárny Opatovice, a.s.
and EP Infrastructure, a.s. on 6 September 2022.
Professional Services Agreement signed between EOP Distribuce, a.s.
and EP Infrastructure, a.s. on 12 April 2022.
Professional Services Agreement signed between EP Cargo a.s. and EP Infrastructure, a.s.
on 12 April 2022.
Data Processing Agreement signed between EP Cargo a.s. and EP Infrastructure, a.s.
on 12 April 2022.
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
Professional Services Agreement signed between EP Energy, a.s.
and EP Infrastructure, a.s. on 12 April 2022.
Data Processing Agreement signed between EP Energy, a.s. and EP Infrastructure, a.s.
on 12 April 2022.
Professional Services Agreement signed between EP ENERGY TRADING, a.s.
and EP Infrastructure, a.s. on 12 April 2022.
Data Processing Agreement signed between EP ENERGY TRADING, a.s.
and EP Infrastructure, a.s. on 1 October 2018.
Professional Services Agreement signed between EP Sourcing, a.s. and EP Infrastructure, a.s. on 12
April 2022.
Data Processing Agreement signed between EP Sourcing, a.s. and EP Infrastructure, a.s.
on 12 April 2022.
Professional Services Agreement signed between NAFTA Speicher GmbH & Co. KG
and EP Infrastructure, a.s. on 12 April 2022.
Professional Services Agreement signed between Plzeňská teplárenská a.s.
and EP Infrastructure, a.s. on 12 April 2022.
Data Processing Agreement signed between Plzeňská teplárenská a.s.
and EP Infrastructure, a.s. on 14 September 2022.
Data Processing Agreement signed between Plzeňská teplárenská a.s. and EP Infrastructure, a.s. on 6
September 2022.
Professional Services Agreement signed between POWERSUN a.s. and EP Infrastructure, a.s. on 12
April 2022.
Data Processing Agreement signed between POWERSUN a.s. and EP Infrastructure, a.s.
on 12 April 2022.
Professional Services Agreement signed between POZAGAS a.s. and EP Infrastructure, a.s.
on 12 April 2022.
Data Processing Agreement signed between POZAGAS a.s. and EP Infrastructure, a.s.
on 12 April 2022.
Professional Services Agreement, as amended, signed between Severočeská teplárenská, a.s., and EP
Infrastructure, a.s. on 12 April 2022.
Data Processing Agreement signed between Severočeská teplárenská, a.s.
and EP Infrastructure, a.s. on 1 October 2018.
Professional Services Agreement signed between SPP Storage, s.r.o. and EP Infrastructure, a.s. on 12
April 2022.
Data Processing Agreement signed between SPP Storage, s.r.o. and EP Infrastructure, a.s.
on 9 June 2022.
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
Confidentiality Agreement signed between Stredoslovenská energetika Holding, a.s.
and EP Infrastructure, a.s. on 2 November 2021.
Professional Services Agreement signed between Triskata, s.r.o. and EP Infrastructure, a.s.
on 12 April 2022.
Data Processing Agreement signed between Triskata, s.r.o. and EP Infrastructure, a.s.
on 12 April 2022.
Professional Services Agreement signed between United Energy, a.s. and EP Infrastructure, a.s. on 12
April 2022.
Data Processing Agreement signed between United Energy, a.s. and EP Infrastructure, a.s. on 1 October
2018.
Data Processing Agreement signed between United Energy, a.s. and EP Infrastructure, a.s. on 6
September 2022.
Professional Services Agreement signed between VTE Pchery, s.r.o. and EP Infrastructure, a.s. on 12
April 2022.
Data Processing Agreement signed between VTE Pchery, s.r.o. and EP Infrastructure, a.s.
on 12 April 2022.
Cooperation Agreement signed between EOP Distribuce, a.s., United Energy, a.s., Plzeňská teplárenská,
a.s. and EP Infrastructure, a.s. on 14 December 2022.
In 2025, the following other contracts concluded by companies in
the EP Infrastructure, a.s. Group were effective:
On 1 March 2022, a Master Agreement on the Provision of Guarantees was signed between
EP ENERGY TRADING, a.s. and EP Infrastructure, a.s.
On 1 October 2022, a Master Agreement on the Provision of Guarantees was signed between EP Energy,
a.s. and EP Infrastructure, a.s.
On 7 December 2022, an Agreement on the Distribution of Cash-Pool Benefits under
a Real Mutual Cash-Pooling Arrangement for an Economically Related Group was signed between EP
Infrastructure, a.s., EP Energy, a.s., United Energy, a.s.,
EP ENERGY TRADING, a.s., Elektrárny Opatovice, a.s., EP Sourcing, a.s., EP Cargo a.s.
and AISE, s.r.o.
On 30 April 2024, an Agreement on the Distribution of Cash-Pooling Benefits within the NBL Flexi
Online Real Cash Pooling for an Economically Related Group was signed between EP Infrastructure,
a.s., EP Energy, a.s., United Energy, a.s., EP Cargo a.s., AISE, s.r.o., EP ENERGY TRADING, a.s., EP
Sourcing, a.s., Elektrárny Opatovice, a.s., Severočeská teplárenská, a.s., PT měření, a.s., EOP Distribuce,
a.s., and Dobrá Energie s.r.o.
On 16 September 2024, a Framework Agreement on the Provision of Guarantees was signed between
EP Infrastructure, a.s. and Plzeňská teplárenská, a.s.
On 18 September 2024, a Framework Agreement on the Provision of Guarantees was signed between
EP Infrastructure, a.s. and United Energy, a.s.
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
On 18 September 2024, a Framework Agreement on the Provision of Guarantees was signed between
EP Infrastructure, a.s. and Elektrárny Opatovice, a.s.
On 18 December 2024, a Request for the Accession of a New Party to the Agreement on the Distribution
of Cash-Pooling Benefits within the Real Bilateral Cash Pooling for an Economically Related Group
was signed between EP Infrastructure, a.s. and Plzeňská teplárenská, a.s.
On 18 December 2024, a Request for the Accession of a New Party to the Agreement on the Distribution
of Cash-Pooling Benefits within the NBL Flexi Online Real Cash Pooling for an Economically Related
Group was signed between EP Infrastructure, a.s. and Plzeňská teplárenská, a.s.
On 31 December 2025, a Framework Agreement on the Provision of Guarantees was entered into
between Severočeská teplárenská, a.s. and EP Infrastructure, a.s.
On 31 December 2025, a Framework Agreement on the Provision of Guarantees was entered into
between EOP Distribuce, a.s. and EP Infrastructure, a.s.
In 2025, the following operating contracts concluded by companies in
the Energetický a průmyslový holding, a.s. Group were effective:
Professional Services Agreement signed between EP Investment Advisors, s.r.o.
and EP Infrastructure, a.s. on 28 February 2022.
Data Processing Agreement signed between EP Investment Advisors, s.r.o.
and EP Infrastructure, a.s. on 28 February 2022.
Sublease Agreement signed between EP Investment Advisors, s.r.o. and EP Infrastructure, a.s. on 15
June 2017, including all amendments.
Professional Services Agreement signed between EP Slovakia B.V. and EP Infrastructure, a.s. on 3 April
2017.
Professional Services Agreement signed between Energetický a průmyslový holding, a.s.
as the provider and EP Infrastructure, a.s. as the client on 12 April 2022.
Professional Services Agreement signed between Energetický a průmyslový holding, a.s.
as the client and EP Infrastructure, a.s. as the provider on 12 April 2022.
Data Processing Agreement signed between Energetický a průmyslový holding, a.s.
and EP Infrastructure, a.s. on 12 April 2022.
Professional Services Agreement signed between EP Power Europe, a.s. as the provider
and EP Infrastructure, a.s. as the client on 14 February 2022.
Professional Services Agreement signed between EP Power Europe, a.s. as the client
and EP Infrastructure, a.s. as the provider on 12 April 2022.
Data Processing Agreement signed between EP Power Europe, a.s. and EP Infrastructure, a.s. on 12
April 2022.
VI.
We hereby confirm that this Report on relations between related entities of EP Infrastructure, a.s.,
prepared pursuant to the provisions of Section 82 of Act No. 90/2012 Coll., the Business Corporations
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
Act, for the reporting period from 1 January 2025 to 31 December 2025, includes all information known
as at the date of signing this report, regarding:
●
agreements between related entities
●
performance and counter-performance provided to related entities
●
other juridical acts carried out in the interest of related entities and
●
all measures taken or implemented in the interest or at the initiative of related entities
All transactions between EP Infrastructure, a.s. and the controlling entity or entities controlled by the
same entity were concluded at arm’s length. The Board of Directors of EP Infrastructure, a.s. further
declares that EP Infrastructure, a.s. incurred no damage as a result of the actions
of the controlling entity or any entity controlled by the same entity. The contractual and other relations
with related entities resulted in no loss or financial advantage or disadvantage
to EP Infrastructure, a.s.
In Prague, on 19 March 2026
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
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 2025
Annual Financial Report for the year 2025 – Section V.
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
Content
Consolidated statement of comprehensive income ................................................................ ............................................................. 1
Consolidated statement of financial position ................................................................ ................................................................ ...... 2
Consolidated statement of changes in equity ................................................................ ................................................................ ...... 3
Consolidated statement of cash flows ................................................................ ................................................................ ................. 5
Notes to the consolidated financial statement ................................................................ ................................................................ ..... 6
1. Background ................................................................ ................................................................ .......................................... 6
2. Basis of preparation ................................................................ ................................................................ ............................. 7
3. Material accounting policies ................................................................ ................................................................ .............. 11
4. Determination of fair values ................................................................ ................................................................ .............. 28
5. Operating segments................................ ................................................................ ............................................................ 30
6. Acquisitions and disposals of subsidiaries, joint-ventures and associates ................................ ......................................... 37
7. Revenues ................................................................ ................................................................ ............................................ 38
8. Purchases and consumables ................................................................ ................................................................ ............... 39
9. Services ................................................................ ................................................................ .............................................. 39
10. Personnel expenses ................................................................ ................................................................ ............................ 40
11. Emission rights ................................................................ ................................................................ .................................. 40
12 Other operating income (expenses), net ................................................................ ............................................................. 41
13. Net finance income (expense) ................................................................ ................................................................ ............ 41
14. Income tax expenses ................................................................................................ .......................................................... 42
15. Property, plant and equipment ................................................................ ................................................................ ........... 45
16. Intangible assets (including goodwill) ................................................................ ............................................................... 48
17. Deferred tax assets and liabilities................................ ................................................................ ....................................... 52
18. Inventories ................................................................ ................................................................ ......................................... 54
19. Trade receivables and other assets ................................................................ ................................................................ ..... 55
20. Cash and cash equivalents ................................................................ ................................................................ ................. 55
21. Equity................................ ................................................................ ................................................................ ................. 56
22. Non-controlling interest ................................................................ ................................................................ ..................... 58
23. Loans and borrowings ................................................................ ................................................................ ........................ 60
24. Provisions ................................................................ ................................................................ .......................................... 67
25. Deferred income ................................................................ ................................................................ ................................ 69
26. Financial instruments ................................................................ ................................................................ ......................... 70
27. Trade payables and other liabilities ................................ ................................................................ ................................... 73
28. Commitments and contingencies ................................................................ ................................................................ ....... 73
29. Leases ................................................................ ................................................................ ................................................ 74
30. Risk management ................................................................ ................................................................ ............................... 76
31. Related parties ................................................................ ................................................................ ................................... 92
32. Subsequent events ................................................................ ................................................................ .............................. 93
Appendix – Group entities ................................................................ ................................................................ ................................ 94
Annual Financial Report for the year 2025 – Section V.
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
1
Consolidated statement of comprehensive income | |||
For the year ended 31 December 2025 | |||
In millions of EUR (“MEUR”) | Note | 2025 | 2024 |
Revenues | 7 | ||
Purchases and consumables | 8 | ( | ( |
Subtotal | |||
Services | 9 | ( | ( |
Personnel expenses | 10 | ( | ( |
Depreciation, amortisation and impairment | 15, 16 | ( | ( |
Emission rights, net | 11 | ( | ( |
Own work, capitalized | |||
Other operating income (expenses), net | 12 | ||
Profit from operations | |||
Finance income | 13 | ||
Change in impairment losses on financial instruments and other financial assets | 13 | ||
Finance expense | 13 | ( | ( |
Net finance income (expense) | ( | ( | |
Gain (loss) on disposal of subsidiaries | 6 | ||
Profit before income tax | |||
Income tax expenses | 14 | ( | ( |
Profit for the year | |||
Items that are not reclassified subsequently to profit or loss | |||
Revaluation of property, plant and equipment, net of tax | 15 | ( | |
Items that are or may be reclassified subsequently to profit or loss | |||
Foreign currency translation differences for foreign operations | 14 | ( | |
Effective portion of changes in fair value of cash-flow hedges, net of tax | 14 | ( | |
Other comprehensive income for the year, | ( | ||
Total comprehensive income for the year | |||
Profit attributable to: | |||
Owners of the Company | |||
Non-controlling interest | 22 | ||
Profit for the year | |||
Total comprehensive income attributable | |||
Owners of the Company | |||
Non-controlling interest | |||
Total comprehensive income for the year | |||
Annual Financial Report for the year 2025 – Section V.
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
2
Consolidated statement of financial position | |||
As at 31 December 2025 | Note | 31 December 2025 | 31 December 2024 |
In millions of EUR (“MEUR”) | (restated) | ||
Assets | |||
Property, plant and equipment | 15 | ||
Intangible assets and goodwill | 16 | ||
Equity accounted investees | |||
Restricted cash | |||
Financial instruments and other financial assets | 26 | ||
Trade receivables and other assets | 19 | ||
Prepayments and other deferrals | |||
Deferred tax assets | 17 | ||
Total non-current | |||
Inventories | 18 | ||
Trade receivables and other assets | 19 | ||
Financial instruments and other financial assets | 26 | ||
Prepayments and other deferrals | |||
Current income tax receivable | |||
Cash and cash equivalents | 20 | ||
Restricted cash | |||
Total current assets | |||
Total assets | |||
Equity | |||
Share capital | 21 | ||
Share premium | |||
Reserves | 21 | ( | ( |
Retained earnings | |||
Total equity attributable to equity holders | |||
Non-controlling interest | 22 | ||
Total equity | |||
Liabilities | |||
Loans and borrowings | 23 | ||
Financial instruments and financial liabilities | 26 | ||
Provisions | 24 | ||
Deferred income | 25 | ||
Contract liabilities | |||
Deferred tax liabilities | 17 | ||
Trade payables and other liabilities | 27 | ||
Total non-current | |||
Trade payables and other liabilities | 27 | ||
Contract liabilities | 7 | ||
Loans and borrowings | 23 | ||
Financial instruments and financial liabilities | 26 | ||
Provisions | 24 | ||
Deferred income | 25 | ||
Current income tax liability | 14 | ||
Total current | |||
Total liabilities | |||
Total equity and liabilities | |||
* As of 31 December 2024 the Contract assets of EUR 135 | |||
Annual Financial Report for the year 2025 – Section V.
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
3
Consolidated statement of changes in equity | ||||||||||||
For the year ended 31 December 2025 | ||||||||||||
Attributable to owners of the Company | ||||||||||||
In millions of EUR (“MEUR”) | Note | Share capital | Share premium | Reserves | Retained earnings | Total | Non- controlling interest | Total Equity | ||||
Non- distribu- table reserves | Translatio n reserve | Revalua- tion value reserve | Other capital reserves | Hedging reserve | ||||||||
Balance as at 1 January 2025 (A) | ( | ( | ||||||||||
Total comprehensive income for the year: | ||||||||||||
Profit or loss (B) | ||||||||||||
Other comprehensive income: | ||||||||||||
Foreign currency translation differences for foreign operations | 14 | |||||||||||
Revaluation reserve included in other comprehensive income, | 15 | |||||||||||
Effective portion of changes in fair value of cash-flow hedges, net | 14 | |||||||||||
Total other comprehensive income (C) | ||||||||||||
Total comprehensive income for the year (D) = (B + C) | ||||||||||||
Contributions by and distributions to owners: | ||||||||||||
Dividends to equity holders | 21 | ( | ( | ( | ( | |||||||
Transfer to retained earnings | ( | |||||||||||
Total contributions by and distributions to owners | ( | ( | ( | ( | ( | |||||||
Changes in ownership interests in subsidiaries that do not result in loss of control: | ||||||||||||
Effect of disposed entities | 6 | ( | ||||||||||
Total changes in ownership interests in subsidiaries (F) | ( | |||||||||||
Total transactions with owners (G) = (E + F) | ( | ( | ( | ( | ( | |||||||
Balance at 31 December 2025 (H) = (A + D + G) | ( | |||||||||||
Annual Financial Report for the year 2025 – Section V.
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
4
Consolidated statement of changes in equity | ||||||||||||
For the year ended 31 December 2024 | ||||||||||||
Attributable to owners of the Company | ||||||||||||
In millions of EUR (“MEUR”) | Note | Share capital | Share premium | Reserves | Retained earnings | Total | Non- controlling interest | Total Equity | ||||
Non- distribu- table reserves | Translation reserve | Revalua- tion value reserve | Other capital reserves | Hedging reserve | ||||||||
Balance as at 1 January 2024 (A) | ( | |||||||||||
Profit or loss (B) | ||||||||||||
Foreign currency translation differences for foreign operations | 14 | ( | ( | ( | ( | |||||||
Revaluation reserve included in other comprehensive income, | ( | ( | ( | ( | ||||||||
Effective portion of changes in fair value of cash-flow hedges, net | 14 | ( | ( | ( | ||||||||
Total other comprehensive income (C) | ( | ( | ( | ( | ( | ( | ||||||
Total comprehensive income for the year (D) = (B + C) | ( | ( | ( | |||||||||
Contributions by and distributions to owners: | ||||||||||||
Dividends to equity holders | 21 | ( | ( | ( | ( | |||||||
Transfer to retained earnings | ( | |||||||||||
Total contributions by and distributions to owners | ( | ( | ( | ( | ( | |||||||
Effect of changes in ownership of non-controlling interest | 6 | |||||||||||
Total changes in ownership interests in subsidiaries (F) | ||||||||||||
Total transactions with owners (G) = (E + F) | ( | ( | ( | ( | ( | |||||||
Balance at 31 December 2024 (H) = (A + D + G) | ( | ( | ||||||||||
Annual Financial Report for the year 2025 – Section V.
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
5
Consolidated statement of cash flow | |||
For the year ended 31 December 2025 | |||
In millions of EUR (“MEUR”) | Note | 2025 | 2024 |
OPERATING ACTIVITIES | |||
Profit for the year | |||
Adjustments for: | |||
Income taxes | 14 | ||
Depreciation, amortization and impairment | 15, 16 | ||
Dividend income | 13 | ( | ( |
Impairment losses on financial assets incl. trade receivables | ( | ( | |
Non-cash (gain) loss from commodity derivatives for trading with electricity and gas, net | 7 | ( | |
(Gain) on disposal of property, plant and equipment, investment property intangible assets | 12 | ( | ( |
Emission rights | 11 | ||
(Gain) on disposal of subsidiaries, special purpose entities, joint ventures, associates and non-controlling interests | ( | ||
(Profit) from financial instruments | 13 | ( | ( |
Interest expense, net | 13 | ||
Change in allowance for impairment to inventories and other assets | 12 | ( | |
Change in provisions | ( | ( | |
Unrealized foreign exchange (gains) losses, net | ( | ||
Operating profit before changes in working capital | |||
Purchase and sale of emission rights, net | 11 | ( | ( |
Change in trade receivables and other assets | |||
Change in inventories | |||
Change in trade payables and other liabilities | ( | ||
Change in restricted cash | |||
Cash generated from (used in) operations | |||
Income taxes paid | ( | ( | |
Cash flows generated from (used in) operating activities | |||
INVESTING ACTIVITIES | |||
Received dividends | |||
Loans provided to the other entities | ( | ( | |
Repayment of loans provided to other entities | |||
Proceeds (outflows) from sale (settlement) of financial instruments | |||
Acquisition of property, plant and equipment, investment assets | 15, 16 | ( | ( |
Proceeds from sale of property, plant and equipment, intangible assets | |||
Net cash (outflow) from disposal of subsidiaries and special purpose entities | 6 | ( | |
Interest received | |||
Cash flows from (used in) investing activities | ( | ( | |
FINANCING ACTIVITIES | |||
Proceeds from borrowings received | 23 | ||
Repayment of loans and borrowings | 23 | ( | ( |
Proceeds from bonds issued | 23 | ||
Repayment of bonds issued | 23 | ( | ( |
Finance fees paid for repayment of borrowings and bond issue | ( | ||
Payment of lease liability | 29 | ( | ( |
Interest paid | ( | ( | |
Dividends paid | 21 | ( | ( |
Cash flows from (used in) financing activities | ( | ( | |
Net increase (decrease) in cash and | ( | ||
Cash and cash equivalents at beginning of the period | |||
Effect of exchange rate fluctuations on cash held | ( | ||
Cash and cash equivalents at end of the period | |||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
6
Notes to the consolidated financial statements
1.
Background
is a
, with its registered office at
,
. 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 consolidated financial statements of the Company for the year ended 31 December 2025 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
Appendix 1 – Group entities.
The shareholders of the Company as at 31 December 2025 were as follows:
Interest in share capital | Voting rights | |||||
MEUR | % | % | ||||
EPIF Investments a.s. | 2,241 | 69 | 69 | |||
CEI Investments S.à r.l. | 1,007 | 31 | 31 | |||
Total | 3,248 | 100 | 100 | |||
The shareholders of the Company as at 31 December 2024 were as follows:
Interest in share capital | Voting rights | |||||
MEUR | % | % | ||||
EPIF Investments a.s. | 2,241 | 69 | 69 | |||
CEI Investments S.à r.l. | 1,007 | 31 | 31 | |||
Total | 3,248 | 100 | 100 | |||
EP Infrastructure, a.s. is ultimately owned by EP Investment S. à r.l. with its registered office at 2 Place de
Paris, 2314 Luxembourg.
The members of the Board of Directors of the Company as at 31 December 2025 were:
●
Daniel Křetínský (Chairman of the Board of Directors)
●
Stéphane Brimont (Vice-chairman of the Board of Directors)
●
Gary Wheatley Mazzotti (Vice-chairman of the Board of Directors)
●
William David George Price (Member of the Board of Directors)
●
Marek Spurný (Member of the Board of Directors)
●
Pavel Horský (Member of the Board of Directors)
●
Milan Jalový (Member of the Board of Directors)
Information relating to the establishment of the parent company
and its shareholder structure was disclosed in the 2010 consolidated financial statements of
. 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 – Material 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.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
7
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 the 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 goodwill from acquisition under IFRS 3.
2. Basis of preparation
(a) Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards adopted by the European Union (IFRS ® Accounting Standards).
The consolidated financial statements were approved by the board of directors of the Company on 19 March
2026.
(b) Basis of measurement
The consolidated financial statements have been prepared on a going-concern basis using the historical cost
method, except for the following material items in the statement of financial position, which are measured
at fair value:
●
the gas transmission pipelines and the 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)
Going concern assumption
These consolidated financial statements have been prepared on a going concern basis, which the Group
regularly evaluates in light of developments affecting its operating environment. In performing this
assessment, management considered the ongoing military conflict in Ukraine, the continued interruption of
gas transit through Ukraine to Slovakia, the European Union’s REPowerEU initiative aimed at reducing
dependency on Russian fossil fuels, as well as other relevant geopolitical, regulatory and market
developments affecting the European energy sector.
Management also assessed the Group’s liquidity position, expected operating cash flows, availability of
committed credit facilities and the Group’s recent refinancing activities, including the successful issuance
new debt instruments and repayments of certain borrowings completed after the reporting date. These
factors, together with predominantly regulated and contracted nature of a substantial part of the Group’s
business, support the Group’s ability to meet its obligations as they fall due for at least 12 months from the
date of approval of these financial statements, as required by IAS1.
Management has also taken note of the military escalation involving Iran, which occurred after the reporting
date. Given its timing and the absence of direct operational or financial exposure for the Group,
management concluded that this development does not affect conditions existing at the reporting date and
therefore does not impact the going concern assessment for 2026.
Based on the information available, management has concluded that these events and conditions do not
currently have a material impact on these consolidated financial statements or on the Group’s ability to
continue as a going concern. Nevertheless, further adverse developments in geopolitical, regulatory or
market conditions cannot be ruled out and could, in the future, have a material negative impact on the
Group’s business, financial position, results of operations, cash flows or overall outlook.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
8
(d) Functional and presentation currency
The Company’s functional currency is Euro („EUR“). The consolidated financial statements are prepared
in Euro, which also the Group’s presentation currency. All financial information presented in Euros has
been rounded to the nearest million
(e) Use of estimates and judgements
The preparation of financial statements in accordance with IFRS Accounting Standards requires the use of
certain critical accounting estimates that affect the reported amounts of assets, liabilities, income and
expenses. It also requires management to exercise judgment in the process of applying the Company’s
accounting policies. The resulting accounting estimates will, by definition, seldom equal the related actual
results.
Estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the
period of the revision and future periods if the revision affects both current and future periods.
i.
Assumptions and estimation uncertainties
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a
material adjustment in the following years is included in the following notes:
●
Notes 6, 15 and 16 – Accounting for business combinations, recognition of goodwill/bargain
purchase gain, impairment testing of property, plant and equipment and goodwill;
●
Note 7 – Revenues;
●
Note 15 – Measurement of gas transmission and gas distribution pipelines at revalued amounts;
●
Note 24 – Recognition and measurement of provisions;
●
Notes 23, 26 and 30 – Valuation of loans and borrowings and financial instruments;
●
Note 14 – Pillar Two;
Climate related matters
In preparing these consolidated financial statements, management considered the effects of the Group’s
climate strategy, climate related commitments and regulatory developments and climate risks as described
in Chapter ESRS E1 – Climate Change of the Consolidated Sustainability Statement on key accounting
estimates. These include, where relevant, assumptions regarding future cash flows, discount rates, useful
lives of assets, residual values, expected carbon pricing, which are used in impairment tests and determining
recoverable amounts of gas infrastructure assets and determining provisions for environmental obligations,
and other parameters that may be subject to significant estimation uncertainty due to evolving climate
related risks and transition pathways. These estimates are mainly applied and/or further discussed in Note
– 15 Property, plant and equipment, Note 16 – Intangible assets, Note 24 – Provisions and Note 30 – Risk
management and might have less significant impact also on the other areas.
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 Accounting Standards, 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:
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
9
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable on the market for the asset
or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability might be categorised in different level
of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level
of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period
during which the change has occurred.
ii. Judgements
Information about judgements made in the application of accounting policies that have the most significant
effects on the amounts recognised in the consolidated financial statements is included in the following
notes:
●
Notes 6 and 16 – accounting for business combinations, recognition of goodwill/bargain purchase
gain, impairment testing of goodwill,
●
Note 7 – judgements relating to recognition of revenues from customers;
●
Note 15 – assessment that IFRIC 12 and IFRS 16 is not applicable to the gas transmission and
gas distribution pipelines, power distribution networks, gas storage facilities and heat infra
facilities and distribution network;
●
Note 6 and 22 – information relating to assessment of control over subsidiaries;
●
Note 24 – measurement of defined benefit obligations, recognition and measurement of
provisions;
(f) Recently issued accounting standards
i.
Newly adopted IFRS Accounting Standards, Amendments to standards and Interpretations effective
for the year ended 31 December 2025 that have been applied in preparing the Group’s financial
statements
The following paragraphs provide a summary of the key requirements of IFRS Accounting Standards that
are effective for annual periods beginning on or after 1 January 2025 and that have thus been applied by
the Group for the first time.
Newly adopted IFRS Accounting Standards, Amendments to Standards and Interpretations with no
material impact on the Group’s financial statements:
●
Amendments to IAS 21 – Lack of Exchangeability.
The adoption of this amendment has had no material impact on the disclosures or the amounts reported in
the consolidated financial statements of the Group.
ii.
IFRS Accounting Standards not yet effective
At the date of authorisation of these consolidated financial statements, the following significant
Amendments to IFRS Accounting Standards have been issued but are not yet effective for the period ended
31 December 2025 and thus have not been adopted by the Group:
IFRS 18 – Presentation and Disclosure in Financial Statements (Effective for annual reporting
periods beginning on or after 1 January 2027)
IFRS 18 Presentation and Disclosure in Financial statements applies to all financial statements prepared
and presented in accordance with IFRS and will replace IAS 1 Presentation of Financial Statements. The
new standard introduces three main sets of new requirements with the aim to improve how companies
report financial performance and provide investors with a more useful basis for analysing and comparing
companies:
(a)
Categories for classifying income and expenses in the statement of profit or loss
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
10
Entities are required to classify income and expenses included in the statement of profit or loss into one of
the following categories: operating, investing, financing, income taxes, discontinued operations.
Modifications of the classification requirements are applicable for entities with specified business activities
(banks, investment entities, investment property entities). The standard also requires the presentation of
specified subtotals in the statement of profit or loss.
(b)
Management-defined performance measures (“MPMs”)
MPMs are subtotals of income and expenses that an entity uses in public communication with users of
financial statements to communicate management’s view of an aspect of the financial performance and
that complement totals or subtotals included in IFRSs. Entities disclose information about its MPMs in a
single note, the standard specifies disclosure requirements for each MPM.
(c)
Aggregation and disaggregation of information
The standard introduces principles for aggregation and disaggregation of information and for presenting
information in the primary financial statements or in the notes.
The issuance of IFRS 18 includes amendments to other IFRS standards, among other amendments to IAS 7
Statement of cash flow which removes the presentation alternatives for interest and dividends and uses
operating profit subtotal as the single starting point for the indirect method of reporting cash flows from
operating activities.
The Group is currently reviewing the impact of the new standard to its financial statements and to the
disclosure the Group provides.
New IFRS Accounting Standards, Amendments to Standards and Interpretations that are not
expected to have a significant impact on the Group’s financial statements:
●
IFRS 19 – Subsidiaries without Public Accountability: Disclosures and Amendments to IFRS
19 Subsidiaries without Public Accountability: Disclosures (Effective for annual reporting
periods beginning on or after 1 January 2027 (not adopted by EU yet));
●
Amendments to IFRS 9 and IFRS 7 – Classification and Measurement of Financial Instruments
(Effective for annual reporting periods beginning on or after 1 January 2026);
●
Annual Improvements to IFRS Accounting Standards – Volume 11 (Effective for annual
reporting periods beginning on or after 1 January 2026);
●
Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity
(Effective for annual reporting periods beginning on or after 1 January 2026);
●
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Translation to a
Hyperinflationary Presentation Currency (Effective for annual reporting periods beginning on
or after 1 January 2027 (not adopted by EU yet)).
The Group has not early adopted any new standard and amendments to IFRS Accounting 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.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
11
3. Material 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).
(a
)
Changes in accounting policies
i.
Presentation of unbilled energy supplies
The Group adjusted presentation of unbilled but already delivered energy supplies in consolidated statement
of financial position. Such items previously presented within line item Contract asset have been reclassified
to line item Trade receivables and other assets. Adjusted presentation reflects more appropriately the
transactions as the amount to be billed to customers is only dependent on passage of time.
Comparative information has been adjusted accordingly.
(b) Basis of consolidation
i. Subsidiaries
Subsidiaries are entities controlled by the Parent Company. Control exists when the Parent Company has
power over the investee, exposure to variable returns from its involvement with the investee and is able to
use its power over the 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), any excess of the Group’s share of the net fair value of the identifiable assets and
liabilities over the cost of the investment, after reassessment, is recognised immediately in profit or loss in
the period in which the investment is acquired. The consolidated financial statements include the Group’s
share of the total profit or loss and other comprehensive income of associates from the date that the
significant influence commences until the date that the significant influence ceases. When the Group’s
share of losses exceeds the carrying amount of the associate, the carrying amount is reduced to nil and the
recognition of further losses is discontinued, except to the extent that the Group has incurred obligations in
respect of or has made payments on behalf of the associate.
iii. Accounting for business combinations
The Group acquired its subsidiaries in two ways:
●
As a business combination transaction within the scope of IFRS 3 which requires initial
measurement of assets and liabilities at fair value.
●
As a business combination under common control which is a business combination in which all
of the combining entities or businesses are ultimately controlled by the same party or parties both
before and after the business combination, and that control is not transitory. Such acquisitions are
excluded from the scope of IFRS 3. The assets and liabilities acquired were recognised at the
carrying amounts recognised previously in the Group’s controlling shareholder’s consolidated
financial statements (i.e. value at cost as at the date of acquisition less accumulated depreciation
and/or potential impairment). No new goodwill or bargain purchase gain 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, except for deferred tax assets and liabilities, assets or liabilities related to employee benefits and
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
12
assets/disposal groups classified as held for sale under IFRS 5, which are recognized and measured in
accordance with the respective standards.
Purchase price or any form of consideration transferred in a business combination is also measured at fair
value. Contingent consideration is measured at fair value at the date of acquisition and subsequently
remeasured at fair value at each reporting date, with changes in fair value recognized in profit or loss.
Acquisition related costs are recognized in profit or loss as incurred.
iv. Non-controlling interests
Acquisitions of non-controlling interest are accounted for as transactions with equity holders in their
capacity as equity holders and therefore no goodwill and no gain or loss is recognised as a result of such
transactions.
Non-controlling interests are measured at their proportionate share of the acquiree’s identifiable net assets
at acquisition date.
Changes in the Group’s interest in subsidiary that do not result in a loss of control are accounted for as
equity transactions.
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 are aligned 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 scope of IFRS 3,
which defines recognition of goodwill raised from business combination as the excess of the cost of an
acquisition over the fair value of the Group’s share of the net identifiable assets, liabilities and contingent
liabilities of the acquired subsidiary. Acquirees under common control are treated under the net book value
presented in the consolidated financial statements of Energetický a průmyslový holding, a.s. (i.e. including
historical goodwill less potential impairment) as at the date these entities were acquired by Energetický a
průmyslový holding, a.s. (acquisition date). The difference between the cost of acquisition and carrying
values of net assets of the acquiree and original goodwill carried forward as at the acquisition date were
recorded to consolidated equity as pricing differences. Pricing differences are presented in Other capital
reserves in Equity. “Note 6 – Acquisitions and disposals of subsidiaries, joint-ventures and associates”
summarises the effects of all common control transactions in both periods.
viii. Disposal of subsidiaries and equity accounted investees
Gain or loss from the sale of investments in subsidiaries and equity accounted investees is recognised in
profit or loss when the significant risks and rewards of ownership have been transferred to the buyer.
If the assets and liabilities are sold by selling the interest in a subsidiary or an associate the profit or loss on
sale is recognised in total under Gain (loss) on disposal of subsidiaries 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 acquisition (refer to Note 3(b) vii – Pricing differences), pricing differences
are reclassified from other capital reserves to retained earnings at the date of the subsidiary’s disposal.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
13
(c) Foreign currency
i.
Foreign currency transactions
Items included in the financial statements of each of the Group’s entities are measured using the currency
of the primary economic environment in which the entity operates (the functional currency). Company’s
functional currency is Euro. Transactions in foreign currencies are translated to the respective functional
currencies of Group entities at the foreign exchange rate at the transaction date. The consolidated financial
statements are prepared and presented in Euro, which is both the functional and presentation currency.
Monetary assets and liabilities denominated in foreign currencies are retranslated to the respective
functional currencies of Group entities at the exchange rate at the reporting date.
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 30
– Risk management.
ii.
Translation to presentation currency
These consolidated financial statements are prepared in Euro. The assets and liabilities of foreign
operations, including goodwill and fair value adjustments arising on consolidation, are translated into Euro
at foreign exchange rates at the reporting date. The income and expenses of foreign operations are translated
into Euro using average exchange rate for the period. For significant transactions the exact foreign exchange
rate is used.
Foreign exchange differences arising on translation of foreign operations are recognised in other
comprehensive income and presented in the translation reserve in equity. However, if the foreign operation
is a non-wholly owned subsidiary, then the relevant proportion of the translation difference is allocated to
non-controlling interests. At disposal, relevant part of translation reserve is recycled to income statement
and included in gain/(loss) from disposal of subsidiaries in the consolidated 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
●
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 SPPI test and business model test are classified by the Group as financial asset at
amortised cost.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
14
A
debt instruments
at fair value through other comprehensive income
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
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
.
These investments are not held for trading, but rather for long-term purposes and thus the Group has elected
not to present the changes in the fair value of these investments in profit or loss.
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.
ii.
Recognition
Financial assets are recognised on the date the Group becomes party to the contractual provision of the
instrument.
iii.
Measurement
Upon initial recognition, financial assets are measured at fair value plus, in the case of a financial instrument
not at fair value through profit or loss, transaction costs directly attributable to the acquisition of the
financial instrument. Attributable transaction costs relating to financial assets measured at fair value
through profit or loss are recognised in profit or loss as incurred. For the methods used to estimate fair
value, refer to Note 4 – Determination of fair values.
Financial assets at FVtPL are subsequently measured at fair value, with net gains and losses, including any
dividend income, recognised in profit or loss.
Debt instruments at FVOCI are subsequently measured at fair value. Interest income calculated using
effective interest rate method, foreign exchange gains and losses and impairment are recognised in profit
or loss. Other gains and losses are recognised in other comprehensive income and reclassified to profit or
loss upon derecognition of the asset.
Equity instruments at FVOCI are subsequently measured at fair value. Dividends are recognised in profit
or loss in finance income. 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. Effective interest rate is the rate that exactly discounts estimated future cash payments or receipts
through the expected life of the financial asset or liability to the gross carrying amount of a financial asset
or to the amortized cost of a financial liability. Interest income, foreign exchange gains and losses,
impairment and any gain or loss on derecognition are recognised in profit or loss.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
15
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.
Cash flow hedges and fair value hedges
The Group has adopted hedge accounting requirements as per IFRS 9. 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.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
16
In the case of a fair value hedge, the hedged item is remeasured for changes in fair value attributable to the
hedged risk during the period of the hedging relationship. Any resulting adjustment to the carrying amount
of the hedged item related to the hedged risk is recognised in profit or loss, except for the financial asset –
equity instrument at FVOCI, for which the gain or loss is recognised in other comprehensive income.
In the case of a fair value hedge, the gain or loss from re-measuring the hedging instrument at fair value is
recognised in profit or loss.
Transactions with emission rights and energy
According to IFRS 9, certain contracts for emission rights and energy fall into the scope of the standard.
Purchase and sales contracts entered into by the Group provide for physical delivery of quantities intended
for consumption or sale as part of its ordinary business. Such contracts are thus excluded from the scope of
IFRS 9.
In particular, forward purchases and sales settled by delivery of the underlying are considered to fall outside
the scope of application of IFRS 9, when the contract concerned is considered to have been entered into as
a part of the Group’s normal business activity. This is demonstrated to be the case when all the following
conditions are fulfilled:
●
delivery of the underlying takes place under such contracts;
●
the volumes purchased or sold under the contracts correspond to the Group’s operating
requirements;
●
the Group does not have a practice of settling similar contracts net in cash or another financial
instrument or by exchanging financial instrument;
●
the Group does not have a practice of taking delivery of the underlying and selling it within a
short period after delivery for the purpose of generating a profit from short-term fluctuation in
price or dealer’s margin.
Contracts, which does not meet above mentioned conditions, fall under the scope of IFRS 9 and are
accounted for in line with the requirements of IFRS 9.
For each contract where own-use exemption applies, the Group determines whether the contract leads to
physical settlement in accordance with Group’s expected purchase, sale or usage requirements. The Group
considers all relevant factors including the quantities delivered under the contract and the corresponding
requirements of the entity, the delivery locations, the duration between contract signing and delivery and
the existing procedure followed by the entity with respect to contracts of this kind.
Contracts which fall under the scope of IFRS 9 are carried at fair value with changes in the fair value
recognised in profit or loss.
(g) Cash and cash equivalents
Cash and cash equivalents comprise cash balances on hand and in banks, and short-term highly liquid
investments with original maturities of three months or less.
(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.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
17
(i) Impairment
i. Non-financial assets
The carrying amounts of the Group’s assets, other than inventories (refer to accounting policy (h) –
Inventories) and deferred tax assets (refer to accounting policy (o) – Income taxes) are reviewed at each
reporting date to determine whether there is an objective evidence of impairment. If any such indication
exists, the asset’s recoverable amount is estimated. For goodwill and intangible assets that have an
indefinite useful life or that are not yet available for use, the recoverable amount is estimated at least each
year at the same time.
The recoverable amount of an asset or cash-generating unit (CGU) is the greater of its fair value less costs
to sell and value-in-use. In assessing value-in-use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessment of the time value of
money and the risks specific to the asset or CGU.
For the purpose of impairment testing, assets that cannot be tested individually are grouped together into
the smallest group of assets that generates cash inflows from continuing use that are largely independent of
the cash inflows of other assets or groups of assets (the “cash-generating unit”, or “CGU”). For the purposes
of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level
at which impairment is tested reflects the lowest level at which goodwill is monitored for internal reporting
purposes and is not larger than operating segment before aggregation. Goodwill acquired in a business
combination is allocated to groups of CGUs that are expected to benefit from the synergies of the
combination.
An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit
exceeds its recoverable amount. Impairment losses are recognised in profit or loss.
Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any
goodwill allocated to the CGU or CGUs, and then to reduce the carrying amounts of the other assets in the
CGU (or group of CGUs) on a
pro rata
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses
recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased
or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s
carrying amount does not exceed the carrying amount that would have been determined, net of depreciation
or amortisation, if no impairment loss had been recognised.
Goodwill that forms part of the carrying amount of an investment in an associate is not recognised
separately and therefore is not tested for impairment separately. Instead, the entire amount of the investment
in an associate is tested for impairment as a single asset when there is objective evidence that the investment
in an associate may be impaired.
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 measures loss allowances at an amount equal to lifetime ECLs.
Financial assets 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
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
18
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;
(b) the Group negotiates with the debtor in a financial difficulty about debt’s restructuring;
(c) the probability of default 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).
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 (e.g. a financial asset is overdue for more than 90
days, insolvency or similar proceedings have been initiated with the debtor, the probability of default of the
borrower increases by 100% compared to the previous rating).
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
The gas transmission pipelines of eustream, a.s. and the gas distribution pipelines in SPP – distribúcia, a.s.
are held under revaluation model (IAS 16). The assets are carried at revalued amount, which is fair value
at the date of revaluation less accumulated subsequent depreciation and impairment. Revaluation is made
with sufficient regularity, at least every 5 years. Revaluation is always applied to the entire class of property,
plant and equipment the revalued asset belongs to.
Initial revaluation as at the date of initial application of revaluation model, the difference between carrying
amount and revalued amount is recognized as revaluation surplus directly in equity if revalued amount is
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
19
higher than carrying amount. Difference is recognized in profit or loss if revalued amount is lower than
carrying amount.
On subsequent revaluation, increase in revalued amount is recognized in other comprehensive income or
in profit or loss to the extend it reverses a revaluation decrease of the same asset previously recognized in
profit or loss. The decrease in revalued amount primarily decreases amount accumulated as revaluation
surplus in equity, eventual remaining part of decrease in revalued amount is recognized in profit or loss.
Accumulated depreciation is eliminated against gross carrying amount of the asset.
Deferred tax asset or liability is recognized in equity or in profit or loss in the same manner as the
revaluation itself.
When asset under revaluation model is depreciated, revaluation surplus is released to retained earnings as
the asset is depreciated. When the revalued asset is derecognized or sold, the revaluation surplus as a whole
is transferred to retained earnings.
iii.
Free-of-charge received property
Several items of gas and electricity equipment (typically connection terminals) were obtained “free of
charge” from developers and from local authorities (this does not represent a grant, because in such cases
the local authorities act in the role of a developer). This equipment was recorded as property, plant, and
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 incurred to add to, replace part of, or service a previously recognized item of property,
plant and equipment are capitalized and recognized as part of the item of property, plant and equipment
only if it is probable that the future economic benefits associated with these costs will flow to the entity and
they 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 in which case the right-of-use asset should be depreciated from the commencement
date to the end of the useful life of the underlying asset.
The estimated useful lives are as follows:
●
Power plant buildings and structures 50 – 100 years
●
Buildings and structures 20 – 50 years
●
Gas transmission and distribution pipelines 30 – 70 years
●
Machinery, electric generators, gas producers, turbines and drums 20 – 30 years
●
Heat and electricity distribution networks 10 – 30 years
●
Machinery and equipment 4 – 20 years
●
Fixtures, fittings and other 3 – 20 years
Depreciation methods and useful lives, as well as residual values, are reassessed annually at the reporting
date. For companies acquired under IFRS 3 for which a purchase price allocation was prepared, the useful
lives are reassessed based on the purchase price allocation process.
(k) Intangible assets
i. Goodwill and intangible assets acquired in a business combination
Goodwill represents the excess of the consideration transferred, amount of any non-controlling interest in
the acquired entity and acquisition-date fair value of any previous equity interest in the acquired entity over
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
20
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 (bargain purchase gain) is recognised in profit and loss account in the period of acquisition.
Upon acquisition of non-controlling interests (while maintaining control), no goodwill is recognised.
Subsequent to initial recognition, goodwill is measured at cost less accumulated impairment losses (refer
to accounting policy (i) – Impairment) and is tested for impairment annually.
Gains and losses on 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 the development and to use or
sell the asset.
In 2025 and 2024, 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
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
21
A grant is initially recognised as deferred income and recognised in profit on a systematic basis over the
compliance period, which is the relevant calendar year, regardless of whether the allowance received
continues to be held by the entity. The pattern for the systematic recognition of the deferred income in profit
is assessed based on estimated pollutants emitted in the current month, taking into account the estimated
coverage of the estimated total annually emitted pollutants by allocated emission rights. The release of
deferred income to a profit and loss account is performed on a quarterly basis; any subsequent update to
the estimate of total annual pollutants is taken into account during the following monthly or quarterly
assessment. Any disposals of certificates or changes in their carrying amount do not affect the manner in
which grant income is recognised.
Recognition, measurement of provision
A provision is recognised regularly during the year based on the estimated number of tonnes of CO2
emitted.
It is measured at the best estimate of the expenditure required to settle the present obligation at the end of
the reporting period. It means that the provision is measured based on the current carrying amount of the
certificates on hand if sufficient certificates are owned to settle the current obligation, by using a FIFO
method. The group companies identify (in each provision measurement period) which of the certificates
are “marked for settling” the provision and this allocation is consistently applied.
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
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
22
obligation. Changes in estimates are generally recognised in profit or loss at the date of the change in
estimate (see below).
i. Employee benefits
Long-term employee benefits
Liability relating to long-term employee benefits and service awards excluding pension plans is defined as
an amount of the future payments, to which employees will be entitled in return for their service in the
current and prior periods. Future liability which is calculated using the projected unit credit method is
discounted to its present value. The discount rate used is based on yields of high-quality corporate bonds
as at the end of the reporting period, which maturity approximately corresponds with the maturity of the
future obligation. The revaluation of the net liability from long-term employee benefits and service awards
(including actuarial gains and losses) is recognised in full immediately in other comprehensive income.
Contributions for pension insurance resulting from Collective agreement are expensed when incurred.
Pension plans
In accordance with IAS 19, the projected unit credit method is the only permitted actuarial method. The
benchmark (target value) applied to measure defined benefit pension obligations is the present value of
vested pension rights of active and former employees and beneficiaries (present value of the defined benefit
obligation). In general it is assumed that each partial benefit of the pension commitment is earned evenly
from commencement of service until the respective due date.
If specific plan assets are established to cover the pension payments, these plan assets can be netted against
the pension obligations and only the net liability is shown. The valuation of existing plan assets is based on
the fair value at the balance sheet date in accordance with IAS 19.
Assets used to cover pension obligations that do not fully meet the requirement of plan assets have to be
carried as assets on the balance sheet. Any netting off against the liability to be covered will not apply in
this respect.
The Group recognises all actuarial gains and losses arising from benefit plans immediately in other
comprehensive income and all expenses related to the defined benefit plan in profit or loss.
The Group recognises gains and losses on the curtailment or settlement of a benefit plan when the
curtailment or settlement occurs. The gain or loss on curtailment or settlement comprises any resulting
change in the fair value of plan assets, any change in the present value of the defined benefit obligation,
any related actuarial gains and losses and past service costs that had not been previously recognised.
Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the
related service is provided. A provision is recognised for the amount expected to be paid under short-term
cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this
amount as a result of past service provided by the employee and the obligation can be estimated reliably.
ii. Provision for lawsuits and litigations
Settlement of a lawsuit represents an individual potential obligation. Determining the best estimate either
involves expected value calculations, where possible outcomes, stated based on a legal study, are weighted
by their likely probabilities or it is the single most likely outcome, adjusted as appropriate to consider risk
and uncertainty.
iii. Provision for emission rights
A provision for emission rights is recognised regularly during the year based on the estimated number of
tonnes of CO2 emitted. It is measured at the best estimate of the expenditure required to settle the present
obligation at the reporting date.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
23
iv. Restructuring
A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring
plan, and the restructuring either has commenced or has been announced publicly. Future operating costs
are not provided for.
v. Asset retirement obligation and provision for environmental remediation
Certain property, plant and equipment of conventional and renewable power plants and gas storage facilities
have to be dismantled and related sites have to be restored at the end of their operational lives. These
obligations are the result of prevailing environmental regulations in the countries concerned, contractual
agreements, or an implicit Group commitment.
Obligations arising from the decommissioning or dismantling of property, plant and equipment are
recognised in connection with the initial recognition of the related assets, provided that the obligation can
be reliably estimated. The carrying amounts of the related items of property, plant and equipment are
increased by the same amount that is subsequently amortised as part of the depreciation process of the
related assets.
A change in the estimate of a provision for the decommissioning and restoration of property, plant and
equipment is generally recognised against a corresponding adjustment to the related assets, with no effect
on profit or loss. If the related items of property, plant and equipment have already been fully depreciated,
changes in the estimate are recognised in profit or loss.
No provisions are recognised for contingent asset retirement obligations where the type, scope, timing and
associated probabilities cannot be determined reliably.
Provisions for environmental remediation in respect of contaminated sites are recognised when the site is
contaminated and when there is a legal or constructive obligation to remediate the related site.
Provisions are recognised for the following restoration activities:
●
dismantling and removing structures;
●
abandonment of production, exploration and storage wells;
●
dismantling operating facilities;
●
closure of plant and waste sites; and
●
restoration and reclamation of affected areas.
The entity records the present value of the provision in the period in which the obligation is incurred. The
obligation generally arises when the asset is installed or the environment is disturbed at the production
location. When the liability is initially recognised, the present value of the estimated costs is capitalised by
increasing the carrying amount of the related assets. Over time, the discounted liability is increased to
reflect the change in the present value based on the discount rates that reflect current market assessments
and the risks specific to the liability. The periodic unwinding of the discount is recognised in profit or loss
as a finance cost.
All the provisions for environmental remediation and asset retirement obligation are presented under
Provision for restoration and decommissioning.
vi. Onerous contracts
A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from
a contract are lower than the unavoidable costs of meeting its obligations under the contract. The provision
is measured at the present value of the lower of the expected cost of terminating the contract and the
expected net cost of continuing with the contract. Before a provision is established, the Group recognises
any impairment loss on the assets associated with that contract.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
24
(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.
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.
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
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
25
service fee is separated from the lease payments. Service fee is recognised as a current expense in statement
o
f 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.
Renewal options
The Group has applied judgement to determine the lease term for some lease contracts in which it is a lessee
that include renewal options. The assessment of whether the Group is reasonably certain to exercise such
options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use
assets recognised.
(n) Revenue
i. Revenues from contracts with customers
The Group applies a five-step model to determine when to recognise revenue, and at what amount. The
model specifies that revenue should be recognised when (or as) an entity transfers control of goods or
services to a customer at the amount to which the entity expects to be entitled. Depending on the criteria
for meeting the performance obligation, the revenue is recognised:
●
over time, in a manner that depicts the entity’s performance; or
●
at a point in time, when control of the goods or services is transferred to the customer.
Sales transactions usually contain variable consideration and usually do not contain significant financing
component. Certain sales transactions contain also non-cash consideration.
The Group has identified following main sources of Revenue in scope of IFRS 15 (for complete source of
Group’s revenues refer to Note 7 – Revenues, for more information on contracts with customers refer to
Note 5 – Operating segments):
●
Revenues from 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 retail customers advance payments are required in
general based on historical consumption, those are settled when the actual supplied volumes are known.
While commercial 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.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
26
●
Gas and electricity infrastructure services
The Group provides services connected with the infrastructure by providing transmission or distribution
of energy products or by providing storage capacities. Some of these services include ship-or-pay clauses
(at gas transmission business) and store-or-pay clauses (at gas storage business), which reserve daily or
monthly capacity for the customer with corresponding billing. The revenues from all these contracts are
recognised over the time of contract. As the Group fulfils 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 and heat
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 might be 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 at the date of transaction.
The Group has evaluated that the several items of gas and electricity equipment (typically connection
terminals) obtained “free of charge” from developers and from local authorities does not represent a grant
(because in such cases the local authorities act in the role of a developer) and do not constitute a distinct
performance obligation. This equipment is recorded as property, plant, and equipment at the costs incurred
by the developers and local authorities with a corresponding amount recorded as contract liability as receipt
of the free of charge property is related to obligation to distribute energy to the customers (a non-cash
consideration). These costs approximate the fair value of the obtained assets.
ii. Derivatives where the underlying asset is a commodity
Cash-settled contracts and contracts that do not qualify for the application of the own-use exemption are
regarded as trading derivatives.
The following procedure applies to other commodity and financial derivatives that are not designated as
hedging derivatives and are not intended for the sale of electricity from the Group’s sources, for delivery
to end customers or for consumption as a part of the Group’s ordinary business (the own-use exemption is
not applied).
At the date of the financial statements, trading derivatives are measured at fair value. The change in fair
value is recognised in profit or loss. The measurement effect for commodity derivatives with emission
rights is included in line item “Emission rights, net”.
iii. Rental income
Rental income from investment property is recognised in profit or loss on a straight-line basis over the term
of the lease.
(o) Government grants
Government grants are recognised initially at fair value as deferred income when there is reasonable
assurance that they will be received and that the Company will comply with the conditions associated with
the grant. Grants that compensate the Company for expenses incurred are recognised in profit or loss on a
systematic basis in the same periods in which the expenses the grant is intended to compensate are
recognised. Grants that compensate the Company for the cost of an asset are recognised in profit or loss on
a systematic basis over the useful life of the asset.
(p) Finance income and costs
i. Finance income
Finance income comprises interest income on funds invested, dividend income, changes in the fair value
of financial assets at fair value through profit or loss, foreign currency gains, gains on sale of investments
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
27
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.
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) Segment reporting
Due to the fact that the Group has issued debentures (Senior Secured Notes) 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.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
28
4. Determination of fair values
Several 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
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
discounted) amount. When the income approach is used, the fair value measurement reflects current market
expectations about those future amounts.
Cost approach
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 – the gas transmission pipeline owned and operated by
eustream, a.s. (“Eustream”) and the 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 30 June 2024 for Eustream and as at 1 January 2023 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 assets. In general, the replacement cost
method was used and the indexed historical cost method for assets where reproductive rates were not
available. By determining the fair value of individual assets with the cost approach, physical deterioration,
plus technological and economic obsolescence of assets was acknowledged.
The assumptions used in the revaluation model are based on the reports of the independent appraisers. The
resulting reported amounts of these assets and the related revaluation surplus of assets do not necessarily
represent the value in which these assets could or will be sold. There are uncertainties about future economic
conditions, geopolitics, changes in technology, trends and preferences in terms of environmental
sustainability and the competitive environment within the industry, which could potentially result in future
adjustments to estimated revaluations and useful lives of assets that can significantly modify the reported
financial position and profit. For further information, refer to Note 15 – Property, plant and equipment.
(b)
Intangible assets
The fair value of intangible assets recognised as a result of a business combination is based on the
discounted cash flows expected to be derived from the use or eventual sale of the assets.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
29
(c)
Inventories
The fair value of inventories acquired in a business combination is determined based on the estimated
selling price in the ordinary course of business less the estimated costs of completion and sale, and a
reasonable profit margin based on the effort required to complete and sell the inventories.
(d)
Non-derivative financial assets
The fair value of financial assets at fair value through profit or loss, debt and equity instruments at FVOCI
and financial assets at amortized cost is based on their quoted market price at the reporting date without
any deduction for transaction costs. If a quoted market price is not available, the fair value of the instrument
is estimated by management using pricing models or discounted cash flows techniques.
Where discounted cash flow techniques are used, estimated future cash flows are based on management’s
best estimates and the discount rate is a market-related rate at the reporting date for an instrument with
similar terms and conditions. Where pricing models are used, inputs are based on market-related measures
at the reporting date.
The fair value of trade and other receivables is estimated as the present value of future cash flows,
discounted at the market rate of interest at the reporting date.
The fair value of trade and other receivables and of financial assets at amortized cost is determined for
disclosure purposes only.
(e)
Non-derivative financial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future
principal and interest cash flows, discounted at the market rate of interest at the reporting date. For finance
leases the market rate of interest is determined by reference to similar lease agreements.
(f)
Derivatives
The fair value of forward electricity and gas contracts is based on their listed market price, if available. If
a listed market price is not available, then fair value is estimated by discounting the difference between the
contractual forward price and the current forward price for the residual maturity of the contract using a risk-
free interest rate (based on zero coupon rates).
The fair value of interest rate swaps is based on broker quotes or internal valuations based on market prices.
Those quotes or valuations are tested for reasonableness by discounting estimated future cash flows based
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.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
30
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, with Group management
monitoring the performance of each entity through monthly management reporting. Operating segments
are aggregated into four reportable segments mainly based on the nature of the services provided. A
description of each segment is provided in the following paragraphs. Each reportable segment aggregates
entities with similar economic characteristics (type of services provided, commodities involved and
regulatory environment), except for the Gas transmission segment, which includes only a single entity.
Internal reports used by the EPIF’s “chief operating decision maker” (Board of Directors) to allocate
resources and assess performance are aligned with these reportable segments. Major indicators used by the
Board of Directors to measure these segments’ performance are Underlying EBITDA and CAPEX.
Transfer prices between operating segments are on an arm’s-length basis in a manner similar to transactions
with third parties.
i.
The Gas and power distribution segment consists of the Power distribution division, the Gas distribution
division and the Supply division. The Power distribution division distributes electricity in the central region
of Slovakia, while the Gas distribution division is responsible for the distribution of natural gas, covering
almost the entire gas distribution network in Slovakia. The Supply division primarily supplies power and
natural gas to end-consumers in the Czech Republic and Slovakia. This segment is mainly represented by
Stredoslovenská energetika Holding, a.s. (further “SSE”), Stredoslovenská distribučná, a.s. (further
“SSD”), SPP – distribúcia, a.s. (further “SPPD”), EP ENERGY TRADING, a.s. (further “EPET”), and
Dobrá Energie s.r.o.
The companies SPPD and SSD, which provide the distribution of natural gas and power, respectively, are
required by law to provide non-discriminatory access to the distribution network. Prices are subject to
review and approval by the Regulatory Office for Network Industries (“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 Western European countries. All key tariff parameters are set
for a given regulatory period of five years, with the current regulatory period having started in January
2023.
Revenue from sales of electricity and gas is recognised when the electricity and gas are delivered to the
customer. With respect to SSE, RONI regulates certain aspects of SSE’s relationships with its customers
including the pricing of electricity, gas and services provided to certain SSE customers. Prices of electricity
and gas for households and small business are regulated by RONI, while prices for wholesale customers
are not regulated. In the Czech Republic, prices for end-consumers in supply activities are typically not
regulated.
EPET and SSE are involved in buying and selling power. Selling includes transactions in the wholesale
electricity market for power generated by the Group within its Heat Infra Business. Buying involves the
procurement of electricity and natural gas to meet customer demand as part of the division’s supply
activities. Most of the Group's transactions are conducted on a back-to-back basis.
ii.
Gas transmission
The Group’s Gas Transmission Business is operated through Eustream, which is the owner and operator of
one of the main European gas pipelines and is the only gas transmission system operator in the Slovak
Republic. The transmission network of Eustream has a unique position, supplying gas to Central European
2
Underlying EBITDA represents the profit (loss) for the year before income tax expenses, finance expense, finance income, change in impairment losses on
financial instruments and other financial assets, share of profit (loss) of equity accounted investees, net of tax, gain (loss) on disposal of subsidiaries,
bargain purchase gain and depreciation, amortisation and impairment
3
statement of cash flows of the Group
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
31
and Southern European gas markets, irrespective of the gas source and flow patterns. It is also the largest
and historically most used natural gas import route to Ukraine from Western Europe.
Eustream generates revenue primarily by charging tariffs for the transmission of gas through its pipelines.
Shippers are obliged to pay the capacity fees for the booked capacity irrespective of whether such capacity
is utilised by the shipper as all contracts, regardless of duration, are based on a 100 per cent. ship-or-pay
principle.
The transmission fees are based on a floating tariff for all entry and exit points, enabling tariff adjustments
in the event of significant changes in economic parameters, even for existing contracts (this change will not
apply to existing long-term contracts that have a fixed operating schedule). In addition to the transmission
fees, network users are required to provide gas in-kind for operational needs, predominantly as a fixed
percentage of commercial gas transmission volume at each entry and exit point. The network users may
agree with Eustream to provide gas in-kind in a financial form. Gas for operational needs covers, among
other things, the energy needs for the operation of compressors and the gas balance differences related to
the measurement of gas flows. As Eustream is legally responsible for network balance, it sells any gas in-
kind it has received that is not consumed. Since the volume of gas in-kind is variable, any revenue from
this mandatory sale of residual gas in-kind is also variable.
iii.
Gas storage
The Gas storage segment is represented by NAFTA a.s., POZAGAS a.s., NAFTA Germany GmbH and its
subsidiaries and SPP Storage, s.r.o., which store natural gas primarily under long-term contracts in
underground storage facilities located in
.
The Group stores natural gas at two locations in Slovakia and the
, and at three locations in
Germany. Additionally, NAFTA a.s. and POZAGAS a.s. sell a part of their storage capacity at the Austrian
Virtual Trading Point and pay entry-exit fees related to access to the Austrian market. Storage facilities
play a pivotal role in ensuring the security of gas supply by accommodating injection, withdrawal, and
storage of natural gas based on seasonal demand, in compliance with relevant legislation. Capacities are
also utilized to capitalize on short-term market volatility in gas prices, allowing for effective management
and optimization in response to fluctuations. The bulk of storage capacity is reserved through long-term
contracts. The pricing mechanisms differ, incorporating either adjustments for inflation along with standard
price revision clauses, or formulas based on actual market spreads. All contracts are subject to a store-or-
pay obligation.
iv.
Heat Infra
The Heat Infra segment comprises entities engaged in the production and distribution of heat in the Czech
Republic. The segment includes Plzeňská teplárenská, a.s. (“PLTEP”), EOP Distribuce, a.s. (“EOP HN”),
and Severočeská teplárenská, a.s. (“ST”), which continue to operate within the Group as key district heating
and combined heat and power providers.
Until 31 March 2025, the segment also included Elektrárny Opatovice, a.s., United Energy, a.s., EP
Sourcing, a.s. and EP Cargo a.s. These entities were divested on that date as part of the Group’s strategic
refocusing on regulated and long-term contracted infrastructure assets. Accordingly, their financial
performance is reflected within segment disclosures only for the period up to the date of disposal (see Note
6).
Other
The Other operations mainly represent three solar power plants and one wind farm in the Czech Republic
and two solar power plants and a biogas facility in Slovakia. Other entities included in the segment are EP
Infrastructure, a.s., EP Energy, a.s., Slovak Gas Holding B.V., SPP Infrastructure, a.s. and Czech Gas
Holding Investment B.V.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
32
Profit or loss | ||||||||
For the year ended 31 December 2025 | ||||||||
In millions of EUR | Gas and power distribution | Gas transmission | Gas storage | Heat Infra | Total segments | Other | Inter-segment eliminations | Consolidated financial information |
Revenues: Energy and related services | 2,345 | 244 | 270 | 318 | 3,177 | 2 | (131) | 3,048 |
external revenues | 2,335 | 244 | 234 | 233 | 3,046 | 2 | - | 3,048 |
of which: Electricity | 1,574 | - | - | 23 | 1,597 | 2 | - | 1,599 |
761 | 244 | 234 | - | 1,239 | - | - | 1,239 | |
- | - | - | 210 | 210 | - | - | 210 | |
inter-segment revenues | 10 | - | 36 | 85 | 131 | - | (131) | - |
Revenues: Logistics and freight services | - | - | - | 7 | 7 | - | - | 7 |
external revenues | - | - | - | 7 | 7 | - | - | 7 |
inter-segment revenues | - | - | - | - | - | - | - | - |
Revenues: Other | 20 | - | 4 | 29 | 53 | 11 | - | 64 |
external revenues | 20 | - | 4 | 29 | 53 | 11 | - | 64 |
inter-segment revenues | - | - | - | - | - | - | - | - |
Gain (loss) from commodity derivatives net | (4) | - | - | - | (4) | - | - | (4) |
Total revenues | 2,361 | 244 | 274 | 354 | 3,233 | 13 | (131) | 3,115 |
Purchases and consumables: Energy and related | (1,543) | (35) | (9) | (139) | (1,726) | (3) | 95 | (1,634) |
external Purchases and consumables | (1,457) | (33) | (8) | (133) | (1,631) | (3) | - | (1,634) |
inter-segment Purchases and consumables | (86) | (2) | (1) | (6) | (95) | - | 95 | - |
Total Purchases and consumables | (1,543) | (35) | (9) | (139) | (1,726) | (3) | 95 | (1,634) |
Services | (127) | (8) | (39) | (40) | (214) | (5) | 36 | (183) |
Personnel expenses | (156) | (31) | (43) | (33) | (263) | (8) | - | (271) |
Depreciation, amortisation and impairment | (252) | (115) | (35) | (31) | (433) | (3) | - | (436) |
Emission rights, net | - | - | (1) | (58) | (59) | - | - | (59) |
Operating work capitalized to fixed assets | 31 | 1 | 6 | 1 | 39 | - | - | 39 |
Other operating income (expense), net | 6 | - | 3 | 3 | 12 | (1) | - | 11 |
Profit (loss) from operations | 320 | 56 | 156 | 57 | 589 | (7) | - | 582 |
Finance income | 19 | 9 | 7 | 7 | 42 | * 437 | * (451) | 28 |
external finance income | 12 | 9 | 4 | - | 25 | 3 | - | 28 |
inter-segment finance income | 7 | - | 3 | 7 | 17 | * 434 | * (451) | - |
Finance expense | (13) | (20) | (6) | (4) | (43) | (69) | 22 | (90) |
Net finance income (expense) | 6 | (11) | 1 | 3 | (1) | 368 | (429) | (62) |
Gain (loss) on disposal of subsidiaries | - | - | - | - | - | 103 | - | 103 |
Profit (loss) before income tax | 326 | 45 | 157 | 60 | 588 | * 464 | * (429) | 623 |
Income tax expenses | (82) | (11) | (41) | (11) | (145) | (3) | - | (148) |
Profit (loss) for the year | 244 | 34 | 116 | 49 | 443 | * 461 | * (429) | 475 |
* | ||||||||
Other financial information: | ||||||||
Underlying EBITDA (1) | 572 | 171 | 191 | 88 | 1,022 | (4) | - | 1,018 |
(1) accounted investees, net of tax, gain (loss) |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
33
For the year ended 31 December 2024 | ||||||||
In millions of EUR | Gas and power distribution | Gas transmission | Gas storage | Heat Infra | Total segments | Other | Inter-segment eliminations | Consolidated financial information |
Revenues: Energy and related services | 2,429 | 483 | 347 | 418 | 3,677 | 5 | (252) | 3,430 |
external revenues | 2,398 | 483 | 312 | 232 | 3,425 | 5 | - | 3,430 |
of which: Electricity | 1,632 | - | - | 44 | 1,676 | 5 | - | 1,681 |
766 | 483 | 312 | - | 1,561 | - | - | 1,561 | |
- | - | - | 188 | 188 | - | - | 188 | |
inter-segment revenues | 31 | - | 35 | 186 | 252 | - | (252) | - |
Revenues: Logistics and freight services | - | - | - | 46 | 46 | - | - | 46 |
external revenues | - | - | - | 46 | 46 | - | - | 46 |
inter-segment revenues | - | - | - | - | - | - | - | - |
Revenues: Other | 19 | - | 8 | 22 | 49 | 8 | (1) | 56 |
external revenues | 19 | - | 8 | 22 | 49 | 8 | (2) | 55 |
inter-segment revenues | - | - | - | - | - | - | 1 | 1 |
Gain (loss) from commodity and freight | 49 | - | - | - | 49 | - | - | 49 |
Total revenues | 2,497 | 483 | 355 | 486 | 3,821 | 13 | (253) | 3,581 |
Purchases and consumables: Energy and related | (1,663) | (31) | (12) | (143) | (1,849) | (3) | 217 | (1,635) |
external Purchases and consumables | (1,477) | (16) | (10) | (129) | (1,632) | (3) | - | (1,635) |
inter-segment Purchases and consumables | (186) | (15) | (2) | (14) | (217) | - | 217 | - |
Total Purchases and consumables | (1,663) | (31) | (12) | (143) | (1,849) | (3) | 217 | (1,635) |
Services | (126) | (9) | (31) | (81) | (247) | (6) | 37 | (216) |
Personnel expenses | (149) | (31) | (39) | (54) | (273) | (7) | - | (280) |
Depreciation, amortisation and impairment | (245) | (112) | (28) | (53) | (438) | (3) | - | (441) |
Emission rights, net | - | - | (1) | (115) | (116) | - | - | (116) |
Operating work capitalized to fixed assets | 28 | 1 | 2 | 2 | 33 | - | - | 33 |
Other operating income (expense), net | 10 | - | 4 | - | 14 | (1) | (1) | 12 |
Profit (loss) from operations | 352 | 301 | 250 | 42 | 945 | (7) | - | 938 |
Finance income | 29 | 19 | 15 | 11 | 74 | * 546 | * (542) | 78 |
external finance income | 21 | 19 | 7 | 4 | 51 | 27 | - | 78 |
inter-segment finance income | 8 | - | 8 | 7 | 23 | * 519 | * (542) | - |
Change in impairment losses on financial instruments assets | 2 | - | (1) | - | 1 | - | - | 1 |
Finance expense | (15) | (35) | (7) | (5) | (62) | (91) | 45 | (108) |
Net finance income (expense) | 16 | (16) | 7 | 6 | 13 | 455 | (497) | (29) |
Profit (loss) before income tax | 368 | 285 | 257 | 48 | 958 | * 448 | * (497) | 909 |
Income tax expenses | (145) | (117) | (68) | (12) | (342) | (12) | - | (354) |
Profit (loss) for the year | 223 | 168 | 189 | 36 | 616 | * 436 | * (497) | 555 |
* | ||||||||
Other financial information: | ||||||||
Underlying EBITDA (1) | 597 | 413 | 278 | 95 | 1,383 | (4) | - | 1,379 |
(1) accounted investees, net of tax, gain (loss) |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
34
Underlying EBITDA reconciliation to the closest IFRS measure
The underlying EBITDA reconciles to the profit as follows:
For the year ended 31 December 2025 | ||||||||
In millions of EUR | Gas and power distribution | Gas transmission | Gas storage | Heat Infra | Total segments | Other | Inter-segment eliminations | Consolidated financial information |
Underlying EBITDA | 572 | 171 | 191 | 88 | 1,022 | (4) | - | 1,018 |
Depreciation, amortisations and impairment* | (252) | (115) | (35) | (31) | (433) | (3) | - | (436) |
Finance income | 19 | 9 | 7 | 7 | 42 | 437 | (451) | 28 |
Change in impairment losses on financial instruments assets | - | - | - | - | - | - | - | - |
Finance expense | (13) | (20) | (6) | (4) | (43) | (69) | 22 | (90) |
Gain (loss) on disposal of subsidiaries | - | - | - | - | - | 103 | - | 103 |
Income tax | (82) | (11) | (41) | (11) | (145) | (3) | - | (148) |
Profit (loss) for the year | 244 | 34 | 116 | 49 | 443 | 461 | (429) | 475 |
* | ||||||||
For the year ended 31 December 2024 | ||||||||
In millions of EUR | Gas and power distribution | Gas transmission | Gas storage | Heat Infra | Total segments | Other | Inter-segment eliminations | Consolidated financial information |
Underlying EBITDA | 597 | 413 | 278 | 95 | 1,383 | (4) | - | 1,379 |
Depreciation, amortisations and impairment* | (245) | (112) | (28) | (53) | (438) | (3) | - | (441) |
Finance income | 29 | 19 | 15 | 11 | 74 | 546 | (542) | 78 |
Change in impairment losses on financial instruments assets | 2 | - | (1) | - | 1 | - | - | 1 |
Finance expense | (15) | (35) | (7) | (5) | (62) | (91) | 45 | (108) |
Income tax | (145) | (117) | (68) | (12) | (342) | (12) | - | (354) |
Profit (loss) for the year | 223 | 168 | 189 | 36 | 616 | 436 | (497) | 555 |
* million. |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
35
Segment assets and liabilities | ||||||||
For the year ended 31 December 2025 | ||||||||
In millions of EUR | Gas and power distribution | Gas transmission | Gas storage | Heat Infra | Total reportable segments | Other | Inter- segment eliminations | Consolidated financial information |
Reportable segment assets | 6,039 | 3,983 | 919 | 544 | 11,485 | 767 | (448) | 11,804 |
Reportable segment liabilities | (2,189) | (1,559) | (329) | (123) | (4,200) | (3,102) | 448 | (6,854) |
Additions to tangible and intangible assets (1) | 169 | 3 | 27 | 90 | 289 | 7 | - | 296 |
Acquisition of property, plant and equipment, investment property and intangible assets (excl. emission rights, right-of- use assets and goodwill) | 143 | 2 | 25 | 64 | 234 | 7 | - | 241 |
Equity accounted investees | 1 | - | - | - | 1 | - | - | 1 |
(1) | ||||||||
For the year ended 31 December 2024 | ||||||||
In millions of EUR | Gas and power distribution | Gas transmission | Gas storage | Heat Infra | Total reportable segments | Other | Inter-segment eliminations | Consolidated financial information |
Reportable segment assets | 6,204 | 4,529 | 992 | 980 | 12,705 | 1,059 | (1,168) | 12,596 |
Reportable segment liabilities | (2,294) | (2,146) | (350) | (361) | (5,151) | (3,092) | 1,168 | (7,075) |
Additions to tangible and intangible assets (1) | 151 | 4 | 24 | 194 | 373 | 2 | - | 375 |
Acquisition of property, plant and equipment, investment property and intangible assets (excl. emission rights and goodwill) | 130 | 3 | 20 | 89 | 242 | 2 | - | 244 |
Equity accounted investees | 1 | - | - | - | 1 | - | - | 1 |
(1) |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
36
Information about geographical areas
In presenting information based on geography, segment revenue is based on the geographical location of
delivery of goods and services and segment assets are based on the geographical location of the assets.
As of the year ended 31 December 2025 | |||||||
In millions of EUR | Czech Republic | Slovakia | Germany | Total | |||
Property, plant and equipment | 342 | 8,763 | 137 | 9,242 | |||
Intangible assets and goodwill | 125 | 49 | 1 | 175 | |||
Total | 467 | 8,812 | 138 | 9,417 | |||
For the year ended 31 December 2025 | |||||||
In millions of EUR | Czech Republic | Slovakia | Germany | Other* | Total | ||
Revenues: Electricity | 634 | 962 | - | 3 | 1,599 | ||
Revenues: Gas | 199 | 732 | 55 | 253 | 1,239 | ||
Revenues: Heat | 210 | - | - | - | 210 | ||
Revenues: Logistics and freight services | 3 | - | 3 | 1 | 7 | ||
Revenues: Other | 39 | 25 | - | - | 64 | ||
Gain (loss) from commodity derivatives for trading with electricity and gas, net | (4) | - | - | - | (4) | ||
Total | 1,081 | 1,719 | 58 | 257 | 3,115 | ||
* France and the United Kingdom. | |||||||
As of the year ended 31 December 2024 | |||||||
In millions of EUR | Czech Republic | Slovakia | Germany | Total | |||
Property, plant and equipment | 605 | 8,961 | 154 | 9,720 | |||
Intangible assets and goodwill | 236 | 46 | 2 | 284 | |||
Total | 841 | 9,007 | 156 | 10,004 | |||
For the year ended 31 December 2024 | |||||||
In millions of EUR | Czech Republic | Slovakia | Germany | Other* | Total | ||
Revenues: Electricity | 659 | 972 | - | 50 | 1,681 | ||
Revenues: Gas | 200 | 983 | 67 | 311 | 1,561 | ||
Revenues: Heat | 188 | - | - | - | 188 | ||
Revenues: Logistics and freight services | 16 | 1 | 22 | 7 | 46 | ||
Revenues: Other | 31 | 22 | 2 | 1 | 56 | ||
Gain (loss) from commodity derivatives for trading with electricity and gas, net | 49 | - | - | - | 49 | ||
Total | 1,143 | 1,978 | 91 | 369 | 3,581 | ||
* United Kingdom. | |||||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
37
6. Acquisitions and disposals of subsidiaries, joint-ventures and associates
(a)
Acquisitions and step-acquisitions
i.
31 December 2025 and 2024
There were no significant acquisitions or step-acquisitions in 2025 and in 2024.
(b
)
Disposal of investments
i.
31 December 2025
On 31 March 2025, the Group disposed 100% interest in Elektrárny Opatovice, a.s., United Energy, a.s.,
EP Sourcing, a.s. and EP Cargo a.s. This strategic disposal allows EPIF to concentrate on its core
infrastructure activities, with the majority of its revenue being regulated and/or long term contracted. In
particular, the Heat Infra segment of EPIF will now mainly focus on delivering heat to its customers,
procured from the disposed assets based on long-term heat delivery contracts.
In millions of EUR | Date of disposal | Equity interest disposed | Equity interest after disposal | |
% | % | |||
Subsidiaries disposed | ||||
Elektrárny Opatovice, a.s. | 31/3/2025 | 100 | - | |
United Energy, a.s. | 31/3/2025 | 100 | - | |
EP Sourcing, a.s. | 31/3/2025 | 100 | - | |
EP Cargo a.s. | 31/3/2025 | 100 | - |
There were no other significant disposals during the period.
The effect of disposal is provided in the following table, with disposed assets presented as negative
amounts and liabilities as positive amounts:
In millions of EUR | Net assets sold in the year ended 31 December 2025 | |
Property, plant and equipment | (307) | |
Intangible assets | (96) | |
Trade receivables and other assets | (40) | |
Inventories | (23) | |
Cash and cash equivalents | (113) | |
Current income tax receivable | (2) | |
Deferred tax asset | (1) | |
Provisions | 126 | |
Deferred tax liabilities | 16 | |
Loans and borrowings | 15 | |
Trade payables and other liabilities | 49 | |
Deferred income | 20 | |
Current income tax payable | 2 | |
Net identifiable assets and liabilities | (354) | |
GW not yet written off | (13) | |
Translation difference recycled to OCI | (3) | |
Net assets value disposed (A) | (370) | |
Total consideration | 473 | |
of which settled in cash (C) | 17 | |
Cash and cash equivalents disposed of (D) | (113) | |
Net cash inflows/(outflows) (C+D) | (96) | |
Gain (loss) on disposal (A+B) | 103 | |
The Group assessed whether the disposal of Elektrárny Opatovice, a.s., United Energy, a.s., EP Sourcing,
a.s. and EP Cargo a.s. on 31 March 2025 met the criteria for classification as a disposal group or
discontinued operation under IFRS 5. The disposal does not represent a separate major line of business or
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
38
geographical area of operations, as the Group continues to operate its Heat Infra activities through other
significant subsidiaries. In addition, the assets and liabilities of the entities were not available for immediate
sale in their present condition nor marketed as a disposal group. Accordingly, the disposal was not classified
as a disposal group held for sale or as a discontinued operation under IFRS 5.
ii.
31 December 2024
There were no disposals in 2024.
7
.
Revenues
In millions of EUR | 2025 | 2024 | ||
Revenues: Energy and related services | ||||
1,599 | 1,681 | |||
1,239 | 1,561 | |||
210 | 188 | |||
Total Energy | 3,048 | 3,430 | ||
Revenues: Logistics and freight services | 7 | 46 | ||
Revenues: Other | 64 | 56 | ||
Total revenues | 3,119 | 3,532 | ||
Gain (loss) from commodity derivatives for trading with electricity and gas, net | (4) | 49 | ||
Total | 3,115 | 3,581 |
For disaggregation of revenue based on type of service and based on geographical area refer to Note 5 –
Operating segments.
Revenues from contracts with customers are recognised in accordance with IFRS 15 when control of the
promised goods or services is transferred to the customer.
Revenues Energy and related services: Gas consists primarily of revenue from gas transmission of EUR
244 million (2024: EUR 483 million), from distribution of gas of EUR 518 million (2024: EUR 512 million)
and gas storage of EUR 234 million (2024: EUR 312 million).
Revenues Energy and related services: Electricity consists primarily of sale of electricity of EUR 1,236
million (2024: EUR 1,286 million) and distribution of electricity of EUR 338 million (2024: EUR 377
million).
In 2025 and 2024 no revenue was recognised from performance obligations satisfied (or partially satisfied)
in previous periods.
Total revenues less total purchase and consumables are presented in line “Subtotal” in the statement of
comprehensive income.
Deferred income related to grid connection fees collected and free-of-charge non-current assets transferred
from customers.
Several items of gas equipment (typically connection terminals) were obtained “free of charge” from
developers and from local authorities (this does not represent a grant, because in such cases the local
authorities act in the role of a developer). This equipment was recorded as property, plant, and equipment
at the costs incurred by the developers and local authorities with a corresponding amount recorded as
contract liability as receipt of the free of charge property is related to obligation to provide services to the
customers in the future periods. These costs approximate the fair value of the obtained assets. This contract
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
39
liability is released in the statement of comprehensive income on a straight-line basis in the amount of
depreciation charges of non-current tangible assets acquired free of charge.
Contract liabilities
Contract liabilities primarily relate to not invoiced part of fulfilled performance obligation, received
payments for services and goods where control over the assets was not transferred to customer. The whole
amount of EUR 108 million recognised in current contract liabilities at the beginning of the period has been
recognised as revenue during the year 2025.
8. Purchases and consumables
In millions of EUR | 2025 | 2024 | ||
Purchase cost of sold electricity | 1,204 | 1,207 | ||
Purchase cost of sold gas and other energy products | 249 | 218 | ||
Consumption of fuel and other material | 153 | 143 | ||
Other purchase costs | 20 | 54 | ||
Consumption of energy | 6 | 9 | ||
Changes in WIP, | (1) | 1 | ||
Other | 3 | 3 | ||
Total Purchases | 1,634 | 1,635 |
Purchases and consumables presented in the above table contains only cost of purchased energy and
purchased materials consumed in the course of the Group´s operations, while it does not contain directly
attributable overhead (particularly personnel expenses, depreciation and amortisation, repairs and
maintenance, emission rights, taxes and charges etc.), which are presented separately.
9. Services
In millions of EUR | 2025 | 2024 | ||
Repairs and maintenance | 46 | 51 | ||
Outsourcing and other administration fees | 33 | 37 | ||
Information technologies costs | 16 | 15 | ||
Network fees | 15 | 6 | ||
Advertising expenses | 13 | 14 | ||
Consulting expenses | 12 | 17 | ||
Transport expenses | 10 | 32 | ||
Rent expenses | 9 | 18 | ||
Industrial waste | 4 | 5 | ||
Insurance expenses | 4 | 4 | ||
Communication expenses | 4 | 3 | ||
Training, courses, conferences | 1 | 1 | ||
Security services | 1 | 1 | ||
Other | 15 | 12 | ||
Total | 183 | 216 |
The year-on-year decrease in services was driven primarily by lower transport and rental expenses,
reflecting the disposal of certain Heat Infra entities during the year (for more information see Note – 6).
Fees payable to statutory auditors
In millions of EUR | 2025 | 2024 | ||
Statutory audits | 2 | 2 | ||
Total | 2 | 2 |
The overview is based on an aggregation of fees paid or payable to statutory auditors by the Group. The
fees are recorded in 100% amount by all subsidiaries, associates and joint-ventures. Statutory audits include
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
40
fees payable for statutory audits of financial statements. Services in addition to the Statutory audit include
primarily the following services:
●
Review of the condensed interim consolidated financial statements;
●
CSRD assurance service;
●
Expert opinion on R&D allowance;
●
Provision of Comfort letter
●
Other special reports (AUP over Slovak FS, Review report).
10. Personnel expenses
In millions of EUR | 2025 | 2024 | ||
Wages and salaries | 184 | 191 | ||
Compulsory social security contributions | 67 | 69 | ||
Board members’ remuneration (including boards of subsidiaries and joint- ventures) | 4 | 4 | ||
Expenses and revenues related to employee benefits (IAS 19) | 2 | 2 | ||
Other social expenses | 14 | 14 | ||
Total | 271 | 280 |
The average number of employees during 2025 was 5,342 (2024: 5,800), of which 69 were executives
(2024: 76).
11. Emission rights
In millions of EUR | 2025 | 2024 | ||
Deferred income (grant) released to profit and loss | (6) | (9) | ||
Creation and release of provision for emission rights | 65 | 125 | ||
Use of provision for emission rights | 37 | 178 | ||
Consumption of emission rights | (37) | (178) | ||
Total | 59 | 116 |
The decrease of emission rights cost is caused primarily by the disposal of United Energy a.s. and
Elektrárny Opatovice a.s. during 2025. The average market price of 1 piece of emission allowance changed
from 70.09 EUR/piece in 2024 to 71.71 EUR/piece in 2025.
4
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
41
12. Other operating income (expense), net
In millions of EUR | 2025 | 2024 | ||
Property acquired free-of-charge and fees from customers | 6 | 6 | ||
Rental income | 9 | 7 | ||
Compensation from insurance and other companies | 2 | 4 | ||
Profit on disposal of tangible and intangible assets | 5 | 4 | ||
Consulting fees | 4 | 2 | ||
Contractual penalties | 2 | 3 | ||
Other* | 9 | 11 | ||
Other operating income | 37 | 37 | ||
Impairment losses | (1) | 4 | ||
Of which relates to: | (1) | 4 | ||
Office equipment and other material | (10) | (9) | ||
Taxes and charges | (6) | (6) | ||
Consulting expenses | (3) | (3) | ||
Shortages and damages | (1) | (1) | ||
Gifts and sponsorship | (2) | (2) | ||
Creation, reversal of provision | 3 | - | ||
Contractual penalties | - | (2) | ||
Other* | (6) | (6) | ||
Other operating expense | (26) | (25) | ||
Other operating income (expense), net | 11 | 12 | ||
* Other consists of miscellaneous items. No individual value exceeds EUR 1 million. | ||||
No material research and development expenses were recognised in profit and loss for the year ended
31 December 2025 and 31 December 2024.
13. Net finance income (expense)
Recognised in profit or loss | ||||
In millions of EUR | 2025 | 2024 | ||
Interest income | 28 | 62 | ||
Dividend income | 5 | 3 | ||
Profit from trading derivatives | 1 | 8 | ||
Profit (loss) from hedging derivatives | - | 2 | ||
Profit (loss) from sale of financial assets | 1 | (3) | ||
Net foreign exchange profit (loss) | (7) | 6 | ||
Total finance | 28 | 78 | ||
Change in impairment on financial assets | - | 1 | ||
Total change in impairment on financial assets | - | 1 | ||
Interest expense | (77) | (95) | ||
Interest expense from unwind of provision discounting | (6) | (6) | ||
Fees and commissions expense for other services | (7) | (7) | ||
Total finance | (90) | (108) | ||
Net finance income (expense) | (62) | (29) | ||
(1) While all derivatives are for risk management purposes, a portion of them does not meet accounting criteria for recognition as hedging instruments under IFRS 9 as further described under Note 3f. | ||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
42
14. Income tax expenses
Income taxes recognized in profit or loss | ||||
In millions of EUR | 2025 | 2024 | ||
Current taxes: | ||||
Current year | (200) | (280) | ||
Adjustment for prior periods | 1 | (3) | ||
Withholding tax | (2) | (4) | ||
Total current | (201) | (287) | ||
Deferred taxes: | ||||
Origination and reversal of temporary differences | 53 | (67) | ||
Total deferred | 53 | (67) | ||
Total income | (148) | (354) | ||
(1) For details refer to Note 17 – Deferred tax assets and liabilities |
Balance of current income tax liability in amount of EUR 37 million (2024: EUR 107 million) is mainly
represented by SPP – distribúcia, a.s of EUR 11 million (2024: EUR 8 million), eustream, a.s. of EUR 9
million (2024: EUR 56 million), NAFTA a.s. of EUR 6 million (2024: EUR 0 million), NAFTA Germany
GmbH of EUR 4 million (2024: EUR 15 million), Dobrá Energie s.r.o. of EUR 3 million (2024: EUR 4
million), Stredoslovenská energetika Holding, a.s. of EUR 1 million (2024: EUR 7 million), EP ENERGY
TRADING, a.s. of EUR 1 million (2024: EUR 4 million) and EP Infrastructure, a.s. of EUR 0 million
(2024: EUR 8 million).
Deferred taxes are calculated using currently enacted tax rates expected to apply when the asset is realised
or the liability settled. According to Czech legislation the corporate income tax rate is 21% for fiscal year
2025 (21% for 2024). The Slovak corporate income tax rate is 24% for fiscal year 2025 (24% for 2024).
The German federal income tax rate is 27% for fiscal year 2025 (27% for 2024). Current year income tax
line includes also a special sector tax effective in Slovakia.
Top-up tax
The Group is within the scope of the OECD Pillar Two model rules starting from and including 2024.
In a nutshell, the Pillar Two rules provide that, if in certain jurisdictions where the Group operates the
effective tax rate (given by the ratio between adjusted accounting result and adjusted corporate income
taxes in the jurisdiction) falls below 15%, the Group will be required to pay an additional tax (so-called
top-up tax) to reach the 15% tax rate threshold.
The relevant set of rules also provides for a transition period in which the in-scope groups may avoid
undergoing the complex effective tax rate calculation required by the new piece of legislation. In particular,
the Pillar Two legislation provides for a transitional safe harbor (“TSH”) that is available for the 2025
period. TSH relies on simplified calculations, mainly based on data extracted from the Country-by-Country
Reporting under BEPS Action 13 and three types of alternative tests. In any jurisdiction where the Group
operates and the TSH test is satisfied, the top-up tax due for such jurisdiction will be deemed to be zero.
The Group has performed an assessment of its potential exposure for Pillar Two top-up taxes in 2025. The
assessment relies on the most recent information available regarding the financial performance of the
Group’s entities. This includes the 2024 Country-by-Country Reporting and available preliminary financial
data for 2025.
Based on the assessment performed, most jurisdictions where the Group has operations should benefit from
the TSH. For countries where the Group might not benefit from the TSH, the Group has provisionally
calculated the potential top-up tax exposure. Based on the provisional calculation, the Group would not be
subject to top-up tax in any jurisdiction where it operates.
The above analysis has to be considered as an estimated exposure as the indicative calculation is based on
complex regulations that have only recently been enacted (and are still subject to amendments in various
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
43
jurisdictions) with limited guidelines and not all relevant data available to perform the full Pillar Two
calculation.
In relation to deferred taxes, the Group continues to apply a temporary mandatory exemption from deferred
tax accounting impact and neither recognizes nor discloses information about deferred tax related to Pillar
Two income taxes. The Group at the same time continues to monitor developments in the Pillar Two
legislation.
Income tax recognised in other comprehensive income | ||||
In millions of EUR | 2025 | |||
Gross | Income tax | Net of income tax | ||
Items that are or may be reclassified subsequently to profit or loss | ||||
Foreign currency translation differences for foreign operations | 31 | - | 31 | |
Effective portion of changes in fair value of cash-flow hedges (1) | 14 | (1) | 13 | |
Total | 45 | (1) | 44 | |
(1) as it is not relevant to the financial statements of the Group. | ||||
In millions of EUR | 2024 | |||
Gross | Income tax | Net of income tax | ||
Items that are not reclassified subsequently to profit or loss | ||||
Revaluation reserve included in other comprehensive income | (35) | (104) | (139) | |
Items that are or may be reclassified subsequently to profit or loss | ||||
Foreign currency translation differences for foreign operations | (19) | - | (19) | |
Effective portion of changes in fair value of cash-flow hedges (1) | 11 | (21) | (10) | |
Total | (43) | (125) | (168) | |
(1) as it is not relevant to the financial statements of the Group. | ||||
The foreign currency translation differences related to non-controlling interest are other comprehensive income attributable to non-controlling | ||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
44
Reconciliation of the effective tax rate | ||||||
In millions of EUR | 2025 | 2024 | ||||
% | % | |||||
Profit before tax | 623 | 909 | ||||
Income tax using the Company’s domestic rate (21%) | 21.00% | 131 | 21.00% | 191 | ||
Regulated industry tax (1) | 3.37% | 21 | 3.41% | 31 | ||
Effect of tax rates in foreign jurisdictions | 2.41% | 15 | 0.22% | 2 | ||
Change in tax rate (2) | (1.12%) | (7) | 11.99% | 109 | ||
Non-deductible expenses (3) | 2.57% | 16 | 2.64% | 24 | ||
Non-taxable income (4) | (4.65%) | (29) | (0.55%) | (5) | ||
Withholding tax, income tax adjustment for prior period | 0.32% | 2 | 0.88% | 8 | ||
Current period adjustment for deferred tax recognition in prior period | (0.16%) | (1) | - | - | ||
Recognition of previously unrecognized tax losses | - | - | (0.22%) | (2) | ||
Current year losses for which no deferred tax asset was recognized | - | - | 0.11% | 1 | ||
Change in temporary differences for which no deferred tax asset is recorded | - | - | (0.55%) | (5) | ||
Income taxes recognised in profit or loss for continuing operations | 23.74% | 148 | 38.93% | 354 | ||
(1) EUR 2 million (2024: EUR 10 million), SPP - distribúcia, (2024: EUR 5 million), Stredoslovenská distribučná, a.s. of EUR 3 million (2024: EUR 2 million). | ||||||
(2) | ||||||
(3) | ||||||
(4) EUR 103 million. | ||||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
45
15. Property, plant and equipment
In millions of EUR | Land and buildings (1) | Gas transmission pipelines - fair value model | Gas distribution pipelines - fair value model | Technical equipment, plant and machinery (1) | Other equipment, fixtures and fittings | Under construction | Advanced payments | Total | |
Cost or revaluation | Level 3 | Level 3 | |||||||
Balance at 1 January 2025 | 2,258 | 3,453 | 4,152 | 2,155 | 16 | 167 | 47 | 12,248 | |
Effects of movements in foreign exchange | 17 | - | - | 16 | - | 2 | - | 35 | |
Additions | 57 | - | 14 | 32 | - | 133 | 21 | 257 | |
Disposals | (7) | - | (12) | (40) | - | - | (1) | (60) | |
Disposed entities | (202) | - | - | (475) | - | (79) | (35) | (791) | |
Transfers | 32 | 3 | 31 | 38 | - | (78) | (26) | - | |
Change in provision recorded in PP&E | (15) | - | - | - | - | - | - | (15) | |
Balance at 31 December 2025 | 2,140 | 3,456 | 4,185 | 1,726 | 16 | 145 | 6 | 11,674 | |
Depreciation and impairment losses | |||||||||
Balance at 1 January 2025 | (929) | (38) | (330) | (1,209) | (6) | (16) | - | (2,528) | |
Effects of movements in foreign exchange | (8) | - | - | (12) | - | - | - | (20) | |
Depreciation charge for the year | (67) | (93) | (171) | (87) | - | - | - | (418) | |
Disposals | 6 | - | 12 | 39 | - | - | - | 57 | |
Disposed entities | 138 | - | - | 343 | - | 3 | - | 484 | |
Impairment losses recognized in profit or loss | (4) | - | - | (4) | - | 1 | - | (7) | |
Transfer | 2 | - | - | (2) | - | - | - | - | |
Balance at 31 December 2025 | (862) | (131) | (489) | (932) | (6) | (12) | - | (2,432) | |
Carrying amounts | |||||||||
At 1 January 2025 | 1,329 | 3,415 | 3,822 | 946 | 10 | 151 | 47 | 9,720 | |
At 31 December 2025 | 1,278 | 3,325 | 3,696 | 794 | 10 | 133 | 6 | 9,242 | |
(1) Including right-of-use assets | |||||||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
46
In millions of EUR | Land and buildings (1) | Gas transmission pipelines - fair value model | Gas distribution pipelines - fair value model | Technical equipment, plant and machinery (1) | Other equipment, fixtures and fittings | Under construction | Advanced payments | Total | |
Cost or revaluation | Level 3 | Level 3 | |||||||
Balance at 1 January 2024 | 2,196 | 3,919 | 4,100 | 2,113 | 16 | 151 | 8 | 12,503 | |
Effects of movements in foreign exchange | 1 | - | - | (14) | - | (2) | - | (15) | |
Additions | 38 | - | 52 | 38 | - | 85 | 44 | 257 | |
Revaluation | - | (466) | - | - | - | - | - | (466) | |
Disposals | (13) | - | (6) | (22) | - | (1) | (2) | (44) | |
Transfers | 23 | - | 6 | 40 | - | (66) | (3) | - | |
Change in provision recorded in PP&E | 13 | - | - | - | - | - | - | 13 | |
Balance at 31 December 2024 | 2,258 | 3,453 | 4,152 | 2,155 | 16 | 167 | 47 | 12,248 | |
Depreciation and impairment losses | |||||||||
Balance at 1 January 2024 | (866) | (381) | (168) | (1,139) | (3) | (14) | - | (2,571) | |
Effects of movements in foreign exchange | (6) | - | - | 10 | - | - | - | 4 | |
Depreciation charge for the year | (68) | (89) | (168) | (101) | (3) | - | - | (429) | |
Disposals | 13 | - | 6 | 21 | - | - | - | 40 | |
Revaluation | - | 431 | - | - | - | - | - | 431 | |
Impairment losses recognized in profit or loss | (2) | 1 | - | - | - | (2) | - | (3) | |
Balance at 31 December 2024 | (929) | (38) | (330) | (1,209) | (6) | (16) | - | (2,528) | |
Carrying amounts | |||||||||
At 1 January 2024 | 1,330 | 3,538 | 3,932 | 974 | 13 | 137 | 8 | 9,932 | |
At 31 December 2024 | 1,329 | 3,415 | 3,822 | 946 | 10 | 151 | 47 | 9,720 | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
47
Revaluation of gas pipelines
The gas distribution pipeline owned and operated by SPP – distribúcia, a.s. and the gas transmission
pipeline owned and operated by eustream a.s. are recognised at revalued amount, primarily using the cost
approach, especially the replacement cost method. Replacement costs are based on the acquisition cost of
equivalent assets (EA) and are the estimated net book value of the assets from the acquisition cost of EA,
useful lives and age of existing assets (replacement cost less depreciation methodology). For more details
on revaluation, refer to Note 2 (d) and Note 4 (a).
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.
If the pipelines were accounted for using the cost model, the net book value of the asset as at 31 December
2025 would be EUR 3,402 million (2024: EUR 3,471 million) of which net book value of Eustream’s assets
EUR 1,538 million (2024: EUR 1,575 million) and net book value of SPPD’s assets EUR 1,864 million
(2024: EUR 1,896 million).
Impairment testing of Property, Plant and Equipment
The Group evaluates its property, plant and equipment for indicators of impairment in accordance with
Note 3(i) – Impairment. This assessment requires management to consider, at each reporting date, whether
events or changes in circumstances indicate that the carrying amount of an asset or cash-generating unit
(“CGU”) may not be recoverable.
As at 31 December 2025, management considered all relevant geopolitical, regulatory and market
developments that already existed at the reporting date. These included the ongoing military conflict in
Ukraine, the continued interruption of gas transit flows, energy-market volatility, and developments under
the EU’s REPowerEU initiative. These conditions formed part of the Group’s operating environment
throughout 2025 and were therefore appropriately reflected in financial budgets and value-in-use models
used for impairment testing. Consistent with the analysis presented in Note 2(c) – Going concern,
management concluded that these existing developments did not give rise to impairment indicators for the
Group’s assets. After the reporting date, a geopolitical escalation involving Iran occurred. As this
development did not exist at 31 December 2025, it is treated as a non-adjusting post-balance-sheet event
and therefore did not affect the impairment assessment for property, plant and equipment. Based on
information currently available, management does not expect the event to have direct negative impacts on
the Group.
As part of the year-end review, the Parent Company performed a detailed impairment assessment of
Eustream’s gas transmission network, evaluating a range of potential future utilization scenarios in light of
evolving regional gas flows and the broader geopolitical and regulatory context. The analysis considered
expected gas supply needs in Central and Eastern Europe, the configuration and capacity of available
transmission infrastructure, and the implications of a structurally reoriented European supply landscape.
Management assessed several plausible developments, including scenarios in which Russian gas supplies
remain suspended and gas transit through Ukraine does not resume, with REPowerEU objectives reflected
through a gradual reorientation of supply routes. The assessment also took into account expected
west-to-east flow patterns, the continued strategic importance of the network for Slovak supply security,
and its role in supporting sourcing routes for Ukraine.
The recoverable amounts of all CGUs tested were determined using the value-in-use method, based on
discounted future cash flows derived from the Group’s mid-term business plans and long-term perpetuity
assumptions. These valuation principles were applied consistently across all CGUs subject to impairment
testing. The projections reflect expected asset utilization under a reconfigured European gas market and
incorporate assumptions relevant to each CGU’s operating context.
Across the Group’s broader impairment testing, the following underlying assumptions were commonly
applied:
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
48
●
commodity price assumptions based on prevailing forward curves at the time of the assessment;
●
regulatory parameters and tariffs reflecting the latest applicable frameworks and available regulatory
guidance, which assumes an increase in tariffs for gas transmission;
●
short-term continuation of certain current regional supply patterns, namely continuation of flows via
Turkish Stream II, while Ukrainian transit remains halted;
●
long-term evolution of gas flow patterns consistent with REPowerEU objectives and the EU policy
goal of reducing dependency on Russian gas;
●
expectations that natural gas demand in Slovakia and neighbouring countries will remain broadly
aligned with historical consumption levels;
●
continued long-term use of natural gas reflected in the terminal value, as no defined timeline exists for
the Group’s transition away from natural gas;
●
the Group’s strategic intention to support a future transition toward hydrogen, which represents
long-term optionality and is not included in the impairment model assumptions.
Discount rates applied across CGUs were determined based on their respective WACCs, with the cost of
equity calculated using the Capital Asset Pricing Model and incorporating external market data, relevant
peer-group benchmarks and a risk premium reflecting recent market developments.
Based on the above analyses, and consistent with the conclusions in Note 2(c) – Going concern,
management concluded that the recoverable amounts of the Group’s property, plant and equipment
exceeded their carrying amounts as at 31 December 2025. Accordingly, no impairment was recognised for
the Group’s property, plant and equipment. Minor impairment charges recorded in the year relate solely to
specific technical assets and reflect asset-specific operational matters, not broader geopolitical or regulatory
trends.
Idle assets
As at 31 December 2025 and 31 December 2024 the Group had no significant idle assets.
Security
At 31 December 2025 and 2024 no property, plant and equipment is subject to pledges to secure bank loans
or issued debentures.
16. Intangible assets and goodwill
In millions of EUR | Goodwill | Software | Emission rights | Customer relationship and other contracts | Other intangible assets | Total | |
Cost | |||||||
Balance at 1 January 2025 | 116 | 92 | 152 | 41 | 31 | 432 | |
Effect of movements in foreign exchange rates | 3 | - | 3 | 1 | 1 | 8 | |
Additions | - | 4 | 25 | - | 11 | 40 | |
Disposals | - | (3) | (37) | - | - | (40) | |
Disposed entities | (20) | (4) | (90) | - | (6) | (120) | |
Transfers | - | 3 | - | - | (3) | - | |
Balance at 31 December 2025 | 99 | 92 | 53 | 42 | 34 | 320 | |
Amortisation and impairment losses | |||||||
Balance at 1 January 2025 | (44) | (74) | - | (18) | (12) | (148) | |
Effect of movements in foreign exchange rates | - | - | - | (1) | 1 | - | |
Amortisation for the year | - | (6) | - | (2) | (3) | (11) | |
Disposals | - | 3 | - | - | - | 3 | |
Disposed entities | 7 | 4 | - | - | - | 11 | |
Balance at 31 December 2025 | (37) | (73) | - | (21) | (14) | (145) | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
49
Carrying amount | |||||||
At 1 January 2025 | 72 | 18 | 152 | 23 | 19 | 284 | |
At 31 December 2025 | 62 | 19 | 53 | 21 | 20 | 175 |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
50
In millions of EUR | Goodwill | Software | Emission rights | Customer relationship and other contracts | Other intangible assets | Total | |
Cost | |||||||
Balance at 1 January 2024 | 117 | 89 | 224 | 42 | 27 | 499 | |
Effect of movements in foreign exchange rates | (1) | (1) | (3) | (1) | - | (6) | |
Additions | - | 4 | 109 | - | 6 | 119 | |
Disposals | - | (2) | (178) | - | - | (180) | |
Transfers | - | 2 | - | - | (2) | - | |
Balance at 31 December 2024 | 116 | 92 | 152 | 41 | 31 | 432 | |
Amortisation and impairment losses | |||||||
Balance at 1 January 2024 | (45) | (71) | - | (17) | (10) | (143) | |
Effect of movements in foreign exchange rates | 1 | - | - | 1 | - | 2 | |
Amortisation for the year | - | (5) | - | (2) | (2) | (9) | |
Disposals | - | 2 | - | - | - | 2 | |
Balance at 31 December 2024 | (44) | (74) | - | (18) | (12) | (148) | |
Carrying amount | |||||||
At 1 January 2024 | 72 | 18 | 224 | 25 | 17 | 356 | |
At 31 December 2024 | 72 | 18 | 152 | 23 | 19 | 284 |
In 2025, the Group purchased emission allowances of EUR 18 million (2024: EUR 102 million). The
remaining part of EUR 7 million (2024: EUR 7 million) was allocated to the Group by the authorities and
counterparties.
Amortisation of intangible assets is included in the row Depreciation, amortisation and impairment in the
consolidated statement of comprehensive income.
Other intangible assets comprise valuable rights and intangible assets under construction.
All intangible assets, excluding goodwill, were recognised as assets with definite useful life.
The Group did not capitalise any development costs in 2025 and 2024.
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 2025 and 2024.
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 2025 | 31 December 2024 | ||
EOP Distribuce, a.s. | 55 | 52 | ||
Elektrárny Opatovice, a.s. | - | 8 | ||
Other CGU's | 7 | 12 | ||
Total goodwill | 62 | 72 |
Goodwill and impairment testing
In compliance with IAS 36, the Group annually conducts impairment testing of goodwill. The Group also
conducts impairment testing of cash generating units (CGUs) where a trigger for impairment testing is
identified. As at the acquisition date goodwill acquired is allocated to each of the cash-generating units
expected to benefit from the combination’s synergies. Impairment is determined by assessing the
recoverable amount of the CGU, to which the goodwill relates, on the basis of a value-in-use that reflects
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
51
estimated future discounted cash flows. Value-in-use is derived from management forecasts of future cash
flows updated since the date of acquisition. Impairment tests were performed in a similar manner as
described in Note 15.
No impairment of Goodwill was recognized in 2025 and in 2024.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
52
17. Deferred tax assets and liabilities
Deferred tax assets and liabilities arise from temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements
and the amounts used for taxation purposes. Major sources of deferred taxes include:
●
revaluation of gas transmission and distribution pipelines (IAS 16 revaluation model),
●
differences between tax and accounting depreciation,
●
financial instruments measured at fair value,
●
provisions and employee benefit obligations,
●
tax losses carried forward (to the extent recognised).
The Heat Infra disposals completed on 31 March 2025 resulted in the derecognition of deferred tax liabilities and assets associated with the disposed entities (for
more information see Note - 6).
Recognised deferred tax assets and liabilities | |||||||
The following deferred tax assets and (liabilities) have been recognised: | |||||||
In millions of EUR | 31 December 2025 | 31 December 2024 | |||||
Temporary | Assets | Liabilities | Net | Assets | Liabilities | Net | |
Property, plant and equipment | 8 | (1,964) | (1,956) | 8 | (2,021) | (2,013) | |
Intangible assets | - | (20) | (20) | - | (20) | (20) | |
Inventories | 5 | - | 5 | 11 | - | 11 | |
Trade receivables and other assets | 6 | - | 6 | 6 | - | 6 | |
Provisions | 43 | - | 43 | 48 | - | 48 | |
Employees benefits (IAS 19) | 7 | - | 7 | 7 | - | 7 | |
Loans and borrowings | - | (11) | (11) | - | (11) | (11) | |
Derivatives | 17 | (9) | 8 | 18 | (9) | 9 | |
Other items | 20 | (5) | 15 | 9 | (15) | (6) | |
Subtotal | 106 | (2,009) | (1,903) | 107 | (2,076) | (1,969) | |
Set-off tax | (98) | 98 | - | (100) | 100 | - | |
Total | 8 | (1,911) | (1,903) | 7 | (1,976) | (1,969) | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
53
Movements in deferred tax during the year | ||||||||
In millions EUR | ||||||||
Balances related to: | Balance at 1 January 2025 | Recognised in profit or loss | Recognised in other comprehensive income | Transfer | Outgoing entities | Effect of movements in foreign exchange rate | Balance at 31 December 2025 | |
Property, plant and equipment | (2,013) | 60 | - | (5) | 3 | (1) | (1,956) | |
Intangible assets | (20) | - | - | - | - | - | (20) | |
Inventories | 11 | (6) | - | - | - | - | 5 | |
Trade receivables and other assets | 6 | - | - | - | - | - | 6 | |
Provisions | 48 | (5) | - | - | - | - | 43 | |
Employee benefits (IAS 19) | 7 | 1 | - | - | - | (1) | 7 | |
Loans and borrowings | (11) | - | - | - | - | - | (11) | |
Derivatives | 9 | - | (1) | - | - | - | 8 | |
Other | (6) | 3 | - | 5 | 12 | 1 | 15 | |
Total | (1,969) | 53 | (1) | - | 15 | (1) | (1,903) | |
In millions EUR | ||||||
Balances related to: | Balance at 1 January 2024 | Recognised in profit or loss | Recognised in other comprehensive income | Effect of movements in foreign exchange rate | Balance at 31 December 2024 | |
Property, plant and equipment | (1,836) | (71) | (108) | 2 | (2,013) | |
Intangible assets | (20) | - | - | - | (20) | |
Inventories | 10 | 1 | - | - | 11 | |
Trade receivables and other assets | 5 | 2 | - | (1) | 6 | |
Provisions | 55 | (7) | - | - | 48 | |
Employee benefits (IAS 19) | 7 | - | - | - | 7 | |
Loans and borrowings | (11) | - | - | - | (11) | |
Derivatives | 30 | - | (21) | - | 9 | |
Other | (18) | 8 | 4 | - | (6) | |
Total | (1,778) | (67) | (125) | 1 | (1,969) | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
54
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 2025 | 31 December 2024 | ||
Tax losses carried forward | 424 | 421 | ||
Total | 424 | 421 | ||
A following entities: | ||||
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Slovak Gas Holding B.V. | 388 | 388 | ||
SPP Infrastructure, a.s. | 23 | 20 | ||
Czech Gas Holding Investment B.V. | 13 | 13 | ||
Total | 424 | 421 | ||
The entities in the table represent holding companies with insignificant operating activities. The Group
does not expect significant taxable profit growth on these entities, so no deferred tax was recognized. If
sufficient taxable profits were to be achieved in 2025, then the associated tax income (savings) would be
up to EUR 89 million (2024: EUR 88 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:
In millions of EUR | 2026 | 2027 | 2028 | 2029 | After 2029 | Total | |
Tax | 6 | 6 | 6 | 4 | 402 | 424 |
Tax losses expire over a period of 5 years in the Czech Republic, 4 years in Slovakia and 6 years (9 years
for losses up to 2018) in the Netherlands for standard tax losses. Under current tax legislation, some
deductible temporary differences do not expire. Deferred tax assets have not been recognised in respect of
these items because, due to the varying nature of the sources of these profits, it is not probable that future
taxable profit against which the Group can utilise the benefits from the deferred tax assets will be available.
18. Inventories
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Natural gas | 180 | 214 | ||
Other fossil fuel | 2 | 27 | ||
Raw materials and supplies | 15 | 19 | ||
Spare parts | 9 | 13 | ||
Work in progress | - | 1 | ||
Total | 206 | 274 | ||
As at 31 December 2025 and 2024 no inventories were subject to pledges. | ||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
55
19. Trade receivables and other assets
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Trade receivables | 212 | 219 | ||
Uninvoiced supplies | 98 | 136 | ||
Advance payments | 83 | 82 | ||
Other receivables and assets | 16 | 24 | ||
Accrued income | 8 | 13 | ||
Margin deposit relating to derivatives | 2 | 15 | ||
Value | 2 | 5 | ||
Estimated receivables | 2 | 2 | ||
Allowance for bad debts | (32) | (34) | ||
Total | 391 | 462 | ||
Non-current | 11 | 5 | ||
Current | 380 | 457 | ||
Total | 391 | 462 | ||
1) | ||||
In 2025 receivables of EUR 1 million were written-off through profit or loss (2024: EUR 4 million).
As at 31 December 2025 and 2024 no receivables are subject to pledges.
As at 31 December 2025 trade receivables and other assets amounting EUR 380 million are not past due
(2024: EUR 293 million), remaining net balance of EUR 11 million is overdue (2024: EUR 34 million).
For more detailed aging analysis refer to Note 30 (a)(ii) – Risk management – credit risk (impairment
losses).
As at 31 December 2025 and 2024 the fair value of trade receivables and other assets equals 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 30 – Risk management policies and disclosures.
20. Cash and cash equivalents
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Current accounts with banks | 782 | 945 | ||
Term deposits | 926 | 759 | ||
Bills of exchange | - | 50 | ||
Total | 1,708 | 1,754 |
Term deposits with original maturity of up to three months are classified as cash equivalents.
As at 31 December 2025 and 2024 no cash equivalents are subject to pledges.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
56
21. Equity
Share capital and share premium
The authorised, issued and fully paid share capital as at 31 December 2025 consisted of 222,870,000
ordinary shares with a par value of CZK 250 each (2024: 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 (2024: 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 2025 the Company declared dividends in amount of EUR 878 million (EUR
300 million (EUR
In 2025 and 2024 the Group paid dividends as follows:
in millions of EUR | 31 December 2025 | 31 December 2024 | ||
Shareholders of the Company | 320 | 300 | ||
NCI* | 244 | 181 | ||
Total | 564 | 481 | ||
* Slovak Republic and City of Pilsen | ||||
31 December 2025 | Number of shares | Ownership | Voting rights | ||
In thousands of pieces | 250 CZK | % | % | ||
Shares A | Shares B | ||||
EPIF Investments a.s. | 222,870 | - | 69 | 69 | |
CEI Investments S.à r.l. | - | 100,130 | 31 | 31 | |
Total | 222,870 | 100,130 | 100 | 100 | |
31 December 2024 | Number of shares | Ownership | Voting rights | ||
In thousands of pieces | 250 CZK | % | % | ||
Shares A | Shares B | ||||
EPIF Investments a.s. | 222,870 | - | 69 | 69 | |
CEI Investments S.à r.l. | - | 100,130 | 31 | 31 | |
Total | 222,870 | 100,130 | 100 | 100 | |
Reserves recognised in equity comprise the following items: | ||||
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Non-distributable reserves | 1 | 1 | ||
Revaluation reserve | 1,208 | 1,359 | ||
Hedging reserve | 3 | (6) | ||
Translation reserve | 51 | 27 | ||
Other capital reserves | (4,182) | (4,182) | ||
Total | (2,919) | (2,801) | ||
Other capital reserves
As stated in section 3 (a) 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
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
57
combination as the excess of the cost of an acquisition over the fair value of the Group’s share of the net
identifiable assets, liabilities and contingent liabilities of the acquired subsidiary. Acquirees under common
control are treated under the net book value presented in the consolidated financial statements of
Energetický a průmyslový holding, a.s. (i.e. including historical goodwill less potential impairment). The
difference between the cost of acquisition and carrying values of net assets of the acquiree and original
goodwill carried forward as at the acquisition date were recorded to consolidated equity as pricing
differences. Pricing differences are presented in Other capital reserves in Equity. “Note 6 – Acquisitions
and disposals of subsidiaries, joint-ventures and associates” summarises the effects of all common control
transactions in both periods.
Translation reserve
The translation reserve comprises all foreign exchange differences arising from the translation of the
financial statements of foreign operations of the Group and translation of the consolidated financial
statements to presentation currency.
Revaluation reserve
For more details on revaluation, refer to Note 2 (e) and Note 4 (a).
Hedging reserves
The effective portion of fair value changes in derivatives (financial and commodity) designated as cash
flow hedges are recognised in equity (for more details please refer to Note 26 – Financial instruments and
Note 30 – Risk management policies and disclosure).
During 2025 the Group reclassified EUR 4 million as income from Hedging reserves to Profit or loss (2024:
EUR 28 million as expense).
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
58
22. Non-controlling interest
31 December 2025 | eustream, a.s. | SPP - distribúcia, a.s. and its subsidiaries | Stredoslovenská energetika Holding, a.s. and its subsidiaries (including SSD) | NAFTA a.s. and its subsidiaries | POZAGAS a.s. | Plzeňská teplárenská, a.s. | SPP Infrastructure, a.s. and its subsidiaries | Other individually immaterial subsidiaries | Total | |
In millions of EUR | ||||||||||
Non-controlling percentage | (6) 51.00% | (6) 51.00% | (6) 51.00% | 31.01% | 38.01% | (6) 65.00% | (6) 51.00% | |||
Business activity | Transmission of gas | Distribution of gas | Distribution of electricity | Gas storage | Gas storage | Production and distribution of heat | Holding entity | |||
Country (1) | Slovakia | Slovakia | Slovakia | Slovakia, Germany | Slovakia | Czech Republic | Slovakia | |||
Carrying amount of NCI at 31 December 2025 | 1,236 | 1,561 | 365 | 149 | 28 | 198 | (272) | 34 | 3,299 | |
Profit controlling interest for the period | 17 | 75 | 46 | 26 | 4 | 15 | (3) | 10 | 190 | |
Dividends declared | - | - | (68) | (2) | - | - | (7) (142) | - | (212) | |
Statement of financial position information (2) | ||||||||||
Total assets | 3,983 | 4,653 | 1,102 | 767 | 97 | 392 | 4,975 | |||
of which: | 3,646 | 3,878 | 904 | 538 | 41 | 242 | (4) 4,949 | |||
337 | 775 | 198 | 229 | 56 | 150 | 26 | ||||
Total liabilities | 1,560 | 1,592 | 386 | 286 | 24 | 87 | 414 | |||
of which: | 1,432 | 1,507 | 220 | 236 | 19 | 31 | 1 | |||
128 | 85 | 166 | 50 | 5 | 56 | 413 | ||||
Net assets | 2,423 | 3,061 | 716 | 481 | 73 | 305 | 4,561 | - | - | |
Statement of comprehensive income information (2) | ||||||||||
Total revenues | 259 | 554 | 1,090 | 262 | 44 | 183 | 289 | |||
of which: | - | - | - | 32 | - | - | (5) 285 | |||
Profit after tax | 34 | 148 | 157 | 117 | 10 | 23 | 279 | |||
Total other comprehensive income for the period, net of tax | 7 | - | - | 1 | - | - | - | |||
Total comprehensive income for the year (2) | 41 | 148 | 157 | 118 | 10 | 23 | 279 | - | - | |
Net cash inflows (outflows) (2) | (419) | 114 | (76) | (33) | 20 | - | (83) | |||
(1) | ||||||||||
(2) | ||||||||||
(3) entities after elimination of investment in subsidiaries is | ||||||||||
(4) | ||||||||||
(5) | ||||||||||
(6) agreement provides the Group | ||||||||||
(7) | ||||||||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
59
31 December 2024 | eustream, a.s. | SPP - distribúcia, a.s. and its subsidiaries | Stredoslovenská energetika Holding, a.s. and its subsidiaries (including SSD) | NAFTA a.s. and its subsidiaries | POZAGAS a.s. | Plzeňská teplárenská, a.s. | SPP Infrastructure, a.s. and its subsidiaries | Other individually immaterial subsidiaries | Total | |
In millions of EUR | ||||||||||
Non-controlling percentage | (6) 51.00% | (6) 51.00% | (6) 51.00% | 31.01% | 38.01% | (6) 65.00% | (6) 51.00% | |||
Business activity | Transmission of gas | Distribution of gas | Distribution of electricity | Gas storage | Gas storage | Production and distribution of heat | Holding entity | |||
Country (1) | Slovakia | Slovakia | Slovakia | Slovakia, Germany | Slovakia | Czech Republic | Slovakia | |||
Carrying amount of NCI at 31 December 2024 | 1,216 | 1,573 | 387 | 153 | 43 | 176 | (272) | 32 | 3,308 | |
Profit controlling interest for the period | 85 | 53 | 55 | 42 | 11 | 18 | (6) | 13 | 271 | |
Dividends declared | - | - | (33) | (4) | - | (5) | (7) (175) | - | (217) | |
Statement of financial position information (2) | ||||||||||
Total assets | 4,529 | 4,696 | 1,156 | 798 | 139 | 358 | 5,596 | |||
of which: | 3,761 | 3,995 | 869 | 555 | 43 | 240 | (4) 4,942 | |||
768 | 701 | 287 | 243 | 96 | 118 | 654 | ||||
Total liabilities | 2,145 | 1,612 | 399 | 304 | 26 | 89 | 1,036 | |||
of which: | 1,462 | 1,532 | 207 | 253 | 22 | 29 | 1 | |||
683 | 80 | 192 | 51 | 4 | 60 | 1,035 | ||||
Net assets | 2,384 | 3,084 | 757 | 494 | 113 | 269 | 4,560 | - | - | |
Statement of comprehensive income information (2) | ||||||||||
Total revenues | 504 | 550 | 1,120 | 321 | 61 | 193 | 370 | |||
of which: | - | - | - | 23 | - | - | (5) 353 | |||
Profit after tax | 167 | 105 | 109 | 158 | 30 | 27 | 342 | |||
Total other comprehensive income for the period, net of tax | (73) | (61) | (1) | - | - | - | - | |||
Total comprehensive income for the year (2) | 94 | 44 | 108 | 158 | 30 | 27 | 342 | - | - | |
Net cash inflows (outflows) (2) | 376 | (60) | (20) | 50 | (16) | (70) | 72 | |||
(1) | ||||||||||
(2) | ||||||||||
(3) entities after elimination of investment in subsidiaries is | ||||||||||
(4) | ||||||||||
(5) | ||||||||||
(6) agreement provides the | ||||||||||
(7) | ||||||||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
60
23. Loans and borrowings
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Issued notes at amortised costs | 3,211 | 3,124 | ||
Loans payable to credit institutions | 274 | 379 | ||
Lease liabilities | 49 | 66 | ||
Total | 3,534 | 3,569 | ||
Non-current | 2,894 | 3,004 | ||
Current | 640 | 565 | ||
Total | 3,534 | 3,569 | ||
The weighted average interest rate on loans and borrowings (excl. notes) 5.65%). | ||||
Issued notes at amortised costs | ||||||||
Details about notes issued as at 31 December 2025 are presented in | ||||||||
In millions of EUR | Principal | Accrued interest | Unamortised transactions cost/premium /discounts | Total | Maturity | Interest rate (%) | Effective interest rate (%) | |
EP Infrastructure 2026 notes | 600 | 4 | - | 604 | 30/7/2026 | 1.698 | 1.795 | |
EP Infrastructure 2028 notes | 500 | 2 | (1) | 501 | 9/10/2028 | 2.045 | 2.117 | |
EP Infrastructure 2031 notes | 500 | 8 | (2) | 506 | 2/3/2031 | 1.816 | 1.888 | |
EP Infrastructure 2033 notes | 600 | 3 | (5) | 598 | 27/2/2033 | 4.125 | 4.297 | |
Eustream notes | 500 | 4 | (1) | 503 | 25/6/2027 | 1.625 | 1.759 | |
SPP - distribúcia notes | 500 | 3 | (4) | 499 | 9/6/2031 | 1.000 | 1.079 | |
Total | 3,200 | 24 | (13) | 3,211 | - | - | - | |
Details about notes issued as at 31 December 2024 are presented in | ||||||||
In millions of EUR | Principal | Accrued interest | Unamortised transactions cost/premium /discounts | Total | Maturity | Interest rate (%) | Effective interest rate (%) | |
EP Infrastructure 2026 notes | 600 | 4 | (1) | 603 | 30/7/2026 | 1.698 | 1.795 | |
EP Infrastructure 2028 notes | 500 | 2 | (1) | 501 | 9/10/2028 | 2.045 | 2.117 | |
EP Infrastructure 2031 notes | 500 | 8 | (2) | 506 | 2/3/2031 | 1.816 | 1.888 | |
Eustream notes | 500 | 4 | (2) | 502 | 25/6/2027 | 1.625 | 1.759 | |
SPP Infrastructure Financing notes | 500 | 12 | - | 512 | 12/2/2025 | 2.625 | 2.685 | |
SPP - distribúcia notes | 500 | 4 | (4) | 500 | 9/6/2031 | 1.000 | 1.079 | |
Total | 3,100 | 34 | (10) | 3,124 | - | - | - | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
61
EP Infrastructure standalone notes (2026, 2028 and 2031 Notes)
The EPIF 2026, 2028 and 2031 Notes (the „Standalone notes“) contain a covenant limiting certain types
of distributions to EPIF’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.
In addition, the Standalone notes contain a change of control provision the triggering of which coupled
with a ratings decline may result in the Company’s obligation to redeem, or at its option, to procure the
purchase of all or part of the notes. Further, the Standalone notes contain customary events of defaults,
including, among other things, non-payment of principal or interest, breach of other obligations, cross-
acceleration/cross-default of the Company or material subsidiary, unsatisfied judgment, security enforced,
insolvency, winding-up and other customary events of default. Some of the events of default are subject
to a threshold in the amount of EUR 75 million. If any of such event of default occurs, the Standalone
notes may be declared immediately due and payable.
EP Infrastructure EMTN programme
In November 2025, EPIF established a Euro Medium Term Note (EMTN) programme. This framework
provides a standardised platform for the Group's future debt issuances, offering greater structural
flexibility. Under this programme, the Group has issued the following notes:
EP Infrastructure notes (2033 Notes)
On 27 November 2025, EPIF placed its debut offering of green EUR 600 million 4.125% fixed-rate
unsecured notes due in February 2033 in the denomination of EUR 100,000 each (“2033 Notes”), under
its EMTN Programme. The 2033 Notes are listed on Irish Stock Exchange (Euronext Dublin). Unless
previously redeemed or cancelled, the 2033 Notes will be redeemed at their principal amount on 27
February 2033. The net proceeds were allocated to finance or refinance eligible green projects in line with
EPIF’s Green Finance Framework.
The 2033 Notes are stated net of debt issue costs of EUR 4 million. These costs are amortised to the profit
and loss over the term of the 2033 Notes using an effective interest rate of 4.297%.
The terms and conditions of the EMTN programme contain a change-of-control provision, the triggering
of which, coupled with a ratings decline, may result in the Company’s obligation to redeem, or, at its
option, to procure the purchase of, all or part of the notes. Further, the conditions contain customary events
of default, including, among other things, non-payment of principal or interest, breach of other obligations,
cross-acceleration/cross-default of the Company or a material subsidiary, unsatisfied judgment,
enforcement of security, insolvency, winding-up and other customary events of default. Some of the events
of default are subject to a threshold of EUR 100 million. If any such event of default occurs, the notes may
be declared immediately due and payable.
Eustream notes (2027 Notes) and SPP – distribúcia notes (SPPD 2031 Notes)
The SPPD 2031 Notes and the Eustream 2027 Notes are subject to the following contractual provisions.
Upon the occurrence of a certain change of control events, holders of the SPPD 2031 Notes and the
Eustream 2027 Notes may require the respective issuer to redeem, or at its option, to purchase or procure
the purchase of, the notes prematurely at 100% of the principal amount, plus accrued and unpaid interest
and additional amounts, if any. In addition, the SPPD 2031 Notes and the Eustream 2027 Notes contain
customary events of defaults, including, among other things, non-payment of principal or interest, breach
of other obligations, cross-acceleration/cross-default of the respective issuer, unsatisfied judgment,
security enforced, insolvency, winding-up and other customary events of default. Some of the events of
default are subject to thresholds in the amount of EUR 75 million. If any of such event of default occurs,
the notes may be declared immediately due and payable.
SPP Infrastructure Financing notes (2025 Notes)
On 12 February 2025, SPP Infrastructure Financing B.V. redeemed all its outstanding EUR 500 million
2.625 per cent. Notes due 2025, issued on 12 February 2015. The outstanding amount redeemed was EUR
500 million.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
62
Other loans and borrowings | ||||||||
Terms and debt | ||||||||
Terms and conditions of outstanding loans as at 31 December 2025 were as follows: | ||||||||
In millions of EUR | Cur- rency | Nominal interest rate | Year maturity (up to) | Balance at 31/12/2025 | Due within 1 year | Due in 1–5 years | Due in following years | |
Unsecured bank loan | EUR | variable* | 2027 | 137 | 2 | 135 | - | |
Unsecured bank loan | EUR | variable* | 2029 | 137 | 2 | 135 | - | |
Liabilities from finance leases | EUR | 49 | 13 | 36 | - | |||
Total interest | 323 | 17 | 306 | - | ||||
* | ||||||||
Terms and conditions of outstanding loans as at 31 December 2024 were as follows: | ||||||||
In millions of EUR | Cur- rency | Nominal interest rate | Year maturity (up to) | Balance at 31/12/2024 | Due within 1 year | Due in 1–5 years | Due in following years | |
Unsecured bank loan | EUR | variable* | 2027 | 242 | 17 | 225 | - | |
Unsecured bank loan | EUR | variable* | 2029 | 137 | 2 | 135 | - | |
Liabilities from finance leases | EUR | 66 | 15 | 48 | 3 | |||
Total interest | 445 | 34 | 408 | 3 | ||||
* | ||||||||
EPIF Schuldschein loan agreements
On 5 March 2024, EPIF has raised EUR 285 million through Schuldschein loan agreements under German
law issued in line with EPIF’s green principles (so called “green Schuldschein”). The floating rate
Schuldschein loan agreements have durations of three and five years, with corresponding margins of
2.50% p.a. and 2.90% p.a., respectively.
On 18 December 2025, EPIF made a voluntary early repayment in the amount of EUR 75 million.
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.
EPIF Facilities Agreement
On 8 November 2024, EPIF signed a up to EUR 400 million revolving facility agreement (the “EPIF’s
Facility Agreement”), which provides EPIF with an unsecured revolving facility until 8 November 2027.
The debts of EPIF under the EPIF’s Facility 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.
Further, the EPIF’s Facility Agreement contain customary events of defaults, including, among other
things, non-payment, other obligations, misrepresentation, cross-default, insolvency, insolvency
proceedings, preventive restructuring, creditors’ process, unlawfulness and invalidity, cessation of
business, repudiation and rescission of agreements and material adverse change. If any of such event of
default occurs, the EPIF’s Facility Agreement may be cancelled and declared immediately due and payable
or payable on demand.
SPPD Finance Contract
SPPD is a party to the finance contract with EIB dated 25 September 2018, as amended and/or restated
from time to time (“SPPD Finance Contract”). The SPPD Finance Contract is Luxembourg law governed
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
63
and provides for a term loan in the aggregate amount of EUR 60 million due 23 September 2029 (with
EUR 60 million outstanding as of 31 December 2024) for the financing of the gas distribution networks
upgrade project in the Slovak Republic for the period between 2019 and 2022.
The SPPD Finance Contract contains a financial covenant ensuring that at the end of each measurement
period (being a period of 12 months ending on 31 January and 31 July of any year), the SPPD group’s net
debt to SPPD group’s EBITDA ratio (i.e. net leverage) is not more than 2.65 to 1.
In addition, the SPPD Finance Contract contains customary events of defaults, including, among other
things, non-payment, misrepresentation, cross-default of SPPD or its subsidiaries, insolvency, insolvency
proceedings, litigation and administrative proceedings, other obligations, creditors’ process, material
adverse change and unlawfulness. If any of such event of default occurs, the SPPD Finance Contract may
be declared immediately due and payable on demand.
SSE Finance Contract
SSEH, SSE and SSD are parties to the facilities agreement dated 30 June 2022, as amended and/or restated
from time to time (the “SSE Finance Contract”) with Slovenská sporiteľňa, a.s., pursuant to which SSEH,
SSE and SSD were provided with a revolving facility in the amount of 100 million due 30 June 2027 with
no amount outstanding as of 31 December 2025.
Fair value information
The fair value of interest-bearing instruments held at amortised costs is shown in the table below:
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
64
In millions of EUR | 31 December 2025 | 31 December 2024 | |||
Carrying amount | Fair Value | Carrying amount | Fair Value | ||
Loans payable to credit institutions | 274 | 265 | 379 | 366 | |
Issued notes at amortised costs | 3,211 | 3,047 | 3,124 | 2,874 | |
Liabilities from financial leases | 49 | 49 | 66 | 66 | |
Total | 3,534 | 3,361 | 3,569 | 3,306 | |
Issued notes are categorised within Level 1 or 2 of the fair value hierarchy. Bank loans are categorised
within Level 2 or 3 of the fair value hierarchy (for detail of valuation methods refer to Note 2 (e) i –
Assumption and estimation uncertainties).
Significant investing and financing activities not requiring cash:
For the year 2025 and 2024 there were no non-cash financing activities.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
65
Reconciliation of movement of liabilities to cash flows arising | ||||||||
Liabilities | Equity | |||||||
Loans from credit institutions | Issued notes | Finance lease liabilities | Share capital / premium | Reserves | Retained earnings | NCI | Total | |
Balance as at 1 January 2025 | 379 | 3,124 | 66 | 3,257 | (2,801) | 1,757 | 3,308 | 9,090 |
Changes from financing cash flows | ||||||||
Proceeds from loans and borrowings | - | 597 | - | - | - | - | - | 597 |
Repayment of loans and borrowings | (104) | (500) | - | - | - | - | - | (604) |
Transaction cost related to loans and borrowings | - | (2) | - | - | - | - | - | (2) |
Payment of finance lease liabilities | - | - | (13) | - | - | - | - | (13) |
Dividend paid | - | - | - | - | - | (320) | (244) | (564) |
Total change from financing cash flows | (104) | 95 | (13) | - | - | (320) | (244) | (586) |
Changes arising from obtaining or losing of control of subsidiaries | - | - | (15) | - | (99) | 99 | - | (15) |
Total effect of changes in foreign exchange rates | (1) | (6) | (2) | - | 22 | - | 9 | 22 |
Other changes | ||||||||
Liability related | ||||||||
Interest expense | 18 | 57 | 2 | - | - | - | - | 77 |
Interest paid | (18) | (59) | (2) | - | - | - | - | (79) |
Lease liability (impact of IFRS 16) | - | - | 13 | - | - | - | - | 13 |
Total liability-related other changes | - | (2) | 13 | - | - | - | - | 11 |
Total equity-related other changes | - | - | - | (41) | (223) | 226 | (38) | |
Balance at 31 December 2025 | 274 | 3,211 | 49 | 3,257 | (2,919) | 1,313 | 3,299 | 8,484 |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
66
Reconciliation of movement of liabilities to cash flows arising | ||||||||
Liabilities | Equity | |||||||
Loans from credit institutions | Issued notes | Finance lease liabilities | Share capital / premium | Reserves | Retained earnings | NCI | Total | |
Balance as at 1 January 2024 | 128 | 3,674 | 69 | 3,257 | (2,654) | 1,721 | 3,327 | 9,522 |
Changes from financing cash flows | ||||||||
Proceeds from loans and borrowings | 285 | - | - | - | - | - | - | 285 |
Repayment of loans and borrowings | (38) | - | - | - | - | - | - | (38) |
Purchase of own bonds | - | (547) | - | - | - | - | - | (547) |
Payment of finance lease liabilities | - | - | (15) | - | - | - | - | (15) |
Dividend paid | - | - | - | - | - | (300) | (181) | (481) |
Total change from financing cash flows | 247 | (547) | (15) | - | - | (300) | (181) | (796) |
Changes arising from obtaining or losing of control of subsidiaries | - | - | - | - | - | - | - | |
Total effect of changes in foreign exchange rates | (3) | (2) | 1 | - | (15) | - | (4) | (23) |
Other changes | ||||||||
Liability related | ||||||||
Interest expense | 21 | 70 | 2 | - | - | - | - | 93 |
Interest paid | (14) | (71) | (2) | - | - | - | - | (87) |
Lease liability (impact of IFRS 16) | - | - | 11 | - | - | - | - | 11 |
Total liability-related other changes | 7 | (1) | 11 | - | - | - | - | 17 |
Total equity-related other changes | - | - | - | (132) | 336 | 166 | 370 | |
Balance at 31 December 2024 | 379 | 3,124 | 66 | 3,257 | (2,801) | 1,757 | 3,308 | 9,090 |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
67
24. Provisions
In millions of EUR | Employee benefits | Provision for emission rights | Provision for lawsuits and litigations | Provision for restoration and decommi- ssioning | Other | Total | |
Balance at 1 January 2025 | 35 | 126 | 4 | 228 | 23 | 416 | |
Provisions made during the period | 2 | 65 | 1 | 1 | - | 69 | |
Provisions used during the period | (1) | (37) | - | (2) | (2) | (42) | |
Provisions released during the period | (1) | - | - | (5) | (1) | (7) | |
Change in provision recorded in property, plant and equipment | - | - | - | (15) | - | (15) | |
Actuarial gains/losses | (2) | - | - | - | - | (2) | |
Disposed entities | (1) | (125) | - | - | - | (126) | |
Unwind of discount | 1 | - | - | 5 | - | 6 | |
Effect of movements in foreign exchange rates | - | 4 | 1 | - | - | 5 | |
Balance at 31 December 2025 | 33 | 33 | 6 | 212 | 20 | 304 | |
Non-current | 32 | - | 1 | 206 | 19 | 258 | |
Current | 1 | 33 | 5 | 6 | 1 | 46 |
In millions of EUR | Employee benefits | Provision for emission rights | Provision for lawsuits and litigations | Provision for restoration and decommi- ssioning | Other | Total | |
Balance at 1 January 2024 | 35 | 182 | 4 | 212 | 23 | 456 | |
Provisions made during the period | 4 | 125 | - | - | 1 | 130 | |
Provisions used during the period | (1) | (178) | - | (1) | (1) | (181) | |
Provisions released during the period | (2) | - | - | (1) | - | (3) | |
Change in provision recorded in property, plant and equipment | - | - | - | 13 | - | 13 | |
Actuarial gains/losses | (1) | - | - | - | - | (1) | |
Unwind of discount | - | - | - | 6 | - | 6 | |
Effect of movements in foreign exchange rates | - | (3) | - | (1) | - | (4) | |
Balance at 31 December 2024 | 35 | 126 | 4 | 228 | 23 | 416 | |
Non-current | 34 | - | 1 | 223 | 20 | 278 | |
Current | 1 | 126 | 3 | 5 | 3 | 138 |
Accounting for provisions involves frequent use of estimates, such as probability of occurrence of uncertain
events or calculation of the expected outcome. Such estimates are based on past experience, statistical
models and professional judgement.
Employee benefits
The Group recorded a provision for long-term employee benefits related to its employees. Valuations of
these provisions are sensitive to assumptions used in the calculations, such as future salary and benefit
levels, discount rates, employee leaving rate, late retirement rate, mortality and life expectancy. The
management considered various estimated factors and how these estimates would impact the recognised
provision. As a result of this analysis, no significant variances to the recorded provision are expected.
The most significant provisions in the amount of EUR 13 million (2024: EUR 9 million) were recorded by
Stredoslovenská energetika Holding, and its subsidiaries, EUR 9 million (2024: EUR 10 million) by
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
68
NAFTA Germany and its subsidiaries, EUR 4 million (2024: EUR 4 million) by SPP – distribúcia, a.s.,
EUR 4 million (2024: EUR 4 million) by NAFTA a.s and EUR 3 million (2024: EUR 3 million) by
eustream, a.s.
i.
NAFTA Germany and its subsidiaries
Through employer-funded company pension scheme the Group makes a contribution to employees’
retirement provision and support them in the event of invalidity or bereavement. The Group pension scheme
provides for a personal pension to be paid to each employee of the Group once the waiting period has
elapsed. The extent of this company pension depends on the years of service and remuneration paid. In
supplementation of the employer-funded pension scheme, employees also have the option of providing for
retirement themselves by means of a remuneration conversion, thus additionally securing their standard of
living after retirement.
ii.
SSE Holding Group
Pension Plans
This program has a defined contribution pension plan under which the Group pays fixed contributions to
third parties or government. The Group has no legal or constructive obligation to pay further funds, if the
amount of plan assets is insufficient to pay all the performance of employees who are eligible for the current
and prior periods.
The amount of benefits depends on several factors, such as age, years of service and salary.
Unfunded pension plan with defined benefit
From 2022, the companies within the SSE Holding Group signed individual collective agreements for the
period 2023 – 2025, the Companies are obliged to pay its employees upon age pension or disability pension,
depending on seniority, the following multiples of the average monthly salary.
Other benefits
The Companies in the SSE Holding Group also pays benefits for work and life anniversaries. The
Companies had created expectations on the part of its employees that it will continue to provide the benefits
and it is management’s judgement that it is not probable that the Group will cease to provide them.
iii.
Other companies
The long-term employee benefits program at the Companies (NAFTA, SPPD and Eustream) is a defined
benefit program, under which employees are entitled to a lump-sum payment upon old age or disability
retirement as a multiple of the employee’s average salary and, subject to vesting conditions. To date it has
been an unfunded program, with no separately allocated assets to cover the program’s liabilities. The
Companies also pays benefits for work and life anniversaries.
The Companies had created expectations on the part of its employees that it will continue to provide the
benefits and it is management’s judgement that it is not probable that the Group will cease to provide them.
Provision for emission rights
Provision for emission rights is recognised regularly during the year based on the estimated number of
tonnes of CO2 emitted. It is measured at the best estimate of the expenditure required to settle the present
obligation at the end of the reporting period.
Provision for restoration and decommissioning
The major part of the provision was primarily recorded by NAFTA a.s. EUR 100 million (2024: EUR 105
million), NAFTA Germany GmbH EUR 83 million (2024: EUR 91 million), POZAGAS a.s. EUR 13
million (2024: EUR 16 million) and SPP Storage, s.r.o. EUR 9 million (2024: EUR 9 million).
NAFTA a.s. together with NAFTA Production s.r.o. and NAFTA Germany GmbH (through its
subsidiaries) have 112 production wells and 282 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. Companies have the obligation to
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
69
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. These costs are expected to be incurred
between 2026 and 2094.
The average discount rate applied to calculate present value of the provision was 3.17% (2024: 2.34%) and
the average escalation rate was 1.81% (2024: 1.77%).
At the reporting date, a decrease of escalation rate by 1% would reduce the present value of the provisions
by EUR 32 million (2024: EUR 29 million), while an increase of 1% would increase the present value of
the provisions by EUR 23 million (2023: EUR 43 million).
An increase of discount rate by 1% would reduce the present value of the provisions by EUR 32 million
(2024: EUR 22 million), while a decrease of 1% would increase the present value of the provisions by EUR
39 million (2024: EUR 54 million). These analyses assume that all other variables remain constant.
25. Deferred income
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Government grants | 69 | 85 | ||
Other deferred income | 4 | 13 | ||
Total | 73 | 98 | ||
Non-current | 61 | 78 | ||
Current | 12 | 20 | ||
Total | 73 | 98 |
Balance of government grants in amount of EUR 69 million (2024: EUR 85 million) is mainly represented
by eustream, a.s. of EUR 52 million (2024: EUR 54 million), EOP Distribuce, a.s. of EUR 4 million (2024:
EUR 5 million), Severočeská teplárenská, a.s. of EUR 6 million (2024: EUR 7 million) and Plzeňská
teplárenská, a.s. of EUR 4 million (2024: EUR 4 million).
Balance of government grants recognised by Eustream are primarily represented by subsidies from the
European Commission relating to projects such as interconnection pipelines between Poland and Slovakia
or Hungary and Slovakia.
EOP Distribuce, a.s., Severočeská teplárenská, a.s. and Plzeňská teplárenská, a.s. were provided with
government grants to reduce emission pollutions. Deferred income is released in the income statement on
a straight-line basis in the amount of depreciation charges of non-current tangible assets constructed and is
recognised as other operating income.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
70
26. Financial instruments
Financial instruments and other financial assets | ||||
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Assets carried at amortized cost | ||||
Loans to other than credit institutions | 2 | 2 | ||
Total | 2 | 2 | ||
Assets carried at fair value | ||||
Hedging: of which | 8 | 10 | ||
Commodity derivatives cash flow hedge | 8 | 10 | ||
Equity instruments at fair value through OCI: of which | 25 | 21 | ||
Shares and interim certificates at fair value through | 25 | 21 | ||
Total | 33 | 31 | ||
Non-current | 30 | 24 | ||
Current | 5 | 9 | ||
Total | 35 | 33 | ||
Financial instruments and other financial liabilities | ||||
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Liabilities carried at fair value | ||||
Hedging: of which | 3 | 13 | ||
Commodity derivatives cash flow hedge | 3 | 13 | ||
Non-hedging: of which | 5 | 1 | ||
Commodity derivates reported as trading | 1 | 1 | ||
Currency derivatives reported as trading | 4 | - | ||
Total | 8 | 14 | ||
Non-current | 2 | 2 | ||
Current | 6 | 12 | ||
Total | 8 | 14 |
(1) Commodity derivatives designated as cash flow hedges primarily relate to forwards or other type of derivative contract for
sale/purchase of electricity and gas EP ENERGY TRADING, a.s. hedges cash flows arising from purchase and from sale of
electricity, as part of its activities as supplier of electricity to final customers. The effectiveness is measured by comparing the
change in fair value of the hedging instruments to the change in fair value of a hypothetical derivative that represents the hedged
item.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
71
Fair values and respective nominal amounts of derivatives are disclosed | |||||
In millions of EUR | 31 December 2025 | 31 December 2025 | 31 December 2025 | 31 December 2025 | |
Notional amount buy | Notional amount sell | Positive fair value | Negative fair value | ||
Hedging: of which | 238 | (233) | 8 | (3) | |
Commodity derivatives cash flow hedge | 238 | (233) | 8 | (3) | |
Non-hedging: of which | 175 | (180) | - | (5) | |
Commodity derivatives reported as trading | 1 | (2) | - | (1) | |
Currency derivatives reported as trading | 174 | (178) | - | (4) | |
Total | 413 | (413) | 8 | (8) | |
In millions of EUR | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 | |
Notional amount buy | Notional amount sell | Positive fair value | Negative fair value | ||
Hedging: of which | 153 | (157) | 10 | (13) | |
Commodity derivatives cash flow hedge | 153 | (157) | 10 | (13) | |
Non-hedging: of which | 123 | (124) | - | (1) | |
Commodity derivatives reported as trading | 1 | (2) | - | (1) | |
Currency derivatives reported as trading | 122 | (122) | - | - | |
Total | 276 | (281) | 10 | (14) | |
Commodity derivatives are recognised in respect of contracts for purchase and sale of electricity and gas,
which are denominated in CZK and EUR with maturity up and over one year and where the contractual
condition of derivatives does not meet the “own use exemption” as noted in IFRS 9.
Sensitivity analysis relating to the fair values of financial instruments is included in the Note 30 – Risk
management.
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);
●
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
72
31 December 2025 | |||||
In millions of EUR | Level 1 | Level 2 | Level 3 | Total | |
Financial assets carried at fair value: | |||||
Hedging: of which | - | 8 | - | 8 | |
Commodity derivatives cash flow hedge | - | 8 | - | 8 | |
Equity instruments at fair value through OCI: of which | - | - | 25 | 25 | |
Shares and interim certificates at fair value through OCI | - | - | 25 | 25 | |
Total | - | 8 | 25 | 33 | |
Financial liabilities carried at fair value: | |||||
Hedging: of which | - | 3 | - | 3 | |
Commodity derivatives cash flow hedge | - | 3 | - | 3 | |
Non-hedging: of which | - | 5 | - | 5 | |
Commodity derivates reported as trading | - | 1 | - | 1 | |
Currency derivatives reported as trading | 4 | 4 | |||
Total | - | 8 | - | 8 | |
31 December 2024 | |||||
In millions of EUR | Level 1 | Level 2 | Level 3 | Total | |
Financial assets carried at fair value: | |||||
Hedging: of which | - | 10 | - | 10 | |
Commodity derivatives cash flow hedge | - | 10 | - | 10 | |
Equity instruments at fair value through OCI : of which | - | - | 21 | 21 | |
Shares and interim certificates at fair value through OCI | - | - | 21 | 21 | |
Total | - | 10 | 21 | 31 | |
Financial liabilities carried at fair value: | |||||
Hedging: | - | 13 | - | 13 | |
Commodity derivatives cash flow hedge | - | 13 | - | 13 | |
Non-hedging: of which | - | 1 | - | 1 | |
Commodity derivates reported as trading | - | 1 | - | 1 | |
Total | - | 14 | - | 14 | |
There were no transfers between fair value levels in either 2025 or 2024. | |||||
All financial instruments held at amortised costs are categorised within Level 2 of the fair value hierarchy
(for detail of valuation methods refer to Note 2 (d) i – Assumption and estimation uncertainties).
Transactions with emission rights
The following information pertains to contracts on delivery or sale of emission rights. These contracts do
not meet the IFRS 9 criteria for derivatives (refer to Note 3(f) – Derivative financial instruments –
Transactions with emission rights and energy) and are reported as off-balance sheet items, not derivatives.
The management carefully assessed conditions of the contracts and concluded that all contracts are intended
to be settled via physical delivery needed for consumption or physically delivered quantities shall be sold
as part of its ordinary business, therefore the contracts are not reported as derivatives.
Forward operations
As at 31 December 2025 the Group is contractually obliged to forward purchase 68,000 pieces (2024:
1,391,000 pieces) of emission rights at an average price 71.71 EUR/piece (2024: 70.09 EUR/piece) with
delivery predominantly in 2026.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
73
27. Trade payables and other liabilities
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Trade payables | 148 | 198 | ||
Liabilities from dividends * | 244 | 176 | ||
Estimated payables | 133 | 109 | ||
Payroll liabilities | 49 | 56 | ||
Other tax liabilities | 28 | 28 | ||
Uninvoiced supplies | 24 | 20 | ||
Accrued expenses | 1 | - | ||
Advance payments received | 23 | 3 | ||
Other liabilities | 97 | 60 | ||
Total | 747 | 650 | ||
Non-current | 4 | 2 | ||
Current | 743 | 648 | ||
Total | 747 | 650 | ||
* non-controlling shareholder and to dividend payable in a.s. to both of its shareholders. | ||||
Trade payables and other liabilities have not been secured as at 31 December 2025 and 31 December 2024.
As at 31 December 2025 and 2024 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 30 – Risk management.
28. Commitments and contingencies
Off balance sheet liabilities | ||||
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Commitments for future purchases | 220 | 535 | ||
Total | 220 | 535 |
Commitments
Commitments are represented by contracts for purchase of non-current assets of EUR 159 million (2024:
EUR 431 million) related mostly to SPP - distribúcia, a.s. of EUR 78 million (2024: EUR 0 million),
NAFTA a.s. of EUR 26 million (2024: EUR 5 million) and to ongoing decarbonization projects Plzeňská
teplárenská, a.s. of EUR 49 million. Remaining EUR 61 million (2024: EUR 104 million) arise from
different type of service contracts.
Off balance sheet asset | ||||
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Received loan commitments | 642 | 877 | ||
Other received commitments | 104 | 392 | ||
Other received guarantees and warranties | 504 | 317 | ||
Total | 1,250 | 1,586 |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
74
Other received guarantees and warranties mainly consist of third party parent company guarantees in the
amount of EUR 270 million (2024: EUR 274 million) recognised by eustream, a.s. and SPP - distribúcia,
a.s. and bank guarantees of EUR 235 million (2024: EUR 43 million) recognised by NAFTA a.s.
Other received commitments represent investment subsidies for future capital expenditures. As at 31
December 2025, they include a subsidy for Plzeňská teplárenská, a.s. of EUR 104 million (2024:
EUR 100 million). In 2024, the balance also included subsidies for United Energy, a.s. and Elektrárny
Opatovice, a.s., which were disposed during 2025.
29. Leases
(a)
Leases as a lessee
The Group leases namely buildings, pipelines 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).
In millions of EUR | Land and buildings | Technical equipment, plant and machinery | Total | |
Balance at 1 January 2025 | 30 | 32 | 62 | |
Depreciation charge for the year | (6) | (9) | (15) | |
Additions to right-of-use assets | 8 | 5 | 13 | |
Disposed entities | (1) | (14) | (15) | |
Balance at 31 December 2025 | 31 | 14 | 45 | |
Balance at 1 January 2024 | 29 | 37 | 66 | |
Depreciation charge for the year | (5) | (11) | (16) | |
Additions to right-of-use assets | 5 | 6 | 11 | |
Disposals | 1 | - | 1 | |
Balance at 31 December 2024 | 30 | 32 | 62 |
Maturity analysis of lease liabilities | ||||
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Undiscounted contractual cash flows by maturity | ||||
Up to 3 months | 1 | 2 | ||
3 months to 1 year | 12 | 13 | ||
1–5 years | 44 | 44 | ||
Over 5 years | 4 | 7 | ||
Total undiscounted | 61 | 66 | ||
Carrying amount | 49 | 66 | ||
Amounts recognized in profit or loss | ||||
In millions of EUR | 2025 | 2024 | ||
Depreciation charge for the year | (15) | (16) | ||
Interest on lease liabilities | (2) | (2) | ||
Expenses related to short-term leases | (5) | (13) | ||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
75
Amounts recognized in statement of cash flows | ||||
In millions of EUR | 2025 | 2024 | ||
Total cash outflow for leases | (13) | (15) |
(b) Leases as a lessor
During the year ended 31 December 2025, EUR 9 million (2024: EUR 7 million) was recognised as income
in profit or loss in respect of operating leases.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
76
30. Risk management
This section provides details of the Group’s exposure to financial and operational risks and the way it
manages such risks. The most important types of financial risks to which the Group is exposed are credit
risk, liquidity risk, interest rate risk, 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 primarily operates as an energy utility in a specific customer structure. The distribution
companies represent comparatively low credit risk. Large clients depend heavily on gas and electricity
supplies which significantly mitigates credit risks. In addition, bank guarantees and/or advance payments
are required before active operation with traders. Past experience indicates that these measures are highly
effective in terms of credit risk mitigation. Additionally, customers of distribution and supply subsegments,
as well as the Heat Infra segment are required to make prepayments further reducing 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.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
77
Credit risk by type of counterparty | |||||||
As at 31 December 2025 | |||||||
In millions of EUR | Corporate (non- financial institutions) | State, government | Financial institutions | Banks | Other | Total | |
Assets | |||||||
Cash and cash equivalents | - | - | 20 | 1,688 | - | 1,708 | |
Restricted cash | - | - | - | 1 | - | 1 | |
Trade receivables and other assets | 334 | 4 | - | - | 53 | 391 | |
Financial instruments and other financial assets | 35 | - | - | - | - | 35 | |
Total | 369 | 4 | 20 | 1,689 | 53 | 2,135 | |
As at 31 December 2024 | |||||||
In millions of EUR | Corporate (non- financial institutions) | State, government | Financial institutions | Banks | Other | Total | |
Assets | |||||||
Cash and cash equivalents | - | - | 50 | 1,704 | - | 1,754 | |
Restricted cash | - | - | - | 2 | - | 2 | |
Trade receivables and other assets | 339 | 8 | - | 3 | 112 | 462 | |
Financial instruments and other financial assets | 33 | - | - | - | - | 33 | |
Total | 372 | 8 | 50 | 1,709 | 112 | 2,251 | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
78
Credit risk by location of debtor | |||||||||
As at 31 December 2025 | |||||||||
In millions of EUR | Slovakia | Czech Republic | United Kingdom | Netherlands | Germany | Poland | Hungary | Other | Total |
Assets | |||||||||
Cash and cash equivalents | 994 | 659 | - | - | 55 | - | - | - | 1,708 |
Restricted cash | - | 1 | - | - | - | - | - | - | 1 |
Trade receivables and other assets | 186 | 175 | 2 | - | 2 | 7 | 4 | 15 | 391 |
Financial instruments and other financial assets | 2 | 20 | - | 2 | 5 | - | - | 6 | 35 |
Total | 1,182 | 855 | 2 | 2 | 62 | 7 | 4 | 21 | 2,135 |
As at 31 December 2024 | |||||||||
In millions of EUR | Slovakia | Czech Republic | United Kingdom | Netherlands | Germany | Poland | Hungary | Other | Total |
Assets | |||||||||
Cash and cash equivalents | 1,434 | 163 | - | 1 | 121 | - | - | 35 | 1,754 |
Restricted cash | - | 2 | - | - | - | - | - | - | 2 |
Trade receivables and other assets | 200 | 225 | 3 | - | 4 | - | 4 | 26 | 462 |
Financial instruments and other financial assets | 2 | 24 | - | - | - | - | - | 7 | 33 |
Total | 1,636 | 414 | 3 | 1 | 125 | - | 4 | 68 | 2,251 |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
79
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 are included 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 2025 | (6) | (7) | (33) | - | (46) | |
Impairment losses recognised during the year | - | - | (2) | - | (2) | |
Reversal of impairment losses recognised during the year | 1 | - | 1 | - | 2 | |
Write-offs | - | 1 | - | - | 1 | |
Change in credit risk | - | - | - | - | - | |
Balance at 31 December 2025 | (5) | (6) | (34) | - | (45) | |
In millions of EUR | 12-month ECL | Lifetime ECL not credit- impaired | Lifetime ECL credit- impaired | Purchased credit- impaired | Total | |
Balance at 1 January 2024 | (7) | (5) | (36) | - | (48) | |
Impairment losses recognised during the year | - | (2) | - | - | (2) | |
Reversal of impairment losses recognised during the year | 1 | - | 3 | - | 4 | |
Write-offs | - | - | 1 | - | 1 | |
Change in credit risk | - | - | (1) | - | (1) | |
Balance at 31 December 2024 | (6) | (7) | (33) | - | (46) |
The most significant changes that contributed to the change in the loss allowance during the period were
the write-off of financial assets and changes 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 2025 and 2024 were as follows:
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
80
In millions of EUR | Loans to other than credit institutions | Trade receivables and other assets | Total | |
Balance at 1 January 2025 | (12) | (34) | (46) | |
Impairment losses recognised during the year | (1) | (1) | (2) | |
Reversals of impairment losses recognised during the year | - | 2 | 2 | |
Write-offs | - | 1 | 1 | |
Change in credit risk | - | - | - | |
Balance at 31 December 2025 | (13) | (32) | (45) | |
In millions of EUR | Loans to other than credit institutions | Trade receivables and other assets | Total | |
Balance at 1 January 2024 | (11) | (37) | (48) | |
Impairment losses recognised during the year | - | (2) | (2) | |
Reversals of impairment losses recognised during the year | - | 4 | 4 | |
Write-offs | - | 1 | 1 | |
Change in credit risk | (1) | - | (1) | |
Balance at 31 December 2024 | (12) | (34) | (46) |
Credit risk – impairment of financial assets | ||||
As at 31 December 2025 | ||||
In millions of EUR | Loans to other than credit institutions | Trade receivables and other assets | Total | |
Before maturity (net) | 2 | 380 | 382 | |
After maturity (net) | - | 11 | 11 | |
Total | 2 | 391 | 393 | |
A – Assets (gross) | ||||
2 | 386 | 388 | ||
- | 9 | 9 | ||
- | 3 | 3 | ||
- | 1 | 1 | ||
13 | 24 | 37 | ||
Total assets (gross) | 15 | 423 | 438 | |
B – Loss allowances for assets | ||||
- | (6) | (6) | ||
- | - | - | ||
- | (1) | (1) | ||
- | (1) | (1) | ||
(13) | (24) | (37) | ||
Total loss | (13) | (32) | (45) | |
Total assets (net) | 2 | 391 | 393 |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
81
Credit risk – impairment of financial assets | ||||
As at 31 December 2024 | ||||
In millions of EUR | Loans to other than credit institutions | Trade receivables and other assets | Total | |
Before maturity (net) | 2 | 404 | 406 | |
After maturity (net) | - | 58 | 58 | |
Total | 2 | 462 | 464 | |
A – Assets (gross) | ||||
2 | 416 | 418 | ||
- | 55 | 55 | ||
- | 3 | 3 | ||
- | 2 | 2 | ||
12 | 20 | 32 | ||
Total assets (gross) | 14 | 496 | 510 | |
B – Loss allowances for assets | ||||
- | (11) | (11) | ||
- | (1) | (1) | ||
- | (1) | (1) | ||
- | (1) | (1) | ||
(12) | (20) | (32) | ||
Total loss | (12) | (34) | (46) | |
Total assets (net) | 2 | 462 | 464 |
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 2025.
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.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
82
(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. As of 31 December 2025
and 31 December 2024, the Group had available undrawn committed revolving credit and overdraft
facilities in the amount of EUR 642 million and EUR 877 million, respectively, providing additional
liquidity to the Group.
In addition to the strong liquidity position at the reporting date, liquidity risk has been further reduced by
refinancing transactions completed after the balance sheet date, which extended the Group’s debt maturity
profile and secured long-term funding at favorable terms. These post-balance sheet refinancing activities
materially strengthen the Group’s liquidity and reduce the volume of short-term refinancing required in
2026.
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.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
83
Maturities of financial liabilities | ||||||
As at 31 December 2025 | ||||||
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) 3,534 | 3,870 | 21 | 638 | 1,528 | 1,683 |
Trade payables and other liabilities | (3) 724 | 724 | 704 | 16 | 4 | - |
Financial instruments and financial liabilities | 8 | 8 | 3 | 3 | 2 | - |
Total | 4,266 | 4,602 | 728 | 657 | 1,534 | 1,683 |
Net liquidity risk position (4),(5) | (2,254) | (2,589) | 733 | (113) | (1,528) | (1,681) |
* | ||||||
(1) | ||||||
(2) | ||||||
(3) | ||||||
(4) operating and financing cash flows, which will address items reported under Loans and borrowings. The principles for maintaining 30(h) | ||||||
(5) payments in amount of EUR 82 million as these items | ||||||
As at 31 December 2024 | ||||||
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) 3,569 | 3,727 | 526 | 73 | 2,114 | 1,014 |
Trade payables and other liabilities | (3) 647 | 647 | 625 | 20 | 2 | - |
Financial instruments and financial liabilities | 14 | 14 | 12 | - | 2 | - |
Total | 4,230 | 4,388 | 1,163 | 93 | 2,118 | 1,014 |
Net liquidity risk position (4),(5) | (2,219) | (2,377) | 821 | (73) | (2,114) | (1,011) |
* | ||||||
(1) | ||||||
(2) | ||||||
(3) | ||||||
(4) operating and financing cash flows, which will address items reported under Loans and borrowings. The principles for maintaining 30(h) | ||||||
(5) payments in amount of EUR 84 million as these items |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
84
(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 2025 is as follows:
In millions of EUR | Up to 1 year | 1 year to 5 years | Over 5 years | Undefined maturity (or non-interest bearing) | Total | |
Assets | ||||||
Cash and cash equivalents | 1,702 | - | - | 6 | 1,708 | |
Restricted cash | - | - | - | 1 | 1 | |
Trade receivables and other assets | 17 | - | - | 374 | 391 | |
Financial instruments and other financial assets | 1 | 1 | - | 33 | 35 | |
Total | 1,720 | 1 | - | 414 | 2,135 | |
Liabilities | ||||||
Loans and borrowings | 681 | 1,247 | 1,606 | - | 3,534 | |
Trade payables and other liabilities | 2 | - | - | 745 | 747 | |
Financial instruments and financial liabilities | 3 | 1 | 1 | 3 | 8 | |
Total | 686 | 1,248 | 1,607 | 748 | 4,289 | |
Net interest rate risk position | 1,034 | (1,247) | (1,607) | (334) | (2,154) | |
Effect of interest rate swaps | - | - | - | - | - | |
Net interest rate risk position (incl. IRS) | 1,034 | (1,247) | (1,607) | (334) | (2,154) |
(1) Disregarding agreed interest rate swaps.
Notional amounts of financial instruments are included in Note 26 – Financial instruments.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
85
Interest rate risk exposure as at 31 December 2024 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 | 1,750 | - | - | 4 | 1,754 | |
Restricted cash | - | 1 | - | 1 | 2 | |
Trade receivables and other assets | 3 | - | - | 459 | 462 | |
Financial instruments and other financial assets | 11 | 1 | 1 | 20 | 33 | |
Total | 1,764 | 2 | 1 | 484 | 2,251 | |
Liabilities | ||||||
Loans and borrowings | 642 | 1,923 | 1,004 | - | 3,569 | |
Trade payables and other liabilities | 3 | - | - | 647 | 650 | |
Financial instruments and financial liabilities | 14 | - | - | - | 14 | |
Total | 659 | 1,923 | 1,004 | 647 | 4,233 | |
Net interest rate risk position | 1,105 | (1,921) | (1,003) | (163) | (1,982) | |
Effect of interest rate swaps | - | - | - | - | - | |
Net interest rate risk position (incl. IRS) | 1,105 | (1,921) | (1,003) | (163) | (1,982) | |
(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 26 – 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 | 2025 | 2024 | |
Profit (loss) | Profit (loss) | ||
Decrease in interest rates by 1pp | 4 | (4) | |
Increase in interest rates by 1pp | (8) | 4 |
(d) Foreign exchange risk
The Group takes on exposure to the effects of fluctuations in the prevailing foreign currency exchange rates
on its financial position and cash flows.
The Group is exposed to a currency risk on sales, purchases and services that are denominated in currency
other that the respective functional currencies of Group entities, primarily EUR.
Various types of derivatives are used to reduce the exchange rate risk on foreign currency assets, liabilities
and expected future cash flows. These include forward exchange contracts, most with a maturity of less
than one year.
These contracts are also normally agreed with a notional amount and expiry date equal to that of the
underlying financial liability or the expected future cash flows, so that any change in the fair value and/or
future cash flows of these contracts stemming from a potential appreciation or depreciation of the functional
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.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
86
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 individual companies level.
As of 31 December 2025 the Group is exposed to foreign exchange risk when financial assets and liabilities
are denominated in a currency other than the functional currency in which they are measured (e.g. Slovak
entities holding CZKs). Assets and liabilities denominated in a currency different from the functional
currency in which they are measured are presented in the table below:
In millions of EUR | CZK | USD | EUR | Other | Total | |
Assets | ||||||
Cash and cash equivalents | 57 | - | 7 | - | 64 | |
Trade receivables and other assets | 2 | - | 45 | - | 47 | |
Financial instruments and other financial assets | 3 | - | 106 | - | 109 | |
Total (A) | 62 | - | 158 | - | 220 | |
Off balance sheet assets (B) | ||||||
Receivables from derivative operations | - | - | 173 | - | 173 | |
- | - | 173 | - | 173 | ||
Liabilities | ||||||
Loans and borrowings | - | - | - | - | - | |
Trade payables and other liabilities | 1 | 1 | 52 | - | 54 | |
Financial instruments and financial liabilities | 242 | - | 22 | - | 264 | |
Total (C) | 243 | 1 | 74 | - | 318 | |
Off balance sheet liabilities (D) | ||||||
Payables related to derivative operations | - | - | 179 | - | 179 | |
- | - | 179 | - | 179 | ||
Net FX risk position (E) = (A - C) | (181) | (1) | 84 | - | (98) | |
Effect of forward exchange contracts (F) = (B - D) | - | - | (6) | - | (6) | |
Net FX risk position (incl. forward exchange contracts and CF hedges on FX risk) (G) = (E + F) | (181) | (1) | 78 | - | (104) | |
(1) The amount relates to a cash flow hedge recognized by the Group’s | ||||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
87
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 2024 the Group is exposed to foreign exchange risk when financial assets and liabilities
are denominated in a currency other than the functional currency in which they are measured. Assets and
liabilities denominated in a currency different from the functional currency in which they are measured are
presented in the table below:
In millions of EUR | CZK | USD | EUR | Other | Total | |
Assets | ||||||
Cash and cash equivalents | 98 | - | 13 | - | 111 | |
Trade receivables and other assets | 3 | - | 89 | 1 | 93 | |
Financial instruments and other financial assets | 121 | - | 120 | - | 241 | |
Total (A) | 222 | - | 222 | 1 | 445 | |
Off balance sheet assets (B) | ||||||
Receivables from derivative operations | - | - | 106 | - | 106 | |
- | - | 106 | - | 106 | ||
Liabilities | ||||||
Loans and borrowings | - | - | 85 | - | 85 | |
Trade payables and other liabilities | 1 | 1 | 73 | - | 75 | |
Financial instruments and financial liabilities | 247 | - | 51 | - | 298 | |
Total (C) | 248 | 1 | 209 | - | 458 | |
Off balance sheet liabilities (D) | ||||||
Payables related to derivative operations | - | - | 105 | - | 105 | |
- | - | 105 | - | 105 | ||
Net FX risk position (E) = (A - C) | (26) | (1) | 13 | 1 | (13) | |
Effect of forward exchange contracts (F) = (B - D) | - | - | 1 | - | 1 | |
Net FX risk position (incl. forward exchange contracts and CF hedges on FX risk) (G) = (E + F) | (26) | (1) | 14 | 1 | (12) | |
(1) The amount relates to a cash flow hedge recognized by the Group’s | ||||||
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 26 – Financial instruments for more details).
The following significant exchange rates applied during the period:
31 December 2025 | 31 December 2024 | ||||
EUR | Average rate | Reporting date spot rate | Average rate | Reporting date spot rate | |
CZK 1 | 0.04051 | 0.04126 | 0.03981 | 0.03971 | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
88
Sensitivity analysis
A strengthening (weakening) of the currency other than the functional currency in which financial assets
and liabilities are measured, as indicated below, against the functional currency 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 | 2025 | 2024 | |
Profit (loss) | Profit (loss) | ||
CZK (5% strengthening of CZK) | 9 | (5) | |
EUR (5% strengthening of EUR) | (4) | - | |
A weakening of the currency other than the functional currency in which financial assets and liabilities are
measured 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 electricity, 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 three-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 gas (for more
details refer to Note 26 – Financial instruments).
Sensitivity analysis
A 5% change in the market price of the natural gas would have impact on the fair value of cash flow hedging
derivatives of EUR 0 million (2024: EUR 1 million).
A
change in the market price of the electricity of 1 EUR/MWh would have impact on the fair value of cash
flow hedging derivatives of EUR 2 million (2024: negative EUR 3 million).
(f)
Regulatory risk
The Group is exposed to risks resulting from the regulation of electricity and gas industries in the countries
in which it undertakes business activities, primarily in the Slovak Republic and the Czech Republic.
Changes to existing regulations or the adoption of new regulations may have an adverse effect on the
Group’s business, financial condition, results of operations, cash flows and prospects.
The price regulation in the Slovak Republic is carried out by the Slovak Regulatory Office for Network
Industries (“RONI”) in accordance with Act No. 250/2012 Coll., on Regulation in Network Industries,
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
89
and the implementing legislation issued by RONI for the current regulatory period started on 1 January
2023 and ending on 31 December 2027.
Electricity industry price regulation is regulated by RONI’s Decrees No. 154/2024 Coll. and No. 402/2024
Coll. The maximum price for access to the distribution network and electricity distribution reflects
electricity distribution and electricity transmission, including losses incurred during electricity
transmission, and is denominated in euro per unit of electricity distributed to end consumers in the relevant
year. Electricity prices for vulnerable customers, including households and small enterprises, are regulated
by providing a capped profit margin per MWh.
Slovak law provides for the designation of a supplier of last resort in the electricity sector that must supply
electricity to a customer whose original electricity supplier has lost its ability to supply electricity. The
supply of electricity by the supplier of last resort is subject to price regulation and the supplier of last resort
is designated by RONI on the basis of a tender published by RONI. SSE is currently designated as a
supplier of last resort for the area of central Slovak Republic.
Gas price regulation is regulated by RONI’s Decree No. 147/2024 Coll. The regulated prices for access to
the distribution system and gas distribution are charged by the gas DSO to gas suppliers who then pass the
prices to their end-customers. Gas prices for vulnerable customers, including households and small
enterprises, are regulated by providing a capped profit margin per MWh.
The gas transmission tariffs applicable to Eustream are primarily regulated by Commission Regulation
2017/460 of 16 March 2017 establishing a network code on harmonised transmission tariff structures for
gas (network code on harmonised tariffs), in combination with national legislation. RONI issued a decision
implementing the rules of the network code, setting the reference price methodology including reference
prices applicable for entry/exit points with EU Member States. Benchmarking of tariffs is used as the
secondary adjustment of the reference prices calculated on the cost base principles. On 5 June 2024, RONI
published a price decision regarding the transmission tariffs. The new tariffs, effective from the beginning
of 2025 until the end of the current regulatory period in 2027, are set at EUR 1.0/MWh/day for all entry
and exit points, except for the domestic point, which is set at EUR 0.9/MWh/day for both entry and exit
points. The new tariff structure is more transparent, providing a unified rate for all connection points, with
a discount only for the domestic point. Additionally, the price decision introduced a floating tariff for all
entry and exit points, enabling tariff adjustments in the event of significant changes in economic
parameters, even for existing contracts. This change will not apply to existing long-term contracts that
have a fixed operating schedule.
(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.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
90
(h)
Capital management
The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of its business.
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern
while maximising the return to shareholders through the optimisation of the debt and equity balance.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Proportionate Gross Debt* | 2,956 | 2,706 | ||
Less: Proportionate cash and cash equivalents* | 1,206 | 1,013 | ||
Proportionate net debt | 1,750 | 1,693 | ||
Proportionate EBITDA* | 552 | 749 | ||
Proportionate net debt to proportionate EBITDA* | 3.17 | 2.26 | ||
* Proportionate net debt documentation of the EPIF Group. Proportionate values are calculated as values eliminations and consolidation adjustments) multiplied by effective shareholding of the Company in | ||||
(i
)
Hedge accounting
The Group applies hedge accounting for derivative instruments used to hedge commodity price risk and
foreign-currency risk. These hedging relationships primarily relate to electricity and gas commodity
derivatives and foreign-exchange derivatives for cash-flows arising from the Group’s power production
and commodity supply activities. The effective portion of fair value changes in these cash-flow hedges is
recognised in equity (hedging reserve).
In addition to these active hedging relationships, the balance at 31 December 2025 also includes the residual
fair value effects of historical interest-rate swap hedging instruments. The Group no longer uses derivatives
to hedge interest rate risk, and all interest-rate swaps were fully settled in prior periods; the remaining
balance therefore reflects only the unwind of these legacy hedge relationships in accordance with IFRS 9.
During the period the Group reclassified EUR 4 million (positive impact on profit or loss) including non-
controlling interest from the hedging reserves to profit or loss (2024: EUR 28 million negative impact on
profit or loss).
The following table provides a reconciliation of amounts recorded in equity attributable to owners of the
Company by category of hedging instrument:
In millions of EUR | Commodity derivatives – cash flow hedge (1) | Interest rate swaps – cash flow hedge | Total | |
Balance at 1 January 2025 | 4 | (10) | (6) | |
Effect of change in functional currency | - | - | - | |
Cash flow hedges reclassified to profit or loss | (4) | - | (4) | |
Deferred tax – cash flow hedges reclassified to profit or loss | 2 | - | 2 | |
Revaluation of cash flow hedges | 8 | 4 | 12 | |
Deferred tax – cash flow hedges revaluation | - | (1) | (1) | |
Balance at 31 December 2025 | 10 | (7) | 3 | |
(1) Including also hedge for foreign currency risk | ||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
91
In millions of EUR | Commodity derivatives – cash flow hedge (1) | Interest rate swaps – cash flow hedge | Total | |
Balance at 1 January 2024 | 14 | (8) | 6 | |
Effect of change in functional currency | - | - | - | |
Cash flow hedges reclassified to profit or loss | 50 | - | 50 | |
Deferred tax – cash flow hedges reclassified to profit or loss | (10) | - | (10) | |
Revaluation of cash flow hedges | (39) | (2) | (41) | |
Deferred tax – cash flow hedges revaluation | (11) | - | (11) | |
Balance at 31 December 2024 | 4 - | (10) | (6) | |
Cash flow hedges – hedge of foreign currency risk and commodity price risk of revenues of power
production with financial derivatives
The Group applies hedge accounting for hedging instruments designed to hedge the commodity price risk
and the foreign currency risk of cash-flows from Group’s power production sold to or commodities
purchased from the third parties. This includes commodity derivatives with net settlement for commodity
risk. As a result of the hedge relationship on the Group level, the Group recorded a change in a foreign
currency cash flow hedge reserve of positive EUR 5 million (2024: negative EUR 14 million). For risk
management policies, refer to Note 30 (d) and (e) – Risk management policies and disclosures.
Cash flow hedges – hedge of commodity price risk of gas
In past, the Group had been applying hedge accounting for commodity hedging instruments designed to
hedge cash flow from sales of gas. Then existing hedging instruments were commodity swaps to hedge
selling price for surplus of gas in-kind. In 2024, this hedge relationship expired and no further hedging
arrangements were entered into, which effectively concluded the hedge accounting. As a result of the hedge
relationship on the Group level, the Group recorded no change in a cash flow hedge reserve (2024: positive
EUR 3 million). For risk management policies, refer to Note 30 (d) and (e) – Risk management policies
and disclosures.
The commodity price risk recorded by the Group as at 31 December 2025 and | |||||
In millions of EUR | 31 December 2025 | 31 December 2025 | 31 December 2025 | 31 December 2025 | |
Positive fair value | Negative fair value | Nominal amount hedged (buy) | Nominal amount hedged (sell) | ||
Up to 3 months | - | - | - | - | |
3 months to 1 year | 4 | 3 | 149 | 149 | |
1–5 years | 4 | - | 88 | 84 | |
Over 5 years | - | - | - | - | |
Total | 8 | 3 | 237 | 233 | |
In millions of EUR | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 | |
Positive fair value | Negative fair value | Nominal amount hedged (buy) | Nominal amount hedged (sell) | ||
Up to 3 months | - | - | - | - | |
3 months to 1 year | 8 | 12 | 128 | 133 | |
1–5 years | 2 | 1 | 25 | 24 | |
Over 5 years | - | - | - | - | |
Total | 10 | 13 | 153 | 157 | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
92
31. 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 and 31 December 2024 was as follows: | ||||
In millions of EUR | Accounts receivable and other financial assets | Accounts payable and other financial liabilities | Accounts receivable and other financial assets | Accounts payable and other financial liabilities | |
31 December 2025 | 31 December 2025 | 31 December 2024 | 31 December 2024 | ||
Ultimate shareholder (1) | - | - | - | - | |
Companies controlled by ultimate shareholders | 13 | 129 | 23 | 47 | |
Companies under significant influence by ultimate shareholders | - | - | - | - | |
Associates | 5 | - | - | 16 | |
Other Related party | - | 2 | - | 1 | |
Total | 18 | 131 | 23 | 64 | |
(1) Daniel Křetínský represents the ultimate shareholder | |||||
(b) | The summary of transactions with related parties during the period ended 31 and 31 December 2024 was as follows: | ||||
In millions of EUR | Revenues | Expenses | Revenues | Expenses | |
31 December 2025 | 31 December 2025 | 31 December 2024 | 31 December 2024 | ||
Ultimate shareholder (1) | - | - | - | - | |
Companies controlled by ultimate shareholders | 53 | (451) | 109 | (350) | |
Companies under significant influence by ultimate shareholders | - | - | - | - | |
Associates | 7 | (132) | - | (159) | |
Other Related party | 1 | (2) | 1 | (3) | |
Total | 61 | (585) | 110 | (512) | |
(1) Daniel Křetínský represents the ultimate shareholder | |||||
Transactions with the key management personnel
For the financial years ended 31 December 2025 and 2024 the EPIF Group’s key management personnel is
represented by members of the Board of Directors of the following major entities: EP Infrastructure, a.s.,
Stredoslovenská energetika Holding, a.s. and its major subsidiaries, SPP Infrastructure, a.s., eustream, a.s.,
SPP – distribúcia, a.s., NAFTA a.s., NAFTA Germany GmbH, POZAGAS a.s., Elektrárny Opatovice, a.s.
and EOP Distribuce, a.s., United Energy, a.s., Plzeňská teplárenská a.s., SPP Storage, s.r.o. and EP
ENERGY TRADING, a.s.
Total compensation and related social and health insurance charges incurred by the respective entities were
as follows:
In millions of EUR | 2025 | 2024 | |
Nr. of personnel | 61 | 83 | |
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 10 – Personnel expenses. All transactions were performed under the arm’s length principle.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
93
32. Subsequent events
On 23 January 2026, the Company paid a EUR 100 million dividend that had been declared in December
2025.
On 29 January 2026, the Company successfully completed the issuance of EUR 500 million 4.375% senior
unsecured green notes (the “2034 Notes”) under its EMTN Programme. The 2034 Notes were issued at a
price of 99.630% and mature on 29 January 2034.
On 12 February 2026, the Company voluntarily repaid in full the remaining outstanding amounts under its
Schuldschein loan agreements, totalling EUR 210 million. This repayment fully discharged the Company’s
obligations under the Schuldschein financing.
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 2025.
Appendix*:
Appendix to the Notes to the Consolidated financial statements – Group entities
* Information contained in the appendices form part of the complete set of these consolidated
financial statements.
Signature of the authorised representative on 19 March 2026
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
94
Appendix to the Notes to the Consolidated financial statements - Group entities
The list of the Group entities as at 31 December 2025 and 31 December 2024 | |||||||||
31 December 2025 | 31 December 2024 | 2025 | 2024 | ||||||
Country of incorporation | Segment | Ownership % | Ownership interest | Ownership % | Ownership interest | Measurement | Measurement | ||
EP Infrastructure, a.s. * | Czech Republic | Other operations | |||||||
EP Energy, a.s. * | Czech Republic | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
AISE, s.r.o. | Czech Republic | Other operations | 80 | Direct | 80 | Direct | Consolidated | Consolidated | |
MARKON PCE s.r.o. | Czech Republic | Other operations | 100 | Direct | 100 | Direct | At cost | At cost | |
PT měření, a.s. | Czech Republic | Heat Infra | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
United Energy, a.s. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | Consolidated | |
EVO - Komořany, a.s. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | Consolidated | |
United Energy Moldova, s.r.o. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | Consolidated | |
United Energy Invest, a.s. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | Consolidated | |
Nadační fond pro rozvoj vzdělávání | Czech Republic | Heat Infra | - | - | 100 | Direct | - | At cost | |
EP Sourcing, a.s. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | Consolidated | |
EP ENERGY TRADING, a.s. | Czech Republic | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Dobrá Energie s.r.o. | Czech Republic | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Gazela Energy, a.s. (1) | Czech Republic | Gas and power distribution | - | - | 100 | Direct | - | Consolidated | |
Elektrárny Opatovice, a.s. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | Consolidated | |
V A H O s.r.o. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | At cost | |
Farma Lístek, s.r.o. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | At cost | |
MR TRUST s.r.o.* | Czech Republic | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
ARISUN, s.r.o. | Slovakia | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
POWERSUN a.s. | Czech Republic | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Triskata, s.r.o. | Slovakia | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
VTE Pchery, s.r.o. | Czech Republic | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Alternative Energy, s.r.o. | Slovakia | Other operations | 99 | Direct | 99 | Direct | Consolidated | Consolidated | |
Severočeská teplárenská, a.s. | Czech Republic | Heat Infra | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
GABIT spol. s r.o. | Czech Republic | Heat Infra | 100 | Direct | 100 | Direct | At cost | At cost | |
DOTERM Správa, s.r.o. | Czech Republic | Heat Infra | 100 | Direct | - | - | At cost | - | |
EOP Distribuce, a.s. | Czech Republic | Heat infra | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Stredoslovenská energetika Holding, a.s. | Slovakia | Gas and power distribution | 49 | Direct | 49 | Direct | Consolidated | Consolidated | |
Kinet s.r.o. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Kinet Inštal s.r.o. (3) | Slovakia | Gas and power distribution | - | - | 100 | Direct | - | Consolidated | |
Stredoslovenská distribučná, a.s. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Elektroenergetické montáže, s.r.o. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
SSE - Metrológia s.r.o. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Stredoslovenská energetika - Project Development, s.r.o. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
SSE-Solar, s.r.o. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
SPX, s.r.o. | Slovakia | Gas and power distribution | 33.33 | Direct | 33.33 | Direct | Equity | Equity | |
Energotel, a.s. | Slovakia | Gas and power distribution | 20 | Direct | 20 | Direct | Equity | Equity | |
SSE CZ, s.r.o. v likvidaci (2) | Czech Republic | Gas and power distribution | - | - | 100 | Direct | - | Consolidated | |
SSE-TelcoHub, s.r.o. (5) | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
SSE - MVE, s.r.o. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
95
31 December 2025 | 31 December 2024 | 2025 | 2024 | ||||||
Country of incorporation | Segment | Ownership % | Ownership interest | Ownership % | Ownership interest | Measurement | Measurement | ||
Stredoslovenská energetika, a.s. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
PW geoenergy a.s. | Slovakia | Gas and power distribution | 51 | Direct | 51 | Direct | Consolidated | Consolidated | |
EP ENERGY HR d.o.o. | Croatia | Other operations | 100 | Direct | 100 | Direct | At cost | At cost | |
EP Cargo a.s. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | Consolidated | |
Patamon a.s. | Czech Republic | Other operations | - | - | 100 | Direct | - | At cost | |
Plzeňská teplárenská, a.s. | Czech Republic | Heat Infra | 35 | Direct | 35 | Direct | Consolidated | Consolidated | |
Plzeňská teplárenská SERVIS IN | Czech Republic | Heat Infra | 100 | Direct | 100 | Direct | At cost | At cost | |
fa Tříska top s.r.o. | Czech Republic | Heat Infra | 100 | Direct | - | - | At cost | - | |
Plzeňská teplárenská Energetiské služby s.r.o. | Czech Republic | Heat Infra | 100 | Direct | 100 | Direct | At cost | At cost | |
TRAXELL s.r.o. | Czech Republic | Heat Infra | 100 | Direct | 100 | Direct | At cost | At cost | |
EPIF BidCo I s.r.o. | Czech Republic | Other operations | - | - | 100 | Direct | - | At cost | |
Czech Gas Holding Investment B.V.* | Netherlands | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA a.s. | Slovakia | Gas storage | 40.45 | Direct | 40.45 | Direct | Consolidated | Consolidated | |
NAFTA Well | Slovakia | Gas storage | 100 | Direct | - | - | Consolidated | - | |
Karotáž a cementace, s.r.o. | Czech Republic | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
POZAGAS a.s. | Slovakia | Gas storage | 65 | Direct | 65 | Direct | Consolidated | Consolidated | |
NAFTA Services, s.r.o. (4) | Czech Republic | Gas storage | - | - | 100 | Direct | - | Consolidated | |
EP Lower Saxony GmbH | Germany | Gas storage | 10 | Direct | 10 | Direct | At cost | At cost | |
EP Ukraine B.V. | Netherlands | Gas storage | 10 | Direct | 10 | Direct | Consolidated | Consolidated | |
Slovakian Horizon Energy, s.r.o. | Slovakia | Gas storage | 100 | Direct | 100 | Direct | Equity | Equity | |
NAFTA E&P Holding Company | Slovakia | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
EP Hungary s.r.o. | Czech Republic | Gas storage | 10 | Direct | 10 | Direct | At cost | At cost | |
HHE Group Ventures | Hungary | Gas storage | 50 | Direct | 50 | Direct | At cost | At cost | |
Pusztaszer Koncessziós Kft. | Hungary | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
Darany Energy Kft. | Hungary | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
HHE DrávaP Koncessziós Kft. | Hungary | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
NAFTA Production s.r.o. | Slovakia | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA International B.V. | Netherlands | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Germany GmbH | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Speicher Management | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Speicher GmbH&Co. | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Speicher Inzenham GmbH | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA RV | Ukraine | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
CNG Holdings Netherlands B.V. | Netherlands | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
CNG LLC | Ukraine | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
Slovak Gas Holding B.V. | Netherlands | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
SPP Infrastructure, a.s. | Slovakia | Other operations | 49 | Direct | 49 | Direct | Consolidated | Consolidated | |
eustream, a.s. | Slovakia | Gas transmission | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Central European Gas HUB AG | Austria | Gas transmission | 15 | Direct | 15 | Direct | At cost | At cost | |
eastring B.V. | Netherlands | Gas transmission | - | - | 100 | Direct | - | At cost | |
Plynárenská metrológia, s.r.o. | Slovakia | Other operations | 100 | Direct | 100 | Direct | At cost | At cost | |
SPP - distribúcia, a.s. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
SPP - distribúcia Servis, s.r.o. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | At cost | At cost | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
96
31 December 2025 | 31 December 2024 | 2025 | 2024 | ||||||
Country of incorporation | Segment | Ownership % | Ownership interest | Ownership % | Ownership interest | Measurement | Measurement | ||
NAFTA a.s. | Slovakia | Gas storage | 56.15 | Direct | 56.15 | Direct | Consolidated | Consolidated | |
NAFTA Well | Slovakia | Gas storage | 100 | Direct | - | - | Consolidated | - | |
Karotáž a cementace, s.r.o. | Czech Republic | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
POZAGAS a.s. | Slovakia | Gas storage | 65 | Direct | 65 | Direct | Consolidated | Consolidated | |
NAFTA Services, s.r.o. (5) | Czech Republic | Gas storage | - | - | 100 | Direct | - | Consolidated | |
EP Lower Saxony GmbH | Germany | Gas storage | 10 | Direct | - | - | At cost | - | |
EP Ukraine B.V. | Netherlands | Gas storage | 10 | Direct | 10 | Direct | Consolidated | Consolidated | |
Slovakian Horizon Energy, s.r.o. | Slovakia | Gas storage | 100 | Direct | 100 | Direct | Equity | Equity | |
NAFTA E&P Holding Company | Slovakia | Gas storage | 100 | Direct | - | - | Consolidated | - | |
EP Hungary s.r.o. | Czech Republic | Gas storage | 10 | Direct | 10 | Direct | At cost | At cost | |
HHE Group Ventures | Hungary | Gas storage | 50 | Direct | 50 | Direct | At cost | At cost | |
Pusztaszer Koncessziós Kft. | Hungary | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
Darany Energy Kft. | Hungary | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
HHE DrávaP Koncessziós Kft. | Hungary | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
NAFTA Production s.r.o. | Slovakia | Gas storage | 100 | Direct | - | - | Consolidated | - | |
NAFTA International B.V.* | Netherlands | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Germany GmbH | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Speicher Management | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Speicher GmbH&Co. | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Speicher Inzenham GmbH | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA RV | Ukraine | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
CNG Holdings Netherlands B.V. | Netherlands | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
CNG LLC | Ukraine | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
GEOTERM KOŠICE, a.s. | Slovakia | Other operations | 95.82 | Direct | 95.82 | Direct | Consolidated | Consolidated | |
SPP Storage, s.r.o. | Czech Republic | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
POZAGAS a.s. | Slovakia | Gas storage | 35 | Direct | 35 | Direct | Consolidated | Consolidated | |
SLOVGEOTERM a.s. | Slovakia | Other operations | 50 | Direct | 50 | Direct | Equity | Equity | |
GEOTERM KOŠICE, a.s. | Slovakia | Other operations | 0.08 | Direct | 0.08 | Direct | Consolidated | Consolidated | |
GALANTATERM | Slovakia | Other operations | 0.5 | Direct | 0.5 | Direct | At cost | At cost | |
GALANTATERM | Slovakia | Other operations | 17.5 | Direct | 17.5 | Direct | At cost | At cost | |
SPP Infrastructure Financing B.V. | Netherlands | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
* Holding entity
(1)
On 1 January 2025, Gazel Energy, a.s. merged with Dobrá Energie s.r.o. (successor company)
(2)
On 15 October 2025, SSE CZ, s.r.o. v likvidaci was deleted from Commercial Register
(3)
On 5 November 2025, Kinet Inštal s.r.o. was deleted from Commercial Register
(4)
On 9 December 2024, Nafta Services, s.r.o. was deleted from Commercial Register
(5)
On 9 December 2024, SPV100, s.r.o. was renamed to SSE-TelcoHub, s.r.o.
The structure above is listed by ownership of companies at the different levels within the Group
VI. Independent Auditor´s Report to the Statutory Financial
Statements
EP Infrastructure, a.s. FINANCIAL STATEMENTS IN ACCORDANCE WITH IFRS AND INDEPENDENT AUDITOR’S REPORT AS OF 31 DECEMBER 2025 |
Deloitte Audit s.r.o. Churchill I Italská 2581/67 120 00 Prague 2 – Vinohrady Czech Republic Tel: +420 246 042 500 DeloitteCZ@deloitteCE.com www.deloitte.cz Registered by the Municipal Court in Prague, Section C, File 24349 ID. No.:49620592 Tax ID. No.: CZ49620592 | |
INDEPENDENT AUDITOR’S To EP Infrastructure, |
Having its registered office at: Pařížská 130/26, Josefov, 110 00 Prague 1
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the accompanying financial statements of EP Infrastructure , a.s. (hereinafter also the “Company”)
prepared on the basis of International Financial Reporting Standards (IFRS® Accounting Standards) as adopted by
the European Union, which comprise the statement of financial position as of 31 December 2025, statement
of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and
notes to the financial statements, including material accounting policy information.
In our opinion, the accompanying financial statements give a true and fair view of the financial position
of EP Infrastructure, a.s. as of 31 December 2025, and of its financial performance and its cash flows for the year then
ended in accordance with IFRS Accounting Standards as adopted by the European Union.
Basis for Opinion
We conducted our audit in accordance with the Act on Auditors, Regulation (EU) No. 537/2014 of the European
Parliament and the Council, and Auditing Standards of the Chamber of Auditors of the Czech Republic, which are
International Standards on Auditing (ISAs), as amended by the related application guidelines. Our responsibilities
under this law and regulation are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the Act on Auditors and
the Code of Ethics adopted by the Chamber of Auditors of the Czech Republic, as applicable to audits of financial
statements of public interest entities. We have also fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
EP Infrastructure, a.s. is a holding company that holds equity investments in controlled entities and associates.
As of the balance sheet date, these investments in entities are valued at cost and tested for impairment.
The valuation depends on assumptions and estimates of future developments, including the impact
of the sustainability concept, financial performance of the investments, future of the energy sector in Europe –
including the development of the military conflict of Russian Federation in Ukraine and related sanctions –
and the use of discounts. These assumptions and estimates are associated with a significant degree of uncertainty
and are described in Notes to the financial statements in Note 2d and 6.
In the aforementioned area, our audit procedures included assessment of the valuation method and testing
of the measurement of carrying amounts of financial investments through assets impairment models. Our procedures
also included inquiries of the management concerning year-to-year changes in the equity investments, assessment
of the impact of changes and expected changes in the sustainability concept, potential impact of the military Conflict
between Russian Federation in Ukraine and reading management meeting minutes. We evaluated
the appropriateness of management’s identification of the Company’s CGUs. We obtained an understanding
of the budget preparation and impairment assessment process, including indicators of impairment. We used the work
of an internal specialist for the assessment of asset impairment testing models made by the Company’s
management, their assumptions and the reliability of these assumptions.
Other Information in the Annual Financial Report
In compliance with Section 2(b) of the Act on Auditors, the other information comprises the information included in
the Annual Financial Report other than the financial statements, consolidated financial statements and auditor’s
reports thereon. The Board of Directors is responsible for the other information.
Our opinion on the financial statements does not cover the other information. In connection with our audit
of the financial statements, our responsibility is to read the other information and, in doing so, consider whether
the other information with the exception of the sustainability report
is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. In addition, we
assess whether the other information with the exception of the sustainability report
has been prepared, in all material
respects, in accordance with applicable law or regulation, in particular, whether the other information complies with
law or regulation in terms of formal requirements and procedure for preparing the other information in the context
of materiality, i.e. whether any non-compliance with these requirements could influence judgments made on
the basis of the other information.
Based on the procedures performed, to the extent we are able to assess it, we report that:
●
The other information describing the facts that are also presented in the financial statements is, in all material
respects, consistent with the financial statements; and
●
The other information with the exception of the sustainability report
is prepared in compliance with applicable law
or regulation.
In addition, our responsibility is to report, based on the knowledge and understanding of the Company obtained in
the audit, on whether the other information contains any material misstatement of fact. Based on the procedures we
have performed on the other information obtained, we have not identified any material misstatement of fact.
Responsibilities of the Company’s Board of Directors and Supervisory Board for the Financial Statements
The Board of Directors is responsible for the preparation and fair presentation of the financial statements in
accordance with IFRS Accounting Standards as adopted by the European Union and for such internal control as
the Board of Directors determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Supervisory Board is responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with the above law or regulation, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
●
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
●
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Company’s internal control.
●
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the Board of Directors.
●
Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
●
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
We communicate with the Board of Directors, the Supervisory Board and the Audit Committee regarding, among
other matters, the planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Board of Directors, the Supervisory Board and the Audit Committee, we
determine those matters that were of most significance in the audit of the financial statements of the current period
and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
Information required by Regulation (EU) No 537/2014 of the European Parliament and of the Council
In compliance with Article 10 (2) of Regulation (EU) No. 537/2014 of the European Parliament and the Council, we
provide the following information in our independent auditor’s report, which is required in addition to
the requirements of International Standards on Auditing:
Appointment of the Auditor and the Period of Engagement
We were appointed as the auditors of the Company by the General Meeting of Shareholders on 5 March 2020 and our
uninterrupted engagement has lasted for 6 years.
Consistence with the Additional Report to the Audit Committee
We confirm that our audit opinion on the financial statements expressed herein is consistent with the additional
report to the Audit Committee of the Company, which we issued on 19 March 2026 in accordance with Article 11
of Regulation (EU) No. 537/2014 of the European Parliament and the Council.
Provision of Non-audit Services
We declare that no prohibited non-audit services referred to in Article 5 of Regulation (EU) No. 537/2014
of the European Parliament and the Council were provided. In addition, there are no other non-audit services which
were provided by us to the Company, and which have not been disclosed in the financial statements.
In Prague on
19 March 2026
Audit firm: | Statutory auditor: |
Deloitte Audit s.r.o. registration no. 079 | David Batal registration no. 2147 |
VII. Statutory Financial Statements and Notes to the Statutory Financial
Statements
SEPARATE FINANCIAL STATEMENTS PREPARED IN ACCORDANCE
WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED
BY THE EUROPEAN UNION FOR THE YEAR ENDED 31 DECEMBER 2025
Name of the Company: EP Infrastructure, a.s.
Registered Office: Pařížská 130/26, Josefov, 110 00 Prague 1
Legal Status: Joint Stock Company
Corporate ID: 024 13 507
Components of the Separate Financial Statements Prepared in Accordance with
International Financial Reporting Standards as Adopted by the European Union:
Statement of Financial Position
Statement of Comprehensive Income
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
These separate financial statements prepared in accordance with International
Financial Reporting Standards as adopted by the European Union were prepared
on 19 March 2026.
Statement of financial position | |||
As at 31 December 2025 | |||
In millions of EUR | |||
Note | 31.12.2025 | 31.12.2024 | |
Assets | |||
Equity investments | 6 | 6,925 | 6,831 |
Loans at amortised cost | 7 | - | 67 |
Total non-current assets | 6,925 | 6,898 | |
Trade receivables and other assets | 8 | 2 | 169 |
Loans at amortised cost | 7 | 9 | 154 |
Current tax receivable | 8 | 5 | - |
Cash and cash equivalents | 5 | 653 | 214 |
Total current assets | 669 | 537 | |
Total assets | 7,594 | 7,435 | |
Equity | |||
Share capital | 9 | 3,248 | 3,248 |
Share premium | 9 | 9 | 9 |
Other capital contributions | 9 | 771 | 771 |
Retained earnings | 674 | 1,116 | |
Valuation | 10 | 23 | 26 |
Total equity attributable to equity holders | 4,725 | 5,170 | |
Liabilities | |||
Loans and borrowings | 11 | 1,800 | 1,879 |
Deferred tax liability | 16 | 7 | 8 |
Total non-current | 1,807 | 1,887 | |
Trade payables and other liabilities | 12 | 102 | 1 |
Loans and borrowings | 11 | 960 | 377 |
Total current | 1,062 | 378 | |
Total liabilities | 2,869 | 2,265 | |
Total equity and liabilities | 7,594 | 7,435 |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
2
Statement of comprehensive income
For the year ended 31 December 2025 | |||
In millions of EUR | Note | 2025 | 2024 |
Sales: Services | 18 | 1 | 1 |
Total sales | 1 | 1 | |
Cost of sales: Services | - | - | |
Total cost of sales | - | - | |
Subtotal | 1 | 1 | |
Personnel expenses | 13 | (4) | (3) |
Taxes and charges | - | - | |
Other operating | 18 | - | - |
Other operating expenses | 18 | (3) | (3) |
Profit (loss) from operations | (6) | (5) | |
Dividend income | 14 | 494 | 463 |
Interest income under | 14 | 13 | 25 |
Interest expense | 14 | (57) | (67) |
Foreign currency | 14 | (1) | 3 |
Profit /(loss) from | 14 | - | 8 |
Other finance expense Other finance income | 14 14 | (117) 113 | (8) - |
Net finance income | 445 | 424 | |
Profit before income tax | 439 | 419 | |
Income tax | 15 | (3) | (10) |
Profit from continuing operations | 436 | 409 | |
Profit for the year | 436 | 409 | |
Other comprehensive | |||
Items that are or may be reclassified | |||
Effective portion of changes net of tax | 15 | (3) | (3) |
Total other comprehensive income | (3) | (3) | |
Total comprehensive income for the year | 433 | 406 |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
3
Statement of changes in equity
In millions of EUR | |||||||
Share capital | Share premium | Other capital contributions | Retained earnings | Valuation differences on cash flow hedges | Total equity | ||
Balance as at 1 January 2024 | 3,248 | 9 | 771 | 1,007 | 29 | 5,064 | |
Comprehensive income for the period | |||||||
Profit for the period | - | - | - | 409 | - | 409 | |
Other comprehensive income for the period | |||||||
Effective portion of changes in fair value of cash flow hedges, net of tax | - | - | - | - | (3) | (3) | |
Total comprehensive income for the period | 409 | (3) | 406 | ||||
Contributions by and distributions to owners | |||||||
Dividends declared | - | - | - | (300) | - | (300) | |
Balance as at 31 December 2024 | 3,248 | 9 | 771 | 1,116 | 26 | 5,170 | |
Comprehensive income for the period | |||||||
Profit for the period | - | - | - | 436 | 436 | ||
Other comprehensive income for the period | |||||||
Effective portion of changes in fair value of cash flow hedges, net of tax | - | - | - | - | (3) | (3) | |
Total comprehensive income for the period | 436 | (3) | 433 | ||||
Contributions by and distributions to owners | |||||||
Dividends declared | - | - | - | (878) | (878) | ||
Balance as at 31 December 2025 | 3,248 | 9 | 771 | 674 | 23 | 4,725 | |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
4
Cash flow statement
For the year ended 31 December 2025 | ||||
In millions of EUR | ||||
Note | 2025 | 2024 | ||
OPERATING ACTIVITIES | ||||
Profit for the | 436 | 409 | ||
Adjustments for: | ||||
Income tax | 15 | 3 | 10 | |
Change in adjustments receivables | 14 | - | - | |
Interest income | 14 | 44 | 42 | |
Other finance (income)/expenses | 14 | 4 | 8 | |
Dividend income | 14 | (494) | (463) | |
(Profit)/loss on | 14 | - | (8) | |
Foreign exchange (gains)/losses, net | 14 | 1 | (3) | |
Other non-monetary transactions | 9, 14 | (6) | (2) | |
Operating profit before changes in working capital | (12) | (7) | ||
Change in trade receivables and other assets | (1) | - | ||
Change in trade payables and other liabilities | 1 | (1) | ||
Cash generated from (used in) operations | (12) | (8) | ||
Interest paid | 5 | (51) | (51) | |
Income taxes | (8) | (9) | ||
Cash flows | (71) | (68) | ||
INVESTING | ||||
Profit shares received and other capital contributions | 222 | 213 | ||
Interest received | 11 | 45 | ||
Loans to related | - | - | ||
Repayments from | 79 | 130 | ||
Cash flows from (used in) investing activities | 312 | 388 | ||
FINANCING | ||||
Proceeds from | 5 | - | 285 | |
Repayment of | 5 | (75) | - | |
Proceeds from | 5 | 597 | - | |
Debentures paid | 5 | - | (547) | |
Finance fees, | (2) | (6) | ||
Dividends paid | 5, 9 | (320) | (300) | |
Cash flows from (used | 200 | (568) | ||
Net increase (decrease) in cash and cash equivalents | 441 | (248) | |
Cash and cash equivalents at beginning of the year | 214 | 461 | |
Effect of exchange rate fluctuations on cash held | (2) | 1 | |
Cash and cash equivalents at end of the year | 653 | 214 |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
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 million.
The Company’s main activity is the management of its own assets. The primary 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 2025 to 31 December 2025 (“2025”). The comparable period (“2024”) is
the financial year from 1 January 2024 to 31 December 2024.
Registered office
Pařížská 130/26
Josefov
110 00 Prague 1
Czech Republic
The shareholders of the Company as at 31 December 2025 were:
Interest in share capital | Voting rights | |||||||
In millions | % | % | ||||||
EPIF Investments | 2,241 | 69% | 69% | |||||
CEI INVESTMENTS | 1,007 | 31% | 31% | |||||
Total | 3,248 | 100% | 100% | |||||
The shareholders of the Company as at 31 December 2024 were:
Interest in share capital | Voting rights | |||||||
In millions | % | % | ||||||
EPIF Investments | 2,241 | 69% | 69% | |||||
CEI INVESTMENTS | 1,007 | 31% | 31% | |||||
Total | 3,248 | 100% | 100% | |||||
The shareholders of Energetický a průmyslový holding, a.s., the 100% owner of EPIF Investments a.s. as
at 31 December 2025 and 31 December 2024 were:
Interest in share capital | Voting rights | |||
% | % | |||
EP Group, a.s. | 56% + 1 share | 56% + 1 share | ||
J&T ENERGY HOLDING, a.s | 44% - 1 share | |||
Total | 100% | 100% |
The consolidated financial statements of the widest group of entities for 2025 will be prepared by
EP Investment S.á r.l. with its registered office at 2 Place de Paris, 2314 Luxembourg.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
6
The Company prepares its consolidated financial statements in accordance with International Financial
Reporting Standards (IFRS® Accounting Standards) adopted by the European Union (“EU”).
The Czech version of the consolidated financial statements along with the standalone financial
statements will form the annual
financial
report, which will be published in the Commercial Register.
Members of the Board of Directors and Supervisory Board as at 31 December 2025 were:
Members of the Board of Directors Members of the Supervisory Board
Daniel Křetínský
(
chairman
)
Jan Špringl
(
chairman
)
Stéphane Brimont
(
vice-chairman
)
Martin Gebauer
(
vice-chairman
)
Gary Wheatley Mazzotti
(
vice-chairman
)
Petr Sekanina
(
member
)
Marek Spurný
(
member
)
Jiří Feist
(
member
)
Pavel Horský
(
member
)
Jan Stříteský
(
member
)
Milan Jalový
(
member
)
Viktor Schuh (member)
William David George Price
(
member
)
On 8 December 2025, Ms. Rose Marie Villalobos Rodriquez ceased to be a member of the Supervisory
Board, and Mr. Viktor Schuh became a new member of the Supervisory Board on 9 December 2025.
2.
Basis of preparation
(a)
Statement of compliance
The financial statements have been prepared in accordance with IFRS Accounting Standards adopted
by the European Union (“IFRS”).
The financial statements were approved by the Board of Directors of the Company on 19 March 2026.
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 been consistently applying the following accounting policies to all periods presented
in these financial statements.
(c)
Functional and presentation currency
The Company’s functional and presentation currency is the Euro (“EUR”).
(d)
Use of estimates and judgments
The preparation of financial statements in accordance with IFRS Accounting Standards requires
the use of certain critical accounting estimates that affect the reported amounts of assets, liabilities,
income and expenses. It also requires management to exercise judgement in the process of applying
the Company’s accounting policies. The resulting accounting estimates, by definition, will not always
be equal to the actual related 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).
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
7
i.
Assumption and estimation uncertainties
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 general responsibility for
overseeing all significant fair value measurements, including Level 3 fair values.
The valuation team regularly reviews significant market unobservable inputs and valuation adjustments.
If third party information, such as broker quotes or pricing services, is used to measure fair values, then
the valuation team assesses the evidence obtained. The evidence
has to
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 inputs to
the fullest extent 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 as a whole is categorised in the same
level of the fair value hierarchy as the lowest level input that is significant in relation to the entire
measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end
of the reporting period during which the change has occurred.
(e)
Segment reporting
The Company’s activities represent one segment, i.e. holding of ownership interests and related
activities. Most of the Company’s income represents financial income and is described in detail in note
14 to these financial statements. An insignificant part of the Company’s revenues is represented by
revenues from services provided in the Czech Republic to companies belonging to Energetický a
průmyslový holding, a.s. (the “EPH Group”).
(f)
Recently issued accounting standards
i.
Newly adopted IFRS Accounting Standards and amendments to standards and interpretations
effective for the period ended 31 December 2025 that have been applied in the preparation
of the Company’s financial statements
The following paragraphs provide a summary of the key requirements of IFRS Accounting Standards
effective for annual periods beginning on or after 1 January 2025 and that have therefore been applied
by the Company for the first time.
Newly adopted IFRS Accounting Standards, amendments to standards and interpretations that
do not have a material impact on the Company’s financial statements:
•
Amendments to IAS 21 – Lack of Exchangeability.
ii.
IFRS Accounting Standards not yet effective
As of the date of approval of these separate financial statements, the following significant amendments
to IFRS Accounting Standards and interpretations had been issued but were not yet effective for
the period ended 31 December 2025:
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
8
IFRS 18 – Presentation and Disclosures in Financial Statements (effective for annual periods
beginning on or after 1 January 2027)
IFRS 18 Presentation and Disclosures in Financial Statements applies to all financial statements
prepared and presented in accordance with IFRS Accounting Standards and will replace IAS 1
Presentation of Financial Statements. The new standard introduces three sets of new requirements to
improve companies’ reporting of financial performance and to provide investors with a better basis for
analysis and comparison:
(a) Categories for the classification of income and expenses in profit or loss
Entities are required to classify items of income and expenses recognised in profit or loss into one
of the following categories: operating, investing, financing, income tax and discontinued operations.
Modifications to the classification requirements are permitted for entities with specific business
activities (banks, investment entities and entities investing in real estate). The standard also requires
the disclosure of specified subtotals in profit or loss.
(b) Management-defined performance measures (“MPMs”)
MPMs are defined as subtotals of income and expenses that the Company uses in public communications
with users of financial statements. They communicate management’s view of a particular aspect
of financial performance and supplement totals or subtotals required by IFRS 18. Entities are required
to disclose information about their MPMs in a separate note to the financial statements, and the standard
specifies disclosure requirements for each measure.
(c) Aggregation and disaggregation of information
The standard introduces requirements focusing on the aggregation and disaggregation of information
and on whether information is presented in the primary financial statements or in the notes.
IFRS 18 also includes amendments to other IFRS Accounting Standards, including amendments to IAS
7 Statement of Cash Flows, which remove alternatives for the presentation of interest and dividends and
require the use of operating profit as the single starting point when applying the indirect method for
reporting cash flows from operating activities.
The Company is currently assessing the impact of the new standard on the financial statements and
related disclosures.
Newly issued IFRS Accounting Standards, amendments to standards and interpretations for
which the Company does not expect a material impact on the Company’s financial statements:
•
IFRS 19 – Subsidiaries without Public Accountability: Disclosures and Amendments to IFRS 19 –
Subsidiaries without Public Accountability: Disclosures (effective for annual periods beginning on
or after 1 January 2027 (not yet endorsed by the EU));
•
Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement
of Financial Instruments (effective for annual periods beginning on or after 1 January 2026);
•
Annual Improvements to IFRS Accounting Standards – Volume 11 (effective for annual periods
beginning on or after 1 January 2026);
•
Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity (effective
for annual periods beginning on or after 1 January 2026);
•
Amendments to IAS 21 – Translation to a Hyperinflationary Presentation Currency (effective for
annual periods beginning on or after 1 January 2027 (not yet endorsed by the EU)).
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
9
The Company has not early adopted any amendments to IFRS Accounting Standards where adoption
was not mandatory at the reporting date. Where transition provisions in an adopted IFRS Accounting
Standard permit either prospective or retrospective application, the Company generally elects to apply
the new standard prospectively from the date of initial application.
(g)
Going concern assumption
These financial statements have been prepared on a going concern basis, which the Company regularly
evaluates in light of developments affecting its operating environment. In performing this assessment,
Company’s management considered the ongoing military conflict in Ukraine, the continued interruption
of gas transit through Ukraine to Slovakia, the European Union’s REPowerEU initiative aimed at
reducing dependency on Russian fossil fuels, as well as other relevant geopolitical, regulatory and
market developments affecting the European energy sector.
Management also assessed the Company’s liquidity position, expected operating cash flows, availability
of committed credit facilities and the Company’s recent refinancing activities, including the successful
issuance new debt instruments and repayments of certain borrowings completed after the reporting date.
These factors, together with predominantly regulated and contracted nature of a substantial part of the
business of the companies in the EPIF Group, support the Company’s ability to meet its obligations as
they fall due for at least 12 months from the date of approval of these financial statements, as required
by IAS1.
Management has also taken note of the military escalation involving Iran, which occurred after the
reporting date. Given its timing and the absence of direct operational or financial exposure for the
Company and the companies in the EPIF Group, Company’s management concluded that this
development does not affect conditions existing at the reporting date and therefore does not impact the
going concern assessment for 2026.
Based on the information available, management has concluded that these events and conditions do not
currently have a material impact on these financial statements or on the Company’s ability to continue
as a going concern. Nevertheless, further adverse developments in geopolitical, regulatory or market
conditions cannot be ruled out and could, in the future, have a material negative impact on the
Company’s business, financial position, results of operations, cash flows or overall outlook.
3.
Significant accounting policies
The Company has consistently applied the following accounting policies to all periods as 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 possible 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 (FVOCI), fair value through other comprehensive
income – equity instrument or fair value through profit, or loss (FVTPL). The classification of financial
asset is based on the business model in which a financial asset is managed and its contractual cash flow
characteristics.
A financial asset shall be measured at amortised cost if both of the following conditions are met:
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
10
●
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 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 that are not held for trading, to
present subsequent changes in fair value in other comprehensive income.
All investments in equity instruments and contracts concerning 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 there is not available any sufficient recent information to measure fair value, or if
there is a wide range of possible fair value measurements and cost represents the best estimate of fair
value within that range. The Company uses all information about the performance and operations
of the investee that becomes available after the date of initial recognition. As long as any such relevant
factors exist, they may indicate that cost might not be representative of fair value. In such cases,
the Company must use fair value. Cost is never the best estimate of fair value for investments in quoted
instruments.
A financial asset shall be measured at fair value through profit or loss unless it is measured at amortised
cost or at fair value through other comprehensive income. The key type of financial assets measured at
fair value through profit or loss by the Company are derivatives.
The Company may, at initial recognition, irrevocably designate a financial asset, which would be
measured at amortised cost or at fair value through other comprehensive income (“FVOCI”), as
measured at fair value through profit or loss. This applies 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
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
11
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.
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 4 (a) –
Income taxes) are reviewed at each reporting date to determine any objective evidence
of impairment. If any such indication exists, the asset’s recoverable amount is estimated. For
intangible assets that have an indefinite useful life or that are not yet available for use, the recoverable
amount is estimated at least once every year at the same time.
The recoverable amount of an asset or cash-generating unit (CGU) is the greater of its fair value less
costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessment of the time
value of money and the risks specific to the asset.
For the purpose of impairment testing, assets that cannot be tested individually are grouped together
into the smallest identifiable group of assets that generates cash inflows from continuing use that are
largely independent from the cash inflows of other assets or groups of assets (the “cash-generating
unit”, or “CGU”).
An impairment loss is recognised whenever the carrying amount of an asset or its cash generating
unit exceeds its recoverable amount. Impairment losses are recognised in profit or loss.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications
that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount. An impairment loss is reversed only to
the extent that the asset’s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no impairment loss had been recognised.
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
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
12
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 in simplified mode.
The ECL model is based on the principle of expected credit losses. For the purposes of designing
the ECL model, the portfolio of financial assets is split into segments. Financial assets within each
segment are allocated to three stages (Stage I – III) or to a group of financial assets that are impaired
at the date of the first recognition of purchased or originated credit-impaired financial assets (“POCI”).
At the date of the initial recognition, the financial asset is included in Stage I or POCI. Subsequent
to initial recognition, a financial asset is allocated to Stage II if there was a significant increase in credit
risk since initial recognition or to Stage III if the financial asset has been credit-impaired.
The Company assumes that the credit risk on a financial asset has increased significantly if:
(a) a financial asset or its significant portion is overdue for more than 30 days (if a financial asset
or its significant portion is overdue for more than 30 days but less than 90 days, and the delay
does not indicate an increase in counterparty credit risk, the individual approach shall be used,
and the financial asset shall be classified in Stage I); or
(b) the Company negotiates debt restructuring with a debtor in financial difficulties (at the request
of the debtor or the Company); or
(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 future projected macroeconomic factor which has a significant
impact on the development of credit losses. ECLs are present values of probability-weighted estimate
of credit losses. The Company considers mainly expected gross domestic product growth, reference
interest rates, stock exchange indices or unemployment rates.
Presentation of loss allowances
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
13
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 profit or loss. 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
.
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. Throughout its history, the Company has also held
derivatives to hedge against interest rate and currency risk – see details in Note 19g Hedge Accounting.
Derivatives are recognised initially at fair value, with attributable transaction costs recognised in profit
or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes
are accounted for as described below.
Trading derivatives
When a derivative financial instrument is not designated in a qualifying hedge relationship, all changes
in its fair value are recognised immediately in profit or loss.
Separable embedded derivatives
Financial and non-financial contracts (where they have not already been measured at fair value through
profit or loss) are assessed to determine whether they contain any embedded derivatives.
Embedded derivatives are separated from the host contract and accounted for separately if the economic
characteristics and risks of the host contract and the embedded derivative are not closely related. A separate
instrument with the same terms as the embedded derivative would meet the definition of a derivative,
and the combined instrument is not measured at fair value through profit or loss.
Changes in the fair value of separable embedded derivatives are recognised immediately in profit or loss.
Cash flow hedges and fair value hedges
The majority of financial derivatives are held for hedging purposes, but
some
do not meet the criteria
for hedge accounting as stated by IFRS 9. These derivatives are designated for trading, and related
profit and loss from changes in fair value is recognised in profit and loss.
Hedging instruments consisting of derivatives associated with currency or interest rate risks are classified
either as cash-flow hedges or fair value hedges.
From the inception of the hedge, the Company maintains formal documentation of the hedging
relationship and the Company’s risk management objective and strategy for undertaking the hedge.
The Company also periodically assesses the hedging instrument’s effectiveness in offsetting exposure to
changes in the hedged item’s fair value or cash flows attributable to the hedged risk.
In the case of a cash flow hedge, the portion of the gain or loss on the hedging instrument that is determined
to be an effective hedge is recognised in other comprehensive income and the ineffective portion
of the gain or loss on the hedging instrument is recognised in profit or loss. If the hedging instrument
no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, then
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
14
the hedge accounting is discontinued prospectively. If the intended transaction is no longer expected
to occur, then the balance in equity is reclassified to profit or loss. In case the future intended transaction
is still expected to occur then the balance remains in equity and is transferred to profit or loss when
the hedged transaction affects profit or loss.
In the case of a fair value hedge, the hedged item is remeasured for changes in fair value attributable to
the hedged risk during the period of the hedging relationship. Any resulting adjustment to the carrying
amount of the hedged item related to the hedged risk is recognised in profit or loss, except for
the financial asset – equity instrument at FVOCI, for which the gain or loss is recognised in other
comprehensive income.
In the case of a fair value hedge, the gain or loss from re-measuring the hedging instrument at fair value
is recognised in profit or loss.
(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 economic benefits will be required to settle the obligation and when (ii) a reliable estimate
of the amount can be made.
Provisions are recognised at the expected settlement amount. Long-term obligations are reported
as liabilities at the present value of their expected settlement amounts, if the effect of discount is
material, using as a discount rate the pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability. The periodic unwinding of the discount is
recognised in profit or loss in finance costs.
The effects of changes in interest rates, inflation rates and other factors are recognised in profit or loss
in operating income or expenses. Changes in estimates of provisions can arise in particular from
deviations from originally estimated costs, from changes in the settlement date or in the scope
of the relevant obligation. Changes in estimates are generally recognised in profit or loss at the date
of the change in estimate (see below).
(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 and the 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, gains recognised on financial assets and gains on hedging instruments
that are recognised in profit or loss. Interest income is recognised in profit or loss as it accrues,
using the effective interest method.
ii.
Finance costs
Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions,
foreign currency losses, changes in the fair value of financial assets at fair value through profit or
loss, fees and commissions expense for payment transactions and guarantees, cost of operating the
cash pool, impairment losses recognised on financial assets, and losses on hedging instruments that are
recognised in profit or loss.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
15
(j)
Dividends
Dividends are recognised in the statement of 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
information about the assumptions made in determining fair values is disclosed in the notes specific to
that asset or liability.
(a)
Income taxes
Income taxes comprise current and deferred tax. Income taxes are recognised in profit or loss, except
to the extent that they relate to items recognised directly in equity or in other comprehensive income.
Current tax consists of estimated income tax (tax payable or receivable) on the taxable income or loss
for the reporting period, using tax rates enacted at the reporting date, and any adjustment to tax
payable in respect of previous years.
Deferred tax is measured using the balance sheet method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. No deferred tax is recognised on the following temporary differences:
●
temporary differences arising from the initial recognition of assets or liabilities that affects neither
accounting nor taxable profit or loss, and
●
temporary differences relating to investments in subsidiaries to the extent that it is probable that
they will not be reversed in the foreseeable future.
The amount of deferred tax is based on the expected manner of realisation or settlement
of the temporary differences, using tax rates enacted or substantively enacted at the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current
tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same
taxable entity, or on different tax entities, but there is an intention to settle current tax liabilities and
assets on a net basis, or the tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will
be available against which the unused tax losses and deductible temporary differences can be
utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the unused tax
losses or temporary differences will be realised.
(b)
Non-derivative financial assets
The fair value of financial assets at fair value through profit or loss, debt and equity instruments at
fair value through other comprehensive income and financial assets at amortised cost is based on their
quoted market price at the reporting date without any deduction for transaction costs. If a quoted
market price is not available, the fair value of the instrument is estimated by the management
of the Company, using pricing models or discounted cash flows techniques.
Where discounted cash flow techniques are used, estimated future cash flows are based on the best
estimates of the management of the Company and the discount rate is a market-related rate at
the reporting date for an instrument with similar terms and conditions. Where pricing models are
used, inputs are based on market-related measures at the reporting date.
The fair value of trade and other receivables is estimated as the present value of future cash flows,
discounted at the market rate of interest at the reporting date.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
16
The fair value of trade and other receivables and of financial assets held at amortised cost is determined
for disclosure purposes only.
(c)
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.
(d)
Derivatives
The fair value of interest rate swaps is based on internal measurements arising from market prices.
Those quotes are tested for reasonableness by discounting estimated future cash flows based on
the terms and maturity of each contract and using market interest rates for a similar instrument at the
measurement date.
The fair value of other derivatives (currency) is estimated by discounting the difference between
the forward values and the current values till maturity of the contract using a risk-free interest rate
(based on zero-coupon rates).
Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit
risk of the Company and the credit risk of the counterparty when appropriate.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
17
5.
Cash and cash equivalents
In millions | 31 December | 31 December | |
Current accounts with banks Promissory notes | 653 - | 164 50 | |
Total cash and cash equivalents |
Reconciliation of movement of liabilities and cash flows arising from financing activities:
Loans from credit institution s | Loans from other than credit institutions | Issued debentur es | Retained earnings | Total liabilities and retained earnings | ||
Balance as at 1 January 2025 | 290 | 356 | 1,610 | 1,116 | 3,372 | |
Changes from financing cash flows | ||||||
Received loans and borrowings and issued debentures | - | 5 | 597 | - | 602 | |
Repaid borrowings and debentures | (75) | - | - | - | (75) | |
Interest paid | (17) | (4) | (30) | - | (51) | |
Dividends paid | - | - | - | (320) | (320) | |
Total change from financing cash flows | (92) | 1 | 567 | (320) | ||
Other liability changes | ||||||
Transaction costs related to loans and borrowings (net) | - | - | (3) | - | (3) | |
Interest expense | 15 | 9 | 33 | - | 57 | |
Offset against a receivable | - | (26) | - | - | (26) | |
Dividends declared | - | - | - | (558) | (558) | |
Total liability-related | 15 | (17) | 30 | (558) | (530) | |
Profit for the year | - | - | - | 436 | 436 | |
Balance at 31 December 2025 | 213 | 340 | 2,207 | 674 | 3,434 | |
A newly issued bond with a nominal value of EUR 600 million was issued at a discount (99.580%) due
to market-based pricing of the 4.125% coupon, resulting in proceeds of EUR 597 million.
Loans from credit institutions | Loans from other than credit institutions | Issued debentures | Retained earnings | Total liabilities and retained earnings | |
Balance as at 1 January 2024 | - | 370 | 2,161 | 1,007 | 3,539 |
Changes from financing cash flows | |||||
Received loans and borrowings and issued debentures | 285 | 59 | - | - | 344 |
Repayment of borrowings and purchase of debentures | - | - | (547) | - | (547) |
Interest paid | (9) | (2) | (40) | - | (51) |
Dividends paid | - | - | - | (300) | (300) |
Total change from financing cash flows | 276 | 57 | (587) | (300) | (554) |
Other liability changes | |||||
Transaction costs related to loans and borrowings (net) | (2) | - | 1 | - | (1) |
Interest expense | 16 | 15 | 35 | - | 67 |
Offset against a dividend receivable | - | (250) | - | - | (250) |
Acceptance of cash pool liability | - | 165 | - | - | 165 |
Total liability-related | 14 | (70) | 36 | - | (20) |
Profit for the year | - | - | - | 409 | 409 |
Balance at 31 December 2024 | 290 | 356 | 1,610 | 1,116 | 3,372 |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
18
6.
Equity investments
Equity investment | ||||
Company name | Total profit for the period 01/1/2025-31/12/2025 (in millions of EUR) | Equity at 31/12/2025 (in millions of EUR) | Net value of equity investment at 31/12/2025 (in millions of EUR) | Net value of equity investment at 31/12/2024 (in millions of EUR) |
EP Energy, a.s. („EPE“)* | 98 | 890 | 1,508 | 1,414 |
Czech Gas Holding Investment B.V.* | 54 | 156 | 387 | 387 |
Slovak Gas Holding B.V.* | 154 | 1,617 | 4,963 | 4,963 |
Plzeňská teplárenská, a.s.* | 67 | 67 | ||
Total equity investments | 6,925 | 6,831 |
* Data from unaudited financial statements as at 31 December 2025.
All equity investments are fully owned by the Company, with the exception of Plzeňská teplárenská, a.s.
(35% with managerial control).
In accordance with the accounting policy described in 3(b) Equity investments, the value of the equity
investments was tested for impairment. The Company monitors the financial performance of its
subsidiaries on a regular basis and evaluates scenarios for the performance of key subsidiaries. For
the purpose of preparing the financial statements, the Company has evaluated scenarios of possible future
developments based primarily on the utilisation of the respective gas transmission networks, on
the development of the regulatory environment and gas and electricity consumption in Slovakia, on
the overall demand for the provision of transportation capacity and gas storage services in the region and
on the development of heat and electricity consumption and prices, which may have an impact on
the value of the equity investments. The Company has used various scenarios of future developments.
However, future developments cannot be reliably predicted and therefore the need for adjustments to
the values of the equity investments in future periods cannot be excluded. As part of the impairment
testing performed, the Company did not identify any impairment of its equity investments as
of 31 December 2025 that would require a valuation adjustment in the financial statements under
applicable accounting regulations.
As at 31 December 2025, the registered offices of the companies were as follows:
EP Energy, a.s. | Pařížská 130/26, |
Czech Gas Holding | Schiphol Boulevard |
Slovak Gas Holding B. V. | Schiphol Boulevard |
Plzeňská teplárenská, | Doubravecká 2760/1, Východní |
In 2025, there were the following changes in equity investments:
On 28 March 2025, a 100% equity investment in EPIF BidCo I s.r.o. was disposed of.
On 31 March 2025, a provision of the contribution outside the registered capital amounting to EUR 94
million was made to EP Energy, a.s.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
19
7.
Loans at amortised cost
In millions of EUR | 31 December | 31 December 2024 | |
Loans to other than credit institutions: | |||
Elektrárny Opatovice, a.s. (“EOP”) | - | 69 | |
Cash pool receivables: Subsidiaries and related parties | 9 | 152 | |
Total | 9 | 221 | |
Non-current | - | 67 | |
Current | 9 | 154 | |
Total | 9 | 221 |
Relevant accounting policy for impairment arising from expected losses is described in Note 3(d).
On 31 March, a partial repayment of a loan granted to EOP amounting to EUR 33 million, including
accrued interest, was received. The remaining portion of this receivable was assigned to EPE.
Fair value information
Fair values and the respective loans carried at amortised costs are disclosed in the following table:
In millions of EUR | 31 December 2025 | 31 December 2024 | |||
Carrying amount | Fair value | Carrying amount | Fair value | ||
Loan EOP | - | - | 69 | 68 | |
Cash pool receivables | 9 | 9 | 152 | 152 | |
Total | 9 | 9 | 221 | 220 | |
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 millions of EUR | 31 December | 31 December 2024 | |
Trade receivables | 1 | 1 | |
Other receivables | 1 | 168 | |
Current tax receivable | 5 | - | |
Total | 7 | 169 | |
Current | 7 | 169 | |
Total | 7 | 169 |
At 31 December 2025 and at 31 December 2024, no trade receivables and other assets were past due.
On 2 December 2024, the share capital and the share premium amounting to EUR 168 million of Slovak
Gas Holding B.V. were reduced.
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 2025
and 31 December 2024 consisted of 222,870,000 ordinary shares with a par value of CZK 250 each
(“Shares A”) and 100,130,000 shares, to which special rights are attached as specified in the Articles
of Incorporation, with a par value of CZK 250 each (“Shares B”).
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
20
Each shareholder is entitled to receive dividends and to cast 1 vote per 1 share with a nominal value
CZK 250 at meetings of the Company’s shareholders.
31 December 2025 | Number of shares | Ownership interest | Voting rights | |||
In thousands | 250 CZK | % | % | |||
Shares A | Shares B | |||||
EPIF Investments a.s. | 22 2,870 | - | 69 | 69 | ||
CEI INVESTMENTS S.à r.l. | - | 10 0,130 | 31 | 31 | ||
Total | 22 2,870 | 10 0,130 | 100 | 100 | ||
Other capital reserves
As of 31 December 2025 and 31 December 2024, other capital reserves consist of a payment over and
above the share capital balance in the form of loan capitalisation.
Retained earnings
In 2025, dividends amounting to EUR 878 million were declared, of which EUR 320 million were paid
in 2025.
10.
Valuation differences on cash flow hedges
Cash flow hedges – hedge of foreign currency risk with non-derivative financial liability
Due to the change in the functional currency on 1 January 2022 and the fact that the Company will no
longer be exposed to risk related to changes in FX rates, the dividend cash flow hedge has been
terminated. At the date of termination, the balance in equity was translated at (CZK to EUR) 24.86 and
a release table was set in EUR; the balance will be released against future dividends (the original hedged
item) between 2022 and 2034 in line with the Company’s hedging policy.
Cash flow hedges risk) | Cash flow hedges (currency risk) – deferred tax | Interest rate swap (hedging) | Interest rate swap (hedging) – deferred tax | Effect from hedge accounting | |||||||
Balance at 1. 1. 2024 | 34 | (7) | 2 | - | 29 | ||||||
Revaluation of cash | - | - | - | - | - | ||||||
Deferred tax – cash flow | - | - | - | - | - | ||||||
Reclassified to profit | (3) | - | - | - | (3) | ||||||
Deferred tax – interest | - | - | - | - | - | ||||||
Balance at 31. 12. 2024 | 31 | (7) | 2 | - | 26 | ||||||
Revaluation of cash | - | ||||||||||
Deferred tax – cash flow | - | - | - | - | |||||||
Reclassified to profit | (3) | 1 | (1) | - | - | ||||||
Deferred tax – interest | |||||||||||
Balance at 31. 12. 2025 | 28 | (6) | 1 | - | 23 | ||||||
11.
Loans and borrowings
In millions | 31 December | 31 December | |
Issued debentures | 2,207 | 1,610 | |
Loans from credit institutions | 213 | 290 | |
Cash pool liabilities | 340 | 356 | |
Total | 2,760 | 2,256 | |
Non-current | 1,800 | 1,879 | |
Current | 960 | 377 | |
Total | 2,760 | 2,256 |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
21
The weighted average interest rate on financial liabilities without the effect of cash pool liabilities was
2.9% as at 31 December 2025 (31 December 2024: 2.6%).
Issued debentures at amortised cost
Details about debentures issued as at 31 December 2025 are presented in the following table:
In millions of EUR | Principal | Accrued interest | Unamortised transaction costs | Total | Maturity | Interest rate (%) | Effective interest rate (%) | |
2026 Notes | 600 | 4 | (0) | 604 | 30/07/2026 | 1,698 | 1,795 | |
2028 Notes | 500 | 2 | (1) | 501 | 09/10/2028 | 2,045 | 2,117 | |
2031 Notes | 500 | 8 | (2) | 506 | 02/03/2031 | 1,816 | 1,888 | |
2033 Notes | 600 | 2 | (6) | 596 | 27/02/2033 | 4,125 | 4,297 | |
Total | 2 200 | 16 | (9) | 2 207 |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
22
EP Infrastructure standalone notes (2026, 2028 and 2031 Notes)
The EPIF 2026, 2028 and 2031 Notes (the „Standalone notes“) contain a covenant limiting certain types
of distributions to EPIF’s shareholders in certain circumstances. The Company has to monitor the ratio
of total amount of net debt of entities in EP Infrastructure, a.s. (the “Group”) to the Group’s EBITDA (i.e.
net leverage) before certain types of distributions are carried out.
In addition, the Standalone notes contain a change of control provision the triggering of which coupled
with a ratings decline may result in the Company’s obligation to redeem, or at its option, to procure the
purchase of all or part of the notes. Further, the Standalone notes contain customary events of defaults,
including, among other things, non-payment of principal or interest, breach of other obligations, cross-
acceleration/cross-default of the Company or material subsidiary, unsatisfied judgment, security
enforced, insolvency, winding-up and other customary events of default. Some of the events of default
are subject to a threshold in the amount of EUR 75 million. If any of such event of default occurs, the
Standalone notes may be declared immediately due and payable.
EP Infrastructure EMTN programme
In November 2025, EPIF established a Euro Medium Term Note (EMTN) programme. This framework
provides a standardised platform for the EPIF´s future debt issuances, offering greater structural
flexibility. Under this programme, EPIF has issued the following notes:
EP Infrastructure notes (2033 Notes)
On 27 November 2025, EPIF placed its debut offering of green EUR 600 million 4.125% fixed-rate
unsecured notes due in February 2033 in the denomination of EUR 100,000 each (“2033 Notes”), under
its EMTN Programme. The 2033 Notes are listed on Irish Stock Exchange (Euronext Dublin). Unless
previously redeemed or cancelled, the 2033 Notes will be redeemed at their principal amount on 27
February 2033. The net proceeds were allocated to finance or refinance eligible green projects in line with
EPIF’s Green Finance Framework.
The 2033 Notes are stated net of debt issue costs of EUR 4 million. These costs are amortised to the profit
and loss over the term of the 2033 Notes using an effective interest rate of 4.297%.
The terms and conditions of the EMTN programme contain a change of control provision, the triggering
of which, coupled with a ratings decline, may result in the Company’s obligation to redeem, or, at its
option, to procure the purchase of, all or part of the notes. Further, the conditions contain customary
events of default, including, among other things, non payment of principal or interest, breach of other
obligations, cross acceleration/cross default of the Company or a material subsidiary, unsatisfied
judgment, enforcement of security, insolvency, winding up and other customary events of default. Some
of the events of default are subject to a threshold of EUR 100 million. If any such event of default occurs,
the notes may be declared immediately due and payable.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
23
Loans at amortised cost
The following table shows detailed information on loans as of 31 December 2025:
In millions of EUR | Principal | Accrued interest | Unamortised fee | Due date | Nominal interest rate | |
Schuldschein loan I | 105 | 2 | - | 12/02/2027 | Variable* | |
Schuldschein loan II | 75 | 1 | - | 12/02/2029 | Variable* | |
Schuldschein loan III | 30 | 0 | - | 12/02/2027 | Variable* | |
Total | 210 | 3 | - | - |
Schuldschein loans
On 5 March 2024, the Company has raised EUR 285 million through Schuldschein loan agreements
under German law issued in line with EPIF’s green principles (so called “green Schuldschein”).
The floating rate Schuldschein loan agreements have durations of three and five years, with
corresponding margins of 2.50% p.a. and 2.90% p.a., respectively.
On 18 December 2025, EPIF made a voluntary early repayment in the amount of EUR 75 million.
The Company’s debts 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.
EPIF Facilities Agreement
On 8 November 2024, EPIF signed a up to EUR 400 million revolving facility agreement (the “EPIF’s
Facility Agreement”), which provides EPIF with an unsecured revolving facility until 8 November 2027.
The debts of EPIF under the EPIF’s Facility 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.
Further, the EPIF’s Facility Agreement contain customary events of defaults, including, among other
things, non-payment, other obligations, misrepresentation, cross-default, insolvency, insolvency
proceedings, preventive restructuring, creditors’ process, unlawfulness and invalidity, cessation of
business, repudiation and rescission of agreements and material adverse change. If any of such event of
default occurs, the EPIF’s Facility Agreement may be cancelled and declared immediately due and
payable or payable on demand.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
24
Fair value information:
The fair value of interest-bearing instruments held at amortised cost is shown in the table below:
In millions | 31 December | 31 December | |||
Carrying amount | Fair value | Carrying amount | Fair value | ||
Loans from credit institutions | 213 | 209 | 290 | 282 | |
Issued debentures | 2,207 | 2,125 | 1,610 | 1,491 | |
Cash pool | 340 | 340 | 356 | 356 | |
Total | 2,760 | 2,256 | 2,129 | ||
Issued debentures are categorised within Level 1 of the fair value hierarchy. Loans from credit
institutions are categorised within Level 3 of the fair value hierarchy (for details of valuation methods
refer to Note 2 (d) i –
Assumption and estimation uncertainties
).
12.
Trade Payables and Other Payables
In millions | 31 December 2025 | 31 December 2024 | |
Trade payables | 2 | 1 | |
Payable arising from dividends | 100 | - | |
Total | 102 | 1 | |
Current | 102 | 1 | |
Total | 102 | 1 |
The estimate of liabilities is based on contractual conditions or on invoices received after the balance
sheet date, still before the sign-off of the financial statements.
Trade payables and other liabilities have not been secured as at 31 December 2025 and
31 December 2024.
As at 31 December 2025 and 31 December 2024, no liabilities to tax authorities were overdue.
13.
Personnel expenses
In millions | 2025 | 2024 | ||
Wages and salaries | 3 | 2 | ||
Compulsory social | 1 | 1 | ||
Total | 4 | 3 |
The average number of employees in full time equivalent units during 2025 was 18.9 (2024: 18.9),
of which 7 (2024: 7) were executives.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
25
14.
Finance income and expense, profit (loss) from financial instruments
Recognised in profit In millions | 2025 | 2024 | |
Dividend income | 494 | 463 | |
Interest income Net foreign exchange | 13 - | 25 3 | |
Other income | 113 | - | |
Finance income | 620 | 491 | |
Interest expense | (57) | (67) | |
Fees and commissions Finance expense from assigned receivables | (6) (111) | (8) - | |
Net foreign exchange | (1) | ||
Finance expense | (175) | ( 75) | |
Profit /(loss) | - | 8 | |
Profit /(loss) | - | 8 | |
Net finance income | 445 | 424 |
On 31 March 2025, a dividend receivable amounting to EUR 440 million from EPE was fully offset
against a liability arising from the assignment of a receivables related to the disposal of equity interests
from EPE.
15.
Income tax expenses
Income tax recognised in profit or loss
In millions | 2025 | 2024 | ||
Current taxes: | ||||
Current year | (3) | (8) | ||
Adjustment for | - | (2) | ||
Total current taxes | ( 3) | ( 10) | ||
Deferred taxes: | ||||
Origination and reversal | - | - | ||
Total deferred taxes | - | - | ||
Total income taxes (expense) of comprehensive income | ( 3) | ( 10) |
(1) For details refer to Note 16 - Deferred tax assets and liabilities.
Deferred tax was calculated using the currently enacted tax rate expected to apply when the asset is
realised, or the liability settled, i.e. 21%. According to Czech legislation, the corporate income tax
rate was 21% for the fiscal year 2025 and the following years (21% for 2024).
Top-up tax
The Company is part of a multinational group of companies (“Group”) subject to new 15% minimum taxation
rules introduced based on the Pillar Two rules of the BEPS 2.0 initiative since 2024.
Pillar Two rules provide that if in certain jurisdictions where the Group operates the effective tax rate (“ETR”)
(given by the ratio between adjusted accounting result and adjusted corporate income taxes in the jurisdiction)
falls below 15%, the Group will be required to pay an additional tax (“top-up tax”) to reach the 15% tax rate
threshold.
The Company has, in cooperation with the Group’s Pillar Two team, performed an assessment of its potential
exposure for Pillar Two top-up taxes in 2025. The assessment relies on the most recent information available
regarding the financial performance of the Group’s entities. This includes the 2024 Country-by-Country
Reporting and available preliminary financial data for 2025.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
26
The potential top-up tax exposure was provisionally calculated based on the preliminary 2025 accounting data
revised for material Pillar Two rules adjustment (if and where applicable). Based on the provisional calculation,
the Company would not be subject to top-up tax.
The above analysis must be considered as an estimate, as the indicative calculation is based on complex
regulations that have only recently been enacted (and are still subject to amendments in various jurisdictions)
with limited guidelines and not all relevant data available to perform the full Pillar Two calculation.
Income tax recognised in other comprehensive income
In millions | 2025 | ||
Before tax (gross) | Income tax | Net of income tax | |
Effective portion of changes in fair value of hedging instruments (currency risk) | (3) | - | (3) |
Effective portion of changes in fair value of hedging instruments (interest rate risk) | - | - | - |
Total | (3) | - | (3) |
In millions | 2024 | ||
Before tax (gross) | Income tax | Net of income tax | |
Effective portion of changes in fair value of hedging instruments (currency risk) | (3) | - | (3) |
Effective portion of changes in fair value of hedging instruments (interest rate risk) | - | - | - |
Total | (3) | - | (3) |
Reconciliation of effective tax rate
In millions of EUR | 2025 | 2024 | |||
% | % | ||||
Profit before tax | 439 | 419 | |||
Income tax using the Czech domestic rate (21%) | 21.0 | (92) | 21.0 | (88) | |
Non-taxable income - dividends | (23.7) | 104 | (23.2) | 97 | |
Other non-taxable income | - | - | - | - | |
Non-deductible expenses/non-taxable income – interest | 2.7 | (12) | 3.1 | (14) | |
Non-deductible expenses – other financial expenses | 0.7 | (3) | 0.5 | (2) | |
Non-deductible expenses/non-taxable income – provisions and allowances | - | - | - | - | |
Non-deductible expenses - other | - | - | 0.3 | (1) | |
Income tax – corrections of prior years | - | - | 0.5 | (2) | |
Other effects on profit or loss | - | - | - | - | |
Income taxes recognised in the comprehensive income statement | 0.7 | (3) | 2.4 | (10) |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
27
16.
Deferred tax assets and liabilities
The following deferred tax assets and liabilities have been recognised:
In millions of EUR | 31 December 2025 | 31 December 2025 | 31 December 2024 | 31 December 2024 | |
Temporary difference related to: | Assets | Liabilities | Assets | Liabilities | |
Financial instruments | - | (2) | - | (2) | |
Cash flow hedges | - | (5) | - | (6) | |
Total | - | (7) | - | (8) | |
Total (net) | - | (7) | - | (8) |
Movements in deferred tax during the year:
In millions of EUR | |||||
Balances related to: | Balance at 1 January 2025 | Recognised profit or loss | Recognised in equity | Balance at 31 December 2025 | |
Financial instruments | (2) | - | - | (2) | |
Cash flow hedges | (6) | - | 1 | (5) | |
Total | (8) | - | 1 | (7) |
Movements in deferred tax during the prior period:
In millions of EUR Balance related to: | Balance at 1 January 2024 | Recognised profit or loss | Recognised in equity | Balance at 31 December 2024 |
Financial instruments | (2) | - | - | (2) |
Cash flow hedges | (7) | - | 1 | (6) |
Total | (9) | - | 1 | (8) |
17.
Off-balance sheet assets and liabilities
The Company recognised receivables in the amount of EUR 0 million (31 December 2024: EUR 20
million) and payables in the amount of EUR 0 million (31 December 2024: EUR 20 million) each in its
off-balance sheet records, which represented the nominal value of existing derivatives.
The Company recognised a receivable arising from guarantees granted to companies within the EPIF
Group in the total amount of EUR 324 million (31 December 2024: EUR 49 million) and a liability from
the guarantees granted within the Group in the total amount of EUR 50 million (31 December 2024: EUR
50 million) each in its off-balance sheet records.
The Company also recognised undrawn revolving credit facilities in the amount of EUR 502 million
(31 December 2024: EUR 500 million) of which part amounting to EUR 22 million (2024: EUR 25
million) is allocated as collateral of liabilities in the form of provided guarantees to entities in the EPIF
Group.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
28
18.
Operating expenses and income
Sales and operating income
Sales and operating income of the Company comprise provided support and consulting services.
Other operating expenses
In millions | 2025 | 2024 | |
Audit, accounting, | 1 | 1 | |
Tax, legal and other advisory | 1 | 1 | |
Other | 1 | 1 | |
Total for continuing | 3 | 3 |
Information on remuneration to statutory auditors will be provided in the notes to the
consolidated
financial statements of the Company. Services in addition to the statutory audit include primarily
the following services:
• Review of the condensed interim consolidated financial statements as at 30 June 2025;
• Limited assurance on Sustainability report as at 31 December 2025
• Provision of Comfort letter
No significant research and development expenses were recognised in the statement
of comprehensive income for the years ended 31 December 2025 and 31 December 2024.
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. Credit risk, liquidity risk and market risk are the most important types
of financial risks to which the Company is exposed.
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 and other related
parties; other significant receivables predominantly include other receivables and trade receivables.
The Company regularly monitors the ability of debtors to pay their receivables through the analysis
of the financial reporting of these entities.
Additional aspects mitigating credit risk
The Company establishes an allowance for impairment that represents its estimate of incurred
losses in respect of trade and other receivables.
At the reporting date, the maximum exposure to credit risk by type of counterparty and by geographic
region is provided in the following tables.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
29
Credit risk by type of counterparty
In millions of EUR | Corporate (non-financial institutions) | State, government | Banks | Total |
Assets | ||||
Cash and cash equivalents | - | - | 653 | 653 |
Other receivables | 2 | - | - | 2 |
Loans at amortised cost | 9 | - | - | 9 |
Current tax receivable | - | 5 | - | 5 |
Total | 11 | 5 | 653 | 669 |
In millions of EUR | Corporate (non-financial institutions) | State, government | Banks | Total |
Assets | ||||
Cash and cash equivalents | - | - | 214 | 214 |
Other receivables | 169 | - | - | 169 |
Loans at amortised cost | 221 | - | - | 221 |
Total | 390 | - | 214 | 604 |
Credit risk by location of debtor
As at 31 December 2025 | ||||||
In millions of EUR | Czech Republic | Slovakia | Germany | Netherlands | Other | Total |
Assets | ||||||
Cash and cash equivalents | 484 | 19 | 150 | - | - | 653 |
Other receivables | 2 | - | - | - | - | 2 |
Loans at amortised cost | 9 | - | - | - | - | 9 |
Current tax receivable | 5 | - | - | - | - | 5 |
Total | 669 | 19 | 150 | - | - | 669 |
As at 31 December 2024 | ||||||
In millions of EUR | Czech Republic | Slovakia | Germany | Netherlands | Other | Total |
Assets | ||||||
Cash and cash equivalents | 149 | 30 | 35 | - | - | 214 |
Other receivables | 1 | - | - | 168 | - | 169 |
Loans at amortised cost | 220 | - | - | 1 | - | 221 |
Total | 435 | 30 | 35 | 169 | - | 604 |
i. Impairment losses
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.
The ageing of financial assets, excluding cash and cash equivalents and derivatives at the reporting date
was as follows:
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
30
Credit risk – impairment of financial assets
As at 31 December 2025 | |||||
In millions of EUR | Other receivables and current tax | Loans to other than credit institutions | Total | ||
Before maturity (net) | 7 | 9 | 16 | ||
After maturity (net) | - | - | - | ||
Total | 7 | 9 | 16 | ||
- | - | - | |||
- | - | - | |||
Net | 7 | 9 | 16 | ||
Total | 7 | 9 | 16 | ||
The movements in the allowance for impairment in respect of financial assets during
the year ended 31 December 2025 were as follows:
In millions of EUR | Loans to other than credit institutions | Total |
Balance at 1 January 2025 | - | - |
Impairment losses | - | - |
Reversals (release) | - | - |
Balance at 31 December 2025 | - | - |
Credit risk – impairment of financial assets
As at 31 December 2024 | |||||
In millions of CZK | Other receivables | Loans to other than credit institutions | Total | ||
Before maturity (net) | 169 | 221 | 390 | ||
After maturity (net) | - | - | - | ||
Total | 169 | 221 | 390 | ||
- | - | - | |||
- | - | - | |||
- | - | - | |||
Net | 169 | 221 | 390 | ||
Total | 169 | 221 | 390 | ||
The movements in the allowance for impairment in respect of financial assets during the year ended
31 December 2024 were as follows:
In millions of CZK | Loans to other than credit institutions | Total | |
Balance at 1 January 2024 | - | - | |
Impairment losses | - | - | |
Reversals (release) | - | - | |
Balance at 31 December 2024 | - | - | |
(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
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
31
one financing source. Liquidity risk is evaluated by monitoring changes in the structure of financing
and comparing these changes with the Company’s liquidity risk management strategy.
Typically, the Company ensures that it has sufficient cash on demand and assets within short maturity
to meet expected operational expenses for a period of 90 days, including servicing financial obligations;
this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as
natural disasters.
The overview below provides an analysis of the Company’s financial liabilities by relevant maturity
groupings based on the remaining period from the reporting date to the contractual maturity date. It
is presented under the most prudent consideration of maturity dates where options or repayment
schedules allow for early repayment possibilities. Therefore, in the case of liabilities, the earliest required
repayment date is disclosed.
As of the date of preparation of the financial statements, the Company records undrawn credit
facilities described in Note 17, which guarantee sufficient additional liquidity, also with respect to
the value of current assets and current liabilities as at 31 December 2025.
Maturities of financial liabilities
As at 31 December 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 | 2,760 | 3,035 | 360 | 625 | 876 | 1,174 |
Other liabilities | 102 | 102 | 102 | - | - | - |
Total | 3,137 | 462 | 625 | 876 | 1,174 |
(1) Contractual cash flows disregard discounting to net present value and include potential future interest.
As at 31 December 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 | 2,256 | 2,292 | 372 | 14 | 1,408 | 498 |
Other liabilities | 1 | 1 | 1 | - | - | - |
Total | 2,257 | 2,293 | 373 | 14 | 1,408 | 498 |
It is not expected that the cash flows included in the maturity analysis would occur significantly earlier
or in significantly different amounts.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
32
(c)
Interest rate risk
The Company’s operations are subject to the risk of interest rate fluctuations to the extent that
interest- earning assets and interest-bearing liabilities mature or re-price at different times or in
differing amounts. The length of time for which the rate of interest is fixed on a financial instrument
therefore indicates to what extent it is exposed to interest rate risk. The table below provides
information on the extent of the Company’s interest rate exposure based either on the contractual
maturity date of its financial instruments or, in the case of instruments that re-price to a market rate
of interest before maturity, the next re-pricing date. Those assets and liabilities that do not have
a contractual maturity date or are not interest-bearing are grouped together in the “maturity undefined”
category.
Various types of derivatives are used to reduce the amount of debt exposed to interest rate fluctuations
and to reduce borrowing costs and include mainly interest rate swaps.
These contracts are normally agreed with a notional amount lower than or equal to that
of the underlying financial liability, so that any change in the fair value and/or expected future cash
flows of these contracts is offset by a corresponding change in the fair value and/or the expected future
cash flows from the underlying position.
Financial information relating to interest bearing and non-interest bearing assets and liabilities and
their contractual maturity or re-pricing dates as at 31 December 2025 is as follows:
In millions of EUR | Up to 1 year | 1-5 years | Over 5 years | Undefined maturity | Total | ||
Assets | |||||||
Cash and cash equivalents | 653 | - | - | - | 653 | ||
Other receivables | - | - | - | 2 | 2 | ||
Loans at amortised cost | 9 | - | - | - | 9 | ||
Current tax receivable | - | - | - | 5 | 5 | ||
Total | 662 | - | - | 7 | 669 | ||
Liabilities | |||||||
Loans and | 569 | 1,099 | 1,092 | - | 2,760 | ||
Other liabilities | - | - | - | 102 | 102 | ||
Total | 569 | 1,099 | 1,092 | 102 | 2,862 | ||
Net interest rate risk | 93 | (1,099) | (1,092) | (95) | (2,193) | ||
Net interest rate risk IRS) | 93 | (1,099) | (1,092) | (95) | (2,193) | ||
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 2024 is as follows:
In millions of EUR | Up to 1 year | 1-5 years | Over 5 years | Undefined maturity | Total | ||
Assets | |||||||
Cash and cash equivalents | 214 | - | - | - | 214 | ||
Other receivables | 168 | - | - | 1 | 169 | ||
Loans at amortised cost | 221 | - | - | - | 221 | ||
Total | 603 | - | - | 1 | 604 | ||
Liabilities | |||||||
Loans and (1) | 661 | 1,097 | 498 | - | 2,256 | ||
Other liabilities | - | - | - | 1 | 1 | ||
Total | 661 | 1,097 | 498 | 1 | 2,257 | ||
Net interest rate risk | (58) | (1,097) | (498) | 0 | (1,653) | ||
Net interest rate risk IRS) | (58) | (1,097) | (498) | 0 | (1,653) | ||
(1) Disregarding agreed interest rate swaps
Sensitivity analysis
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
33
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 millions of CZK | 31. 12. 2025 | 31. 12. 2024 |
Profit (loss) | Profit (loss) | |
Decrease in interest rates | (1) | 1 |
Increase in interest rates | 1 | (1) |
(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 (EUR), primarily CZK.
Various types of derivatives are used to reduce the exchange rate risk on foreign currency assets,
liabilities and expected future cash flows. These include currency swaps, most with a maturity of less
than one year.
These contracts are also normally agreed with a nominal amount and expiry date equal to that
of the underlying financial liability or the expected future cash flows, so that any change in the fair
value and/or future cash flows of these contracts stemming from a potential appreciation or
depreciation of the functional currency against the foreign currencies is fully offset by a corresponding
change in the fair value and/or the expected future cash flows of the underlying position.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
34
As of 31 December 2025, the Company’s financial assets and liabilities based on denomination
were as follows:
In millions of EUR | CZK | EUR | Other | Total | |
Assets | |||||
Cash and cash equivalents | 56 | 597 | - | 653 | |
Other receivables | 7 | - | - | 7 | |
Loans at amortised cost | 9 | - | - | 9 | |
72 | 597 | - | 669 | ||
Off-balance sheet | 52 | 500 | - | 552 | |
Liabilities | |||||
Loans and borrowings | 242 | 2,518 | - | 2,760 | |
Other liabilities | - | 102 | - | 102 | |
242 | 2,620 | - | 2,862 | ||
Off-balance | 320 | 4 | - | 324 | |
Net FX risk | (438) | (1,527) | (1,965) | ||
Effect of currency | - | - | - | - | |
Net FX risk position | (438) | (1,527) | - | (1,965) | |
Off-balance sheet assets are described in more detail in Note 17 – Off-balance sheet assets and liabilities.
As of 31 December 2024, the Company’s financial assets and liabilities based on denomination were as
follows:
In millions of EUR | CZK | EUR | Other | Total |
Assets | ||||
Cash and cash equivalents | 97 | 117 | - | 214 |
Other receivables | 1 | 168 | - | 169 |
Loans at amortised cost | 118 | 103 | - | 221 |
216 | 388 | - | 604 | |
Off-balance sheet | 60 | 510 | - | 570 |
Liabilities | ||||
Loans and borrowings | 247 | 2,009 | - | 2,256 |
Other liabilities | - | 1 | - | 1 |
247 | 2,010 | - | 2,257 | |
Off-balance | 52 | 17 | - | 69 |
Net FX risk | (23) | (1,129) | - | (1,152) |
Effect of currency | - | - | - | - |
Net FX risk position | (23) | (1,129) | - | (1,152) |
Off-balance sheet assets are described in more detail in Note 17 – Off-balance sheet assets and liabilities.
The following significant exchange rates applied during the reporting period:
2025 | 2024 | ||||
CZK | Average rate | Reporting date | Average rate | Reporting date | |
EUR | 24.688 | 24.237 | 25.120 | 25.185 | |
Sensitivity analysis
A strengthening (weakening) of
the
EUR, as indicated below, against the CZK at the reporting date would
have an impact on profit or loss and other comprehensive income for the accounting period due to
a positive (negative) revaluation of net assets by the amounts shown in the following table. This analysis
is based on foreign currency exchange rate variances that the Company considered to be reasonably
likely at the end of the reporting period. The analysis assumes that all other variables, in particular
interest rates, remain constant.
Effect in millions | 31/12/2025 | 31/12/2024 | |
Profit (loss) | Profit (loss) | ||
5% strengthening | (22) | (4) | |
Effect in millions | 31/12/2025 | 31/12/2024 | |
Other comprehensive income | Other comprehensive income | ||
5% strengthening | (22) | (4) | |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
35
A weakening of the EUR against the above currency at the reporting date would have had equal but
opposite effect, on the basis that all other variables remain constant.
(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.
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 | 31 December | 31 December | |
Total liabilities bearing | 2,760 | 2,256 | |
Less: cash and cash | 653 | 214 | |
Net debt | 2,107 | 2,042 | |
Total equity attributable to | 4,725 | 5,170 | |
Less: amounts | 23 | 26 | |
Adjusted capital | 4,702 | 5,144 | |
Debt to adjusted | 0.45 | 0.40 |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
36
(g)
Hedge accounting
Cash flow hedges – hedge of foreign currency risk with non-derivative financial liability
Due to the change in the functional currency on 1 January 2022, the dividend cash flow hedge was
discontinued as the Company assessed that it would no longer be exposed to material risk related to
changes in FX rates. As such, the dividend cash flow hedge has been terminated. At the date
of termination, the balance in equity was translated at (CZK to EUR) 24.86 and a release table was set
in EUR, the balance will be released against future dividends (the original hedged item) between 2022
and 2034.
Cash flow hedges – hedge of interest rate risk
The Company applied hedge accounting for hedging instruments designed to hedge the interest rate risk
of its debt financing before 2 March 2021. The hedging instruments included interest rate swaps used
to hedge the risk related to the repricing of interest rates on debt financing. Due to refinancing of loans
with a variable interest rate by a debenture with a fixed rate, the hedge accounting was discontinued. As
at 2 March 2021, a hedge effectiveness test was performed, and the relationship was assessed as
ineffective. As a result of the discontinued hedge relationship, the Company recognised a cash flow hedge
reserve from interest in equity in the amount of CZK 2,609 million (equivalent of EUR 100 million).
The revaluation of interest swaps used as hedging between 31 December 2020 and 2 March 2021 was
derecognised in the profit or loss for 2021 and concurrently the relevant release was set for 2021 – 2026.
This hedging should have been gradually derecognised together with the future interest (hedged item) in
the profit or loss.
From 26 April 2022, the Company applied hedge accounting for hedging instruments designed to hedge
interest rate risk of debt financing. Hedging instruments were interest rate swaps used to hedge the risk
associated with changes in interest rates on debt financing. In total, the Company had entered into interest
rate swaps with a nominal amount of EUR 710 million maturing between 2028 and 2029 with fixed rates
ranging from 1.551% to 1.671%. In April 2023, the funding requirement of the Company was reassessed,
and the hedging instrument (interest rate swaps) was reduced to a nominal value of EUR 500 million.
The effect of the termination of part of the hedging relationship of EUR 26 million was derecognised in
a lump sum to the profit for 2023. As at 31 December 2023, the Company assessed the probability that
the Company’s note due in April 2024 will be refinanced. Given the relatively low probability that
previously intended future interest payments (hedged item) under the hedging documentation will occur,
the corresponding amount of EUR 46 million has been on one-off basis charged to profit or loss in 2023.
The valuation differences on cash flow hedges in equity for interest rate risk at 31 December 2025 amount
to EUR 1 million (2024: EUR 2 million).
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
37
19.
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 2025 and
31 December 2024:
The Company had transactions with related parties, its parent company, and other related parties,
as follows:
In millions of EUR | Accounts receivable and other financial assets | Accounts payable and other financial liabilities | Accounts receivable and other financial assets | Accounts payable and other financial liabilities |
31/12/2025 | 31/12/2025 | 31/12/2024 | 31/12/2024 | |
Subsidiaries | - | 155 | 286 | 136 |
Other * | 11 | 185 | 104 | 221 |
Shareholders | - | 100 | - | - |
Total | 11 | 440 | 390 | 357 |
* Entities under Energetický a průmyslový holding a.s.
Daniel Křetínský is the ultimate beneficial owner.
(b)
The summary of transactions with related parties during the year ended
31 December 2025 and 31 December 2024 was as follows:
In millions of EUR | Revenues | Expenses | Revenues | Expenses | |
2025 | 2025 | 2024 | 2024 | ||
Subsidiaries | 494 | 6 | 468 | 11 | |
Other * | 4 | 7 | 8 | 11 | |
Shareholders | - | - | - | - | |
Total | 498 | 13 | 476 | 22 |
* Entities under Energetický a průmyslový holding a.s.
Daniel Křetínský is the ultimate beneficial owner.
All transactions were performed under the arm’s length principle.
Transactions with the key management personnel
The members of the Board of Directors and the Supervisory Board of the Company did not receive
any other significant monetary or non-monetary performance for 2025 and 2024. At the same time,
members nominated by EPIF Investment a.s. (shareholder of EPIF) were also employed by other
companies of the EPH Group.
Social security and health insurance liabilities were not overdue.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
38
20.
Subsequent events
On 23 January 2026, the Company paid a EUR 100 million dividend that had been declared in December
2025.
On 29 January 2026, the Company successfully completed the issuance of EUR 500 million 4.375%
senior unsecured green notes (the “2034 Notes”) under its EMTN Programme. The 2034 Notes were
issued at a price of 99.630% and mature on 29 January 2034.
On 12 February 2026, the Company voluntarily repaid in full the remaining outstanding amounts under
its Schuldschein loan agreements, totalling EUR 210 million. This repayment fully discharged the
Company’s obligations under the Schuldschein financing.
Between the balance sheet date and the date of the financial statements preparation, no further events
have occurred that would materially affect the assessment of the Company's financial position and
results of operations for the year 2025.
VIII. Sustainability – Management Review
Sustainability – Management Review
Annual Financial Report for the year 2025 – Section VIII.
Sustainability – Management Review
1
Contents
1. Management review ................................ ................................................................ ................................................ 2
1.1 Year 2025 in review ................................................................ ................................................................ ......2
1.2 Key performance indicators ................................................................ .......................................................... 4
1.3 Role of EPIF assets in the energy transition ................................ ................................................................ .5
2. EPIF and its business ................................ ................................................................ .............................................. 8
2.1 Timeline ................................................................ ................................................................ ........................8
2.2 Group structure and geographical presence ................................................................ ..................................9
2.3 Value chain ................................................................ ................................................................ ................. 10
2.4 Business segments overview................................ ................................................................ ....................... 11
Gas transmission ................................................................ ................................................................ ............... 11
Gas and power distribution ................................................................................................ ............................... 11
Gas storage ................................................................ ................................................................ ....................... 11
Heat infrastructure ................................................................ ................................................................ ............ 12
Annual Financial Report for the year 2025 – Section VIII.
Sustainability – Management Review
2
Management review
1.1
Year 2025 in review
In 2025, Europe’s energy infrastructure landscape continued to undergo profound change as new
regulations took hold, market conditions shifted, and decarbonization objectives remained ambitious. For
EP Infrastructure (EPIF), this rapidly evolving environment brought both strategic opportunities and
operational challenges, underscoring the essential function of energy infrastructure in supporting a secure,
adaptable, and low-carbon energy system.
Across its gas midstream and downstream infrastructure, EPIF continued to advance its preparedness for
hydrogen transmission, storage, and distribution. Its subsidiary eustream, a Slovak gas transmission
operator, pursues a project to refurbish one of its pipelines to enable the international transport of green
hydrogen, which has been granted the status of an Important Project of Common European Interest (IPCEI).
The Slovak hydrogen backbone has the potential to become part of several emerging hydrogen corridors
including the Central European Hydrogen Corridor or the South-East European Hydrogen Corridor linking
prospective green hydrogen production areas with industrial clusters primarily in Germany. Thanks to its
strategic position and connections to all neighboring countries, eustream is well placed to support both
domestic hydrogen supply in Slovakia and international transit, helping connect hydrogen producers with
demand centers, particularly in Germany.
In the gas distribution segment, following the certification completed in 2024 allowing the distribution of
hydrogen blends of up to 10% in the local network and 5% in high-pressure pipelines, EPIF’s subsidiary
SPP-distribúcia (“SPPD”) launched the H2Demo project. As part of this initiative, the company developed
a dedicated test polygon in an isolated section of the network to simulate the distribution of pure hydrogen.
SPPD also continued modernizing its infrastructure by replacing older steel pipelines with hydrogen-
compatible polyethylene pipes. In addition, SPPD, together with eustream and other partners, have
established Slovakia’s first hydrogen valley - EASTGATEH2V in the Košice region - bringing together
clean hydrogen production, transport, and industrial use to stimulate regional economic development.
Besides hydrogen, SPPD plays a critical role in expanding the use of biomethane. In 2025, second
biomethane station was connected to the SPPD network, while further ten stations have already secured
investment subsidies for conversion to biomethane production. Slovakia’s biomethane potential is
estimated at approximately 400-500 million cubic metres per year, representing more 10% of the country’s
current gas consumption.
In the gas storage segment, EPIF’s subsidiary Nafta progressed with Project Henri, which has also received
IPCEI status. The main objective of the project is to develop and implement a pilot underground porous
gas storage facility for hydrogen, either in pure form or blended with natural gas at the highest feasible
hydrogen concentration, based on the outcomes of the research and development phase. The project is
currently in the final stage of the R&D phase, and the results obtained so far have not ruled out the
possibility of storing hydrogen at high concentrations or even in its pure form. In the second phase, selected
geological structures considered suitable will undergo physical testing for hydrogen storage.
As a major district heating operator in the Czech Republic, EPIF has been actively transitioning its portfolio
of cogeneration heating plants away from lignite toward a more diversified energy mix centered on
hydrogen-ready combined-cycle gas turbine (CCGT) units, waste-to-energy facilities, while utilizing
existing biomass assets. In March 2025, EPIF divested two cogeneration heating plants operated via its
subsidiaries Elektrárny Opatovice and United Energy to EP Heat & Power within the broader EP Group
and will now focus exclusively on heat distribution in the respective regions. The decarbonization initiatives
previously launched by EPIF remain unaffected by this transfer, and all projects continue to progress
Annual Financial Report for the year 2025 – Section VIII.
Sustainability – Management Review
3
according to plan. EPIF also continues to operate cogeneration heating plants in the city of Pilsen. To
support the decarbonization strategy of its Czech district heating operations, EPIF has secured investment
subsidies from the Modernization Fund, as well as 15-year operating support for cogeneration capacity
awarded through a competitive auction. This conversion will enable EPIF to meet its commitment to phase
out coal by 2030, while striving to complete the conversion already by 2028/2029.
Given its exposure to natural gas operations, EPIF’s ability to adapt its infrastructure for renewable or low-
carbon gases is critical. While ensuring technical readiness remains a key priority, the transition away from
natural gas will also depend on the broader development of a functioning renewable gas market - an area
in which EPIF’s role is more peripheral. Despite widespread development of clean energy, the hydrogen
market has been evolving more slowly than initially anticipated with limited tangible demand or supply of
green hydrogen. Nevertheless, policymakers continue to advance initiatives designed to stimulate industrial
demand and support investment in the necessary infrastructure. Together, these efforts demonstrate the
EU’s ongoing commitment to building a cleaner, more resilient, and secure energy system. As a major
operator of gas infrastructure and a developer of gas-fired cogeneration heating assets, EPIF remains
committed to the long-term replacement of natural gas.
In its electricity distribution segment, operated through its subsidiary Stredoslovenská distribučná (SSD) in
central Slovakia, EPIF continued investing in the network to support widespread electrification,
accommodate new connections, and adapt to increasing volatility in the energy system. The continuous
deployment of smart meters enables end customers to manage their energy consumption more efficiently
and achieve energy savings.
In its retail supply business in the Czech Republic and Slovakia, EPIF continued to acquire new customers
by offering reliable electricity and gas supply at competitive prices. The company also provides innovative
solutions such as turnkey installation of solar panels and heat pumps, as well as a virtual battery service
that allows customers to better match their energy consumption with electricity generated from their own
solar installations.
Through its subsidiary Geoterm Košice, EPIF has commenced drilling several geothermal wells near the
city of Košice in Slovakia to supply heat to the city’s district heating network. The hot water extracted from
underground will help replace coal, which is still partially used for district heating. Harnessing existing
geothermal energy demonstrates how clean energy solutions can also strengthen independence from
imported fossil fuels.
In November 2025, EPIF issued its inaugural EUR 600 million green bond, followed by another EUR500m
green bond issued in January 2026, leveraging the Green Finance Framework established in 2023 and
providing additional depth to the Group’s sustainable finance structure. Green finance instruments enable
EPIF to align its financial strategy with its sustainability objectives. These efforts confirm the Group’s
credibility in sustainable capital markets and reinforce its commitment to continuous improvement in
environmental performance and disclosure standards.
These regulatory and market developments underscore the strategic importance of EPIF’s infrastructure in
supporting Europe’s energy transition.