Interim report
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Interim Financial Report for the first half of 2026 (unaudited) Doosan Škoda Power a.s.
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 1 Contents 1. ABOUT THE COMPANY ................................................................................................................... 2 2. LETTER FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS ..................................................... 3 3. KEY FINANCIAL INDICATORS ........................................................................................................... 4 4. GROUP RESULTS FOR THE FIRST HALF OF 2026 ............................................................................. 5 4.1 Results for the first half of 2026 .................................................................................................... 5 4.2 Strategy and outlook ..................................................................................................................... 7 5. BASIC INFORMATION ABOUT DOOSAN ŠKODA POWER A.S. ......................................................... 8 5.1 Ownership structure, organisation and corporate affairs of the Group as at 30 June 2026 ........ 9 5.2 Transactions with related parties ................................................................................................ 10 6. IMPLEMENTATION OF IFRS 18 ...................................................................................................... 11 7. SUBSEQUENT EVENTS ................................................................................................................... 12 8. PERSONS RESPONSIBLE FOR THE COMPANY’S INTERIM FINANCIAL REPORT .............................. 12 9. ALTERNATIVE PERFORMANCE INDICATORS ................................................................................. 13 I. Condensed separate interim Financial Statements as at and for period from 1.1.2026 to 30.6.2026 prepared in accordance with IAS 34 as adopted by the European Union .................... 17 II. Condensed consolidated interim Financial Statements as at and for period from 1.1.2026 to 30.6.2026 prepared in accordance with IAS 34 as adopted by the European Union .................... 49
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 2 1. ABOUT THE COMPANY Doosan Škoda Power a.s. (hereinafter also referred to as “DSPW” or “the Company” and, together with its subsidiary, “the Group”) is one of the world’s leading manufacturers of steam turbines and a global supplier of technology solutions for electricity generation. Since February 2025 the Company is listed on the Prague Stock Exchange. As at 30 June 2026, the adjusted average number of employees was 950 for the Company respectively 994 for the Group. The Group has its registered office, management and production plant in the Czech Republic. The subsidiary is based in India, where its activities consist primarily of commercial support and engineering services for the Company’s projects. As at 30 June 2026, the Company’s majority shareholder was Doosan Power Systems S.A. with a 67 per cent stake. No other shareholder held a stake exceeding 5 per cent. The Company’s shares are traded on the Prime Market of the Prague Stock Exchange.
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 3 2. LETTER FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS Dear Shareholders, I would like to present to you the Interim Financial Report for the first half of 2026, a period into which Doosan Škoda Power a.s. entered with a consolidated backlog (volume of unrealised revenue s) approaching CZK 13 billion, and by the end of the first half of 2026, we had achieved to increase this figure further to almost CZK 18 billion. Once again, I would like to thank you – our shareholders – for your confidence in our Company . I believe that the dividend for 2025 of 28 CZK per share, approved at the Annual General Meeting in June and paid out in Augusts , is a reward for this trust. However, let me focus now on current development in the first half of 2026. Compared with the same period of last year, our Group’s total revenue is at a similar level, having risen slightly by 71 million CZK (approximately 2.8 per cent) to 2.681 billion CZK. EBITDA reached CZK 359 million, representing an increase of almost 40 per cent compared with the same period last year. With comparable revenue, we achieved this result thanks to optimisation efforts leading to a reduction in input costs. The company benefited from opportunities on the domestic market, which offered a unique chance to participate in the modernisation and expansion of nuclear power capacity. Close cooperation with the parent company also plays an important role, enabling us to offer the market a more comprehensive range of supplies. With the contribution of the Indian subsidiary, a major project was contracted in the first half of 2026 involving the supply of an 800 MW USC turbine to India. India is also becoming a key market on which the company is focusing with respect to the announced programme of intensive energy development. Another area experiencing dynamic growth is construction of data centres (particularly in the USA), which, due to their high energy consumption, require an expansion of electricity generation capacity. Intensive negotiations are also underway in relation to this market, and we believe that Doosan Škoda Power a.s. will participate in meeting the needs of this market. The ongoing Russia-Ukraine conflict is not having a significant impact on the Group’s commercial and operational activities. On the contrary, the future reconstruction of Ukraine’s energy infrastructure may represent further opportunities for our Group. I am pleased to observe the long-term trend of the C ompany’s share price on the Prague Stock Exchange and see this as a sign of the general public’s confidence in the potential of Doosan Škoda Power a.s. Last but not least, I would like to appreciate the effort of our employees, without whom the Company would not be able to fulfil its commitments and further develop its business activities. I’m glad to be part of a globally respected company which, for over a century, has been a reliable global supplier of steam turbines and comprehensive solutions for electricity generation. Young Ki Lim CEO and Chairman of the Board of Directors
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 4 3. KEY FINANCIAL INDICATORS Consolidated Profit and Loss Account (figures in thousands of CZK, unaudited) 1 January – 30 June 2026 1 January – 30 June 2025 year-on- year change Turnover 2,681,122 2,609,512 2.74 % Operating profit 256,954 197,911 29.83 % Profit before tax 293,807 209,626 40.16 % Profit for the period 235,902 208,475 13.16 % Total comprehensive income for the period 206,968 292,656 -29.28 % Key alternative performance indicators1 (in thousands of CZK, unless otherwise stated, unaudited) EBITDA 359,336 257,149 39.74 % EBITDA margin 13.40 % 9.85 % 36.04 % Net profit per share attributable to the parent company’s owners amounted to 7.40 CZK per share as at 30 June 2026. For the period 1 January to 30 June 2025, this figure was 6.64 CZK per share. Consolidated Statement of Financial Position (figures in thousands of CZK) 30 June 2026 31 December 2025 change unaudited audited Total assets 7,979,835 8,248,128 -3.25 % Total equity 4,184,299 4,870,531 -14.09 % Total liabilities 3,795,534 3,377,597 12.37 % 1 The specification and reconciliation of alternative performance indicators are set out in chapter 7 of this Interim Financial Report
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 5 4. GROUP RESULTS FOR THE FIRST HALF OF 2026 4.1 Results for the first half of 2026 In the first half of 2026, the Group achieved revenue s from the sale of products, goods and services amounting to CZK 2, 674,023 thousand, representing a slight year -on-year increase of approximately CZK 80 million (3.08 per cent). In accordance with IFRS 8 , the company reports its results in a single segment – Turbines; however, revenue recognition can be tracked by project category. The following table shows the breakdown of revenues as per particular project categories (figures in thousands of CZK, unaudited): Project category / Revenue 1 January – 30 June 2026 1 January – 30 June 2025 year-on-year change New installations 1,772,767 1,865,816 -4.99 % Service 661,425 548,202 20.65 % Long-term maintenance and servicing 239,831 179,849 33.35 % Total 2,674,023 2,593,867 The New Installations category decreased by approximately 5 per cent year-on-year. Major projects recently contracted, leading to a significant increase in the backlog, are of a long-term nature and the progress of their execution will increase, particularly in the mid-term time horizon . However, the Company is succeeding in achieving the growth in revenue from service activities, where the ‘Service’ category recorded an increase by more than 20 per cent and revenue from ‘Long -term maintenance’ rised even by more than a third year-on-year. Nevertheless, in this category, it is necessary to mention the fact that planned maintenance involves long intervals between major shutdowns and therefore does not generate revenue on a linear basis. Revenue by territory is shown in the following table (figures in thousands of CZK, unaudited): Region / Revenue 1 January – 30 June 2026 1 January – 30 June 2025 year-on-year change Africa 164,640 450,965 -63.49 % Asia 351,939 464,326 -24.20 % Czech Republic 701,008 292,075 240.01 % Europe (other) 935,508 1,129,181 -17.15 % North America 290,921 147,842 196.78 % South and Central America 229,707 97,564 235.44 % Other 300 11,914 -97.48 % Total 2,674,023 2,593,867 Given the global market coverage , the long -term nature of contracts and the varying phases of execution throughout particular periods the fluctuations in revenue in particular territories is a usual feature. Year-on-year, there was a significant increase in domestic revenue, both in nominal value (+CZK 409 million) as well as relative change (+240 per cent), where major modernisation projects for the energy industry are being carried out. Significant increase in revenue was also recorded in the America, whether in North America or Latin America. Conversely, given the higher progress of
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 6 completion on African projects achieved last year, there was a year-on-year decline in revenues in the Africa region. Consumption of raw materials and supplies Consumption of raw materials and supplies for the six months to 30 June 2026 fell by 0.47% compared with the same period in 2025, to CZK 1,724 million, despite a slight increase in revenue. Staff costs Staff costs for the six months to 30 June 2026 fell by 7.25 per cent compared with the same period in 2025, to CZK 558 million. The decline in staff costs was primarily due year-on-year reduction in the number of employees. Depreciation and amortisation Depreciation and amortisation for the six months to 30 June 2026 increased by 16.14 per cent compared with the same period in 2025, reaching CZK 101 million. The increase reflects higher investment activity initiated in the previous period. EBITDA EBITDA for the six months to 30 June 2026 rose by 39.74% compared with the same period in 2025, to CZK 359 million, mainly due to savings achieved through optimisation measures. Interest income and other financial income Interest income for the six-month period ending 30 June 2026 fell by 6.23 per cent compared with the same period in 2025, to CZK 37 million, and thus shows only an insignificant year-on-year change. Other financial income, comprising mainly realised exchange rate gains on cash, cash equivalents, short-term financial instruments and loans, recorded an increase of approximately 24 per cent, amounting to CZK 38 million. Interest expense and other financial expenses Interest expense for both the six-month period ending 30 June 2026 and the comparable period of 2025 is negligible and relates to the accounting treatment of assets operated on a leased basis - the car fleet used by the Company and usage of leased office premises in the regions. The Group did not draw down any loans in the first half of 2026. Other financial expenses, which consist primarily of foreign exchange losses arising from the revaluation of cash, cash equivalents, short-term financial instruments and loans, fell by 25.57 per cent year-on-year to CZK 36 million. Profit before tax Profit before tax for the six months to 30 June 2026 increased by 40.16% compared with the same period in 2025, to CZK 294 million, when the increase in operating profit mainly contributed to this growth.
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 7 Income tax Income tax for the six months to 30 June 2026 increased by CZK 57 million compared with the same period in 2025. The year -on-year change comparability is limited due to partial methodology incorrectness in calculation of deferred tax in the first half of 2025. Profit for the period Profit for the six months until 30 June 2026 increased by 13.16 per cent compared with the same period of 2025, to CZK 236 million. Here it is also necessary to take into account the limited year-to-year comparability, given the incorrectly calculated deferred tax in the first half of 2025. Capital expenditure The Group’s capital expenditure for the six months to 30 June 2026 raised by 194.82 per cent compared with the corresponding period in 2025 to CZK 134 million, of which approximately CZK 95 million represents investment in tangible fixed assets. 4.2 Strategy and outlook Outlook for the second half of 2026 The company believes that the Group’s financial performance in 2026 will continue to be influenced by a number of external factors that affected also its results of the previous period. The development of demand and of the market environment will be crucial. The Czech Republic is the territory on which the Group will focus its attention . Here the Group sees significant business opportunities both in connection with the construction of units at the Dukovany Nuclear Power Plant – where it is seeking to secure a n extended scope of equipment supplies for this project – and in utilization of the potential to succeed in further projects within conversions of energy facilities currently using fossil fuels. The Group is actively negotiating further major projects abroad, particularly in its target markets in the USA and India. It is also intensively working to utilize synergies with its parent company with the aim to achieve its ability to offer comprehensive solutions for combined-cycle power plants. Inflation expectations are lower than in previous periods , nevertheless, pressure persists on the cost side, particularly regarding labour costs. Although the volatility of the US dollar exchange rate has been relatively stable over the past year, uncertainty regarding the currency’s exchange rate persists in the financial sector due to geopolitical uncertainty, which affects business opportunities and competitiveness in territories where the US dollar is used as the traditional trading currency. With regard to the market potential in the US, in addition to the unfavourable exchange rate , the difficulty in predicting the measures introduced by the US administration represents simultaneous risk factor. In the context of the financial results for the first six months of 2026 and subsequent developments until the date of publication of this half -yearly financial report, the Company anticipates that it will achieve comparable revenue and a slightly better profit for 2026 compared to 2025. At the same time, there is probable to further year-on-year increase of the backlog by the end of 2026.
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 8 Geopolitical events relating to the Company’s activities The impact of the Russian invasion of Ukraine on the Group in the first half of 2026 The armed conflict between Russia and Ukraine has persisted since 2022. In response to Russia’s military invasion of Ukraine, a number of measures and sanctions have been imposed on Russia and Belarus. Given that the Group’s long-term trade relations with the countries subject to sanctions have not been significant, the continuation of the conflict has no material impact on the Group. At the beginning of the conflict, there was a partial disruption of the Euro-Asian logistics system, however, the situation has now stabilised and the Group is not experiencing any significant adverse effects. Impact of the Iran-Israel-US conflict in the Middle East The armed conflict restricting smooth passing through the Strait of Hormuz, and thus the export of significant volumes of oil, leading to an increase of fuel prices, affects the Group only to a very limited extent in the form of price effects on transport costs , when these costs as a whole represent an insignificant portion of the Group’s total production costs. This territory is not even a usual transport route used to transport of the Group’s products or materials procured. 5. BASIC INFORMATION ABOUT DOOSAN ŠKODA POWER A.S. BASIC INFORMATION ABOUT THE COMPANY Company name: Doosan Škoda Power a.s. Legal form: joint stock company Registered office: Tylova 1/57, Plzeň, 301 00 Commercial Register: maintained by the Regional Court in Plzeň, Section B, File 2251 Company ID: 491 93 864 Tax ID: CZ49193864 LEI: 31570010000000024442 Telephone number: +420 371 435 000 Email: info.power@doosan.com Date of establishment: 1993 Website: www.doosanskodapower.com The Company’s business activities, as set out in Article 3 of the Articles of Association, are: a) the construction, alteration and demolition of buildings; b) design work in the construction sector; c) machining; d) locksmithing and toolmaking; e) the manufacture, installation and repair of electrical machinery and apparatus, and electronic and telecommunications equipment;
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 9 f) installation, repair, inspection and testing of gas equipment and the filling of containers with gas; g) installation, repair, inspection and testing of pressure equipment and gas containers; h) manufacture of metal structures and metalwork products; i) manufacture of electronic components, electrical equipment, and the manufacture and repair of low-voltage electrical machinery, apparatus and electronic equipment; j) manufacture of machinery and equipment; k) wholesale and retail trade; l) provision of software, IT consultancy, data processing, hosting and related activities, and web portals; m) advisory and consultancy services, the preparation of specialist studies and expert reports; n) design of electrical equipment; o) research and development in the natural and technical sciences or the social sciences; p) testing, measurement, analysis and inspection; q) administrative management services and services of an organisational and economic nature; r) installation, repair, inspection and testing of electrical equipment; s) installation, repair, inspection and testing of lifting equipment; t) land consolidation planning; u) surface treatment and welding of metals and other materials; v) rental and hire of movable property; and w) extracurricular education and training, organisation of courses and training programmes, including lecturing. 5.1 Ownership structure, organisation and corporate affairs of the Group as at 30 June 2026 The following diagram illustrates the Group’s structure as at 30 June 2026. Ownership structure and changes in the Company’s equity in the first half of 2026 As at 30 June 2026, Doosan Power Systems S.A. was the majority shareholder with a 67 per cent stake. Volume of the Company’s shares publicly traded is 33 per cent and shares are traded on the Prague Stock Exchange. At the Company’s Annual General Meeting held on 25 June 2026, a resolution regarding the distribution of profits for the year 2025 and the payment of a dividend was passed. A portion of the retained earnings from previous years was also proposed for distribution. The calculation of earnings per share is based on the total number of shares issued by the Company. The dividend for 2025 was Doosan Power Systems S.A. (67 %) Free float (33 %) Doosan Škoda Power a.s. Skoda Power Pvt. Ltd.
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 10 approved at CZK 28 (in words: twenty-eight Czech korunas) per share before tax. In accordance with Czech legislation, the relevant tax was withheld (deducted) by the Company prior to the payment being made. The record date for entitlement to a share on the profits was 7 July 2026, meaning that those who were shareholders of the Company on that date are entitled to a share on the profit. The payment date was 7 August 2026. 5.2 Transactions with related parties The Group’s related parties include subsidiaries, the parent company and other associated companies. Transactions carried out by the Group with related parties primarily consist of the supply of goods and services in the ordinary course of business. Transactions with related parties also include remuneration paid to members of the Supervisory Board and the Board of Directors. Transactions with related parties form part of normal business operations and are carried out on arm’s length terms. During the six-month period ending 30 June 2026, the Company recorded the following receivables , payables and transactions with its related parties: Skoda Power Pvt. Ltd.: As at 30 June 2026, the Company recorded receivables from Skoda Power Pvt. Ltd. • receivables amounting to CZK 15,718 thousand , • liabilities of CZK 5,776 thousand. During the six-month period ending 30 June 2026, the Company purchased goods and services from Skoda Power Pvt. Ltd. worth CZK 10,800 thousand, and, conversely, supplied goods and services to Skoda Power Pvt. Ltd. worth CZK 36,969 thousand. Doosan Enerbility Co. Ltd.: As at 30 June 2026, the Company recorded receivables from Doosan Enerbility Co. Ltd. • receivables amounting to 488,755 thousand CZK, • and liabilities of CZK 67,217 thousand. During the six-month period ending 30 June 2026, the Company purchased goods and services from Doosan Enerbility Co. Ltd. worth CZK 8,754 thousand, whilst supplying goods and services worth CZK 63,693 thousand. Doosan Power Systems S.A.: As at 30 June 2026, the Company recorded receivables from Doosan Power Systems S.A. • receivables of CZK 137,613 thousand, • liabilities of CZK 3,300 thousand. During the six-month period ending 30 June 2026, the Company purchased no goods or services from Doosan Power Systems S.A., whilst it supplied goods and services worth 28,308 thousand CZK. Doosan Lentjes GmbH: As at 30 June 2026, the Company recorded receivables from Doosan Lentjes GmbH • receivables of CZK 273,878 thousand,
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 11 • liabilities of CZK 0. During the six-month period ending 30 June 2026, the Company did not purchase any goods or services from Doosan Lentjes GmbH; conversely, it supplied goods and services worth CZK 30,701 thousand. The above amounts include contractual interest on arrears on outstanding receivables from Doosan Lentjes GmbH. Doosan Digital Innovation Europe: As at 30 June 2026, the Company recorded receivables from Doosan Digital Innovation Europe • receivables of CZK 0, • liabilities of CZK 71,823 thousand. During the six-month period ending 30 June 2026, the Company purchased goods and services worth CZK 92,617 thousand from Doosan Digital Innovation Europe, whilst supplying goods and services worth CZK 206 thousand to that company. Doosan Turbomachinery Services: As at 30 June 2026, the Company recorded receivables of CZK 0 from Doosan Turbomachinery Services, a subsidiary of • receivables of CZK 0, • liabilities of CZK 164,337 thousand. During the six-month period ending 30 June 2026, the Company purchased goods and services from Doosan Turbomachinery Services worth CZK 32,101 thousand, and in return supplied goods and services worth CZK 1,254 thousand. The liabilities recorded in respect of Doosan Turbomachinery Services consist largely of an advance payment for a future supply. Key members of management During the six-month period ending 30 June 2026, key management personnel included all members of the Company’s Board of Directors and Supervisory Board. Short -term benefits provided to key management personnel (including gross remuneration, annual bonuses, health and social insurance, and supplementary pension insurance) totalled CZK 9,100,000 . The Company did not provide any further benefits (e.g. monetary or non-monetary benefits) to its key management personnel in connection with the termination of their membership of a governing body. A complete overview of transactions with related parties is set out in note 18 to the financial statements. 6. IMPLEMENTATION OF IFRS 18 The Company will implement IFRS 18 with effect from 1 January 2027. The statements presented in the condensed interim financial statements as at 30 June 2026 , which form part of this report, therefore do not yet reflect the implementation of IFRS 18. Given that it will be necessary to ensure consistency next year for the reported comparative period of 2026 as well, an impact analysis was
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 12 carried out and the Company’s chart of accounts was amended to enable the appropriate mapping to be carried out in the following period in the financial statements prepared in accordance with IFRS 18. Given the Group’s current operational structure, the Company has not identified any significant differences between reporting in accordance with IFRS 18 and reporting under the current structure. 7. SUBSEQUENT EVENTS In the period from 30 June 2026 until the publication of this report , the Company secured access to short-term bank financing. These measures form part of the ongoing optimisation of financial management and support flexibility in working capital management. This did not affect the valuation of assets and liabilities reported as at 30 June 2026. 8. PERSONS RESPONSIBLE FOR THE COMPANY’S INTERIM FINANCIAL REPORT To the best of our knowledge, the condensed set of financial statements prepared for the first six months of 2026 as at 30 June 2026 gives a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer and its consolidated group , and the description pursuant to Section 119(2)(b) of the ZPKT contains a true and fair overview of the information required under point (b). Pilsen, 23 September 2026 Signed on behalf of the Board of Directors of Doosan Škoda Power a.s.: ............................................................................................ Youngki Lim, Chairman of the Board of Directors ............................................................................................ Byoungtak Kim, Vice-Chairman of the Board of Directors
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 13 9. ALTERNATIVE PERFORMANCE INDICATORS This report contains certain financial indicators that are not defined or recognised under IFRS accounting standards and are considered alternative performance measures as defined in the "ESMA Guidelines on Alternative Performance Measures" issued by the E uropean Securities and Markets Authority (ESMA) on 5 October 2015 (“alternative performance measures”). This report contains the following alternative performance measures: EBITDA, EBITDA margin, free cash flow, cash conversion, ratio of new orders to sales, backlog, order intake. The Company uses alternative performance measures as indicators in assessing the Group’s operating performance. Management also believes that the disclosure of alternative performance measures is useful because such measures and ratios are used by many inv estors, analysts and other interested parties as supplemental measures of performance and liquidity in assessing the effectiveness of companies’ operations. Alternative performance measures are not derived directly from the financial statements, but are derived from the financial data presented in the financial statements. Alternative performance measures are not subject to audit or review by an independent au ditor. They are not defined in IFRS accounting standards and cannot be considered indicators of financial performance or operating cash flows, nor are they a substitute for profit data. Alternative performance measures should therefore be considered only a s a source of supplementary information. They are not a substitute for or a more significant source of information than the accounting data presented in the financial statements prepared in accordance with IFRS. Alternative performance measures are not mor e meaningful than the data presented directly in the financial statements. Alternative performance measures must be assessed in conjunction with the financial statement data. There are no generally accepted principles for determining the calculations of al ternative performance measures. The criteria and procedures used to derive these measures may vary from company to company, limiting their suitability for comparison. Although the Group's management uses alternative performance measures in assessing the Group's financial results, and although investors commonly refer to these measures, there are important limitations to their use as analytical tools. On their own, they do not provide a sufficient basis for comparing the Company's performance with that of other companies. Therefore, they cannot be used in isolation from other data or as a substitute for data on revenue, profit before tax or cash flows from operating activities calculated in accordance with IFRS accounting standards when assessing the Group's condition or results. EBITDA The Company calculates EBITDA based on the data contained in the audited financial statements and unaudited interim financial statements as profit for the period plus income tax plus interest expense minus interest income plus depreciation and amortisation (EBITDA). The Company uses EBITDA as a measure of its operating performance, excluding the effects of interest, taxes, depreciation and amortisation, which provides insight into its underlying profitability and operating efficiency. This indicator allows for a clearer comparison of performance across different periods and with other companies in the industry. EBITDA therefore serves as a valuable tool for management and investors to assess the Company's underlying financial stability and operating success. EBITDA margin EBITDA margin is defined by the Company as EBITDA expressed as a percentage of revenue (EBITDA margin).
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 14 Free cash flow The Company calculates free cash flow based on data included in the audited financial statements and unaudited interim financial statements as cash from operating activities minus cash expenditures for the acquisition of property, land and equipment minus cash expenditures for the acquisition of intangible assets plus cash receipts from the sale of property, land and equipment, minus income tax paid (free cash flow). The Company uses free cash flow as a measure of available cash after deducting acquisitions and proceeds from the sale of property, plant and equipment, intangible assets and taxes, which provides an overview of the Company's liquidity and operating efficiency. Cash conversion The Company calculates cash conversion as free cash flow expressed as a percentage of EBITDA (cash conversion). The Company uses cash conversion to assess its ability to convert profits into cash flow. Ratio of new orders to sales The ratio of new orders to sales is expressed by the Company as the ratio of the Company's new orders to its sales (order-to-sales ratio). The Company uses the order -to-sales ratio as an indicator of future demand for the Company's products, with a ratio greater than 1x indicating that orders received in the current period exceed sales generated in the same period. The Company can therefore benefit from using the order-to-sales ratio for forecasting and planning purposes. Backlog Backlog represents the amount designated as unearned revenue in the audited financial statements and unaudited interim financial statements, which describes the remaining transaction price allocated to the fulfilment of contracts that had not yet been fulf illed at the end of the relevant period. The backlog is converted to CZK using the exchange rate at the balance sheet date or the actual historical exchange rate for any invoiced amounts and/or advances received. The Company uses the backlog to track the r emaining transaction price from unfulfilled contracts at the end of the reporting period, which provides valuable insight into expected future revenues and overall financial stability. Order intake Order intake represents the increase in outstanding orders in the current period. This includes new contracts, amendments to existing contracts, and, in exceptional cases, cancellations of existing contracts. The company calculates order intake as the ending balance of backlog minus the beginning balance of backlog plus revenue from the sale of goods, products, and services plus exchange rate differences plus other adjustments, including claims and timing differences. The company uses the volume of orders received to monitor and manage the growth of new and modified contracts, which provides valuable information about future revenues and operational planning. The Company presents these alternative performance measures (APMs) (i) because its management uses them to monitor its financial condition, and (ii) to present similar measures that are widely used by certain investors, securities analysts and other intere sted parties as supplemental measures of financial condition, financial performance and liquidity. The Company believes that the inclusion of these ratios and measures, when considered in conjunction with the measures reported under IFRS, improves investors' understanding of the Company's indebtedness and current ability to finance its ongoing operations. The alternative performance measures presented may not be comparable to other similarly titled measures used by other companies for different purposes and often calculated in a manner that
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 15 reflects the circumstances of those companies. Users of these measures should exercise caution when comparing them to similar measures used by other companies. Furthermore, none of these alternative measures is a measure of performance under IFRS, and investors should not evaluate them in isolation or interpret them as a substitute for, among other things, net profit, operating profit, cash flows from operating activities, investing activities or financing activities, or other measures determined in accordance with IFRS. APMs should be considered only as supplementary information and not as a substitute or superior alternative to financial information prepared in accordance with IFRS. APMs should not be given preference over indicators derived directly from audited financial statements and/or unaudited interim financial statements and should be read in conjunction with audited financial statements and unaudited interim financial statements. As analytical tools, these APMs have certain limitations, including: • they do not reflect the company's cash expenditures or future capital expenditures or contractual obligations; • they do not reflect changes in the company's working capital requirements or cash requirements for these needs; • the fact that other companies in the same industry may calculate EBITDA and other alternative performance measures differently limits their usefulness as comparative measures; • EBITDA margins depend on revenues and may therefore be affected by overstated revenues; • although depreciation and amortisation are non -cash expenses, depreciated and amortised assets will often need to be replaced in the future, and EBITDA does not reflect any cash requirements that would be necessary for such replacement; • Free cash flow does not take into account cash flows from financing activities and therefore may not fully reflect the company's cash position. • The order -to-revenue ratio does not provide context on the profitability or complexity of orders received. For the six months ended 30 June 2025 and 24 June 2024 (in thousands of CZK, unless otherwise stated) For the six -month period ended 30 June 2026 and 30 June 2025 respectively (in thousands of CZK, unless otherwise stated) 1 January – 30 June 2026 1 January – 30 June 2025 year-on- year unaudited unaudited change EBITDA 1) 359,336 257,149 39.74 % EBITDA margin 13.40 % 9.85 % 36.04 % ’s free cash flow 1) -859,235 -520,005 -65.24 % Cash conversion -239.12 % -202.22 % -11.83 % Ratio of new orders to turnover 2.88 0.71 405.63 % Volume of outstanding orders 17,868,813 8,172,937 218.63 % New orders received 7,720,107 1,843,144 418.86 %
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 16 1) Reconciliation of alternative performance indicators in thousands of CZK, unaudited EBITDA 1 January – 30 June 2026 1 January – 30 June 2025 Profit for the period 235,902 208,475 + Income tax 57,905 1,151 + Interest expense 1,453 - 71 - Interest income - 36,897 - 39,346 + Depreciation and amortisation 100,973 86,940 EBITDA 359,336 257,149 Free cash flow (FCF) 1 January – 30 June 2026 1 January – 30 June 2025 Cash flows from operating activities - 644,446 - 371,501 - Expenditure on the acquisition of tangible fixed assets - 95,349 - 42,177 - Expenditure on the acquisition of intangible assets - 38,996 - 26,780 + Proceeds from the sale of fixed assets 75 314 - Tax paid - 80,519 - 79,861 FCF - 859,235 - 520,005
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Doosan Škoda Power a.s. CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY THE EU 17 I. Condensed separate interim Financial Statements as at and for period from 1.1.2026 to 30.6.2026 prepared in accordance with IAS 34 as adopted by the European Union
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Doosan Škoda Power a.s. CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY THE EU 18 CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 prepared in accordance with IAS 34 as adopted by the European Union Name of the Company: Doosan Škoda Power a.s. Registered Office: Tylova 1/57, Jižní Předměstí, 301 00 Plzeň Legal Status: Joint Stock Company Corporate ID: 491 93 864 Components of the Separate Financial Statements: • Condensed separate interim Statement of Financial Position • Condensed separate interim Statement of Profit or Loss • Condensed separate interim Statement of Comprehensive Income • Condensed separate interim Statement of Changes in Equity • Condensed separate interim Cash Flow Statement • Notes to the Condensed separate interim Financial Statements These condensed separate interim financial statements were prepared on 23 September 2026. Statutory body of the reporting entity: Signature Young Ki Lim Chairman of Board of Directors Byoung Tak Kim Vice Chairman of Board of Directors
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Doosan Škoda Power a.s. CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY THE EU 19 Doosan Škoda Power a.s. CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION as at 30 June 2026 and 31 December 2025 prepared in accordance with IFRS Accounting Standards as adopted by the European Union (in thousands of Czech crowns) Note 30.06.2026 31.12.2025 ASSETS 7 642 576 7 920 622 Property, plant and equipment 1 269 060 1 250 989 Intangible assets 6 1 303 825 1 306 602 Investments in group undertakings 2 722 2 640 Non-current financial derivatives 20 19 080 29 680 Non-current receivables 4 49 621 37 280 Total non-current assets 2 644 308 2 627 191 Inventories 149 983 158 389 Trade receivables 4 1 225 530 1 586 652 Other assets 4 449 173 141 153 Contract assets 5 2 184 141 1 518 204 Current tax assets 53 233 - Short term financial instruments and loans 18 300 000 78 000 Current financial derivatives 20 49 940 92 389 Cash and cash equivalents 586 268 1 718 644 Total current assets 4 998 268 5 293 431 EQUITY AND LIABILITIES 7 642 576 7 920 622 Share capital 10 1 595 000 1 595 000 Share premium 10 519 470 519 470 Statutory and other reserves 10 16 925 16 925 Revaluation of assets 10 74 928 74 928 Revaluation of hedging reserves 20 38 223 64 922 Retained earnings 1 831 766 2 496 207 Total equity 4 076 312 4 767 452 Deferred tax liabilities 236 836 187 267 Non-current provisions 9 51 445 56 727 Non-current financial derivatives 20 9 183 3 045 Other non-current liabilities 22 272 20 754 Total non-current liabilities 319 736 267 793 Trade payables 7 1 961 758 1 352 431 Other liabilities 7 120 581 246 432 Contract liabilities 5 809 899 984 994 Income tax payable 3 571 21 314 Current provisions 9 339 824 279 173 Current financial derivatives 20 10 895 1 033 Total current liabilities 3 246 528 2 885 377 The above condensed separate interim statement of financial position should be read in conjunction with the accompanying notes.
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Doosan Škoda Power a.s. CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY THE EU 20 Doosan Škoda Power a.s. CONDENSED SEPARATE INTERIM STATEMENT OF PROFIT OR LOSS for the period from 1 January to 30 June 2026 and 1 January to 30 June 2025 prepared in accordance with IFRS Accounting Standards as adopted by the European Union (in thousands of Czech crowns) Note 1-6/2026 1-6/2025 Revenues from goods, products and services 12 2 614 341 2 587 442 Other revenues 12 7 099 15 645 Revenues 2 621 440 2 603 087 Raw materials and consumables used 14 -1 689 127 -1 737 756 Own work capitalized 40 561 32 450 Personnel expenses -550 358 -593 558 Depreciation and amortization -100 709 -86 812 Other operating expenses 15 -46 736 -36 769 Other gains and losses 16 -32 416 13 425 Operating expenses -2 378 785 -2 409 020 Profit/loss from disposal of non-current assets and material 35 240 Operating profit 242 690 194 307 Extraordinary cost - -9 364 Financial income 17 81 904 72 356 Financial costs 17 -37 930 -48 954 Profit before income tax 286 664 208 345 Income tax expense -57 905 1 662 Profit for the period 228 759 210 007 Earnings per share - basic and diluted (CZK) 11 7,17 6,68 The above condensed separate interim statement of profit or loss should be read in conjunction with the accompanying notes.
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Doosan Škoda Power a.s. CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY THE EU 21 Doosan Škoda Power a.s. CONDENSED SEPARATE INTERIM STATEMENT OF COMPREHENSIVE INCOME for the period from 1 January to 30 June 2026 and 1 January to 30 June 2025 prepared in accordance with IFRS Accounting Standards as adopted by the European Union (in thousands of Czech crowns) 1-6/2026 1-6/2025 Profit for the accounting period 228 759 210 007 Other net comprehensive income -26 699 97 859 Items that will not be reclassified subsequently to profit or loss: Increase/decrease in value of assets as a result of their revaluation - - Deferred tax relating to items not reclassified - - - - Items that may be reclassified subsequently to profit or loss: Gains/losses on cash flow hedges -33 796 123 872 Deferred tax on items of other comprehensive income 7 097 -26 013 -26 699 97 859 Total comprehensive income for the accounting period 202 060 307 866 Earnings per share - basic and diluted (CZK) 7,17 6,68 The above condensed separate interim statement of comprehensive income should be read in conjunction with the accompanying notes.
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Doosan Škoda Power a.s. CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY THE EU 22 Doosan Škoda Power a.s. CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN EQUITY for the period from 1 January to 30 June 2026 and 1 January to 31 December 2025 prepared in accordance with IFRS Accounting Standards as adopted by the European Union (in thousands of Czech crowns) Share capital Share premium Statutory and other reserves Revaluation of assets Revaluation of hedging reserves Retained earnings Total equity Balance as at 1 January 2025 1 450 000 - 329 835 65 128 -54 612 2 319 726 4 110 077 Profit for the period - - - - - 487 825 487 825 Components of other comprehensive income - - - 9 800 119 534 - 129 334 - assets revaluation - - - 9 800 - - 9 800 - cash flow hedging - - - - 151 308 - 151 308 - tax for items reported in equity or transfered to equity - - - - -31 774 - -31 774 Total comprehensive income for the period - - - 9 800 119 534 487 825 617 159 Transactions with owners Issue of shares 145 000 519 470 - - - - 664 470 Dividends - - - - - -311 344 -311 344 Cancellation and distribution of reserve fund - - -312 910 - - - -312 910 Balance as at 31 December 2025 1 595 000 519 470 16 925 74 928 64 922 2 496 207 4 767 452 Balance as at 1 January 2026 1 595 000 519 470 16 925 74 928 64 922 2 496 207 4 767 452 Profit for the period - - - - - 228 759 228 759 Components of other comprehensive income - - - - -26 699 - -26 699 - cash flow hedging - - - - -33 796 - -33 796 - tax for items reported in equity or transferred to equity - - - - 7 097 - 7 097 Total comprehensive income for the period - - - - -26 699 228 759 202 060 Transactions with owners Dividends - - - - - -893 200 -893 200 Balance as at 30 June 2026 1 595 000 519 470 16 925 74 928 38 223 1 831 766 4 076 312 The above condensed separate interim statement of changes in equity should be read in conjunction with the accompanying notes.
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Doosan Škoda Power a.s. CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY THE EU 23 Doosan Škoda Power a.s. CONDENSED SEPARATE INTERIM CASH FLOW STATEMENT for the period from 1 January to 30 June 2026 and 1 January to 30 June 2025 prepared in accordance with IFRS Accounting Standards as adopted by the European Union (in thousands of Czech crowns) 1-6/2026 1-6/2025 Profit before tax 286 664 208 345 - Depreciation and amortization 100 709 86 812 - Profit/loss on disposal of non-current assets -51 -260 - Impairment losses on current assets 15 146 29 958 - Non-capitalized exchange rate differences 34 836 31 624 - Share of profit of equity accounted investees -13 216 -9 898 - Interest paid, interest expenses and income and bank fees -24 537 -26 439 - Other non-cash operations 15 154 -116 932 - Creation and release of provisions 55 369 27 440 Total adjustments 183 410 22 305 Cash flows from operating activities before changes in working capital 470 074 230 650 Change in inventories 6 394 -40 680 Change in trade and other receivables -646 483 -650 501 Change in trade and other payables -545 728 67 456 Cash from operating activities -715 743 -393 075 Interest received 5 225 11 787 Interest paid and bank fees -6 830 -5 345 Income tax paid -73 131 -77 874 Net cash from operating activities -790 479 -464 507 Acquisition of property, plant and equipment -94 197 -42 081 Acquisition of intangible assets -38 996 -26 780 Loans provided - drawing -222 000 - Proceeds from sale of property, plant and equipment 65 312 Dividend received 13 216 9 898 Net cash from investing activities -341 912 -58 651 Proceeds from issue of shares - 664 470 Net cash from financing activities - 664 470 Net increase/decrease in cash and cash equivalents -1 132 391 141 312 Cash and cash equivalents at the beginning of period 1 718 644 852 440 FX gains/losses on cash and cash equivalents 15 -2 880 Cash and cash equivalents at the end of the period 586 268 990 872 The above condensed separate interim cash flow statement should be read in conjunction with the accompanying notes.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 24 Table of Contents 1. Description of the Company’s activities ......................................................................... 25 2. Basis of preparation of the condensed interim financial statements ............................ 26 3. Summary of material accounting policies ...................................................................... 28 4. Trade receivables and other assets ................................................................................ 36 5. Balance of long-term contracts ...................................................................................... 36 6. Intangible assets ............................................................................................................. 37 7. Trade payables and Other liabilities ............................................................................... 37 8. Loans and borrowings ..................................................................................................... 37 9. Provisions ........................................................................................................................ 38 10. Equity .............................................................................................................................. 38 11. Earnings per share .......................................................................................................... 38 12. Revenues from goods, products and services and Other revenues ............................... 38 13. Segment reporting .......................................................................................................... 39 14. Raw materials and consumables used ............................................................................ 39 15. Other operating expenses .............................................................................................. 40 16. Other gains (+) and losses (-) .......................................................................................... 40 17. Financial income and financial costs .............................................................................. 40 18. Transactions with related parties ................................................................................... 40 19. Financial instruments and risk management ................................................................. 41 20. Summary of derivative instruments ............................................................................... 46 21. Litigations ........................................................................................................................ 47 22. Environmental liabilities ................................................................................................. 47 23. Provided guarantees and other conditional obligations ................................................ 47 24. Subsequent events.......................................................................................................... 48
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 25 1. Description of the Company’s activities Establishment and description of the Company Doosan Škoda Power a.s. (“the Company”), till the 31 December 2024 Doosan Škoda Power s.r.o., was established by a Memorandum of Association as a limited liability company on 27 April 1993 and was recorded in the Commercial Register on 1 July 1993 in Pilsen. Since February 2025 the Company is listed on the Prague Stock Exchange. The Company has only one not significant wholly owned subsidiary ŠKODA POWER Private Limited (the Subsidiary), the Company has voting control there. The Company is a leading European manufacturer and supplier of the technological equipment and customer services in the field of power generation – a supplier of steam turbines to machine halls of ŠKODA design and of complex services for fossil power plant s, cogeneration units, combined cycles, nuclear power plants, waste & biomass incineration plants and solar power plants. Owners of the Company The majority shareholder as of 30.6.2026 is Doosan Power Systems S.A. (Grand Duchy of Luxembourg) with an equity interest of 67%. There are no other shareholders (individuals and legal entities) with an equity interest greater than 10 percent. The majority shareholder as of 31.12.2025 is Doosan Power Systems S.A. (Grand Duchy of Luxembourg) with an equity interest of 67%. There were no other shareholders (individuals and legal entities) with an equity interest greater than 10 percent. The ultimate parent is Doosan Co., Ltd (Korea). Company registered office Doosan Škoda Power a.s. Tylova 1/57 301 00 Pilsen Czech Republic Identification number 491 93 864 Subsidiary registered office ŠKODA POWER Private Limited Siddhartha Chamber, Hauz Khas New Delhi 110016 India Changes in the Commercial Register in 2026 There were no changes in the Commercial Register in the period 1-6/2026. Organizational structure The statutory body (the Board of Directors) of the Company consists of four board members. Two of them are engaged in daily managing roles: chairman of the board acts as the Company’s Chief Executive Officer, the vice chairman of the board acts as the Company’s Chief Financial Officer. CFO as well as the Chief Operating Officer, the managers of HR, Operations, Corporate Strategy & Marketing and Inter Company Trade are accountable directly to the CEO. The managers of Sales and Service are accountable to the COO, managers of Execution and Procurement are accountable to the Director of Operations.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 26 Board of Directors as of 30.6.2026: • Young Ki Lim - Chairman • Byoung Tak Kim - Vice Chairman • Seungwoo Sohn - Member • Donggil Kim – Member Supervisory Board as of 30.6.2026: • Mgr., Bc., Jiří Krupka, LL.M. – Chairman • Youngbo Kwon – Vice Chairman • Prof. PhDr. Jan Váně, Ph.D. – Member • Mgr. Gabriela Jandíková – Member • Zoja Kouřimová – Member • Ing. Pavel Fiala - Member Audit Committee as of 30.6.2026: • Petra Vaněčková – Chairman • Jiří Jindra – Member • Pavlína Hejduková – Member 2. Basis of preparation of the condensed interim financial statements Statement of compliance The Company prepares annual separate financial statements in accordance with International Financial Reporting Standards (“IFRS Accounting Standards”) issued by the International Accounting Standards Board (“IASB”), as adopted by the European Union. These condensed separate interim financial reports for the reporting period from 1.1.2026 to 30.6.2026 (further referred to also as “interim financial statements” or “financial statements”) has been prepared in accordance with IAS 34 Interim Financial Reporting and does not include all the information required for a complete set of IFRS financial statements. Accordingly, it is to be read in conjunction with the financial statements for the year ended 31.12.2025. The accounting policies adopted are consistent with those of the previous financial year, except for adoption of certain revised IFRS Accounting Standards, as described here after. The condensed separate interim financial statements were authorized for issue on 23 September 2026. Condensed interim financial statements These financial statements are condensed separate interim financial statements of the Company as defined by IAS 34. The Company has only one subsidiary ŠKODA POWER Private Limited and it is accounted at cost of acquisition in the financial statements. The Company also prepares the consolidated financial statements. New and revised IFRS Accounting Standards that are effective for the current reporting period In the current year, the Company has applied the following amendments to IFRS Accounting Standards issued by the International Accounting Standards Board (IASB) and adopted by the EU that are mandatorily effective for reporting period that begins on or after 1 January 2026: Standard Title Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 Annual Improvements to IFRS Accounting Standards - Volume 11
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 27 Adoption of amendments to IFRS Accounting Standards listed above has not had any material impact on the disclosures or on the amounts reported in these financial statements. New and revised IFRS Accounting Standards in issue but not yet effective At the date of authorisation of these financial statements, the Company has not applied the following revised IFRS Accounting Standards that have been issued by IASB but are not yet effective: Standard Title Effective date IFRS 18 Presentation and Disclosure in Financial Statements 1 January 2027 New and revised IFRS Accounting Standards in issue but not adopted by the EU At present, IFRS accounting standards as adopted by the EU do not significantly differ from IFRS accounting standards adopted by the International Accounting Standards Board (IASB) except for the following new standards and amendments to the existing standards, which were not adopted by the EU as at date of authorisation of these financial statements: Standard Title Effective date IFRS 19 with further amendments Subsidiaries without Public Accountability: Disclosures (IASB effective date: 1 January 2027) Not yet adopted by EU Amendments to IAS 21 Translation to a Hyperinflationary Presentation Currency (IASB effective date: 1 January 2027) Not yet adopted by EU Amendments to IAS 28 Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (IASB effective date: 1 January 2027) Not yet adopted by EU IFRS 20 Regulatory Assets and Regulatory Liabilities (IASB effective date: 1 January 2029) Not yet adopted by EU IFRS 14 Regulatory Deferral Accounts (IASB effective date: 1 January 2016) European Commission has decided not to launch the endorsement process of this interim standard and to wait for the final standard Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture and further amendments (effective date deferred by IASB indefinitely but earlier application permitted) Endorsement process postponed indefinitely until the research project on the equity method has been concluded The Company does not expect that the adoption of the new standard and amendments to standards listed above will have a material impact on the financial statements of the Company in future periods. Hedge accounting for a portfolio of financial assets and liabilities whose principles have not been adopted by the EU remains unregulated. According to the Company’s estimates, the application of hedge accounting to a portfolio of financial assets or liabilities pursuant to IAS 39: Financial Instruments: Recognition and Measurement would n ot significantly impact the financial statements, if applied as at the balance sheet date. Going Concern The Company has, at the time of approving the financial statements, a reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future. Thus, it continues to adopt the going concern basis of accounting in preparing the financial statements. Basis of measurement The financial statements have been prepared on a historic cost basis, with the exception of financial assets and financial derivatives, which are valued at fair value. The fair value is determined on the basis
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 28 of a market valuation or a qualified estimate. Use of estimates, critical accounting judgments and key sources of estimation uncertainty The preparation of financial statements in compliance with IFRS accounting standards adopted by EU requires management to make judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making the judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 the current and future periods. The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Impairment of assets The Company assesses the recoverable value of all assets when there are indicators of their impairment (with the exception of intangible assets with indefinite useful lives, which are tested for impairment at least annually). This assessment is based on an ticipated assumptions and may change in the future as the situation evolves and information is available. Long term contracts Revenue recognition on long term contracts depends on certain variables (percentage of completion, costs to complete, margin, estimate of penalties that may be claimed by customers, etc.). Those variables are re -assessed every month based on anticipated as sumptions and may change in the future as the situation evolves and new information becomes available. Provisions for legal disputes and business risks The Company may be involved in court and out -of-court commercial disputes. Where the criteria for the recognition of provisions are met, the Company creates provisions for these disputes on the basis of the best available information and estimates. However , the actual outcome of the disputes may differ from these estimates. 3. Summary of material accounting policies Functional currency With regard to the economic environment, the Czech crown was determined as the functional currency of the Company, as substantial part of the costs is influenced by CZK (personal cost, both cost for services and material deliveries, etc.) and revenues are influenced by various currencies depending on the contracts fulfilled in given year. Unless stated otherwise, the figures disclosed in these financial statements are in thousands of Czech crowns, “TCZK”. Revenue recognition - contracts with customers The Company recognizes revenue at the amount of consideration to which the Company expects to be entitled in exchange for transferring its promised goods and services to a customer. The Company recognizes three main revenue streams: - New installation – new steam turbines and accessories deliveries including retrofits (new rotors according to the state of the art). Project execution usually takes over two years up to three years, followed by warranty period.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 29 - Service - repairs and general overhauls, general services, spare parts. Usually short term projects are realized within one year. - Long term service agreements (LTSA). The Company recognizes its revenues predominantly based on ‘over time’ method due to customer - specific nature of production covered by signed and legally enforceable contracts. The Company applies input (cost-to-cost) method for measurement of percentage o f completion as this method best reflects nature of Company’s contracts and way how the control and value is transferred to the customers. Contract revenue is recognised in profit or loss in proportion to the stage of completion of the contract, which is measured based on the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs. Contract costs incurred include also accruals for significant deliveries for specific contracts provided by vendors accord ing to the amount they incurred to date (deliveries over MCZK 2 where production time exceeds 6 months). When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately. At a point in time, recognition method applies only to sales of excessive materials and scrap. This revenue stream is not material. Significant payment terms For all New installations and larger Service projects, the Company usually receives several advances, accounted along with the main parts delivery. The advances are in the range from ca 10% to 70% of the contract value. Typical billing milestones for New installation contracts are distributed through the project duration to advance payments (contract signature, allocation of sub -deliveries) and milestone -based invoices (ex. delivery of designs, castings, forging and generators). Typical billing milestones for Services and Long term service agreements are based on upon -agreed and scheduled performances. Works are typically not subject to advance payments and may contain inflation index clauses. The typical maturity of issued invoices is 30 days, less often 45 or 60 days. For significant contracts, 5% or up to 10% of the invoice payment may be subject of retention, which may prolong the payment maturity to 120 days up to two years, exceptionally longer. As release of the retained payment is subject only to elapse of the prolonged time period, the Compan y recognizes the retained payments as receivables. Variable consideration Contracts with customers usually include penalty clause, like liquidated damages for delay and non -compliance of guaranteed parameters. If such event occurs, the contract price is reduced. Since the probability of such event is very low, the Company accounts and reports the variable adjustment of transaction price only when it becomes probable. Contract values do not include any other discounts and bonuses. Contract-related costs Cost to obtain contract and cost to fulfil contract incurred before the contract is obtained by the Company are not material. The Company is using own sales teams for order intake. Financing component The timing difference between revenue recognition and cash flow received is typically less than one year, therefore the Company is applying the practical expedient and does not account for the effect of significant financing component. Balances given by lo ng-term retainage do not give rise to material discounting effect.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 30 Warranties The Company classifies warranty for provided projects as assurance -type warranty as the warranty conditions do not exceed standard assurance. In case of defect or malfunction, the root cause is always analysed and if the problem is within the Company range of responsibility, then the cost is covered by the Company and from warranty provision. Contract Balances Where contract costs incurred to date plus recognised profits less recognised losses exceed progress billings, the surplus is shown as contract assets. For contracts where progress billings exceed contract costs incurred to date plus recognised profits les s recognised losses, the surplus is shown as contract liabilities. Amounts received before the related work is performed are included in the statement of financial position, as a contract liability. Amounts billed for work performed but not yet paid by the customer are included in the statement of financial position under trade receivables. Income tax Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the extent that relates 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 year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax l iabilities and assets, and they relate to income taxes levied by the same tax authority. A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Transactions in foreign currencies Transactions denominated in currencies other than the functional currency of the Company (“foreign currencies”) are translated at the exchange rate at the transaction date (official exchange rates of the Czech National Bank, hereafter exchange rate). Monet ary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the exchange rate at that date. Non -monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the functional currency at the exchange rate at the date that the fair value was determined. Non -monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are not retranslated. Gains and losses arising from changes in exchange rates of foreign currencies after the transaction date are recognised in the profit or loss account. Property, plant and equipment Assets owned by the Company Items of property, plant and equipment are stated at cost less accumulated depreciation (see below) and impairment losses, except for land. Land is subsequently measured at revalued amounts and is not depreciated. Cost includes expenditure that is directly attributable to the acquisition of the assets. Tangible fixed assets costing less than TCZK 5 are charged to the profit or loss account in the year that they are acquired. (Cutting and normal tools and fixtures with a useful life longer than one year are recorded as tangible assets regardless of the acquisition price, otherwise they are charged to the profit or loss account in the year of acquisition. Moulds, models and templates that are not acquired for one -
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 31 time use are recorded as tangible assets regardless of the acquisition price, otherwise they are charged to the profit or loss account in the year of acquisition.) Depreciation Depreciation is charged to the profit or loss account on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Land is not depreciated. Leased assets are depreciated over the shorter of the lease te rm and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease terms. Day to day repair and maintenance costs are charged directly to the profit or loss account. The estimated useful lives are as follows: Asset Period (years) Buildings 20 – 50 Machinery and equipment 3 –16 Hardware 4 Depreciation methods, useful lives and residual values are reviewed each year. Intangible assets Initial recognition and amortisation Intangible assets are stated at cost less accumulated amortisation and impairment losses. Intangible assets with specific useful lives are amortised over their estimated useful lives, starting from the time when they are ready for use, i.e. once they are at a location and in a condition allowing for their use as intended by the Company. The amortisation p eriod for non -current intangible assets owned by the Company ranges from 2 to 10 years, assets are depreciated on a straight -line basis. Amortisation rates and useful lives applied are reviewed on regular basis (at least at the end of the accounting period), with changes applied, if necessary, in the following period. Intangible assets with indefinite useful lives are not amortised. Intangible assets costing less than TCZK 5 are recognised as an expense in the period when they become ready for their intended use. Subsequent expenditure Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred. Impairment The carrying amounts of the Company’s assets, other than inventories, assets where IFRS 9 impairment requirements are applied and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any su ch indication exists, then the asset’s recoverable amount is estimated, and the amount of impairment, if any, is determined. If the recoverable amount of the individual asset cannot be estimated, the Company determines the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of 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 assessments of t he time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the estimated recoverable amount of the assets (or cash -generating unit) is lower than its carrying amount, the carrying amount of the assets (or cash -generating unit) is reduced to the recoverable amount. Impairment losses are recognised in expenses – Other gains and losses. If an impairment loss is subsequently reversed, the carrying amount of the asset (or cash-generating unit) is increased to the newly estimated recoverable amount; only to the extent, however, that the asset’s carrying amount does not exceed the carrying amount that would have been determined,
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 32 if no impairment loss had been recognised in respect of the asset (or cash -generating unit). Reversal of impairment loss (except for goodwill) is recognised in income. Intangible assets with indefinite useful lives are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired. The brand value analysis is based on the royalty fee estimate utilizing revenue forecast linked to the Company’s long-term budgets and the market royalty rate assumption. To obtain a brand value, the estimated royalty fees are converted to their present value using an appropriate discount rate relevant for intangible assets valuation. Impairment of financial assets (IFRS 9) The Company recognises a loss allowance for expected credit losses on investments in debt instruments that are measured at amortised cost or at fair value through other comprehensive income (FVTOCI), trade receivables and amounts due from customers, as wel l as on financial guarantee contracts. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Company always recognises lifetime ECL for trade receivables and amounts due from customers. The expected credit losses on these financial assets are estimated either individually or using a provision matrix based on the Company’s historical credit loss experience: all receivables are divided into 3 -months buckets according to their aging. For each bucket is annually recalculated allowance percentage from the last years historical analysis. The percentage is based on how much of the amount outstanding at the end of e ach quarter is not collected by the end of the next quarter. Data for calculation include written-off receivables. Allowance % 2026 2025 2024 Not yet due 0,7% 0,8% 1,2% Up to 3 months 5,2% 5,4% 7,0% 3-6 months 15,2% 16,5% 17,9% 6-9 months 20,1% 26,3% 25,1% 9-12 months 28,0% 39,5% 36,9% 12-15 months 43,3% 49,7% 50,4% 15-18 months 52,3% 60,9% 57,3% 18-21 months 56,6% 65,6% 63,9% 21-24 months 69,7% 73,2% 67,6% 24-27 months 83,0% 88,3% 74,3% 27-30 months 86,9% 88,3% 85,2% 30-33 months 89,3% 89,6% 98,4% over 33 months 100,0% 100,0% 100,0% For all other financial instruments, the Company measures the loss allowance at an amount equal to 12 - month ECL for stage 1 assets and at an amount equal to lifetime ECL for stage 2 and stage 3 assets. Financial instruments are moved to stage 2 when they are overdue more than 30 days and to stage 3 when there is a default. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12 -month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. The asset write-off follows the end of the bankruptcy proceedings. Financial instruments Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value, except trade receivables (without significant financing component), which are initially recognized at transaction price.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 33 Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair v alue of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. Classification of financial assets Debt instruments that meet the following conditions are measured subsequently at amortised 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. Debt instruments that meet the following conditions are measured subsequently at fair value through other comprehensive income (FVTOCI): • the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the 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. By default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL). Trade receivables Trade receivables are initially recognised at the transaction price and subsequently stated at amortised cost less expected credit losses. Cash and cash equivalents Cash and cash equivalents comprise cash in hand, cash at the bank, bank deposits and current highly liquid investments with an original maturity up to three months. Trade payables Trade payables are stated at nominal value. Financial derivatives - Cash flow hedging (hedging derivates) The Company continuously monitors exchange rate risks and employs zero-cost hedging strategies where appropriate to mitigate potential adverse effects on the financial performance associated with future cash flows, aiming to hedge 100% of open position that exceeds the level of natural hedging at the individual business case level, subject to a threshold of TCZK 2 500. The typical hedge ratio ranges from 60 to 100%, depending on the currency involved in the business case. The Company applies hedge accounting under IFRS 9. The Company classifies derivative instruments as hedging derivatives and trading derivatives. Derivatives are classified as hedging if the following conditions are met: • at the inception of the hedge, there is a formal designation of the hedged items or transactions, the hedging instruments, the risks being hedged, and how the hedge effectiveness will be calculated and supported; • the hedge is effective (i.e. it meets an “economic relationship” criterion); • the effectiveness of the hedge is assessed on an ongoing basis.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 34 The Company determines the economic relationship between the hedged item and the hedging instrument by ensuring that there is an expectation that the value of the hedging instrument will move in an opposite direction to the value of the hedged item in resp onse to changes in the hedged risk. The Company enters into fixed -term derivative contracts, such as forwards and swaps, exclusively with top-tier financial institutions. The hedged item is specifically identified as the highly probable cash flow, evaluated individually at the level of each business case. The purpose of hedging is to eliminate risk rather than engage in speculation; therefore, the Company hedges only effective projects or their parts. The risk component is designated using a conservative approach, with only initially highly probable income considered for hedging. At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. The Company utilizes the hypothetical derivative approach for evaluating hedge effectiveness and quantifying hedge ineffectiveness. Potential exceptional loss of high efficiency may result from substantial timing mismatches between the hedged item and the hedging instrument, which cannot be mitigated through swap transactions or adjustments in contract terms. Hedging effectiveness may be compromised if there is a significant reduction in the likelihood of cash flow realization, primarily due to sudden untreated counterparty risk of the cash-flow originator. Derivatives that do not meet the above conditions for hedge accounting are classified by the Company as trading. Financial derivatives are initially recognised at fair value (which is also the cost price) and subsequently measured at fair value at the reporting date. The non-effective portion of the hedging derivative is recognized in the profit or loss account (line “Other gains and losses”). The effective portion of the hedging derivative is recognised in equity (line “Revaluation of hedging reserves”) and then recla ssified to the profit or loss account (line “Other gains and losses”) proportionally to percentage of completion of the contract. Percentage of completion or incompletion is calculated individually at the project level. Fair value of financial derivatives is determined based on contract valuation at the reporting date. The Company obtained L2 level valuation from individual banks which the derivatives were contracted with. Hedge accounting is discontinued when the hedging instrument no longer qualifies for hedge accounting (e.g. when realisation of a hedged cash flow is not expected to happen). Any gain or loss recognised in other comprehensive income and accumulated in equi ty at that time is immediately reclassified in profit or loss. Financial derivatives – fair value hedging (trading derivates) The Company will strategically utilize its resources to maximize potential returns, in alignment with our long-term growth objectives and financial stability. In the event the Company exceptionally identifies and executes an advantageous financial investme nt, the fair value ensuring the profitability of this opportunity is hedged using the same principles as described above regarding determination of the economic relationship between the hedged item and the hedging instrument. Forward and swap transactions are used to mitigate currency risk until the financial assets are realized. Financial derivatives are initially recognised at fair value and subsequently measured at fair value as of the reporting date. Changes in the fair value of financial derivatives are recognised in the profit or loss account (line “Financial income” or “Fina ncial costs”) based on L2 valuation obtained from the cooperating bank.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 35 Inventories Inventory is stated at the lower of the acquisition cost and net realisable value. The cost includes transportation and insurance charges, direct material, direct labour and overhead incurred in bringing the inventory to its present location and condition. The net realisable value is the estimated selling price less estimated completion costs and estimated costs to sell. Based on a detailed analysis of individual material items, the Company determined to create 50% allowance to material that has been idle for more than one year. Use of material is stated using the weighted average method. State subsidies State subsidies are not recognised until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received. Subsidies awarded to refund the Company for expenses incurred are recognised in income over the period in which the related expenses are incurred and are deducted when the expenses are recognised. Provisions A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Warranty provisions A warranty provision is established based on an analysis of historical costs incurred for warranties, adjusted by the expected future development in warranties. Onerous contracts A provision for onerous contracts is recognised when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost 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 Company recognises any impairment loss on the assets associated with that contract. Other provisions Provisions for risks and other provisions are created on the basis of an individual assessment carried out by responsible project managers and administrators. Research and development Research costs are incurred for the purpose of acquiring new technical knowledge, which may lead to improved products or processes in the future, the economic viability of which however has not been established. Research costs are charged to the profit or loss account in the year in which they are incurred. Development costs incurred comprise new technical knowledge or methods for new or substantially improved products or production processes. Development costs can be capitalized only if development expenditures can be measured reliably, the product or process is technically and commercially feasible and will generate probable future economic benefits, the Company intends to and has sufficient r esources to complete development and to use or sell the asset. If the above conditions are not met, development costs are expensed in the year in which they are incurred.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 36 4. Trade receivables and other assets Trade receivables TCZK 30.6.2026 31.12.2025 Trade receivables 1 187 361 1 239 421 Other trade receivables 103 319 84 542 Accrued income 172 625 491 195 Total receivables (gross) 1 463 305 1 815 158 Allowances Opening balance -228 506 -192 107 Additional allowances -20 838 -64 974 Amounts written off 1 531 - Amounts recovered 11 023 21 058 Foreign exchange gains and losses -985 7 517 Closing balance -237 775 -228 506 Total receivables (net) 1 225 530 1 586 652 Ageing structure of trade receivables TCZK 30.6.2026 31.12.2025 Gross amount Allowance Gross amount Allowance Not yet due 443 973 -3 887 395 521 -3 268 Up to 3 months 123 812 -4 647 107 790 -3 351 3-6 months 51 547 -6 448 162 055 -2 230 6-9 months 18 584 -1 796 31 297 -7 631 9-12 months 158 789 -2 364 255 177 -24 898 12-15 months 27 604 -9 218 30 291 -14 069 15-18 months 106 667 -25 687 121 580 -427 18-21 months 29 870 -13 803 612 -382 21-24 months 121 246 -193 18 622 -45 24-27 months 196 -163 23 882 -21 088 27-30 months 18 572 0 5 862 -1 380 30-33 months 21 779 -19 038 8 432 -2 819 over 33 months 168 041 -150 531 162 842 -146 918 Total 1 290 680 -237 775 1 323 963 -228 506 Average credit period of trade receivables is 100 days (2025: 76 days). Non-current receivables are represented mostly by retentions – project receivables with prolonged payments maturity according to contract conditions. Other assets Other assets consist of receivables from the state, primarily VAT, operational advances paid, accrued expenses and other receivables (from employees). 5. Balance of long-term contracts Contract assets TCZK 30.6.2026 31.12.2025 Contract assets 2 197 909 1 529 871 Allowances -13 768 -11 667 Total Contract assets (net) 2 184 141 1 518 204
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 37 Contract liabilities TCZK 30.6.2026 31.12.2025 Opening balance 984 994 554 887 Revenue recognised in the reporting period that was included in the contract liability balance at the start of the period 401 544 503 122 New liabilities 226 449 933 229 Closing balance 809 899 984 994 6. Intangible assets The most important intangible asset is ŠKODA brand in amount of TCZK 959 776. This brand is regarded as having indefinite useful economic live and therefore is not amortised. The brand is protected by trademark, which is renewable indefinitely, in all major markets where the Company operates. There are not believed to be any legal, regulatory or contractual provisions that limit the useful lives of this brand. Accordingly, the Company believes that it is appropriate that the brands are treated as having indefinite lives for accounting purposes. Impairment test based on expected discounted cash flows (12.2% discount rate) from royalty fees to be paid for using similar brand (1.8% of forecasted revenues) did not indicate Škoda Brand impairment. Assets under construction represents mainly capitalized research and development (R&D) cost. Total R&D cost amounted to TCZK 63 106 in 1 -6/2026 (1 -6/2025: TCZK 54 277 ). A part of the cost in amount of TCZK 29 722 was capitalized and is included in intangible assets (1-6/2025: TCZK 24 384). Non- capitalized R&D cost is included in operating expenses. In 1-6/2026 the SW ANSYS Mechanical in total value of TCZK 4 298 was acquired. 7. Trade payables and Other liabilities Trade payables TCZK 30.6.2026 31.12.2025 Trade accounts payable 1 056 551 1 339 726 Liabilities to shareholders 893 806 600 Lease liabilities 8 914 8 975 Other payables 2 487 3 130 Total 1 961 758 1 352 431 Ageing structure of the trade payables TCZK 30.6.2026 31.12.2025 Payables before due 931 840 1 035 277 Payables overdue within 1 year 119 412 298 631 Payables overdue above 1 year 5 299 5 818 Total 1 056 551 1 339 726 Average credit period of trade payables is 33 days (2025: 45 days). Other liabilities Other liabilities consist of liabilities to the state, primarily VAT, liabilities to employees and liabilities from social security and health insurance. 8. Loans and borrowings In periods 1-6/2026 and 1-12/2025 the Company drew no loans and borrowings.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 38 9. Provisions TCZK 31.12.2024 Additions Disposals 31.12.2025 Additions Disposals 30.6.2026 Warranty provisions 175 500 61 760 40 160 197 100 27 532 4 468 220 164 Other provisions 70 743 90 693 22 636 138 800 52 000 19 695 171 105 Total 246 243 152 453 62 796 335 900 79 532 24 163 391 269 Non-current part 47 388 56 727 51 445 Current part 198 855 279 173 339 824 Breakdown of disposals: Warranty provisions: • Use of provisions for originally specified purpose: TCZK : 4 454 in 2026 (2025: TCZK 24 285) • Cancellation of provisions: TCZK 14 in 2026 (2025: TCZK 15 875) Other provisions: • Use of provisions for originally specified purpose: TCZK 19 695 in 2026 (2025: TCZK 22 636) • Cancellation of provisions: TCZK 0 in 2026 (2025: TCZK 0) Other provisions include provisions for loss making projects and litigations. For a description of litigations refer to Note 21. 10. Equity Dividend distribution The annual general meeting held on 25 June 2026 has approved a distribution of dividends in amount of 28 CZK per share, i.e. TCZK 893 200. Revaluation reserves a) Revaluation of assets The assets revaluation reserve arises on the revaluation of land. The revaluation is provided by valuation expert regularly once every two years. TCZK 30.6.2026 31.12.2025 Opening balance 74 928 65 128 Revaluation increase - 12 406 Deferred tax liability arising on revaluation of land - -2 606 Closing balance 74 928 74 928 b) Revaluation of hedging reserves Movement of revaluation of hedging reserves is disclosed in Note 20 Summary of derivative instruments. 11. Earnings per share 1-6/2026 1-6/2025 Profit for the period (TCZK) 228 759 210 007 Weighted average number of shares (thousands) 31 900 31 417 Earnings per share - basic and diluted (CZK) 7,17 6,68 The Company has ordinary shares only, there is no dilutive potential. 12. Revenues from goods, products and services and Other revenues The Company has revenues in only one segment – Turbines.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 39 Revenues from goods, products and services Revenues disaggregation by contract duration (TCZK) 1-6/2026 1-6/2025 Long-term - over one year 2 355 467 2 348 218 Short-term - within one year 258 874 239 224 Total 2 614 341 2 587 442 Revenues disaggregation by main revenue streams (TCZK) 1-6/2026 1-6/2025 New installation 1 730 079 1 864 026 Service 644 431 543 567 Long term service agreements 239 831 179 849 Total 2 614 341 2 587 442 Revenues disaggregation by geographies (TCZK) 1-6/2026 1-6/2025 Europe (excluding Czech Republic) 935 508 1 129 182 Czech Republic 701 008 292 075 Asia 334 945 457 900 South and Central America 229 707 97 564 Africa 121 952 450 965 North America 290 921 147 842 Australia 300 11 914 Total 2 614 341 2 587 442 Remaining transaction price allocated to performance obligations from contracts with customers that are not yet satisfied (Revenue Backlog) at the end of the reporting period: TCZK 30.6.2026 30.6.2025 Revenue backlog (at the end of period) 16 658 489 7 747 073 Estimated recognition till the end of the year 1 971 618 2 090 766 Estimated recognition within 1 year after the year end 2 425 710 2 245 424 Estimated recognition within 2-3 year after the year end 3 601 080 2 123 499 Estimated recognition within 4+ years after the year end 8 660 081 1 287 384 Other revenues Other revenues of TCZK 7 099 (1 -6/2025: TCZK 15 645) include for example contractual penalties TCZK 1 118 (1-6/2025: TCZK 7 117), revenues from the sale of scrap TCZK 2 312 (2025: TCZK 2 871) and cost recharges TCZK 3 827 (1-6/2025: TCZK 3 944). 13. Segment reporting The Company has assessed its operating segments in accordance with IFRS 8 and concluded that it has only one reportable operating segment. As described in the Note 12, the Company revenues are in only one segment – Turbines, from which it earns revenues and incurs expenses. The Company operations are concentrated mainly in Pilsen, Czech Republic. The revenues are monitored by individual projects with customers, however, discrete financial information is ava ilable only on an aggregate basis on which the Company’s chief operating decision maker (CEO) is reviewing it. 14. Raw materials and consumables used TCZK 1-6/2026 1-6/2025 Material consumption 853 050 921 210 Energy consumption 33 387 32 343 Services and others 802 690 784 203 Total 1 689 127 1 737 756
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 40 15. Other operating expenses TCZK 1-6/2026 1-6/2025 Taxes and fees 7 804 7 467 Receivables written off 1 762 - Fines and penalties 6 079 4 Bank fees 6 830 5 345 Insurance 13 439 12 927 Other operating expense 10 822 11 026 Total 46 736 36 769 16. Other gains (+) and losses (-) TCZK 1-6/2026 1-6/2025 Decrease/increase in provisions -55 369 -27 440 Decrease/increase in adjustments to assets -13 383 -29 958 Net income/expense from hedging operations 14 550 110 213 Exchange rate gains/losses from operating activities 3 384 -48 312 Other income from receivables 689 - Other operating income 17 713 8 922 Total -32 416 13 425 17. Financial income and financial costs Financial income (TCZK) 1-6/2026 1-6/2025 Dividend 13 216 9 898 Exchange rate gains from cash and cash equivalents, short-term financial instruments and loans 37 321 30 560 Gains from hedging operations on financial instruments - 113 Interest revenues 31 367 31 785 Total 81 904 72 356 Financial costs (TCZK) 1-6/2026 1-6/2025 Exchange rate losses from cash and cash equivalents, short-term financial instruments and loans 36 477 48 970 Losses from hedging operations on financial instruments - 55 Interest expenses 1 453 -71 Total 37 930 48 954 18. Transactions with related parties Parent and ultimate controlling party Balances related to parent and ultimate controlling party are listed below. Transactions with key management personnel Remuneration to members of key management personnel (executives) is included in personnel expenses. There were no loans provided to statutory representatives in reported periods and no other special benefits except standard benefits like company cars and mobile phones for private use, life insurance, etc. Total amount of such benefits is not significant. Loans granted The Company provided a loan to Doosan Power Systems S.A. in 2026 in the total amount of TCZK 300 000, from it TCZK 78 000 in 2025. The total loan facility with a value of TCZK 300 000 is based on the agreement from 18 November 2025, interest rate is 11% p.a. Due to scheduled repayment within 12 months it is stated as a current loan as at 30.6.2026.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 41 The company provided a loan to Doosan Power Systems S.A. in 2025 in the total amount of TCZK 78 000. The total loan facility with a value of TCZK 300 000 is based on the agreement from 18 November 2025, interest rate is 11% p.a. Due to scheduled repayment within 12 months it is stated as a current loan as at 31.12.2025. Trade receivables and payables The following related party balances are included in the trade receivables and payables described in Notes 4 and 7. Receivables as at Payables as at TCZK 30.6.2026 31.12.2025 30.6.2026 31.12.2025 Subsidiary: ŠKODA POWER Private Limited (India) 15 718 11 254 5 776 448 Companies controlled by Ultimate parent: Doosan Digital Innovation, odštěpný závod - - 71 823 62 917 Doosan Power Systems S.A. (Luxembourg) 137 613 119 618 3 300 3 300 Doosan Turbomachinery (USA) - 4 369 164 337 149 396 Doosan Lentjes (Germany) 273 878 374 540 - - Doosan Enerbility Co., Ltd. (Korea) 488 755 73 417 67 217 30 613 Doosan Power Systems Arabia (Saudi Arabia) 3 694 3 722 - - DOOSAN UKUDU POWER LLC (Guam) 9 023 23 834 - - Total 928 681 610 754 312 453 246 674 Sales and purchases Sales for period Purchases for period TCZK 1-6/2026 2025 1-6/2026 2025 Subsidiary: ŠKODA POWER Private Limited (India) 36 969 55 546 10 800 23 020 Companies controlled by Ultimate parent: Doosan Enerbility Co., Ltd (Korea) 63 693 820 769 8 754 16 286 Doosan Digital Innovation, odštěpný závod 206 402 92 617 126 503 Doosan Power Systems S.A. (Luxembourg) 28 308 10 163 - - Doosan Lentjes (Germany) 30 701 104 370 - - Doosan Turbomachinery Services (USA) 1 254 150 890 32 101 - Doosan Business Research Institute (Korea) - 4 615 - - Doosan Power Systems Arabia (Saudi Arabia) -32 - - - DOOSAN UKUDU POWER LLC (Guam) 561 42 586 - - Total 161 660 1 189 341 144 272 165 809 Note: “Sales” comprise revenues from the sale of manufactured products, revenues from the sale of services, revenues from the sale of fixed assets and other operating revenues and interest income. “Purchases” comprise purchases of material, energy consumption, purchases of services, other operating expenses and purchases of inventories. 19. Financial instruments and risk management Categories of financial instruments Financial assets (TCZK) 30.6.2026 31.12.2025 Cash and bank balances 586 268 1 718 644 Derivatives in designated hedge accounting relationships (FVTPL) 69 020 122 069 Trade receivables 1 575 151 1 701 932 Total 2 230 439 3 542 645
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 42 Financial liabilities (TCZK) 30.6.2026 31.12.2025 Derivatives in designated hedge accounting relationships (FVTPL) 20 078 4 078 Trade payables 1 984 030 1 373 185 Total 2 004 108 1 377 263 The Company is exposed to the following risks resulting from financial instruments: a) credit risk b) liquidity risk c) market risk The management of the Company is generally responsible for setting and controlling the financial risk system management. The development and estimate of the effects resulting from individual risks is regularly assessed. Credit risk A credit risk is the risk that a customer or other party to a financial arrangement will not fulfil its contractual liabilities and obligations. The risk primarily results from financial insolvency or a reluctance of the debtor to pay off liabilities to the Company. The exposure to the credit risk depends mainly on the characteristics of each customer. Potential risk is assessed primarily on the basis of geographical factors (in the financial risk management system, areas with increased sensitivity towards credit risk are identified). In general, the credit risk is assessed in relation to the individual customers’ payment history. In new contracts and engagements, the solvency of each customer is assessed. Where necessary, the future cash flows are secured by required advances or bank guarantees, and in specific cases, receivables are also insured. A maximum credit limit is set for every customer. Exceeded limits must be evaluated and approved by the management of the Company. Financial assets with a derivative trading nature are not evaluated for credit risk because they are measured at FVTPL and are not in scope of ECL calculation. Loans in the amount of TCZK 300 000 (2025: TCZK 78 000) are fully included in Stage 1, no amounts in Stage 2 and Stage 3. ECL assessment was performed and is considered immaterial. Detail information about Trade receivables is included in Note 4. Liquidity risk Liquidity risk is the risk that the Company would not be able to pay its financial liabilities and obligations when they mature. The Company systematically manages its cash flow in order to avoid delays in payments of its obligations, even when there is increased pressure from suppliers and other creditors. The main liquidity management tools are received advances used to cover costs relating to the realisation of the projects, allocation of the surplus funds to highly liquid bank instruments (term and bill deposits, repurchase papers), and reaching agreements with the suppliers regarding the maturity dates.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 43 30.6.2026 TCZK Carrying amount Up to 3 months 3 months to 1 year 1-5 years Over 5 years Assets Trade receivables 1 275 151 1 099 489 126 599 49 063 - Loans 300 000 - 300 000 - - Derivatives in designated hedge accounting relationships (FVTPL) 69 020 23 018 26 922 19 080 - Total assets 1 644 171 1 122 507 453 521 68 143 - Liabilities Trade payables 1 984 030 1 719 839 238 931 25 260 - Derivatives in designated hedge accounting relationships (FVTPL) 20 078 6 582 4 313 8 973 210 Total liabilities 2 004 108 1 726 421 243 244 34 233 210 Net liquidity risk position -359 937 -603 914 210 276 33 910 -210 31.12.2025 TCZK Carrying amount Up to 3 months 3 months to 1 year 1-5 years Over 5 years Assets Trade receivables 1 623 932 1 325 798 261 330 36 804 - Loans 78 000 - 78 000 - - Derivatives in designated hedge accounting relationships (FVTPL) 122 069 45 982 46 407 29 680 - Total assets 1 824 001 1 371 780 385 737 66 484 - Liabilities Trade payables 1 373 185 926 533 425 899 20 753 - Derivatives in designated hedge accounting relationships (FVTPL) 4 078 978 55 1 797 1 248 Total liabilities 1 377 263 927 511 425 954 22 550 1 248 Net liquidity risk position 446 738 444 269 -40 217 43 934 -1 248 Market risk Market risk results from changes in market prices, which may be caused by changes of exchange rates and interest rates. The Company is exposed to the risk due to trades in EUR, USD, GBP and PLN. The main instruments for market risk elimination are natural hedging and derivatives, which are established for hedging exchange rate volatility in relation to expected future cash flows. The Company hedges foreign currency risk at 100% of free cash position from expected cash flows in EUR, GBP and USD for the contract period. For long -term contracts, natural hedging is applied using advances received in the currency in which the contract is concluded. Interest rate risk is eliminated by fixed interest rate agreements. The Company does not conclude any commodity contracts except where the contract can be settled using the relevant commodity (binding orders of a fixed minimum inventory quantity, for a specific period). Interest rate risk management The Company does not have any loans, it is financed solely by equity. It generates some interest profit from short-term investments. The company generates interest income also from the loans to the parent company but in 2025 the interest revenues are negli gible compared to revenues from core business activities. The Company is therefore not exposed to significant risk in case of change of market interest rates. Capital risk management The Company is not subject to any externally imposed capital requirements and is fully financed by equity.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 44 Foreign currencies Summary of financial instruments in currencies as at 30.6.2026: TCZK USD EUR CZK Other Total Financial derivatives 19 036 49 984 - - 69 020 Loans - - 300 000 - 300 000 Trade receivables 143 477 695 845 388 167 47 662 1 275 151 Cash, cash equivalents 62 901 256 002 155 627 111 738 586 268 Total financial assets 225 414 1 001 831 843 794 159 400 2 230 439 Other non-current liabilities 185 4 749 17 338 - 22 272 Financial derivatives 7 513 10 098 - 2 467 20 078 Trade payables 17 901 100 416 1 821 796 21 645 1 961 758 Total financial liabilities 25 599 115 263 1 839 134 24 112 2 004 108 Summary of financial instruments in currencies as at 31.12.2025: TCZK USD EUR CZK Other Total Financial derivatives 69 449 52 620 - - 122 069 Loans - - 78 000 - 78 000 Trade receivables 159 791 804 614 657 575 1 952 1 623 932 Cash, cash equivalents 167 025 1 144 532 243 518 163 569 1 718 644 Total financial assets 396 265 2 001 766 979 093 165 521 3 542 645 Other non-current liabilities 179 5 360 15 215 - 20 754 Financial derivatives 574 3 504 - - 4 078 Trade payables 28 582 119 811 1 029 000 175 038 1 352 431 Total financial liabilities 29 335 128 675 1 044 215 175 038 1 377 263 Sensitivity analysis – currency risk As at 30.6.2026 (31.12.2025 respectively) a 10 percent appreciation (depreciation) of the Czech crown vis- à-vis the currencies listed below would have resulted in the increase (decrease) of TCZK 106 138 (2025: TCZK 69 947) in the profit or loss account, provided that other variables (in particular, the interest rate) remain unchanged. The Company mitigates its currency risk exposure by concluding currency derivative transactions with the banks, thus closing its open position. The actual effect of exchange rate changes would be influenced by such a hedge. FX rate as at 30.6.2026 +10% -10% CZK/EUR 24.260 26.686 21.834 CZK/GBP 28.153 30.968 25.338 CZK/PLN 5.647 6.212 5.082 CZK/USD 21.270 23.416 19.158 FX rate as at 31.12.2025 +10% -10% CZK/EUR 24.245 26.670 21.821 CZK/GBP 27.789 30.568 25.010 CZK/PLN 5.744 6.318 5.170 CZK/USD 20.632 22.695 18.569
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 45 30.6.2026 Original curr. TCZK TCZK +10% Change TCZK -10% Change Short-term and long-term receivables TEUR 41 237 1 000 404 1 100 444 100 040 900 364 -100 040 TPLN 7 537 42 562 46 818 4 256 38 306 -4 256 TUSD 9 274 197 405 217 146 19 741 177 665 -19 741 TGBP 179 5 028 5 531 503 4 525 -503 Short-term and long-term payables TEUR 5 870 142 398 156 638 14 240 128 158 -14 240 TPLN 1 724 9 736 10 710 974 8 762 -974 TUSD 1 077 22 919 25 211 2 292 20 627 -2 292 TGBP 318 8 957 9 853 896 8 061 -896 Net currency risk TEUR 35 367 858 006 943 806 85 800 772 206 -85 800 TPLN 5 813 32 826 36 108 3 282 29 544 -3 282 TUSD 8 197 174 486 191 935 17 449 157 038 -17 449 TGBP -139 -3 929 -4 322 -393 -3 536 393 Total TCZK 106 138 TCZK -106 138 31.12.2025 Original curr. TCZK TCZK +10% Change TCZK -10% Change Short-term and long-term receivables TEUR 33 187 804 614 885 075 80 461 724 153 -80 461 TPLN - - - - - - TUSD 7 745 159 791 175 770 15 979 143 812 -15 979 TGBP 54 1 502 1 652 150 1 352 -150 Short-term and long-term payables TEUR 5 163 125 171 137 688 12 517 112 654 -12 517 TPLN 13 434 77 166 84 883 7 717 69 450 -7 717 TUSD 1 394 28 762 31 638 2 876 25 885 -2 876 TGBP 1 272 35 335 38 868 3 533 31 801 -3 533 Net currency risk TEUR 28 024 679 443 747 387 67 944 611 499 -67 944 TPLN -13 434 -77 166 -84 883 -7 717 -69 450 7 717 TUSD 6 351 131 029 144 132 13 103 117 927 -13 103 TGBP -1 217 -33 833 -37 216 -3 383 -30 450 3 383 Total TCZK 69 947 TCZK -69 947 Derivative instruments: 30.6.2026 MtM value TCZK +10% TCZK -10% MtM value Additional effect MtM value Additional effect EUR 39 887 -477 679 -517 566 557 452 517 565 GBP -2 467 -34 494 -32 027 29 560 32 027 USD 11 523 -53 103 -64 626 76 150 64 627 Total 48 943 -565 276 -614 219 663 162 614 219 31.12.2025 MtM value TCZK +10% TCZK -10% MtM value Additional effect MtM value Additional effect EUR 49 117 -410 220 -459 337 508 454 459 337 GBP 0 0 0 0 0 USD 68 874 -30 053 -98 927 167 801 98 927 Total 117 991 -440 273 -558 264 676 255 558 264 MtM (Mark-to-Market) reflects the revaluation of a position with respect to its market value.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 46 20. Summary of derivative instruments The Company has been continually concluding forward contracts with Czech commercial banks, currently with Česká spořitelna, a.s., Československá obchodní banka, a. s., Komerční banka, a.s., Raiffeisenbank a.s. and Všeobecná úvěrová banka a.s., pobočka Prah a, which are related to transactions involving the sale and purchase of EUR, GBP and USD. The Company uses these derivatives to hedge future cash flows and the fair values of some financial assets. The Company classifies financial derivatives as hedging derivatives and derivatives for trading. The resulting receivables or payables arising from them are classified as either current or non -current according to the effective date of the contract. Fair value The carrying value of cash and cash equivalents, receivables, advances, other assets and payables is close to their fair value with regard to the current character of these items. Hedging The Company hedges future cash flows from long term contracts concluded in foreign currencies (EUR, GBP, USD) against currency risks. The Company also hedges the fair value of financial assets and liabilities arising from these contracts, against currency risks, until the financial assets are realised. Forward and swap transactions are used for the purpose of hedging. Hedging instruments – outstanding contracts 30.6.2026 31.12.2025 Nominal Value (TFX) Nominal Value (MCZK) Fair value (TCZK) AVG rate Nominal Value (TFX) Nominal Value (MCZK) Fair value (TCZK) AVG rate EUR 213 341 5 327 39 887 24.84 189 456 4 743 49 117 25.04 GBP 11 376 312 -2 467 27.40 0 0 0 - USD 30 360 657 11 523 21.64 47 949 1 058 68 874 22.06 Total 6 296 48 943 5 801 117 991 Nominal value and other terms of hypothetical derivative (hedged item) used for measurement of hedge effectiveness is not significantly different from the terms and nominal value of the hedging instruments in the above table. The fair value of derivative instruments, which fulfilled hedge accounting requirements, as at the reporting date was TCZK 48 943 (31.12.2025: TCZK 117 991). The fair value of derivative instruments, which did not fulfil hedge accounting requirements, as at the reporting date was TCZK 0 (31.12.2025: TCZK 0). There were no significant derivatives in the periods under review that were reclassified due to failing to meet the conditions of high-efficiency criteria. Fair value of hedging instruments TCZK 30.6.2026 31.12.2025 Future cash flows hedging Receivable Payable Receivable Payable • Within 1 year 49 940 10 894 92 389 1 033 • From 2 to 5 years 19 080 8 973 29 680 1 797 • Over 5 years - 210 - 1 248 69 020 20 077 122 069 4 078 Total charged to equity 26 486 - 60 407 - Total charged to profit or loss account 22 457 - 57 584 - Total charged 48 943 - 117 991 -
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 47 Movement of Revaluation of hedging reserve TCZK Opening balance 1.1.2026 64 922 Gain/(loss) arising on changes in fair value of hedging instruments during the period -74 523 Related income tax 15 650 (Gain)/loss reclassified to profit or loss 40 727 Related income tax -8 553 Closing balance 30.6.2026 38 223 Opening balance 1.1.2025 -54 612 Gain/(loss) arising on changes in fair value of hedging instruments during the period 184 709 Related income tax -38 788 (Gain)/loss reclassified to profit or loss -33 401 Related income tax 7 014 Closing balance 31.12.2025 64 922 21. Litigations The Company does not lead any material litigation as at 30.6.2026 and 31.12.2025. 22. Environmental liabilities The Company does not operate any technology that could give rise to the ecological risk. 23. Provided guarantees and other conditional obligations a) Overview of bank guarantees In accordance with the contract terms, the Company is liable for issued bank guarantees for efficient fulfilment of projects, guarantee period, and advance refunds. • Československá obchodní banka, a. s. has issued bank guarantees of TCZK TCZK 347 929, TEUR 56 066, TUSD 10 696 and TPLN 52 085 with maturity up to 31 January 2031. • Komerční banka, a.s. has issued bank guarantees of TCZK 144 138, TUSD 27 and TEUR 687 with maturity up to 21 February 2028. • Raiffeisenbank a.s. has issued bank guarantees of TCZK 29 742 , TEUR 10 969 and TUSD 1 158 with maturity up to 12 December 2029. • Všeobecná úvěrová banka, a.s., pobočka Praha issued bank guarantees of TCZK 42 578, TEUR 7 465 and TUSD 6 896 with maturity up to 30 June 2029. b) Overview of nonbank guarantees In accordance with the contract conditions, the Company issued nonbank guarantees for covering projects liabilities in warranty period in amount of TCZK 77 467 in favour of Doosan Enerbility Co., Ltd. c) Liabilities covered by a right of pledge The Company has no liabilities covered by a right of pledge. d) Overview of issued promissory notes The Company has no bank guarantee covered by promissory notes. e) Guarantees The Company provides no guarantees for bank guarantees and letter of credits facilities of related parties as at 30 June 2026.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 48 24. Subsequent events In the period from 30 June 2026 until the publication of this report, the Company secured access to short- term bank financing. These measures form part of the ongoing optimisation of financial management and support flexibility in working capital management. This did not affect the valuation of assets and liabilities reported as at 30 June 2026. In Pilsen on 23 September 2026 Signature of authorised representatives: Name: Byoung Tak Kim Young Ki Lim Position: Vice Chairman of the Board of Directors Chairman of the Board of Directors Signature: ......................................................... .........................................................
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Doosan Škoda Power a.s. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 49 II. Condensed consolidated interim Financial Statements as at and for period from 1.1.2026 to 30.6.2026 prepared in accordance with IAS 34 as adopted by the European Union
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Doosan Škoda Power a.s. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 50 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 prepared in accordance with IAS 34 as adopted by the European Union Name of the Company: Doosan Škoda Power a.s. Registered Office: Tylova 1/57, Jižní Předměstí, 301 00 Plzeň Legal Status: Joint Stock Company Corporate ID: 491 93 864 Components of the Consolidated Financial Statements: • Condensed consolidated interim Statement of Financial Position • Condensed consolidated interim Statement of Profit or Loss • Condensed consolidated interim Statement of Comprehensive Income • Condensed consolidated interim Statement of Changes in Equity • Condensed consolidated interim Cash Flow Statement • Notes to the Condensed consolidated interim Financial Statements These condensed consolidated interim financial statements were prepared on 23 September 2026. Statutory body of the reporting entity: Signature Young Ki Lim Chairman of Board of Directors Byoung Tak Kim Vice Chairman of Board of Directors
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Doosan Škoda Power a.s. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 51 Doosan Škoda Power a.s. CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION as at 30 June 2026 and 31 December 2025 prepared in accordance with IFRS Accounting Standards as adopted by the European Union (in thousands of Czech crowns) Note 30.06.2026 31.12.2025 ASSETS 7 979 835 8 248 128 Property, plant and equipment 1 271 037 1 252 087 Intangible assets 6 1 303 825 1 306 602 Deferred tax assets 1 178 1 203 Non-current financial derivatives 20 19 080 29 680 Non-current receivables 4 51 856 38 462 Total non-current assets 2 646 976 2 628 034 Inventories 149 983 158 389 Trade receivables 4 1 306 578 1 625 758 Other assets 4 485 732 172 844 Contract assets 5 2 206 678 1 635 933 Current tax assets 53 233 - Short term financial instruments and loans 18 300 000 78 000 Current financial derivatives 20 49 940 92 389 Cash and cash equivalents 780 715 1 856 781 Total current assets 5 332 859 5 620 094 EQUITY AND LIABILITIES 7 979 833 8 248 128 Share capital 10 1 595 000 1 595 000 Share premium 10 519 470 519 470 Statutory and other reserves 10 16 925 16 925 Revaluation of assets 10 74 928 74 928 Revaluation of hedging reserves 20 38 223 64 922 Translation reserve -33 476 -31 241 Retained earnings 1 973 229 2 630 527 Equity attributable to owners of the parent entity 4 184 299 4 870 531 Total equity 4 184 299 4 870 531 Deferred tax liabilities 236 836 187 267 Non-current provisions 9 58 089 62 501 Non-current financial derivatives 20 9 183 3 045 Other non-current liabilities 22 275 20 757 Total non-current liabilities 326 383 273 570 Trade payables 7 2 056 118 1 460 315 Other liabilities 7 120 581 246 432 Contract liabilities 5 931 422 1 088 606 Income tax payable 10 177 28 060 Current provisions 9 339 958 279 581 Current financial derivatives 20 10 895 1 033 Total current liabilities 3 469 151 3 104 027 The above condensed consolidated interim statement of financial position should be read in conjunction with the accompanying notes.
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Doosan Škoda Power a.s. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 52 Doosan Škoda Power a.s. CONDENSED CONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS for the period from 1 January to 30 June 2026 and 1 January to 30 June 2025 prepared in accordance with IFRS Accounting Standards as adopted by the European Union (in thousands of Czech crowns) Note 1-6/2026 1-6/2025 Revenues from goods, products and services 12 2 674 023 2 593 867 Other revenues 12 7 099 15 645 Revenues 2 681 122 2 609 512 Raw materials and consumables used 14 -1 723 579 -1 731 796 Own work capitalized 40 561 32 450 Personnel expenses -557 596 -601 189 Depreciation and amortization -100 973 -86 940 Other operating expenses 15 -50 052 -37 444 Other gains and losses 16 -32 573 13 076 Operating expenses -2 424 212 -2 411 843 Profit/loss from disposal of non-current assets and material 44 242 Operating profit 256 954 197 911 Extraordinary cost - -9 364 Financial income 17 74 783 70 033 Financial costs 17 -37 930 -48 954 Profit before income tax 293 807 209 626 Income tax expense -57 905 -1 151 Profit for the period 235 902 208 475 Attributable to owners of the parent entity 235 902 208 475 Earnings per share - basic and diluted (CZK) 11 7,40 6,64 The above condensed consolidated interim statement of profit or loss should be read in conjunction with the accompanying notes.
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Doosan Škoda Power a.s. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 53 Doosan Škoda Power a.s. CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME for the period from 1 January to 30 June 2026 and 1 January to 30 June 2025 prepared in accordance with IFRS Accounting Standards as adopted by the European Union (in thousands of Czech crowns) 1-6/2026 1-6/2025 Profit for the accounting period 235 902 208 475 Other net comprehensive income -28 934 84 181 Items that will not be reclassified subsequently to profit or loss: Increase/decrease in value of assets as a result of their revaluation - - Deferred tax relating to items not reclassified - - - - Items that may be reclassified subsequently to profit or loss: Gains/losses on cash flow hedges -33 796 123 872 Foreign currency translation differences for foreign operations -2 235 -13 678 Deferred tax on items that may be reclassified 7 097 -26 013 -28 934 84 181 Total comprehensive income for the accounting period 206 968 292 656 Attributable to owners of the parent entity 206 968 292 656 Earnings per share - basic and diluted (CZK) 7,40 6,64 The above condensed consolidated interim statement of comprehensive income should be read in conjunction with the accompanying notes.
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Doosan Škoda Power a.s. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WI TH IAS 34 AS ADOPTED BY EU 54 Doosan Škoda Power a.s. CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY for the period from 1 January to 30 June 2026 and 1 January to 31 December 2025 prepared in accordance with IFRS Accounting Standards as adopted by the European Union (in thousands of Czech crowns) Share capital Share premium Statutory and other reserves Revaluation of assets Revaluation of hedging reserves Trans- lation reserve Retained earnings Attributable to owners of the parent entity Total equity Balance as at 1 January 2025 1 450 000 - 329 835 65 128 -54 612 -11 028 2 420 441 4 199 764 4 199 764 Profit for the period - - - - - - 521 430 521 430 521 430 Components of other comprehensive income - - - 9 800 119 534 -20 213 - 109 121 109 121 - assets revaluation - - - 9 800 - - - 9 800 9 800 - cash flow hedging - - - - 151 308 - - 151 308 151 308 - exchange rate differences from foreign activities - - - - - -20 213 - -20 213 -20 213 - tax for items reported in equity or transferred to equity - - - - -31 774 - - -31 774 -31 774 Total comprehensive income for the period - - - 9 800 119 534 -20 213 521 430 630 551 630 551 Transactions with owners Issue of shares 145 000 519 470 - - - - - 664 470 664 470 Dividends - - - - - - -311 344 -311 344 -311 344 Cancellation and distribution of reserve fund - - -312 910 - - - - -312 910 -312 910 Balance as at 31 December 2025 1 595 000 519 470 16 925 74 928 64 922 -31 241 2 630 527 4 870 531 4 870 531 Balance as at 1 January 2026 1 595 000 519 470 16 925 74 928 64 922 -31 241 2 630 527 4 870 531 4 870 531 Profit for the period - - - - - - 235 902 235 902 235 902 Components of other comprehensive income - - - - -26 699 -2 235 - -28 934 -28 934 - cash flow hedging - - - - -33 796 - - -33 796 -33 796 - exchange rate differences from foreign activities - - - - - -2 235 - -2 235 -2 235 - tax for items reported in equity or transferred to equity - - - - 7 097 - - 7 097 7 097 Total comprehensive income for the period - - - - -26 699 -2 235 235 902 206 968 206 968 Transactions with owners Dividends - - - - - - -893 200 -893 200 -893 200 Balance as at 30 June 2026 1 595 000 519 470 16 925 74 928 38 223 -33 476 1 973 229 4 184 299 4 184 299 The above condensed consolidated interim statement of changes in equity should be read in conjunction with the accompanying notes.
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Doosan Škoda Power a.s. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU 55 Doosan Škoda Power a.s. CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENT for the period from 1 January to 30 June 2026 and 1 January to 30 June 2025 prepared in accordance with IFRS Accounting Standards as adopted by the European Union (in thousands of Czech crowns) 1-6/2026 1-6/2025 Profit before tax 293 807 209 626 - Depreciation and amortization 100 973 86 940 - Profit/loss on disposal of non-current assets -61 -262 - Impairment losses on current assets 15 146 29 958 - Non-capitalized exchange rate differences 34 836 31 624 - Interest paid, interest expenses and income and bank fees -30 067 -34 002 - Other non-cash operations 15 154 -116 932 - Creation and release of provisions 55 108 27 096 Total adjustments 191 089 24 422 Cash flows from operating activities before changes in working capital 484 896 234 048 Change in inventories 6 394 -40 680 Change in trade and other receivables -608 679 -632 958 Change in trade and other payables -527 057 68 089 Cash from operating activities -644 446 -371 501 Interest received 14 014 14 286 Interest paid and bank fees -5 572 -5 034 Income tax paid -80 519 -79 861 Net cash from operating activities -716 523 -442 110 Acquisition of property, plant and equipment -95 349 -42 177 Acquisition of intangible assets -38 996 -26 780 Loans provided - drawing -222 000 - Proceeds from sale of property, plant and equipment 75 314 Net cash from investing activities -356 270 -68 643 Proceeds from issue of shares - 664 470 Net cash from financing activities - 664 470 Net increase/decrease in cash and cash equivalents -1 072 793 153 717 Cash and cash equivalents at the beginning of period 1 856 782 1 027 315 FX gains/losses on cash and cash equivalents -3 274 -30 466 Cash and cash equivalents at the end of the period 780 715 1 150 566 The above condensed consolidated interim cash flow statement should be read in conjunction with the accompanying notes.
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Doosan Škoda Power a.s. SELECTED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT AND FOR PERIOD FROM 1.1.2026 TO 30.6.2026 PREPARED IN ACCORDANCE WITH IAS 34 AS ADOPTED BY EU The notes form an integral part of the consolidated financial statements 56 Table of Contents 1. Description of the Group’s activities .............................................................................. 57 2. Basis of preparation of the condensed interim financial statements ............................ 58 3. Summary of material accounting policies ...................................................................... 60 4. Trade receivables and other assets ................................................................................ 68 5. Balance of long-term contracts ...................................................................................... 69 6. Intangible assets ............................................................................................................. 69 7. Trade payables and Other liabilities ............................................................................... 69 8. Loans and borrowings ..................................................................................................... 70 9. Provisions ........................................................................................................................ 70 10. Equity .............................................................................................................................. 70 11. Earnings per share .......................................................................................................... 71 12. Revenues from goods, products and services and Other revenues ............................... 71 13. Segment reporting .......................................................................................................... 71 14. Raw materials and consumables used ............................................................................ 72 15. Other operating expenses .............................................................................................. 72 16. Other gains (+) and losses (-) .......................................................................................... 72 17. Financial income and financial costs .............................................................................. 72 18. Transactions with related parties ................................................................................... 72 19. Financial instruments and risk management ................................................................. 74 20. Summary of derivative instruments ............................................................................... 78 21. Litigations ........................................................................................................................ 79 22. Environmental liabilities ................................................................................................. 79 23. Provided guarantees and other conditional obligations ................................................ 79 24. Subsequent events.......................................................................................................... 80
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 57 1. Description of the Group’s activities Establishment and description of the Group Doosan Škoda Power a.s. (“the Company”), till the 31 December 2024 Doosan Škoda Power s.r.o., was established by a Memorandum of Association as a limited liability company on 27 April 1993 and was recorded in the Commercial Register on 1 July 1993 in Pilsen. Since February 2025 the Company is listed on the Prague Stock Exchange. The Company has only one not significant wholly owned subsidiary ŠKODA POWER Private Limited (“the Subsidiary”), the Company has voting control there. Together as “the Group”. The Company is a leading European manufacturer and supplier of the technological equipment and customer services in the field of power generation – a supplier of steam turbines to machine halls of ŠKODA design and of complex services for fossil power plants, cogeneration u nits, combined cycles, nuclear power plants, waste & biomass incineration plants and solar power plants. Owners of the Company The majority shareholder as of 30.6.2026 is Doosan Power Systems S.A. (Grand Duchy of Luxembourg) with an equity interest of 67%. There are no other shareholders (individuals and legal entities) with an equity interest greater than 10 percent. The majority shareholder as of 31.12.2025 is Doosan Power Systems S.A. (Grand Duchy of Luxembourg) with an equity interest of 67%. There are no other shareholders (individuals and legal entities) with an equity interest greater than 10 percent. The ultimate parent is Doosan Co., Ltd (Korea). Company registered office Doosan Škoda Power a.s. Tylova 1/57 301 00 Pilsen Czech Republic Identification number 491 93 864 Subsidiary registered office ŠKODA POWER Private Limited Siddhartha Chamber, Hauz Khas New Delhi 110016 India Changes in the Commercial Register in 2026 There were no changes in the Commercial Register in the period 1-6/2026. Organizational structure The statutory body (the Board of Directors) of the Company consists of four board members. Two of them are engaged in daily managing roles: chairman of the board acts as the Company’s Chief Executive Officer, the vice chairman of the board acts as the Company’s Chief Financial Officer. CFO as well as the Chief Operating Officer, the managers of HR, Operations, Corporate Strategy & Marketing and Inter Company Trade are accountable directly to the CEO. The managers of Sales and Service are accountable to the COO, managers of Execution and Procurement are accountable to the Director of Operations. Board of Directors as of 30.6.2026: • Young Ki Lim - Chairman
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 58 • Byoung Tak Kim - Vice Chairman • Seungwoo Sohn - Member • Donggil Kim – Member Supervisory Board as of 30.6.2026: • Mgr., Bc., Jiří Krupka, LL.M. – Chairman • Youngbo Kwon – Vice Chairman • Prof. PhDr. Jan Váně, Ph.D. – Member • Mgr. Gabriela Jandíková – Member • Zoja Kouřimová – Member • Ing. Pavel Fiala - Member Audit Committee as of 30.6.2026: • Petra Vaněčková – Chairman • Jiří Jindra – Member • Pavlína Hejduková – Member 2. Basis of preparation of the condensed interim financial statements Statement of compliance The Company prepares annual consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS Accounting Standards”) issued by the International Accounting Standards Board (“IASB”), as adopted by the European Union. These condensed consolidated interim financial reports for the reporting period from 1.1.2026 to 30.6.2026 (further referred to also as “interim financial statements” or “financial statements”) has been prepared in accordance with IAS 34 Interim Financial Reporting and does not include all the information re quired for a complete set of IFRS financial statements. Accordingly, it is to be read in conjunction with the financial statements for the year ended 31.1.2025. The accounting policies adopted are consistent with those of the previous financial year, except for adoption of certain revised IFRS Accounting Standards, as described here after. The condensed consolidated interim financial statements were authorized for issue on 23 September 2026. Consolidated interim financial statements These financial statements are condensed consolidated interim financial statements of the Group as defined by IFRS 10 Consolidated Financial Statements. The Company also prepares the separate financial statements. New and revised IFRS Accounting Standards that are effective for the current reporting period In the current year, the Group has applied the following amendments to IFRS Accounting Standards issued by the International Accounting Standards Board (IASB) and adopted by the EU that are mandatorily effective for reporting period that begins on or after 1 January 2026: Standard Title Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature -dependent Electricity Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 Annual Improvements to IFRS Accounting Standards - Volume 11 Adoption of amendments to IFRS Accounting Standards listed above has not had any material impact on the disclosures or on the amounts reported in these financial statements.
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 59 New and revised IFRS Accounting Standards in issue but not yet effective At the date of authorisation of these financial statements, the Group has not applied the following revised IFRS Accounting Standards that have been issued by IASB but are not yet effective: Standard Title Effective date IFRS 18 Presentation and Disclosure in Financial Statements 1 January 2027 New and revised IFRS Accounting Standards in issue but not adopted by the EU At present, IFRS accounting standards as adopted by the EU do not significantly differ from IFRS accounting standards adopted by the International Accounting Standards Board (IASB) except for the following new standards and amendments to the existing standards, which were not adopted by the EU as at date of authorisation of these financial statements: Standard Title Effective date IFRS 19 with further amendments Subsidiaries without Public Accountability: Disclosures (IASB effective date: 1 January 2027) Not yet adopted by EU Amendments to IAS 21 Translation to a Hyperinflationary Presentation Currency (IASB effective date: 1 January 2027) Not yet adopted by EU Amendments to IAS 28 Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (IASB effective date: 1 January 2027) Not yet adopted by EU IFRS 20 Regulatory Assets and Regulatory Liabilities (IASB effective date: 1 January 2029) Not yet adopted by EU IFRS 14 Regulatory Deferral Accounts (IASB effective date: 1 January 2016) European Commission has decided not to launch the endorsement process of this interim standard and to wait for the final standard Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture and further amendments (effective date deferred by IASB indefinitely but earlier application permitted) Endorsement process postponed indefinitely until the research project on the equity method has been concluded The Group does not expect that the adoption of the new standard and amendments to standards listed above will have a material impact on the financial statements of the Group in future periods. Hedge accounting for a portfolio of financial assets and liabilities whose principles have not been adopted by the EU remains unregulated. According to the Group’s estimates, the application of hedge accounting to a portfolio of financial assets or liabili ties pursuant to IAS 39: Financial Instruments: Recognition and Measurement would not significantly impact the financial statements, if applied as at the balance sheet date. Going Concern The Group has, at the time of approving the financial statements, a reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future. Thus it continues to adopt the going concern basis of accounting in preparing the financial statements. Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and of the Subsidiary. Where necessary, adjustments are made to the financial statements of the Subsidiary to bring the accounting policies used into line with the group’s accounting policies. All intragroup assets
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 60 and liabilities, equity, income, expenses and cash flows relating to transactions between the Company and the Subsidiary are eliminated on consolidation. Profit or loss and each component of other comprehensive income are attributed to the owners of the parent entity and to the non -controlling interests. Total comprehensive income of the subsidiary is fully attributed to the owners of the parent entity. Basis of measurement The financial statements have been prepared on a historic cost basis, with the exception of financial assets and financial derivatives, which are valued at fair value. The fair value is determined on the basis of a market valuation or a qualified estimate. Use of estimates, critical accounting judgments and key sources of estimation uncertainty The preparation of financial statements in compliance with IFRS accounting standards adopted by EU requires management to make judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making the judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 the current and future periods. The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Impairment of assets The Group assesses the recoverable value of all assets when there are indicators of their impairment (with the exception of intangible assets with indefinite useful lives, which are tested for impairment at least annually). This assessment is based on anti cipated assumptions and may change in the future as the situation evolves and information is available. Long term contracts Revenue recognition on long term contracts depends on certain variables (percentage of completion, costs to complete, margin, estimate of penalties that may be claimed by customers, etc.). Those variables are re -assessed every month based on anticipated as sumptions and may change in the future as the situation evolves and new information becomes available. Provisions for legal disputes and business risks The Group may be involved in court and out -of-court commercial disputes. Where the criteria for the recognition of provisions are met, the Group creates provisions for these disputes on the basis of the best available information and estimates. However, th e actual outcome of the disputes may differ from these estimates. 3. Summary of material accounting policies Functional currency With regard to the economic environment, the Czech crown was determined as the functional currency of the Company, as substantial part of the costs is influenced by CZK (personal cost, both cost for services and material deliveries, etc.) and revenues are influenced by various currencies depending on the contracts fulfilled in given year. The functional currency of the subsidiary is INR.
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 61 Unless stated otherwise, the figures disclosed in these financial statements are in thousands of Czech crowns, “TCZK”. Revenue recognition - contracts with customers The Group recognizes revenue at the amount of consideration to which the Group expects to be entitled in exchange for transferring its promised goods and services to a customer. The Group recognizes three main revenue streams: - New installation – new steam turbines and accessories deliveries including retrofits (new rotors according to the state of the art). Project execution usually takes over two years up to three years, followed by warranty period. - Service - repairs and general overhauls, general services, spare parts. Usually short term projects are realized within one year. - Long term service agreements (LTSA). The Group recognizes its revenues predominantly based on ‘over time’ method due to customer -specific nature of production covered by signed and legally enforceable contracts. The Group applies input (cost - to-cost) method for measurement of percentage of co mpletion as this method best reflects nature of Group’s contracts and way how the control and value is transferred to the customers. Contract revenue is recognised in profit or loss in proportion to the stage of completion of the contract, which is measur ed based on the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs. Contract costs incurred include also accruals for significant deliveries for specific contracts provided by vendors according t o the amount they incurred to date (deliveries over 2 MCZK where production time exceeds 6 months). When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately. At a point in time, recognition method applies only to sales of excessive materials and scrap. This revenue stream is not material. Significant payment terms For all New installations and larger Service projects, the Group usually receives several advances, accounted along with the main parts delivery. The advances are in the range from ca 10% to 70% of the contract value. Typical billing milestones for New installation contracts are distributed through the project duration to advance payments (contract signature, allocation of sub -deliveries) and milestone -based invoices (ex. delivery of designs, castings, forging and generators). Typical billing milestones for Services and Long term service agreements are based on upon -agreed and scheduled performances. Works are typically not subject to advance payments and may contain inflation index clauses. The typical maturity of issued invoices is 30 days, less often 45 or 60 days. For significant contracts, 5% or up to 10% of the invoice payment may be subject of retention, which may prolong the payment maturity to 120 days up to two years, exceptionally l onger. As release of the retained payment is subject only to elapse of the prolonged time period, the Group recognizes the retained payments as receivables. Variable consideration Contracts with customers usually include penalty clause, like liquidated damages for delay and non -compliance of guaranteed parameters. If such event occurs, the contract price is reduced. Since the probability of such event is very low, the Group accounts and reports the variable adjustment of transaction price only when it becomes probable. Contract values do not include any other discounts and bonuses.
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 62 Contract-related costs Cost to obtain contract and cost to fulfil contract incurred before the contract is obtained by the Group are not material. The Group is using own sales teams for order intake. Financing component The timing difference between revenue recognition and cash flow received is typically less than one year, therefore the Group is applying the practical expedient and does not account for the effect of significant financing component. Balances given by long -term retainage do not give rise to material discounting effect. Warranties The Group classifies warranty for provided projects as assurance-type warranty as the warranty conditions do not exceed standard assurance. In case of defect or malfunction, the root cause is always analysed and if the problem is within the Group range of responsibility, then the cost is covered by the Group and from warranty provision. Contract Balances Where contract costs incurred to date plus recognised profits less recognised losses exceed progress billings, the surplus is shown as contract assets. For contracts where progress billings exceed contract costs incurred to date plus recognised profits les s recognised losses, the surplus is shown as contract liabilities. Amounts received before the related work is performed are included in the statement of financial position, as a contract liability. Amounts billed for work performed but not yet paid by the customer are included in the statement of financial position under trade receivables. Income tax Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the extent that relates 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 year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax l iabilities and assets, and they relate to income taxes levied by the same tax authority. A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Transactions in foreign currencies Transactions denominated in currencies other than the functional currency of the entities included in the consolidation (“foreign currencies”) are translated at the exchange rate at the transaction date (official exchange rates of the Czech National Bank, hereafter exchange rate). Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the exchange rate at that date. Non -monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the functional currency at the exchange rate at the date that the fair value was determined. Non -monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are not retranslate.
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 63 Gains and losses arising from changes in exchange rates of foreign currencies after the transaction date are recognised in the profit or loss account. Property, plant and equipment Assets owned by the Group Items of property, plant and equipment are stated at cost less accumulated depreciation (see below) and impairment losses, except for land. Land is subsequently measured at revalued amounts and is not depreciated. Cost includes expenditure that is directly attributable to the acquisition of the assets. Tangible fixed assets costing less than TCZK 5 are c harged to the profit or loss account in the year that they are acquired. (Cutting and normal tools and fixtures with a useful life longer than one year are recorded as tangible assets regardless of the acquisition price, otherwise they are charged to the profit or loss account in the year of acquisition. Moulds, models and templates that are not acquired for one - time use are recorded as tangible assets regar dless of the acquisition price, otherwise they are charged to the profit or loss account in the year of acquisition.) Depreciation Depreciation is charged to the profit or loss account on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Land is not depreciated. Leased assets are depreciated over the shorter of the lease te rm and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease terms. Day to day repair and maintenance costs are charged directly to the profit or loss account. The estimated useful lives are as follows: Asset Period (years) Buildings 20 – 50 Machinery and equipment 3 –16 Hardware 4 Depreciation methods, useful lives and residual values are reviewed each year. Intangible assets Initial recognition and amortisation Intangible assets are stated at cost less accumulated amortisation and impairment losses. Intangible assets with specific useful lives are amortised over their estimated useful lives, starting from the time when they are ready for use, i.e. once they are at a location and in a condition allowing for their use as intended by the Group. The amortisation period for non-current intangible assets owned by the Group ranges from 2 to 10 years, assets are depreciated on a straight -line basis. Amortisation rates and useful lives applied are reviewed on regular basis (at least at the end of the accounting period), with changes applied, if necessary, in the following period. Intangible assets with indefinite useful lives are not amortised. Intangible assets costing less than TCZK 5 are recognised as an expense in the period when they become ready for their intended use. Subsequent expenditure Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred. Impairment The carrying amounts of the Group’s assets, other than inventories, assets where IFRS 9 impairment requirements are applied and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated, and the amount of impairment, if any, is determined. If the recoverable amount
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 64 of the individual asset cannot be estimated, the Group determines the recoverable amount of the cash- generating unit to which the asset belongs. Recoverable amount is the higher of 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 assessments of t he time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the estimated recoverable amount of the assets (or cash -generating unit) is lower than its carrying amount, the carrying amount of the assets (or cash -generating unit) is reduced to the recoverable amount. Impairment losses are recognised in expenses – Other gains and losses. If an impairment loss is subsequently reversed, the carrying amount of the asset (or cash-generating unit) is increased to the newly estimated recoverable amount; only to the extent, however, that the asset’s carrying amount does not exceed the carrying amount that would have been determined, if no impairment loss had been recognised in respect of the asset (or cash -generating unit). Reversal of impairment loss (except for goodwill) is recognised in income. Intangible assets with indefinite useful lives are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired. The brand value analysis is based on the royalty fee estimate utilizing revenue forecast linked to the Group’s long-term budgets and the market royalty rate assumption. To obtain a brand value, the estimated royalty fees are converted to their present value using an appropriate discount rate relevant for intangible assets valuation. Impairment of financial assets (IFRS 9) The Group recognises a loss allowance for expected credit losses on investments in debt instruments that are measured at amortised cost or at fair value through other comprehensive income (FVTOCI), trade receivables and amounts due from customers, as well as on financial guarantee contracts. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group always recognises lifetime ECL for tra de receivables and amounts due from customers. The expected credit losses on these financial assets are estimated either individually or using a provision matrix based on the Group’s historical credit loss experience: all receivables are divided into 3-months buckets according to their aging. For each bucket is annually recalculated allowance percentage from the last years historical analysis. The percentage is based on how much of the amount outstanding at the end of e ach quarter is not collected by the en d of the next quarter. Data for calculation include written-off receivables. Allowance % 2026 2025 2024 Not yet due 0,7% 0,8% 1,2% Up to 3 months 5,2% 5,4% 7,0% 3-6 months 15,2% 16,5% 17,9% 6-9 months 20,1% 26,3% 25,1% 9-12 months 28,0% 39,5% 36,9% 12-15 months 43,3% 49,7% 50,4% 15-18 months 52,3% 60,9% 57,3% 18-21 months 56,6% 65,6% 63,9% 21-24 months 69,7% 73,2% 67,6% 24-27 months 83,0% 88,3% 74,3% 27-30 months 86,9% 88,3% 85,2% 30-33 months 89,3% 89,6% 98,4% over 33 months 100,0% 100,0% 100,0% For all other financial instruments, the Group measures the loss allowance at an amount equal to 12 month ECL for stage 1 assets and at an amount equal to lifetime ECL for stage 2 and stage 3 assets.
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 65 Financial instruments are moved to stage 2 when they are overdue more than 30 days and to stage 3 when there is a default. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12 -month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. The asset write-off follows the end of the bankruptcy proceedings. Financial instruments Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value, except trade receivables (without significant financing component), which are initially recognized at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair v alue of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. Classification of financial assets Debt instruments that meet the following conditions are measured subsequently at amortised 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. Debt instruments that meet the following conditions are measured subsequently at fair value through other comprehensive income (FVTOCI): • the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the 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. By default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL). Trade receivables Trade receivables are initially recognised at the transaction price and subsequently stated at amortised cost less expected credit losses. Cash and cash equivalents Cash and cash equivalents comprise cash in hand, cash at the bank, bank deposits and current highly liquid investments with an original maturity up to three months. Trade payables Trade payables are stated at nominal value. Financial derivatives - Cash flow hedging (hedging derivates) The Group continuously monitors exchange rate risks and employs zero -cost hedging strategies where appropriate to mitigate potential adverse effects on the financial performance associated with future cash flows, aiming to hedge 100% of open position that exceeds the level of natural hedging at the individual
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 66 business case level, subject to a threshold of TCZK 2 500. The typical hedge ratio ranges from 60 to 100%, depending on the currency involved in the business case. The Group applies hedge accounting under IFRS 9. The Group classifies derivative instruments as hedging derivatives and trading derivatives. Derivatives are classified as hedging if the following conditions are met: • at the inception of the hedge, there is a formal designation of the hedged items or transactions, the hedging instruments, the risks being hedged, and how the hedge effectiveness will be calculated and supported; • the hedge is effective (i.e. it meets an “economic relationship” criterion); • the effectiveness of the hedge is assessed on an ongoing basis. The Group determines the economic relationship between the hedged item and the hedging instrument by ensuring that there is an expectation that the value of the hedging instrument will move in an opposite direction to the value of the hedged item in respon se to changes in the hedged risk. The Group enters into fixed -term derivative contracts, such as forwards and swaps, exclusively with top -tier financial institutions. The hedged item is specifically identified as the highly probable cash flow, evaluated individually at the level of each business case. The purpose of hedging is to eliminate risk rather than engage in speculation; therefore, the Group hedges only effective projects or their parts. The risk component is designated using a conservative approach, with only initially highly probable income considered for hedging. At the inception of the hedge relationship, the Group documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. The Group utilizes the hypothetical derivative approach for evaluating hedge effectiveness and quantifying hedge ineffectiveness. Potential exceptional loss of high efficiency may result from substantial timing mismatches between the hedged item and the hedging instrument, which cannot be mitigated through swap transactions or adjustments in contract terms. Hedging effectiveness may be compromised if there is a significant reduction in the likelihood of cash flow realization, primarily due to sudden untreated counterparty risk of the cash-flow originator. Derivatives that do not meet the above conditions for hedge accounting are classified by the Group as trading. Financial derivatives are initially recognised at fair value (which is also the cost price) and subsequently measured at fair value at the reporting date. The non-effective portion of the hedging derivative is recognized in the profit or loss account (line “Other gains and losses”). The effective portion of the hedging derivative is recognised in equity (line “Revaluation of hedging reserves”) and then recla ssified to the profit or loss account (line “Other gains and losses”) proportionally to percentage of completion of the contract. Percentage of completion or incompletion is calculated individually at the project level. Fair value of financial derivatives is determined based on contract valuation at the reporting date. The Group obtained L2 level valuation from individual banks which the derivatives were contracted with. Hedge accounting is discontinued when the hedging instrument no longer qualifies for hedge accounting (e.g. when realisation of a hedged cash flow is not expected to happen). Any gain or loss recognised in other comprehensive income and accumulated in equi ty at that time is immediately reclassified in profit or loss.
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 67 Financial derivatives – fair value hedging (trading derivates) The Group will strategically utilize its resources to maximize potential returns, in alignment with our long- term growth objectives and financial stability. In the event the Group exceptionally identifies and executes an advantageous financial investment, the fair value ensuring the profitability of this opportunity is hedged using the same principles as described above regarding determination of the economic relationship between the hedged item and the hedging instrument. Forward and swap transactions are used to mitigate currency risk until the financial assets are realized. Financial derivatives are initially recognised at fair value and subsequently measured at fair value as of the reporting date. Changes in the fair value of financial derivatives are recognised in the profit or loss account (line “Financial income” or “Fina ncial costs”) based on L2 valuation obtained from the cooperating bank. Inventories Inventory is stated at the lower of the acquisition cost and net realisable value. The cost includes transportation and insurance charges, direct material, direct labour and overhead incurred in bringing the inventory to its present location and condition. The net realisable value is the estimated selling price less estimated completion costs and estimated costs to sell. Based on a detailed analysis of individual material items, the Group determined to create 50% allowance to material that has been idle for more than one year. Use of material is stated using the weighted average method. State subsidies State subsidies are not recognised until there is reasonable assurance that the Group will comply with the conditions attached to them and that the grants will be received. Subsidies awarded to refund the Group for expenses incurred are recognised in income over the period in which the related expenses are incurred and are deducted when the expenses are recognised. Provisions A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Warranty provisions A warranty provision is established based on an analysis of historical costs incurred for warranties, adjusted by the expected future development in warranties. 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 cost of meeting its obligations under the contract. The provision is measured at the present value of the l ower 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. Other provisions Provisions for risks and other provisions are created on the basis of an individual assessment carried out by responsible project managers and administrators. Research and development Research costs are incurred for the purpose of acquiring new technical knowledge, which may lead to improved products or processes in the future, the economic viability of which however has not been established. Research costs are charged to the profit or loss account in the year in which they are incurred.
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 68 Development costs incurred comprise new technical knowledge or methods for new or substantially improved products or production processes. Development costs can be capitalized only if development expenditures can be measured reliably, the product or process is technically and commercially feasible and will generate probable future economic benefits, the Group intends to and has sufficient res ources to complete development and to use or sell the asset. If the above conditions are not met, development costs are expensed in the year in which they are incurred. 4. Trade receivables and other assets Trade receivables TCZK 30.6.2026 31.12.2025 Trade receivables 1 262 561 1 269 175 Other trade receivables 103 319 84 542 Accrued income 178 473 500 547 Total receivables (gross) 1 544 353 1 854 264 Allowances Opening balance -228 506 -197 659 Additional allowances -20 838 -64 973 Amounts written off 1 531 4 500 Amounts recovered 11 023 21 058 Foreign exchange gains and losses -985 8 568 Closing balance -237 775 -228 506 Total receivables (net) 1 306 578 1 625 758 Ageing structure of trade receivables TCZK 30.6.2026 31.12.2025 Gross amount Allowance Gross amount Allowance Not yet due 517 918 -3 887 394 003 -3 268 Up to 3 months 124 827 -4 647 137 288 -3 351 3-6 months 50 127 -6 448 163 296 -2 230 6-9 months 18 584 -1 796 31 770 -7 631 9-12 months 160 376 -2 364 255 177 -24 898 12-15 months 27 604 -9 218 30 291 -14 069 15-18 months 106 682 -25 687 121 580 -427 18-21 months 29 870 -13 803 612 -382 21-24 months 121 246 -193 18 622 -45 24-27 months 254 -163 23 882 -21 088 27-30 months 18 572 - 5 862 -1 380 30-33 months 21 779 -19 038 8 432 -2 819 over 33 months 168 041 -150 531 162 902 -146 918 Total 1 365 880 -237 775 1 353 717 -228 506 Average credit period of trade receivables is 100 days (2025: 76 days). Non-current receivables are represented mostly by retentions – project receivables with prolonged payments maturity according to contract conditions. Other assets Other assets consist of receivables from the state, primarily VAT, operational advances paid, accrued expenses and other receivables (from employees).
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 69 5. Balance of long-term contracts Contract assets TCZK 30.06.2026 31.12.2025 Contract assets 2 220 446 1 647 600 Allowances -13 768 -11 667 Total Contract assets (net) 2 206 678 1 635 933 Contract liabilities TCZK 30.06.2026 31.12.2025 Opening balance 1 088 606 670 562 Revenue recognised in the reporting period that was included in the contract liability balance at the start of the period 440 408 511 109 New liabilities 283 224 929 153 Closing balance 931 422 1 088 606 6. Intangible assets The most important intangible asset is ŠKODA brand in amount of TCZK 959 776. This brand is regarded as having indefinite useful economic live and therefore is not amortised. The brand is protected by trademark, which is renewable indefinitely, in all major markets where the Group operates. There are not believed to be any legal, re gulatory or contractual provisions that limit the useful lives of this brand. Accordingly, the Group believes that it is appropriate that the brands are treated as having indefinite lives for accounting purposes. Impairment test based on expected discounted cash flows (12.2% discount rate) from royalty fees to be paid for using similar brand (1.8% of forecasted revenues) did not indicate Škoda Brand impairment. Assets under construction represents mainly capitalized research and development (R&D) cost. Total R&D cost amounted to TCZK 63 106 in 1 -6/2026 (1 -6/2025: TCZK 54 277 ). A part of the cost in amount of TCZK 29 722 was capitalized and is included in intangible assets (1-6/2025: TCZK 24 384). Non- capitalized R&D cost is included in operating expenses. In 1-6/2026 the SW ANSYS Mechanical in total value of TCZK 4 298 was acquired. 7. Trade payables and Other liabilities Trade payables TCZK 30.6.2026 31.12.2025 Trade accounts payable 1 148 791 1 446 311 Liabilities to shareholders 893 806 600 Lease liabilities 8 914 8 975 Other payables 4 607 4 429 Total 2 056 118 1 460 315 Ageing structure of the trade payables TCZK 30.6.2026 31.12.2025 Payables before due 1 032 572 1 139 846 Payables overdue within 1 year 110 920 300 647 Payables overdue above 1 year 5 299 5 818 Total 1 148 791 1 446 311 Average credit period of trade payables is 33 days (2025: 45 days).
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 70 Other liabilities Other liabilities consist of liabilities to the state, primarily VAT, liabilities to employees and liabilities from social security and health insurance. 8. Loans and borrowings In periods 1-6/2026 and 1-12/2025 the Company drew no loans and borrowings. 9. Provisions TCZK 31.12.2024 Additions Disposals 31.12.2025 Additions Disposals 30.6.2026 Warranty provisions 175 559 64 936 40 160 200 336 28 456 4 468 224 324 Other provisions 73 829 90 553 22 636 141 746 52 000 20 023 173 723 Total 249 388 155 489 62 796 342 082 80 456 24 491 398 047 Non-current part 50 045 62 501 58 089 Current part 199 343 279 581 339 958 Breakdown of disposals: Warranty provisions: • Use of provisions for originally specified purpose: TCZK 4 454 in 2026 (2025: TCZK 24 285) • Cancellation of provisions: TCZK 14 in 2026 (2025: TCZK 15 874) Other provisions: • Use of provisions for originally specified purpose: TCZK 20 023 in 2026 (2025: TCZK 22 636) • Cancellation of provisions: TCZK 0 in 2026 (2025: TCZK 0) Other provisions include provisions for loss making projects and litigations. For a description of litigations refer to Note 21. 10. Equity Dividend distribution The annual general meeting held on 25 June 2026 has approved a distribution of dividends in amount of 28 CZK per share, i.e. TCZK 893 200. Revaluation reserves a) Revaluation of assets The assets revaluation reserve arises on the revaluation of land. The revaluation is provided by valuation expert regularly once every two years. TCZK 30.6.2026 31.12.2025 Opening balance 74 928 65 128 Revaluation increase - 12 406 Deferred tax liability arising on revaluation of land -- -2 606 Closing balance 74 928 74 928 b) Revaluation of hedging reserves Movement of revaluation of hedging reserves is disclosed in Note 20 Summary of derivative instruments.
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 71 11. Earnings per share 1-6/2026 1-6/2025 Profit for the period (TCZK) 228 759 208 475 Weighted average number of shares (thousands) 31 900 31 417 Earnings per share - basic and diluted (CZK) 7,17 6,64 The Company has ordinary shares only, there is no dilutive potential. 12. Revenues from goods, products and services and Other revenues The Group has revenues in only one segment – Turbines. Revenues from goods, products and services Revenues disaggregation by contract duration (TCZK) 1-6/2026 1-6/2025 Long-term - over one year 2 398 155 2 350 008 Short-term - within one year 275 868 243 859 Total 2 674 023 2 593 867 Revenues disaggregation by main revenue streams (TCZK) 1-6/2026 1-6/2025 New installation 1 772 767 1 865 816 Service 661 425 548 202 Long term service agreements 239 831 179 849 Total 2 674 023 2 593 867 Revenues disaggregation by geographies (TCZK) 1-6/2026 1-6/2025 Europe (excluding Czech Republic) 935 508 1 129 181 Czech Republic 701 008 292 075 Asia 351 939 464 326 South and Central America 229 707 97 564 Africa 164 640 450 965 North America 290 921 147 842 Australia 300 11 914 Total 2 674 023 2 593 867 Remaining transaction price allocated to performance obligations from contracts with customers that are not yet satisfied (Revenue Backlog) at the end of the reporting period: TCZK 30.6.2026 30.6.2025 Revenue backlog (at the end of period) 17 868 813 8 172 937 Estimated recognition till the end of the year 2 090 098 2 237 089 Estimated recognition within 1 year after the year end 2 587 773 2 410 967 Estimated recognition within 2-3 year after the year end 4 530 861 2 237 497 Estimated recognition within 4+ years after the year end 8 660 081 1 287 384 Other revenues Other revenues of TCZK 7 099 (1 -6/2025: TCZK 15 645) include for example contractual penalties TCZK 1 118 (1-6/2025: TCZK 7 117), revenues from the sale of scrap TCZK 2 312 (2025: TCZK 2 871) and cost recharges TCZK 3 827 (1-6/2025: TCZK 3 944). 13. Segment reporting The Group has assessed its operating segments in accordance with IFRS 8 and concluded that it has only one reportable operating segment. As described in the Note 12, the Group revenues are in only one segment – Turbines, from which it earns revenues and in curs expenses. The Group operations are
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 72 concentrated mainly in Pilsen, Czech Republic. The revenues are monitored by individual projects with customers, however, discrete financial information is available only on an aggregate basis on which the Group’s chief operating decision maker (the Company CEO) is reviewing it. 14. Raw materials and consumables used TCZK 1-6/2026 1-6/2025 Material consumption 927 963 907 979 Energy consumption 33 387 32 343 Services and others 762 229 791 474 Total 1 723 579 1 731 796 15. Other operating expenses TCZK 1-6/2026 1-6/2025 Taxes and fees 10 828 7 856 Receivables written off 1 762 - Fines and penalties 6 079 4 Bank fees 6 830 5 345 Insurance 13 731 13 213 Other operating expense 10 822 11 026 Total 50 052 37 444 16. Other gains (+) and losses (-) TCZK 1-6/2026 1-6/2025 Decrease/increase in provisions -56 344 -27 539 Decrease/increase in adjustments to assets -13 383 -29 958 Net income/expense from hedging operations 14 550 110 213 Exchange rate gains/losses from operating activities 3 384 -48 312 Other income from receivables 689 - Other operating income 18 531 8 672 Total -32 573 13 076 17. Financial income and financial costs Financial income (TCZK) 1-6/2026 1-6/2025 Exchange rate gains from cash and cash equivalents, short-term financial instruments 37 886 30 573 Gains from hedging operations on financial instruments - 113 Interest revenues 36 897 39 347 Total 74 783 70 033 Financial costs (TCZK) 1-6/2026 1-6/2025 Exchange rate losses from cash and cash equivalents, short-term financial instruments 36 477 48 970 Losses from hedging operations on financial instruments - 55 Interest expenses 1 453 -71 Total 37 930 48 954 18. Transactions with related parties Parent and ultimate controlling party Balances related to parent and ultimate controlling party are listed below.
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 73 Transactions with key management personnel Remuneration to members of key management personnel (executives) is included in personnel expenses. There were no loans provided to statutory representatives in reported periods and no other special benefits except standard benefits like company cars and mobile phones for private use, life insurance, etc. Total amount of such benefits is not significant. Loans granted The Company provided a loan to Doosan Power Systems S.A. in 2026 in the total amount of TCZK 300 000, from it TCZK 78 000 in 2025. The total loan facility with a value of TCZK 300 000 is based on the agreement from 18 November 2025, interest rate is 11% p.a. Due to scheduled repayment within 12 months it is stated as a current loan as at 30.6.2026. The Company provided a loan to Doosan Power Systems S.A. in 2025 in the total amount of TCZK 78 000. The total loan facility with a value of TCZK 300 000 is based on the agreement from 18 November 2025, interest rate is 11% p.a. Due to scheduled repayment within 12 months it is stated as a current loan in 2025. Trade receivables and payables The following related party balances are included in the trade receivables and payables described in Notes 4 and 7. Receivables as at Payables as at TCZK 30.6.2026 31.12.2025 30.6.2026 31.12.2025 Companies controlled by Ultimate parent: Doosan Digital Innovation, odštěpný závod - - 71 823 62 917 Doosan Power Systems S.A. (Luxembourg) 137 613 119 618 3 300 3 300 Doosan Turbomachinery (USA) - 4 369 164 337 149 396 Doosan Lentjes (Germany) 273 878 374 540 - - Doosan Enerbility Co.Ltd.(Korea) 488 755 73 417 67 217 30 613 Doosan Power Systems Arabia (Saudi Arabia) 3 694 3 722 - - DOOSAN UKUDU POWER LLC (Guam) 9 023 23 834 - - Total 912 963 599 500 306 677 246 226 Sales and purchases Sales for period Purchases for period TCZK 1-6/2026 2025 1-6/2026 2025 Companies controlled by Ultimate parent: Doosan Enerbility Co., Ltd (Korea) 63 693 820 769 8 754 16 286 Doosan Digital Innovation, odštěpný závod 206 402 92 617 126 503 Doosan Power Systems S.A. (Luxembourg) 28 308 10 163 - - Doosan Lentjes (Germany) 30 701 104 370 - - Doosan Turbomachinery Services (USA) 1 254 150 890 32 101 - Doosan Business Research Institute (Korea) - 4 615 - - Doosan Power Systems Arabia (Saudi Arabia) -32 - - - DOOSAN UKUDU POWER LLC (Guam) 561 42 586 - - Total 124 691 1 133 795 133 472 142 789 Note: “Sales” comprise revenues from the sale of manufactured products, revenues from the sale of services, revenues from the sale of fixed assets and other operating revenues and interest income. “Purchases” comprise purchases of material, energy consumption, purchases of services, other operating expenses and purchases of inventories.
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 74 19. Financial instruments and risk management Categories of financial instruments Financial assets (TCZK) 30.6.2026 31.12.2025 Cash and bank balances 780 715 1 856 781 Derivatives in designated hedge accounting relationships (FVTPL) 69 020 122 069 Trade receivables 1 658 434 1 742 220 Total 2 508 169 3 721 070 Financial liabilities (TCZK) 30.6.2026 31.12.2025 Derivatives in designated hedge accounting relationships (FVTPL) 20 078 4 078 Trade payables 2 078 393 1 481 072 Total 2 098 471 1 485 150 The Group is exposed to the following risks resulting from financial instruments: d) credit risk e) liquidity risk f) market risk The management of the Group is generally responsible for setting and controlling the financial risk system management. The development and estimate of the effects resulting from individual risks is regularly assessed. Credit risk A credit risk is the risk that a customer or other party to a financial arrangement will not fulfil its contractual liabilities and obligations. The risk primarily results from financial insolvency or a reluctance of the debtor to pay off liabilities to the Group. The exposure to the credit risk depends mainly on the characteristics of each customer. Potential risk is assessed primarily on the basis of geographical factors (in the financial risk management system, areas with increased sensitivity towards credit risk are identified). In general, the credit risk is assessed in relation to the individual customers’ payment history. In new contracts and engagements, the solvency of each customer is assessed. Where necessary, the future cash flows are secured by required advances or bank guarantees, and in specific cases, receivables are also insured. A maximum credit limit is set for every customer. Exceeded limits must be evaluated and approved by the management of the Group. Financial assets with a derivative trading nature are not evaluated for credit risk because they are measured at FVTPL and are not in scope of ECL calculation. Loans in the amount of TCZK 300 000 (2025: TCZK 78 000) are fully included in Stage 1, no amounts in Stage 2 and Stage 3. ECL assessment was performed and is considered immaterial. Detail information about Trade receivables is included in Note 4. Liquidity risk Liquidity risk is the risk that the Group would not be able to pay its financial liabilities and obligations when they mature. The Group systematically manages its cash flow in order to avoid delays in payments of its obligations, even when there is increased pressure from suppliers and other creditors. The main liquidity management tools are received advances used to cover costs relating to the realisation of the projects, allocation of the surplus funds to highly liquid bank instruments (term and bill deposits, repurchase papers), and reaching agreements with the suppliers regarding the maturity dates. 30.6.2026
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 75 TCZK Carrying amount Up to 3 months 3 months to 1 year 1-5 years Over 5 years Assets Trade receivables 1 358 434 1 180 537 126 599 51 298 - Loans 300 000 - 300 000 - - Derivatives in designated hedge accounting relationships (FVTPL) 69 020 23 018 26 922 19 080 - Total assets 1 727 454 1 203 555 453 521 70 378 - Liabilities Trade payables 2 078 393 1 814 199 238 931 25 263 - Derivatives in designated hedge accounting relationships (FVTPL) 20 078 6 582 4 313 8 973 210 Total liabilities 2 098 471 1 820 781 243 244 34 236 210 Net liquidity risk position -371 017 -617 226 210 277 36 142 -210 31.12.2025 TCZK Carrying amount Up to 3 months 3 months to 1 year 1-5 years Over 5 years Assets Trade receivables 1 664 220 1 364 904 261 330 37 986 - Loans 78 000 - 78 000 - - Derivatives in designated hedge accounting relationships (FVTPL) 122 069 45 982 46 407 29 680 - Total assets 1 864 289 1 410 886 385 737 67 666 - Liabilities Trade payables 1 481 072 1 034 416 425 899 20 757 - Derivatives in designated hedge accounting relationships (FVTPL) 4 078 978 55 1 797 1 248 Total liabilities 1 485 150 1 035 394 425 954 22 554 1 248 Net liquidity risk position 379 139 375 492 -40 217 45 112 -1 248 Market risk Market risk results from changes in market prices, which may be caused by changes of exchange rates and interest rates. The Group is exposed to the risk due to trades in EUR, USD, GBP and PLN. The main instruments for market risk elimination are natural hedging and derivatives, which are established for hedging exchange rate volatility in relation to expected future cash flows. The Group hedges foreign currency risk at 100% of free cash position from expected cash flows in EUR, GBP and USD for the contract period. For long -term contracts, natural hedging is applied using advances received in the currency in which the contract is concluded. Interest rate risk is eliminated by fixed interest rate agreements. The Group does not conclude any commodity contracts except where the contract can be settled using the relevant commodity (binding orders of a fixed minimum inventory quantity, for a specific period). Interest rate risk management The Group does not have any loans, it is financed solely by equity. It generates some interest profit from short-term investments. The company generates interest income also from the loans to the parent company but in 2026 the interest revenues are negligi ble compared to revenues from core business activities. The Group is therefore not exposed to significant risk in case of change of market interest rates. Capital risk management The Group is not subject to any externally imposed capital requirements and is fully financed by equity.
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 76 Foreign currencies Summary of financial instruments in currencies as at 30.6.2026: TCZK USD EUR CZK Other Total Financial derivatives 19 036 49 984 - - 69 020 Loans - - 300 000 - 300 000 Trade receivables 142 569 680 855 388 167 146 843 1 358 434 Cash, cash equivalents 62 901 256 002 155 627 306 185 780 715 Total financial assets 224 506 986 841 843 794 453 028 2 508 169 Other non-current liabilities 185 4 749 17 338 3 22 275 Financial derivatives 7 513 10 098 - 2 467 20 078 Trade payables 10 006 100 416 1 821 796 123 900 2 056 118 Total financial liabilities 17 704 115 263 1 839 134 126 370 2 098 471 Summary of financial instruments in currencies as at 31.12.2025: TCZK USD EUR CZK Other Total Financial derivatives 69 449 52 620 - - 122 069 Loans - - 78 000 - 78 000 Trade receivables 148 297 804 691 657 575 53 657 1 664 220 Cash, cash equivalents 167 025 1 144 532 243 517 301 707 1 856 781 Total financial assets 384 771 2 001 843 979 092 355 364 3 721 070 Other non-current liabilities 179 5 360 15 215 3 20 757 Financial derivatives 574 3 504 - - 4 078 Trade payables 24 800 119 811 1 029 000 286 704 1 460 315 Total financial liabilities 25 553 128 675 1 044 215 286 707 1 485 150 Sensitivity analysis – currency risk As at 30.6.2026 (31.12.2025 respectively) a 10 percent appreciation (depreciation) of the Czech crown vis- à-vis the currencies listed below would have resulted in the increase (decrease) of TCZK 105 338 (2025: TCZK 69 184) in the profit or loss account, pr ovided that other variables (in particular, the interest rate) remain unchanged. The Group mitigates its currency risk exposure by concluding currency derivative transactions with the banks, thus closing its open position. The actual effect of exchange rate changes would be influenced by such a hedge. FX rate as at 30.6.2026 +10% -10% CZK/EUR 24.260 26.686 21.834 CZK/GBP 28.153 30.968 25.338 CZK/PLN 5.647 6.212 5.082 CZK/USD 21.270 23.416 19.158 FX rate as at 31.12.2025 +10% -10% CZK/EUR 24.245 26.670 21.821 CZK/GBP 27.789 30.568 25.010 CZK/PLN 5.744 6.318 5.170 CZK/USD 20.632 22.695 18.569
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 77 30.06.2026 Original curr. TCZK TCZK +10% Change TCZK -10% Change Short-term and long-term receivables TEUR 41 237 1 000 404 1 100 444 100 040 900 364 -100 040 TPLN 7 537 42 562 46 818 4 256 38 306 -4 256 TUSD 9 662 205 666 226 233 20 567 185 100 -20 567 TGBP 179 5 028 5 531 503 4 525 -503 Short-term and long-term payables TEUR 6 488 157 388 173 127 15 739 141 649 -15 739 TPLN 1 724 9 736 10 710 974 8 762 -974 TUSD 1 137 24 193 26 612 2 419 21 774 -2 419 TGBP 318 8 957 9 853 896 8 061 -896 Net currency risk TEUR 34 749 843 016 927 317 84 301 758 715 -84 301 TPLN 5 813 32 826 36 108 3 282 29 544 -3 282 TUSD 8 525 181 473 199 621 18 148 163 326 -18 148 TGBP -139 -3 929 -4 322 -393 -3 536 393 Total TCZK 105 338 TCZK -105 338 31.12.2025 Original curr. TCZK TCZK +10% Change TCZK -10% Change Short-term and long-term receivables TEUR 33 190 804 691 885 160 80 469 724 222 -80 469 TPLN - - - - - - TUSD 7 928 163 574 179 931 16 357 147 216 -16 357 TGBP 54 1 502 1 652 150 1 352 -150 Short-term and long-term payables TEUR 5 637 136 665 150 331 13 666 122 998 -13 666 TPLN 13 434 77 166 84 883 7 717 69 450 -7 717 TUSD 1 394 28 762 31 638 2 876 25 885 -2 876 TGBP 1 272 35 335 38 868 3 533 31 801 -3 533 Net currency risk TEUR 27 553 668 026 734 829 66 803 601 224 -66 803 TPLN -13 434 -77 166 -84 883 -7 717 -69 450 7 717 TUSD 6 534 134 812 148 293 13 481 121 331 -13 481 TGBP -1 217 -33 833 -37 216 -3 383 -30 450 3 383 Total TCZK 69 184 TCZK -69 184 Derivative instruments: 30.6.2026 MtM value TCZK +10% TCZK -10% MtM value Additional effect MtM value Additional effect EUR 39 887 -477 679 -517 566 557 452 517 565 GBP -2 467 -34 494 -32 027 29 560 32 027 USD 11 523 -53 103 -64 626 76 150 64 627 Total 48 943 -565 276 -614 219 663 162 614 219 31.12.2025 MtM value TCZK +10% TCZK -10% MtM value Additional effect MtM value Additional effect EUR 49 117 -410 220 -459 337 508 454 459 337 GBP 0 0 0 0 0 USD 68 874 -30 053 -98 927 167 801 98 927 Total 117 991 -440 273 -558 264 676 255 558 264 MtM (Mark-to-Market) reflects the revaluation of a position with respect to its market value.
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 78 20. Summary of derivative instruments The Group has been continually concluding forward contracts with Czech commercial banks, currently with Česká spořitelna, a.s., Československá obchodní banka, a. s., Komerční banka, a.s., Raiffeisenbank a.s. and Všeobecná úvěrová banka a.s., pobočka Praha, which are related to transactions involving the sale and purchase of EUR, GBP and USD. The Group uses these derivatives to hedge future cash flows and the fair values of some financial assets. The Group classifies financial derivatives as hedging derivatives and derivatives for trading. The resulting receivables or payables arising from them are classified as either current or non -current according to the effective date of the contract. Fair value The carrying value of cash and cash equivalents, receivables, advances, other assets and payables is close to their fair value with regard to the current character of these items. Hedging The Group hedges future cash flows from long term contracts concluded in foreign currencies (EUR, GBP, USD) against currency risks. The Group also hedges the fair value of financial assets and liabilities arising from these contracts, against currency risk s, until the financial assets are realised. Forward and swap transactions are used for the purpose of hedging. Hedging instruments – outstanding contracts 30.6.2026 31.12.2025 Nominal value (TFX) Nominal value (MCZK) Fair value (TCZK) AVG rate Nominal value (TFX) Nominal value (MCZK) Fair value (TCZK) AVG rate EUR 213 341 5 327 39 887 24.84 189 456 4 743 49 117 25,04 GBP 11 376 312 -2 467 27.40 0 0 0 - USD 30 360 657 11 523 21.64 47 949 1 058 68 874 22,06 Total 6 296 48 943 5 801 117 991 Nominal value and other terms of hypothetical derivative (hedged item) used for measurement of hedge effectiveness is not significantly different from the terms and nominal value of the hedging instruments in the above table. The fair value of derivative instruments, which fulfilled hedge accounting requirements, as at the reporting date was TCZK 48 943 (31.12.2025: TCZK 117 991). The fair value of derivative instruments, which did not fulfil hedge accounting requirements, as at the reporting date was TCZK 0 (31.12.2025: TCZK 0). There were no significant derivatives in the periods under review that were reclassified due to failing to meet the conditions of high-efficiency criteria. Fair value of hedging instruments TCZK k 30.6.2026 k 31.12.2025 Future cash flows hedging Receivable Payable Receivable Payable • Within 1 year 49 940 10 894 92 389 1 033 • From 2 to 5 years 19 080 8 973 29 680 1 797 • Over 5 years - 210 - 1 248 69 020 20 077 122 069 4 078 Total charged to equity 26 486 - 60 407 - Total charged to profit or loss account 22 457 - 57 584 - Total charged 48 943 - 117 991 -
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 79 Movement of Revaluation of hedging reserve TCZK Opening balance 1.1.2026 64 922 Gain/(loss) arising on changes in fair value of hedging instruments during the period -74 523 Related income tax 15 650 (Gain)/loss reclassified to profit or loss 40 727 Related income tax -8 553 Closing balance 30.6.2026 38 223 Opening balance 1.1.2025 -54 612 Gain/(loss) arising on changes in fair value of hedging instruments during the period 184 709 Related income tax -38 788 (Gain)/loss reclassified to profit or loss -33 401 Related income tax 7 014 Closing balance 31.12.2025 64 922 21. Litigations The Group does not lead any material litigation as at 30.6.2026 and 31.12.2025. 22. Environmental liabilities The Group does not operate any technology that could give rise to the ecological risk. 23. Provided guarantees and other conditional obligations a) Overview of bank guarantees In accordance with the contract terms, the Group is liable for issued bank guarantees for efficient fulfilment of projects, guarantee period, and advance refunds. • Československá obchodní banka, a. s. has issued bank guarantees of TCZK 347 929, TEUR 56 066, TUSD 10 696 and TPLN 52 085 with maturity up to 31 January 2031. • Komerční banka, a.s. has issued bank guarantees of TCZK 144 138, TUSD 27 and TEUR 687 with maturity up to 21 February 2028. • Raiffeisenbank a.s. has issued bank guarantees of TCZK 29 742 , TEUR 10 969 and TUSD 1 158 with maturity up to 12 December 2029. • Všeobecná úvěrová banka, a.s., pobočka Praha issued bank guarantees of TCZK 42 578, TEUR 7 465 and TUSD 6 896 with maturity up to 30 June 2029. • YES Bank Limited issued bank guarantees of TINR 378 530 with maturity up to 03 April 2029. b) Overview of nonbank guarantees In accordance with the contract conditions, the Group issued nonbank guarantees for covering projects liabilities in warranty period in amount of TCZK 77 467 in favour of Doosan Enerbility Co., Ltd. c) Liabilities covered by a right of pledge The Group has no liabilities covered by a right of pledge. d) Overview of issued promissory notes The Group has no bank guarantee covered by promissory notes. e) Guarantees The Group provides no guarantees for bank guarantees and letter of credits facilities of related parties as at 30 June 2026. The Subsidiary provides fixed deposits cash collateral amounting to TINR 399 947 to secure bank guarantees and letter of credits facility as at 30 June 2026.
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Doosan Škoda Power a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 80 24. Subsequent events In the period from 30 June 2026 until the publication of this report, the Company secured access to short- term bank financing. These measures form part of the ongoing optimisation of financial management and support flexibility in working capital management. This did not affect the valuation of assets and liabilities reported as at 30 June 2026. In Pilsen on 23 September 2026 Signature of authorised representatives: Name: Byoung Tak Kim Young Ki Lim Position: Vice Chairman of the Board of Directors Chairman of the Board of Directors Signature: ......................................................... .........................................................
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Doosan Škoda Power a.s. Interim Financial Report for the first half of 2026 (unaudited) 81