Energa S.A.

Earnings Release • May 8, 2020

Current Report No. 39/2020

Date: 8 May 2020

Subject: Information on impairment losses created by the subsidiary

Legal basis: Article 17 (1) of MAR - inside information

The Management Board of Energa SA informs that on 8 May 2020 it receivedthe information from the subsidiary Energa Kogeneracja Sp. z o.o.("Company") about creation of:

a) impairment loss on the value of shares held in Polska Grupa GórniczaS.A. in the amount of PLN 405 million,

b) impairment loss on the value of property, plant and equipment of CGUElbląg in the amount of PLN 78 million,

c) impairment loss on the value of stakes in Energa Ciepło Ostrołęka Sp.z o.o. in the amount of PLN 19 million.

The above impairment losses are the result of valuations of stakes andimpairment tests of non-current assets as of 31 December 2019.

The estimated total impact of the above impairment losses on theconsolidated net result of Energa Group for 2019 is PLN -451 million,and on the standalone net result of Energa SA for 2019 PLN -274 millionin the form of a decrease in the value of stakes in the Company. Theabove events are of a non-cash nature. They will decrease the operatingresults of Energa Group and Energa SA without affecting the EBITDAresult.

The financial data presented are estimates and will be subject toauditing by the auditor, therefore they may change. The final results ofthe tests and the amounts of impairment losses will be presented in theconsolidated financial statements of Energa Group for 2019 and in thestandalone financial statement of Energa SA.