Energa S.A.

Report Publication Announcement • Mar 31, 2020

Current Report No. 26/2020

Date: 31 March 2020

Subject: Information on the results of impairment tests of assets in theGeneration Business Line and impairment tests on stakes in subsidiariesowned by Energa SA

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

The Management Board of Energa SA (the "Company") hereby informs that on31 March 2020 it received the information about the results of theimpairment tests of assets in the Generation Business Line, which wereconducted for the second half of 2019 due to the changes in marketenvironment and the related update of forecasted price paths in theEnerga Group.

As a result of the abovementioned impairment tests, it was foundnecessary to create the impairment losses on conventional and CHPgeneration assets (PLN 180 million in total), which were partiallyoffset by the reversal of impairment losses on RES assets (PLN 18million in total). The estimated total impact of the above impairmentlosses on the consolidated net result of the Energa Group for 2019 isPLN -131 million. The above events are of a non-cash nature. They willdecrease the operating results of Energa Group without affecting theEBITDA result.

At the same time, as a result of impairment tests on stakes insubsidiaries owned by Energa SA, the impairment losses in the amount ofPLN 178 million were identified. The estimated total impact of the theselosses on the standalone net result of Energa SA for 2019 is PLN -144million. The above events are of a non-cash nature. They will decreasethe operating results of Energa SA without affecting the EBITDA result.

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 amount of the impairment losses will be presented inthe consolidated financial statements of Energa Group for 2019 and inthe standalone financial statement of Energa SA.