Energa S.A.

Legal Proceedings Report • Aug 29, 2019

Report title: Creation of a provision by a subsidiary

Date: 29 August 2019

Current Report No. 26/2019

Legal basis

Article 17(1) of the MAR - Confidential information.

The Management Board of ENERGA SA hereby informs that on 29 August 2019it learned that a subsidiary - Energa-Obrót SA - has created a provisionin the amount of PLN 31.2 million. The provision was created inconnection with the final judgment of the Court of Appeal in Gdańskdismissing the action of Energa-Obrót SA in one of the cases referred toin current report no. 37/2017 of 11 September 2017.

The provision was created in order to secure financial resources forpossible future payment of any contractual penalties resulting fromframework contracts for the sale of property rights resulting fromrenewable energy certificates. As of today, the provision created fullysecures claims against Energa-Obrót SA in case of their possible futurepayment.

The estimated impact on the EBITDA of the ENERGA Group for the firsthalf of 2019 is PLN 31.2 million.

The creation of the provision is not tantamount to a change in theposition presented by Energa-Obrót SA regarding the invalidity of thecontracts referred to in current report No. 37/2017 of 11 September2017. Energa-Obrót SA has the right to file a cassation appeal againstthe above-mentioned final judgment.

So far, Energa-Obrót SA has concluded five settlements with thedefendant wind farms, and is conducting court disputes and negotiationswith other entities, which may result in further settlements, i.e.ultimately an amicable conclusion of the disputes.