Energa S.A.

Earnings Release • Jan 17, 2019

Current Report No.: 2/2019

Prepared on: 17/01/2019

Subject: Information on the reversal of impairment losses on assets

Legal basis: Article 17(1) MAR - confidential information

The Management Board of ENERGA SA reports that due to certain changes inits market environment, in the first instance the increase ofelectricity and green certificates prices, it has identified evidencewhich may result in the reversal of impairment losses on certain assetsof the ENERGA Group.

The impairment tests carried out in the second half of 2018 revealed anincrease in the recoverable amount of wind and photovoltaic assets. On17 January 2019 a decision was taken to reverse impairment losses onwind and photovoltaic assets in the Generation Business Line in thetotal amount of PLN 145.4 million. The estimated effect of the reversalof the above impairment losses on the consolidated net results ofoperations of the ENERGA Group for 2018 is PLN 117.8 million. No cashflows will be involved. This will improve the operating profit of theENERGA Group without affecting its EBITDA.

After taking into account the reversal of the impairment losses, thebook value of wind and photovoltaic farms in the consolidated balancesheet of the ENERGA Group amounts to PLN 806 million.

The presented figures are estimates; they will be audited by an auditorand may change after the auditor has verified the tests and issued anopinion. The final outcome of the tests and the amount of reversal ofthe impairment losses will be presented in the consolidated financialstatements of the ENERGA Group as at and for 2018.