Enea S.A. — Earnings Release 2017

Feb 28, 2018

Current Report No.: 5/2018

Date of preparation: 28 February 2018

Short name of issuer: Enea S.A.

Subject: Information on preliminary financial results for 2017

Legal basis: Article 17 item 1 of MAR - confidential information

Content of report:

The Management Board of Enea S.A. has resolved to publish thepreliminary financial and operating results for 2017, which arepresented below.

Consolidated financial results of Enea Capital Group for 2017:

- Net sales revenue: PLN 11,406m,

- EBITDA: PLN 2,684m,

- EBIT: PLN 1,488m,

- Net profit: PLN 1,165m,

- Net profit attributable to the shareholders of the Parent Company: PLN1,070m.

EBITDA in individual segments of operations:

- Trade: PLN 178m,

- Distribution: PLN 1,073m,

- Generation: PLN 735m,

- Mining: PLN 709m.

Selected operating data:

- Net production of coal: 9.1 million tonnes

- Total generation of electricity: 21.0 TWh

- Sales of distribution services to end users: 19.3 TWh

- Sales of electricity and gaseous fuel to retail customers: 18.9 TWh

The following events had positive impact on EBITDA generated by EneaCapital Group in 2017:

- Distribution Segment - the situation on the property rights market,after taking into account provisions concerning termination of long-termcontracts - PLN 87m

- Generation Segment - Elektrownia Połaniec joining Enea Capital Group -PLN 175m (the value of EBITDA consolidated as from 14 March 2017)

- Mining Segment- provisions change resulting from the signing of anagreement on coal allowances paid in cash to LW Bogdanka pensioners -PLN 115m

Moreover, the 2017 financial result in the Generation Segment wasaffected by:

- the modernisation of Unit No. 10 (560MW), which commenced in July 2017,

- the continuation in Q4 2017 of works related to the launch andsynchronisation of Unit No. 11 (1,075MW)

Non-consolidated financial results of Enea S.A. for 2017:

- Net sales revenue: PLN 5,640m

- EBITDA: PLN 125m

- EBIT: PLN 122m

- Net profit: PLN 1,813m

The non-consolidated net financial result generated by Enea S.A. in 2017was mostly affected by the reversal of impairment losses on the value ofshares in Enea Wytwarzanie Sp. z o.o. recognised in prior periods: PLN879m.

The final results will be published in the consolidated financialstatements of Enea Capital Group and non-consolidated financialstatements of Enea S.A. for 2017 whose publication is planned for 23March 2018.