Enea S.A. — Earnings Release 2020

Nov 18, 2020

Current Report No.: 49/2020

Date of Preparation: 18 November 2020

Issuer's Abbreviated Name: ENEA S.A.

Subject: Information on preliminary financial and operating results forQ1-Q3 2020

Legal Basis: Article 17(1) of the Market Abuse Regulation - confidentialinformation

Body of the report:

In connection with the adoption, on 18 November 2020, by the ManagementBoard of ENEA S.A. ("Company", "Issuer"), of information on preliminaryfinancial and operating results of the ENEA Group for Q1-Q3 2020, theCompany hereby publishes the said preliminary results.

Consolidated financial results of the ENEA Group for Q1-Q3 2020:

- Revenue from sales and other income: PLN 13,464 million,

- EBITDA: PLN 2,635 million,

- Profit before tax: PLN 90 million,

- Net profit (loss) for the reporting period: PLN -44 million;

- Net profit (loss) attributable to shareholders of the parent company:PLN -62 million.

EBITDA in the various operating areas:

- Mining: PLN 325 million,

- Generation: PLN 1,209 million,

- Distribution: PLN 994 million,

- Trading: PLN 59 million.

Selected operating highlights:

- Net coal production: 5.5 million tons,

- Total net electricity generation: 16.9 TWh,

- Sales of distribution services to end users: 14.3 TWh,

- Sales of electricity and gaseous fuel to retail customers: 15.6 TWh.

The EBITDA result generated by the ENEA Group in Q1-Q3 2020 was drivenlargely by the following factors (compared to Q1-Q3 2019):

In the Mining Area, the segment's lower result is attributable mainly toa decrease in revenue from sales of coal (lower sales volume at a higherprice) in connection with the unfavorable oversupply of coal in themarket.

In the Generation Area, the segment's result was favorably affected bythe increase in revenue from sales of electricity (higher energy prices)and property rights, despite the negative deviation of the costs of coalwith transport and CO2 emission allowances.

In the Distribution Area, the higher result was driven by higher marginson licensed activities (affected by, among others, a higher rate of thefixed grid charge in the approved 2020 tariff) and a higher result onother operating activities (driven mainly by changes in the provisionsfor grid assets and higher revenue from contractual penalties andindemnities).

In the Trading Area, the segment's result was favorably affected by theincrease in the average sales price of energy and the updated CO2valuation. At the same time, the energy purchase prices increased(mainly due to the increase in the price of CO2 emission allowances) andso did the costs of environmental obligations.

Standalone financial results of ENEA S.A. for Q1-Q3 2020:

- Revenue from sales and other income: PLN 4,566 million,

- EBITDA: PLN -98 million,

- Profit (loss) before tax: PLN -486 million,

- Net profit (loss) for the reporting period: PLN -462 million.

These preliminary results take into account the impact of the impairmentloss on the stake held by ENEA S.A. in the share capital of Polska GrupaGórnicza S.A. on the Issuer's standalone and consolidated financialstatements for the said period to the extent and in the amountsdisclosed by the Issuer in Current Report No. 47/2020 of 27 October 2020.

The final results will be presented in the extended consolidatedquarterly report of the ENEA Group for Q3 2020 scheduled to be publishedon 26 November 2020.

Please note that the term EBITDA is defined as the value of operatingprofit (loss) + depreciation and amortization + impairment losses onnon-financial non-current assets (values for the reporting period).EBITDA is a standard measure of efficiency of a business activity, inparticular for the industry in which the Issuer's Group operates. Theabove definition and methodology for its calculation are the same asthose used to calculate this indicator in the Issuer's periodic reports.The definition above is also included in the glossary of terms andabbreviations available on the Company's website(https://ir.enea.pl/slownik).