Enea S.A. — Earnings Release 2020

Aug 11, 2020

Current Report No.: 36/2020

Date of Preparation: 11 August 2020

Issuer's Abbreviated Name: ENEA S.A.

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

Subject: Information on the intention to include non-recurringoperations of an accounting nature in the financial statements for H12020

Body of the report:

The Management Board of ENEA S.A. (Company, Issuer) hereby reports thatin connection with the preparation of (standalone and consolidated)financial statements for H1 2020, the Company has identified the need torecognize an impairment loss on the value of shares in ENEA Wytwarzaniesp. z o.o. (ENEA Wytwarzanie) in an estimated amount of approx. PLN 318million in the standalone financial statements for H1 2020 and animpairment loss on the value of generation assets of its subsidiary ENEAWytwarzanie in an estimated amount of approx. PLN 523 million in theconsolidated financial statements for H1 2020, as a result of thecompletion, on 11 August 2020, of tests for the impairment of fixedassets, including shares in ENEA Wytwarzanie.

Moreover, following its assessment, carried out on 11 August 2020, ofthe impact exerted by the decision to continue the construction of thegenerating unit in the form of the Ostrołęka C Power Plant, based on achange from a coal-fired power source to a gas-fired power source, theCompany has identified the need to:

- recognize an impairment loss on a granted loan and ENEA's liabilitytowards ENERGA S.A. to return half the loans with interest granted bythe latter to Elektrownia Ostrołęka sp. z o.o. under the loan agreementsof 30 September 2019 and 23 December 2019, which the Issuer disclosed,among others, in its annual consolidated financial statements for 2019.The impairment loss will cover the remaining part, which was notincluded in the impairment loss disclosed in Current Report No. 18/2020,of the value of loans with interest granted to Elektrownia Ostrołęka sp.z o.o. and will amount to approx. PLN 137 million in the standalone andconsolidated financial statements for H1 2020,

- establishment, in the standalone and consolidated financial statementsfor H1 2020, of a provision in the amount of approx. PLN 219 million forfuture investment commitments towards Elektrownia Ostrołęka sp. z o.o.and ENERGA S.A., the level of which reflects the possible, estimated asat the date of establishment of the provision, funding amounts forElektrownia Ostrołęka sp. z o.o. earmarked for the settlement of theproject execution carried out to date by Elektrownia Ostrołęka sp. z o.o.

These events will affect the standalone financial statements of ENEAS.A. by reducing the Company's pre-tax profit and net profit for thereporting period by approx. PLN 674 million.

These events will affect the consolidated financial statements of theENEA Group by reducing the its pre-tax profit by approx. PLN 879 millionand net profit for the reporting period by approx. PLN 779 million.

The aforedescribed events are of a non-cash nature and have no impact oneither the consolidated or standalone EBITDA for the reporting period.

Please be advised that the said amounts of impairment losses andprovisions are estimates and as such are subject to change, and thattheir final value will be presented in the periodic reports of theCompany and the ENEA Group for H1 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 presented on a consolidatedbasis for the reporting period). EBITDA is a standard measure of theeffectiveness of a business, in particular for the industry in which theIssuer's Group operates. The above definition and methodology for itscalculation are the same as those for the calculation of this indicatorin the Issuer's periodic reports. The definition in question is alsoprovided in the glossary of terms and abbreviations available on theCompany's website (https://ir.enea.pl/slownik).