Enea S.A. — Earnings Release 2019

May 26, 2020

Current Report No.: 19/2020

Date of Preparation: 26 May 2020

Issuer's Abbreviated Name: ENEA S.A.

Subject: Information on preliminary financial and operating results for2019

Legal Basis: Article 17 Section 1 of the Market Abuse Regulation -confidential information

Body of the report:

In connection with the adoption, on 26 May 2020, by the Management Boardof ENEA S.A. ("Company", "Issuer"), of information on preliminaryfinancial and operating results of the ENEA Group for 2019, the Companyhereby publishes the said preliminary results.

Consolidated financial results of the ENEA Group for 2019:

- Net revenue from sales: PLN 15,796 million

- Revenue from sales and other income: PLN 16,401 million

- EBITDA: PLN 3,410 million

- Profit before tax: PLN 871 million

- Net profit for the reporting period: PLN 541 million

- Net profit attributable to shareholders of the parent company: PLN 423million

EBITDA in the various operating areas:

- Mining: PLN 771 million

- Generation: PLN 1,594 million

- Distribution: PLN 1,090 million

- Trading: 23 million

Selected operating highlights:

- Net coal production: 9.5 million tons

- Total net electricity generation: 25.9 TWh

- Sales of distribution services to end users: 19.8 TWh

- Sales of electricity and gaseous fuel to retail customers: 20.3 TWh

The EBITDA result generated by the ENEA Group in 2019 was driven largelyby the following factors (compared to 2018):

In the Mining Area, the segment's better performance resulted chieflyfrom the higher level of net production and higher revenue from the saleof coal.

In the Generation Area, the result was favorably affected by theincrease in revenue from the sale of electricity and property rightsdespite the negative deviation in fuel costs and CO2 emission rights. In2019, the following non-recurring was recognized: reversal of theprovision for the Skoczykłody wind farm (PLN 129 million).

In the Distribution Area, the slightly lower result generated in 2019compared to 2018 resulted from the increase in the costs of purchasingenergy for own needs and to cover the balancing difference, coupled withthe decrease in the result on other operating activities due to therecognition of the following non-recurring event in 2018: payment ofcompensation for damages caused by storms in 2017.

In the Trading Area, the improved result was driven by the compensationreceived, the price difference, the change in provisions related toonerous contracts and the increase in the average sales price of energy.At the same time, the result was affected by increasing energy purchaseprices (mainly due to the increase in the price of CO2 emissionallowances emission allowances) and the lower sales volume of energy.

Standalone financial results of ENEA S.A. for 2019:

- Net revenue from sales: PLN 5,100 million

- Revenue from sales and other income: PLN 5,697 million

- EBITDA: PLN -109 million

- Profit before tax: PLN 287 million

- Net profit for the reporting period: PLN 283 million

The difference between the net profit for the reporting period and theCompany's operating loss resulted chiefly from dividend income paid bysubsidiaries.

Moreover, the Issuer points out that, in the presented financial resultsof the ENEA Group and ENEA S.A. for 2019, the impact of the consequencesof the Act of 28 December 2018 amending the Excise Duty Act and CertainOther Acts, as amended, was taken into account.

The preliminary results include the impact of impairment losses onshares in Elektrownia Ostrołęka sp. z o.o. (Elektrownia Ostrołęka) andthe loans granted to it in the standalone financial statements of ENEAS.A. and in the consolidated financial statements of the ENEA Group, inaccordance with Current Report No. 18/2020 of 19 May 2020. The estimatedimpact of these impairment losses on the Company's standalone net profitfor 2019 and the consolidated net profit of the ENEA Group for 2019 wasapprox. PLN 521.1 million and approx. PLN 500.9 million, respectively.The aforedescribed events are of a non-cash nature and have no impact oneither the consolidated or standalone EBITDA for 2019.

In order to maintain comparability of financial data for 2019 with datafor previous periods, revenue in this current report is presented in twoforms:

- Net revenue from sales, and

- Revenue from sales and other income.

Revenue from sales and other income is the sum of net revenue fromsales, revenue from leases and operating subleases and compensationreceived.

The final results will be presented in the consolidated financialstatements of the ENEA Group and the standalone financial statements ofENEA S.A. for 2019, the publication of which is scheduled for 4 June2020.

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). Theabove definition and methodology for its calculation are the same asthose for the calculation of this indicator in the Issuer's periodicreports. The definition in question is also provided in the glossary ofterms and abbreviations available on the Company's website(https://ir.enea.pl/slownik).