Enea S.A. — Earnings Release 2019

Mar 31, 2020

Current Report No.: 15/2020

Date of Preparation: 31 March 2020

Issuer's Abbreviated Name: ENEA S.A.

Subject: Information on the intention to include non-recurringoperations of an accounting nature in the financial statements for 2019

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

Body of the report:

The Management Board of ENEA S.A. ("Issuer", "Company") hereby reportsthat on 31 March 2020 a decision was made to recognize impairments onthe carrying amount of assets.

Impact on the consolidated financial statements of the ENEA Group

In the Generation Area, the test results indicated an increase in thecarrying amount of assets, which will be recognized by reversing theimpairment losses posted in 2016 (as disclosed by the Issuer in CurrentReport No. 10/2016), in the Financial Statements of ENEA Wytwarzanie sp.z o.o. for the total amount of PLN 11.6 million. Moreover, in the BiogasCash Generation Unit (CGU) of the Renewable Energy Sources Area, animpairment of assets in the amount of PLN 1.3 million was recognized.

In the Heat Area, the tests demonstrated the need to recognize animpairment of the carrying amount of assets in the financial statementsof ENEA Ciepło sp. z o.o. for the amount of PLN 20.4 million.

With reference to Current Report No. 6/2020 of 14 February 2020, theIssuer hereby reports that on 31 March 2020 a decision was made torecognize, in the consolidated financial statements of the ENEA Group,an impairment loss on Polska Grupa Górnicza S.A. shares in the amount ofPLN 52.7 million.

The recognition of these events will reduce profit before tax of theENEA Group by PLN 62.8 million and the net profit for the reportingperiod of the ENEA Group by PLN 60.8 million, respectively, but will notaffect the consolidated EBITDA.

At the same time, with reference to Current Report No. 9/2020 of 21February 2020, the Issuer hereby reports that the consolidated resultsfor 2019 will also be affected by the reversal of the provision for thedispute described in the said report in the amount of PLN 129 million.The effect of this accounting operation on the profit before tax will bePLN 129 million, on the net profit for the reporting period will be PLN104.5 million and on the consolidated EBITDA will be PLN 129 million.

In aggregate, the operations described above will improve the ENEAGroup's profit before tax by PLN 66.2 million and net profit for thereporting period by PLN 43.7 million, respectively, and the ENEA Group'sconsolidated EBITDA by PLN 129 million.

Impact on the financial statements of ENEA S.A.

In connection with the completion of the said tests for impairment ofthe assets of ENEA Wytwarzanie sp. z o.o., a decision has been made torecognize, in the Issuer's accounting ledgers, the amount of PLN 238.4million on account of the reversal of impairment losses posted inprevious years on the carrying amount of ENEA Wytwarzanie sp. z o.o.shares, which the Issuer disclosed, in particular, in Current Report No.10/2016 of 4 March 2016.

Moreover, the tests demonstrated the need to recognize an impairmentloss of PLN 28.8 million on ENEA Ciepło sp. z o.o. shares.

With reference to Current Report No. 6/2020 of 14 February 2020, theIssuer hereby reports that on 31 March 2020 a decision was made torecognize, in the Issuer's accounting ledgers, an impairment loss onPolska Grupa Górnicza S.A. shares in the amount of PLN 47.7 million, tobe reflected in the Company's financial statements.

The combined effect of these recognitions will increase the Company'sprofit before tax and net profit for the reporting period by PLN 161.9million.

At the same time, the Issuer points out that the operations describedabove are of an accounting nature and have no consequence on theCompany's liquidity position. The Company makes a reservation that thevalues presented above are estimates and are subject to change. Thefinal effects of the non-recurring accounting operations described abovewill be presented in the financial statements of ENEA S.A. and the ENEAGroup for 2019, the publication of which is scheduled for 23 April 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). 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).