Enea S.A. — Earnings Release 2021

Aug 20, 2021

Current Report No.: 26/2021

Date of Preparation: 20 August 2021

Issuer's Abbreviated Name: ENEA S.A.

Subject: Information on preliminary financial and operating results forH1 2021

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

Body of the report:

In connection with the adoption, on 20 August 2021, by the ManagementBoard of ENEA S.A. ("Company", "Issuer"), of information on preliminaryfinancial and operating results of the ENEA Group for the first half of2021, the Company hereby publishes the said preliminary results.

Consolidated financial results of the ENEA Group for H1 2021:

- Revenue from sales and other income: PLN 9,823 million,

- EBITDA: PLN 1,652 million,

- Profit before tax: PLN 929 million,

- Net profit for the reporting period: PLN 736 million,

- Net profit attributable to shareholders of the parent company: PLN 699million,

- CAPEX: PLN 666 million.

EBITDA in the distinct operating areas:

- Mining: PLN 318 million,

- Generation: PLN 655 million,

- Distribution: PLN 687 million,

- Trading: PLN 9 million.

Selected operating highlights:

- Net coal production: 4.9 million tons,

- Total net electricity generation: 12.1 TWh,

- Sales of distribution services to end users: 10.2 TWh,

- Sales of electricity and gaseous fuel to retail customers: 12.2 TWh.

The EBITDA result generated by the ENEA Group in H1 2021 was drivenlargely by the following factors (compared to H1 2020):

In the Mining Area, the higher EBITDA was driven mainly by the highersales of coal, partially offset by a lower sales price.

In the Generation Area, a significant decrease in EBITDA was recorded inthe System Power Plants Segment, driven by the lower margin ongeneration and the margin on trading and the Balancing Market, partiallyoffset by revenue earned on the Capacity Market. In the Heat Segment andthe RES Segment, an increase in EBITDA was recorded.

In the Distribution Area, the higher EBITDA was driven by larger marginson licensed activities coupled with greater operating expenses and alower result on other operating activities.

In the Trading area, the lower EBITDA results mainly from the loweraverage sales price of energy, a change in provisions related to onerouscontracts, a revaluation of CO2 contracts and an increase in the costsof environmental obligations, partially offset by a lower average energypurchase price.

Consolidated financial results of the ENEA Group for Q2 2021:

- Revenue from sales and other income: PLN 4,778 million,

- EBITDA: PLN 730 million,

- Profit before tax: PLN 424 million,

- Net profit for the reporting period: PLN 330 million,

- Net profit attributable to shareholders of the parent company: PLN 314million,

- CAPEX: PLN 358 million.

EBITDA in the distinct operating areas:

- Mining: PLN 155 million,

- Generation: PLN 288 million,

- Distribution: PLN 319 million,

- Trading: PLN -38 million.

Selected operating highlights:

- Net coal production: 2.3 million tons,

- Total net electricity generation: 6.0 TWh,

- Sales of distribution services to end users: 5.0 TWh,

- Sales of electricity and gaseous fuel to retail customers: 5.8 TWh.

Standalone financial results of ENEA S.A. for H1 2021:

- Revenue from sales and other income: PLN 3,515 million,

- EBITDA: PLN 32 million,

- Profit before tax: PLN 437 million,

- Net profit for the reporting period: PLN 507 million.

These preliminary results take into account the impact of the partialreversal of the provision of approximately PLN 114 million which theIssuer informed about in Current Report No. 23/2021 of 9 July 2021 inconnection with the scheduled settlement of the investment projectexecuted by Elektrownia Ostrołęka sp. z o.o.

The final results will be presented in the periodic report of the ENEAGroup for H1 2021 scheduled to be published on 16 September 2021.

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. Theterm CAPEX signifies capital expenditures on property, plant andequipment and intangible assets. CAPEX is a standard indicator, also inthe Issuer's industry, that expresses the value of expenditures incurredin connection with the maintenance and growth of business by therespective entity. The foregoing definitions and methodologies for theircalculation are the same as the definitions and methodologies for thecalculation of these indicators applied in the Issuer's periodicreports. The definitions of these terms are also included in theglossary of terms and abbreviations available on the Company's website(https://ir.enea.pl/slownik).