Enea S.A. — Earnings Release 2022

Apr 1, 2022

Current Report No.: 16/2022

Date of Preparation: 1 April 2022

Issuer's Abbreviated Name: ENEA S.A.

Subject: Completion of the financial settlement process with the EPCContractor of the Coal-Fired Project under the contract for theconstruction of the Ostrołęka C Power Plant

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

Body of the report:

With reference to Current Report Nos. 21/2021 of 25 June 2021 and43/2021 of 22 December 2021, the Management Board of ENEA S.A.("Issuer", "Company") hereby reports that on 1 April 2022 it obtainedinformation from Elektrownia Ostrołęka Sp. z o.o. ("EO") on thecompletion of the financial settlement on 31 March 2022, in accordancewith the executed Agreement (as referred to in the said currentreports), of the Coal-Fired Project implemented under the contract forthe construction of the Ostrołęka C Power Plant, with the EPC Contractor- a consortium established between GE Power sp. z o.o. with itsregistered office in Warsaw (consortium leader) and GE Steam PowerSystems S.A.S. with its registered office in Boulogne-Billancourt,France. The final net value of receivables arising from the settlementwas PLN 958 million and, accordingly, the total amount due the EPCContractor, calculated as the difference between the above value and theamounts already covered has already been paid in full by EO. Therefore,the financial settlement process with the EPC Contractor of theCoal-Fired Project has been completed. The costs incurred by the Issuerin connection with the settlement of the work performed by the EPCContractor accounted for 50% of the said amount, that is PLN 479 millionnet (with Energa S.A. receiving the other 50%).

In light of the foregoing, the Issuer has identified the possibility ofa further reversal of the provision - up to PLN 15.4 million -established initially in 2020 in the amount of PLN 222.2 million tofinance EO for the purposes of the financial settlement of theCoal-Fired Project. The impact of this event on the ENEA Group'sconsolidated net profit in the reporting period and ENEA S.A.'sstandalone net profit in 2022 will amount to PLN 31.1 million. The eventdescribed herein is of a non-cash nature and will increase the reportingperiod's net profit with no impact on EBITDA.

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 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).