Enea S.A. — Earnings Release 2021

Mar 1, 2022

Current Report No.: 10/2022

Date of Preparation: 1 March 2022

Issuer's Abbreviated Name: ENEA S.A.

Subject: Information on preliminary financial and operating results for2021

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

Body of the report:

In connection with the adoption, on the 1st of March 2022, by theManagement Board of ENEA S.A. ("Company", "Issuer"), of information onpreliminary financial and operating results of the ENEA Group for 2021,the Company hereby publishes the said preliminary results.

Consolidated financial results of the ENEA Group for 2021:

- Revenue from sales and other income: PLN 21 211 million,

- EBITDA: PLN 3 637 million,

- Profit before tax: PLN 2 155 million,

- Net profit for the reporting period: PLN 1 786 million,

- Net profit attributable to shareholders of the parent company: PLN 1679 million,

- Capital expenditures on property, plant and equipment and intangibleassets: PLN 1 872 million.

- Net debt / EBITDA ratio: 0.75

EBITDA in the distinct operating areas:

- Mining: PLN 798 million,

- Generation: PLN 1 602 million,

- Distribution: PLN 1 393 million,

- Trading: PLN -125 million.

Selected operating highlights:

- Net coal production: 9.9 million tons,

- Total net electricity generation: 26.4 TWh,

- Sales of distribution services to end users: 20.3 TWh,

- Sales of electricity and gaseous fuel to retail customers: 24.5 TWh.

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

In the Mining Area, the higher EBITDA was driven mainly by the highersales of coal, partially offset by increased costs of operatingactivities.

In the Generation Area, EBITDA increased in the RES Segment (the resultwas higher in the Wind and Hydro Areas and in the Green Unit) and in theHeat Segment (mainly due to a higher unit margin). A significantdecrease in EBITDA was recorded in the System Power Plants Segment,driven by the lower margin on generation and the margin on trading andthe Balancing Market, partially offset by revenue earned on the CapacityMarket.

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 decline in EBITDA is mainly due to the changein provisions related to onerous contracts; this decline was partiallyoffset by higher margins realized on the retail market.

Consolidated financial results of the ENEA Group for Q4 2021:

- Revenue from sales and other income: PLN 5 920 million,

- EBITDA: PLN 864 million,

- Profit before tax: PLN 534 million,

- Net profit for the reporting period: PLN 454 million,

- Net profit attributable to shareholders of the parent company: PLN 409million,

- Capital expenditures on property, plant and equipment and intangibleassets: PLN 831 million,

- Net debt / EBITDA ratio: 0.75

EBITDA in the distinct operating areas:

- Mining: PLN 268 million,

- Generation: PLN 561 million,

- Distribution: PLN 362 million,

- Trading: PLN -301 million.

Selected operating highlights:

- Net coal production: 2.4 million tons,

- Total net electricity generation: 6.9 TWh,

- Sales of distribution services to end users: 5.2 TWh,

- Sales of electricity and gaseous fuel to retail customers: 6.3 TWh.

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

- Revenue from sales and other income: PLN 7 407 million,

- EBITDA: PLN -290 million,

- Profit before tax: PLN 403 million,

- Net profit for the reporting period: PLN 460 million.

The preliminary results incorporate the impact of the increasedprovision for onerous contracts in the trading segment and the partialreversal of the provision for future investment commitments toElektrownia Ostrołęka Sp. z o.o., on which the Issuer reported in theCurrent Report No. 9/2022 of 3 February 2022. These two events togetherwill impact the standalone financial statement of ENEA S.A. for 2021 andthe consolidated financial statement of the ENEA Group for 2021 byreducing EBITDA by approx. PLN 188 million, profit before tax by approx.PLN 126.4 million and the Company's net profit for the reporting periodby approx. PLN 90.4 million.

The preliminary results take account of the impairment allowance onnon-financial non-current assets in the Białystok area in ENEA Ciepło inthe amount of PLN 26.1 million. The impairment allowance reduced theENEA Group's net profit for the reporting period by PLN 21.2 million.

The final results will be presented in the periodic reports of ENEA S.A.and the ENEA Group for 2021, the publication of which has been scheduledfor 23 March 2022.

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). TheNet debt / EBITDA ratio is (loans, borrowings and non-current andcurrent debt securities + non-current and current finance leaseliabilities + non-current and current financial liabilities measured atfair value - cash and cash equivalents - non-current and currentfinancial assets measured at fair value - non-current and current debtfinancial assets measured at amortized cost) / EBITDA LTM. EBITDA LTMmeans EBITDA for the last twelve months.

The above definitions and calculation methodologies are the same asthose used to calculate these ratios in the Issuer's periodic reports.The definitions of these terms are also included in the glossary ofterms and abbreviations available on the Company's website(https://ir.enea.pl/slownik).