Enea S.A. — Earnings Release 2024

Sep 2, 2024

Report Content Current Report No.: 32/2024

Date of Preparation: 2 September 2024

Issuer's Abbreviated Name: ENEA S.A.

Subject: Information on preliminary financial and operating results forH1 2024

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

Body of the report:

In connection with the adoption, on 2 September 2024, by the ManagementBoard of ENEA S.A. ("Company", "Issuer"), of information on preliminaryfinancial and operating results of the ENEA Group for the first half of2024, the Company hereby publishes the said preliminary results.

Consolidated financial results of the ENEA Group for H1 2024:

- Revenue from sales and other income: PLN 16,142 million,

- EBITDA: PLN 3,470 million,

- Profit before tax: PLN 2,432 million,

- Net profit for the reporting period: PLN 1,970 million,

- Net profit attributable to shareholders of the parent company: PLN2,281 million,

- Capital expenditures on property, plant and equipment and intangibleassets: PLN 1,341 million,

- Net debt / LTM EBITDA ratio: 0.39.

EBITDA in the distinct operating areas:

- Mining: PLN 271 million,

- Generation: PLN 1,665 million,

- Distribution: PLN 1,160 million,

- Trading: PLN 196 million.

Selected operating highlights:

- Net coal production: 3.5 million tons,

- Total net electricity generation: 9.8 TWh, of which: 0.7 TWh frombiomass and 0.2 TWh from RES,

- Sales of distribution services to end users: 10.0 TWh,

- Sales of electricity and gaseous fuel to retail customers: 12.5 TWh.

The EBITDA result generated by the ENEA Group in H1 2024 was drivenlargely by the following factors (compared to H1 2023):

The lower EBITDA in the Mining Area resulted from a decrease in revenuefrom sales of coal. Despite the increase in coal sales volume, a lowersales price was realized.

In the Generation Area, the higher EBITDA was largely driven by improvedEBITDA in the System Power Plants Segment. There was an increase in theturnover margin, an increase in revenues from the Capacity Market,Regulatory System Services and Balancing Capacity, while the result ofthe generation concession declined. The RES Segment saw a decrease inEBITDA due to the realization of a lower margin on the Green Unit(mainly as a result of lower electricity prices, with a decrease in theunit cost of biomass). The Heat Segment saw a decline in EBITDA, whichwas influenced by, among other things, a decline in the unit margin onheat, while fixed costs increased. In the Generation Area as a whole,the effect of the base of the corresponding period of the previous yearrelating to the costs incurred for the charge for the Price DifferenceFund is significant.

In the Distribution Area, the improvement in EBITDA was driven by thehigher margin realized on the concession business and higher result onother operating activities. At the same time, operating expenses went up.

In the Trading Area, the higher EBITDA was mainly due to an increase inthe margin on the retail market. At the same time, there was a declinein recognized compensation income and a decline in the use of provisionsrelated to onerous contracts.

On account of the application of settlements with eligible offtakerspursuant to the Act of 7 October 2022 on special solutions to protectelectricity offtakers in 2024 in connection with the situation on theelectricity market and on account of the application of the maximumprice in accordance with the Act of 27 October 2022 on emergencymeasures to reduce electricity prices and support certain consumers in2024, the ENEA Group recognized in H1 2024 compensation revenues in thetotal amount of PLN 898 million and in Q2 2024 in the total amount ofPLN 392 million.

Consolidated financial results of the ENEA Group for Q2 2024:

- Revenue from sales and other income: PLN 7,757 million,

- EBITDA: PLN 1,593 million,

- Profit before tax: PLN 1,132 million,

- Net profit for the reporting period: PLN 931 million,

- Net profit attributable to shareholders of the parent company: PLN1,263 million,

- Capital expenditures on property, plant and equipment and intangibleassets: PLN 853 million,

- Net debt / LTM EBITDA ratio: 0.39.

EBITDA in the distinct operating areas:

- Mining: PLN 113 million,

- Generation: PLN 735 million,

- Distribution: PLN 546 million,

- Trading: PLN 116 million.

Selected operating highlights:

- Net coal production: 1.6 million tons,

- Total net electricity generation: 4.8 TWh, of which: 0.3 TWh frombiomass and 0.1 TWh from RES,

- Sales of distribution services to end users: 4.8 TWh,

- Sales of electricity and gaseous fuel to retail customers: 5.9 TWh.

Standalone financial results of ENEA S.A. for H1 2024:

- Revenue from sales and other income: PLN 7,838 million,

- EBITDA: PLN 99 million,

- Profit before tax: PLN 1,075 million,

- Net profit for the reporting period: PLN 1,054 million.

With reference to Current Report No. 28/2024 of the Management Board ofLubelski Węgiel Bogdanka S.A. (_quot;LWB_quot;) dated 27 August 2024, regardingthe results of the asset impairment tests, the ENEA Group compared theresults with the assessment of the recoverable value of the Mining CGUcarried out from the perspective of the ENEA Group as of 31 December2023, including consolidation adjustments as of 30 June 2024.Considering that the net asset value of the Mining CGU attributable tothe ENEA Group is lower according to the ENEA Group perspective than thenet asset value of the Mining CGU attributable to the ENEA Groupaccording to the LWB test, it was deemed reasonable to continuereporting the net asset value of the Mining CGU from the ENEA Groupperspective. The analysis also showed there was no need to update thevalue of the shares from ENEA S.A.'s perspective.

Please be advised that the foregoing figures are estimates and as suchare subject to change, the final results will be presented in theperiodic report of the ENEA Group for H1 2024 expected to be publishedon 18 September 2024.

The Company clarifies that the term EBITDA is defined as the value ofoperating profit (loss) + depreciation and amortization + impairmentlosses on non-financial non-current assets (values for the reportingperiod). The Net debt / LTM EBITDA ratio is equal to (loans, borrowingsand non-current and current debt securities + non-current and currentfinance lease liabilities + non-current and current financialliabilities measured at fair value - cash and cash equivalents -non-current and current financial assets measured at fair value -non-current and current debt financial assets measured at amortized cost- other short-term investments) / LTM EBITDA. LTM EBITDA means EBITDAfor the last 12 months.