Enea S.A. — Earnings Release 2023

Mar 14, 2024

Report Content Current Report No.: 15/2024

Date of Preparation: 14 March 2024

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 2023

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

Body of the report:

The Management Board of ENEA S.A. ("Company", "Issuer") hereby reportsthat in connection with the preparation of (standalone and consolidated)financial statements for 2023, as a result of asset impairment tests, on14 March 2024, the Company identified the need to recognize impairmentallowances for:

- the value of shares in ENEA Wytwarzanie sp. z o.o. ("ENEAWytwarzanie") in the amount of approx. PLN 1,424 million,

- the value of shares in ENEA Ciepło sp. z o.o. ("ENEA Ciepło") in theamount of approx. PLN 23 million,

in the standalone financial statements for 2023, as well as impairmentallowances for the generation assets of the following subsidiaries:

- ENEA Wytwarzanie in the amount of approx. PLN 1,570 million,

- ENEA Elektrownia Połaniec S.A. in the amount of approx. PLN 742million,

- ENEA Ciepło in the amount of approx. PLN 89 million,

in the consolidated financial statements of the ENEA Group ("ENEAGroup") for 2023.

In addition, with reference to Current Report No. 38/2023 of 13September 2023, the Issuer hereby reports that it has estimated the fairvalue ofproperty, plant and equipment in the mining segment and thevalue of its holding in Lubelski Węgiel Bogdanka S.A. ("LWB") at thelevel of PLN 1,409 million, which results in the necessity to recognizean impairment allowance for the holding in LWB in the amount of approx.PLN 77 million in the standalone financial statements for 2023, and torecognize an additional impairment allowance for property, plant andequipment in the mining segment in the amount of approx. PLN 483 millionin the consolidated financial statements of the ENEA Group for 2023.

These events will affect the standalone financial statements of theIssuer by reducing the Company's pre-tax profit and net profit for thereporting period by approx. PLN 1,524 million.

The events will affect the consolidated financial statements of the ENEAGroup by reducing ENEA Group's pre-tax profit by approx. PLN 2,884million and net profit for the reporting period by approx. PLN 2,336million. The events are non-cash items and therefore have no impact oneither the consolidated or standalone EBITDA for the reporting period.

The Issuer also reports that a need has been identified to increase theprovision for onerous contracts in the trading segment by approx. PLN624 million in the standalone financial statements for 2023 and byapprox. PLN 154 million in the consolidated financial statements of theENEA Group for 2023. The increase in the provision is aimed atreflecting the impact of anticipated future losses to be incurred inconnection with the performance of comprehensive contracts entered intowith prosumers whose micro-installations were connected to the grid by31 March 2022.

This event will affect the standalone financial statements of ENEA S.A.for 2023 by reducing the Company's EBITDA and pre-tax profit by approx.PLN 624 million and net profit for reporting period by approx. PLN 506million.

This event will affect the consolidated financial statements of the ENEAGroup for 2023 by reducing EBITDA and pre-tax profit by approx. PLN 154million and net profit for the reporting period by approx. PLN 125million.

In total, all of the above events will affect the standalone financialstatements of ENEA S.A. for 2023 by reducing the Company's EBITDA byapprox. PLN 624 million, pre-tax profit by approx. PLN 2,148 million andnet profit for the reporting period by approx. PLN 2,030 million and theconsolidated financial statements of the ENEA Group for 2023 by reducingEBITDA by approx. PLN 154 million, pre-tax profit by approx. PLN 3,038million and net profit for the reporting period by approx. PLN 2,461million.

Please be advised that the foregoing figures are estimates and as suchare subject to change. Their final value will be presented in theperiodic reports of the Company and the ENEA Group for 2023.

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).