Enea S.A. — Interim / Quarterly Report 2020

Jun 19, 2020

Additional information to the extended consolidated report of ENEA S.A. for Q1 2020

Poznań, Date of publication: 18 June 2020

4. Shares and shareholding structure
4.1. Equity and shareholding structure
4.2. ENEA S.A. stock prices on the Warsaw Stock Exchange
5. Company authorities
6.1. Regulatory environment
6.2. Natural environment
7. Corporate social responsibility

ENEA Group in numbers

ENEA has 17.3 thousand employees

MINING GENERATION DISTRIBUTION TRADING 20.6% share in the steam coal market in Poland

445 million tons of mining potential in 3 mining concession areas

2.1 million tons of net coal production in Q1 2020

6.3 GW of total installed capacity

443 MW of installed RES capacity

5.4 TWh of total net energy produced in Q1 2020

2.6 million users of distribution services

118.4 thousand km of distribution lines, including connections

5.0 TWh of electricity supplied

2.5 million Customers

5.6 TWh of electricity and gaseous fuel sold to retail customers in Q1 2020

32 Customer Service Offices

1. Highlights

First quarter

- On 3 February 2020, the Company received a statement from the Minister of State Assets that the Minister of State Assets has exercised its powers to appoint a member of the ENEA S.A. Supervisory Board pursuant to § 24 sec. 1 of the Company's Articles of Association. Based on the aforementioned powers, Mr. Bartosz Nieścior was

- appointed to the Company's Supervisory Board as of 3 February 2020. On 6 February 2020, the Company received a resignation letter from the Supervisory Board Chairman, Stanisław Kazimierz Hebda, dated the same day. On 11 February 2020, ENEA Wytwarzanie Sp. z o.o. and GAZ-SYSTEM S.A. signed an agreement to design the connection of Kozienice Power Plant to the GAZ-SYSTEM transmission network. The agreement will open the process of designing a gas connection for the Kozienice Power Plant. Expansion of the transmission system by GAZ-SYSTEM will increase its capacity to supply higher volumes of natural gas throughout Poland. This will increase the capacity for connecting industrial plants as well as individual customers to the network. • On 13 February 2020, ENEA S.A. and Energa S.A. concluded a Memorandum of understanding to suspend the financing of the Ostrołęka Power Plant C construction project. On 14 February 2020, Elektrownia Ostrołęka Sp. z o.o. submitted an order to suspend all the works related to the Contract to the general contractor of the Ostrołęka Power Plant C Construction Contract, with the suspension taking effect as of 14 February 2020. • On 14 February 2020, the Company became aware of: (i) an order issued by Elektrownia Ostrołęka on 14 February 2020 to the contractor under the agreement to redevelop the railway infrastructure for Ostrołęka Power Plant C to suspend (ii) an order issued by Elektrownia Ostrołęka on 14 February 2020 to the contractor under the agreement to redevelop the railway infrastructure for Ostrołęka Power Plant C of 4 October • On 14 February 2020, in connection with receipt of the audited financial statements of Polska Grupa Górnicza S.A. (PGG) for 2019, in which PGG recognized an impairment loss for

the performance of the railway contract with the suspension coming into effect on 14 February 2020,

2019, to suspend the performance of the railway contract with the suspension coming into effect on 14 February 2020.

-

• PGG's fixed assets as at 31 December 2019, the Company became aware of the possible need to recognize an impairment loss on the Company's holding in PGG. On 21 February 2020, the Company and Energa S.A. signed a memorandum of understanding on analyses to be conducted during the period of suspension of work on the Ostrołęka C Project. The memorandum sets out the detailed scope and schedule of analysis of the technical, technological, economic, organizational, legal and financial aspects of the project. • On 21 February 2020, ENEA Wytwarzanie Sp. z o.o. concluded an out-of-court settlement with Fen Wind Farm B.V. based in Amsterdam and Wento Holdings S.à r.l. based in Luxembourg in connection with a court dispute concerning the acquisition by ENEA Wytwarzanie of shares in Eco-Power Sp. z o.o., which owns the Skoczykłody wind farm. By its power, the parties terminated the preliminary agreement for the purchase of shares in Eco-Power Sp. z o.o. by ENEA Wytwarzanie Sp. z o.o. with effect on the date of the settlement and unconditionally and irrevocably waived any claims against each other regarding rights to any shares directly or indirectly related ot th eintended sale of shares in Eco-Power Sp. z o.o. to ENEA Wytwarzanie Sp. z o.o. In this situation, the Group reversed the provision in the amount of PLN 129 million. • On 19 March 2020, the Fitch Ratings agency issued a press release, in which it affirmed the Company's long-term foreign- and local-currency issuer default ratings at 'BBB' with stable • On 19 March 2020, the Extraordinary General Meeting of the Company adopted resolutions, by the power of which Ms. Izabela Felczak-Poturnicka and Mr. Mariusz Fistek were appointed to the Supervisory Board of ENEA S.A. of the 10th term, effective on the same date (where Ms. Izabela Felczak-Poturnicka was at the same time appointed Chairwoman of the Company's Supervisory Board). • On 31 March 2020, a decision was made to recognize impairments on the carrying amount of assets in the Generation Area, Renewable Energy Sources Area, the Biogas CGU and in the Heat Area; on the same date, a decision was made to recognize an impairment loss on PGG shares.
• outlook.

1. Highlights

Events after the reporting period

- On 19 May 2020, the Company received information from Elektrownia Ostrołęka Sp. z o.o., the company currently executing the Ostrołęka C power plant construction project, about the recognition of impairment losses on non-current assets in Elektrownia Ostrołęka in the amount of PLN 1,027.3 million. According to information received from Elektrownia Ostrołęka, these impairment losses were recognized as a result of an impairment test for non-current assets carried out in connection with an update of the business assumptions for the coal-based project. Accordingly, on the same date the Management Board of the Company made a decision to recognize an impairment loss on Elektrownia Ostrołęka shares and to write off the loans granted to Elektrownia Ostrołęka along with interest. • On 27 May 2020, the Company received statements from the Minister of State Assets that the Minister of State Assets has exercised its powers to appoint and dismiss a member of the ENEA S.A. Supervisory Board pursuant to § 24 sec. 1 of the Company's Articles of Association. According to the said statements, the Minister of State Assets, in exercise of the powers conferred on him, dismissed, effective as of 27 May 2020, Mr. Bartosz Nieścior from the Company's Supervisory Board and, at the same time, appointed Mr. Paweł Szczeszek to the

- Company's Supervisory Board. On 2 June 2020, the Company accepted the final report on analyses conducted in cooperation with Energa S.A. ("Energa") regarding technical, technological, economic, organizational and legal aspects and potential continuation of funding for the project involving the construction of a new coal-fired unit in the form of the planned Ostrołęka C power plant in Ostrołęka with a capacity of approx. 1,000 MW (Project). The conclusions drawn from the analyses do not justify the continuation of the project in its current form, i.e. as a construction project of a power plant generating electricity through combustion of hard coal. At the same time, the technical analysis confirmed feasibility of the scenario of building a power plant generating electricity in a natural gas combustion process ("Gas-Fired Project") at the current site of the coal-fired unit being built. Consequently, the Company's Management Board made a decision to continue the construction of the generating unit in Ostrołęka based on the assumption of changing the power source from coal-based to gas-based. On 2 June 2020, a trilateral agreement was also signed between the Company, Energa and PKN ORLEN, whereby the following key principles of cooperation in the Gas-Fired Project were defined. • On 3 June 2020, the Company signed a letter of intent (Letter of Intent) with Iberdrola Eólica Marina S.A. (Iberdrola) regarding the Company's potential investment in offshore wind farm projects to be developed in the Polish exclusive economic zone of the Baltic Sea. In connection with the signing of the Letter of Intent, the parties will enter into exclusive negotiations aimed at assessing the feasibility of execution of a joint capital expenditure project by the Company and Iberdrola in the said wind farm projects with a total capacity of up to approx. 3.3 GW and their shared preparation, construction and operation. • On 4 June 2020 Mr. Mirosław Kowalik tendered his resignation from the position of President of the ENEA S.A. Management Board and from membership in the Company's Management Board effective as of 5 June 2020. On the same date, the Company's Supervisory Board adopted a resolution to second, starting 6 June 2020, Mr. Paweł Szczeszek, Supervisory Board Member, to temporarily perform the duties of the President of the ENEA S.A. Management Board until the appointment of a new President of the Company's Management Board, but no longer than for a period of three months from the date of his secondment.

1.1 Operating summary

In Q1 2020, the ENEA Group generated EBITDA of approx. PLN 913 million (up by PLN 114 million y/y). The highest EBITDA of PLN 472 million was earned in the Generation area (up by PLN 72 million y/y). A significant increase in EBITDA, by PLN 62 million y/y, was recorded in the Must-Run Power Plant segment due to an increase in the trading and Balancing Market margin (higher unit margins, decrease in volume), with a simultaneous decrease in the generation margin (lower unit CDS due to the increase in coal costs with transport and CO² costs, partly covered by higher energy prices). The Mining area generated EBITDA of PLN 129 million (down by PLN 90 million y/y). The segment's lower result was attributable mainly to a decrease in revenue from sales of coal (lower sales volume at a higher price) in connection with the unfavorable oversupply of coal in the market. The Distribution area posted EBITDA of 307 million (up by PLN 58 million y/y). The higher result was driven by higher margins on licensed activities (affected by, among others, a higher rate of the fixed grid charge in the approved 2020 tariff) and a higher result on other operating activities (driven mainly by changes in the provisions for grid assets). The Trading area posted EBITDA of approx. 8 million (up by PLN 18.5 million y/y). The segment's result was favorably affected by the increase in the average sales price of energy. At the same time, the energy purchase prices increased (mainly due to the increase in the price of CO² emission allowances) and so did the costs of environmental obligations.

• Higher revenue from sales of electricity • Higher revenue from sales of gas

• Higher revenue from sales of distribution services • Lower costs of consumption of materials and supplies • Higher costs of purchase of electricity and gas • Lower result on other operating activities • Higher employee benefit costs • Higher costs of transmission services ⁶

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• The ENEA Group capital expenditures amounted to PLN 564 million.
• Production and sales of commercial coal stood at approx. 2 million tons.
• The Group generated over 5 TWh of electricity.
• Sales of heat in the Generation Segment reached 2,056 TJ.
• Sales of distribution services to end users were over 5 TWh.
• The volume of sales of electricity and gaseous fuel to retail customers was 5.6 TWh.

2. Organization and activity of the ENEA Group

2.2. Changes in the ENEA Group's Structure

2.2.1. Asset restructuring Following key organizational changes in previous years, in Q1 2020 the ENEA Group, apart from initiatives associated with the planned changes, did not carry out any major activities in the field of asset restructuring. 2.2.2. Capital disinvestments In Q1 2020, no significant capital divestment activities were carried out. 2.2.3. Changes in the Group's organization In Q1 2020, the ENEA Group continued its endeavors aimed at pursuing the Group's Corporate Strategy. 2.2.4. Capital investments A detailed description of processes related to capital investments is included in the condensed financial statements for Q1 2020.

Events during the reporting period

Distribution

• Electricity supply
• Planning and ensuring expansion of the distribution network, including by connecting new customers
• Operation, maintenance and repairs of the distribution grid
• Management of metering data

Generation

• Electricity generation based on bituminous coal, biomass, gas, wind, water and biogas
• Heat generation
• Heat transmission and distribution
• Electricity trading

Wholesale trading

• Optimization of wholesale contracts portfolio for electricity and gaseous fuel
• Operations on product markets
• Ensuring access to wholesale markets

Mining

• Production of bituminous coal
• Sales of bituminous coal
• Securing the ENEA Group's raw material base

Retail trading

• Retail trading in electricity and gaseous fuel
• Product and service offering adjusted to customers' needs
• Comprehensive customer service

2.3.1. Mining

In the ENEA Group, mining activities are carried out by the subsidiary operating under the business name of Lubelski Węgiel Bogdanka S.A. (hereinafter: LW Bogdanka). LW Bogdanka is a leader on bituminous coal market in Poland, standing out in comparison with its peers in terms of financial results, mining efficiency and investment plans including access to new deposits. The bituminous coal sold by the company is used predominantly for the production of electricity, heat and cement. The Company's customers are chiefly industrial companies, especially ones operating in the power sector, located in eastern and north-eastern Poland.

2.3.1. Mining
is a leader on bituminous coal market in Poland, standing out in to new deposits. The bituminous coal sold by the company is used	comparison with its peers in terms of financial predominantly for the production of electricity,	results, mining efficiency and heat and cement. The Company's	investment plans including customers are chiefly
Bogdanka access industrial companies, especially ones operating in the power sector, located Item	in eastern and north-eastern Poland. Q1 2019	Q1 2020	Change
Net production [000s of tons]	2,532	2,066	- 18.4%
Sales of coal [000s of tons]	2,365	1,918	-18.9%
Inventories (at th end of the period) [000s of tons]	255	327	28.2%

2.3.2 Generation

2.3.2.1 Generation assets of the ENEA Group

2.3.2 Generation
2.3.2.1 Generation assets of the ENEA Group
Item	Installed electricity generation capacity [MWe]	Achieved electricity generation capacity [MWe]	Installed heat generation capacity [MWt]	Installed capacity in RES [MWe]
Kozienice Power Plant	4,071.8	4,020.0	125.4	-
Połaniec Power Plant	1,837.0	1,882.0	130.0	230.0
Bardy, Darżyno and Baczyna wind farms (Lubno I and Lubno II)	71.6	70.1	0.0	71.6
Liszkowo and Gorzesław biogas plants	3.8	3.8	3.1	3.8
Hydro power plants	58.8	55.8	0.0	58.8
MEC Piła	10.0	10.0	135.3	-
PEC Oborniki	0.0	0.0	27.4	-
ENEA Ciepło (Białystok CHP Plant, "Zachód" Heat Plant)	203.5	156.6	684.1	78.5
Total [gross]	6,256.5	6,198.3	1,105.3	442.7

2.3.2.2. Data for ENEA Wytwarzanie

2.3.2.2. Data for ENEA Wytwarzanie
Item	Q1 2019	Q1 2020	Change
Total electricity generation (net) [GWh], of which:	3,874	3,551	-8.3%
Net generation from conventional sources [GWh], including:	3,771	3,438	-8.8%
ENEA Wytwarzanie	3,752	3,421	-8.8%
MEC Piła	19	17	-10.5%
Generation from renewable energy sources [GWh],	103	113	9.7%
including:
ENEA Wytwarzanie – RES Segment (hydro power plants)	42 60	44 67	4.8% 11.7%
ENEA Wytwarzanie – RES Segment (wind farms)	1	2	100.0%
ENEA Wytwarzanie – RES Segment (biogas plants) Gross heat production [TJ]	479	414	-13.6%
Unit 11 in the Kozienice Power Plant	Q1 2019	Q1 2020	Change
Net electricity production [GWh]	1,555	996	- 35.9%
Average monthly net load [MW]	790	677	-14.3%
2.3.2.3. Data for ENEA Elektrownia Połaniec
Item	Q1 2019	Q1 2020	Change
Total electricity generation (net) [GWh], of which:	2,095	1,758	-16.1%
ENEA Elektrownia Połaniec – net generation from conventional sources	1,707	1,230	-28.0%
		393	11.0%

Unit 11 in the Kozienice Power Plant	01 2019	Q1 2020	Change
Net electricity production [GWh] /	1.555	996	- 35.9%
Average monthly net load [MW]	790	677	-14.3%

Item	Q1 2019	Q1 2020	Change
Total electricity generation (net) [GWh], of which:	2,095	1,758	-16.1%
ENEA Elektrownia Połaniec – net generation from conventional sources	1,707	1,230	-28.0%
ENEA Elektrownia Połaniec – generation from renewable energy sources (firing of biomass – Green Unit)	354	393	11.0%
ENEA Elektrownia Połaniec – generation from renewable energy sources (cofiring of biomass)	34	135	297.1%

2.3.2.4. Data for ENEA Ciepło
Item	Q1 2019	Q1 2020	Change
Total electricity generation (net) [GWh], of which:	139	123	-11.5%
Net generation from conventional sources [GWh], excluding from firing of biomass	113	70	-38.1%
		53	103.8%
Net generation from renewable energy sources [GWh] – firing of biomass [GWh]	26
Gross heat production [TJ] (in combination with the "Zachód" Heat Plant)	1,565	1,418	-9.4%
2.3.2.5 CO2 emissions
Kozienice – Power Plant [t]	Allocation of free-of-charge CO2 emission allowance [t]		Costs of allowances [PLN]
Q1 2019 3,285,579	273,0911)		190,318,115.131)
Q1 2020 3,045,033	14,0211)		322,660,226.34 1)

2.3.2.5 CO2 emissions

Net generation from conventional sources [GWh],
	Net generation from renewable energy sources [GWh] –
2.3.2.5 CO2 emissions
		allowance [t]	Costs of allowances [PLN]
Q1 2019	3,285,579	273,0911)	190,318,115.131)
Q1 2020	3,045,033	14,0211)	322,660,226.34 1)
	MEC Piła	Allocation of free-of-charge CO2 emission allowance	Costs of allowances [PLN]
Q1 2019	33,087	6,675	2,228,961.30
Q1 2020	30,881	5,154	2,605,639.37
	Białystok – CHP plant	Allocation of free-of-charge CO2 emission allowance	Costs of allowances [PLN]
Q1 2019	174,502	87,180 2)	16,757,997.09
Q1 2020	114,800	70,157 3)	4,443,428.07
	Białystok – "Zachód" Heat Plant	Allocation of free-of-charge CO2 emission allowance	Costs of allowances [PLN]
Q1 2019	5,554.6	2) 682	108,766.90
Q1 2020	6,5684)	3) 668	666,471.00
	Połaniec – Power Plant	Allocation of free-of-charge CO2 emission allowance	Costs of allowances [PLN]
Q1 2019	1,690,575	126,0992)	99,355,092.75
Q1 2020	1,204,068	122,9073)	106,217,510.78
Total Q1 2019	5,189,297.60	493,727.00	308,768,933.17
Total Q1 2020	4,401,350.00	212,907.00	436,593,275.56
1) Accounting treatment 2) Non-recurring allocation of free-of-charge allowances for 2019 3) Non-recurring allocation of free-of-charge allowances for 2020 4) Volume of emissions for which the provision is calculated			12

2.3.2.6. Fuel supply

2.3.2.6. Fuel supply
The basic fuel fired by ENEA Wytwarzanie ENEA Ciepło Sp. z o.o. (Białystok CHP agricultural production and the agricultural	– Kozienice Power Plant to generate electricity Plant) in Q1 2020 were: steam coal and biomass processing industry.	was pulverized steam coal. The basic fuels – mainly in the form of steam wood chips, steam	fired by ENEA Elektrownia Połaniec S.A. and willow and poplar wood chips, residues from
	Kozienice Power Plant	ENEA Połaniec Power Plant	ENEA Ciepło
Major coal suppliers in Q1 2020	LW Bogdanka (87.2%) PGG (8.8%)	LW Bogdanka (64.8%) PGG (31.9%)	LW Bogdanka (100%)

2.3.2.6. Fuel supply
Major coal suppliers in Q1 2020				LW Bogdanka (87.2%) PGG (8.8%)			LW Bogdanka (64.8%) PGG (31.9%)				LW Bogdanka (100%)
			ENEA Wytwarzanie and subsidiaries – Kozienice Power Plant, RES, MEC and PEC				ENEA Elektrownia Połaniec		ENEA Ciepło –	"Zachód" Heat Plant	Białystok CHP Plant,
Type of fuel	Q1 2019 Quantity [thousan d tons]	Cost 1) [PLN million]	Q1 2020 Quantity [thousand tons]	Cost 1) [PLN million]	Q1 2019 Quantity [thousand tons]	Cost 1) [PLN million]	Q1 2020 Quantity [thousand tons]	Cost 1) [PLN million]	Q1 2019 Quantity [thousand tons]	Cost 1) [PLN million]	Q1 2020 Quantity [thousand tons]	Cost 1) [PLN million]
Bituminous coal	1,919	503	1,535	397	1,080	277	572	142	75	24	40	12
Biomass					406	112	427	123	58	11	97	20
(Heavy) fuel oil 2)	2	3	3	4	2	3	2.4	4.1
(Light) fuel oil 3)	1	4	2	6	-	-	0.1	0.3	0.154	0.44	0.151	0.36
Gas [thous. m3] 4)	4,926	8	4,410	6	-	-	-	-	0	0	5) 2,173	2
Total		518		413	1,488	392	1,002	269		35		34
1) with transport 2) Light up fuel in the Kozienice Power Plant, units 1-10 3) Light up fuel in the Kozienice Power Plant, unit 11 4) Used for generation of electricity and heat in MEC Piła and heat in PEC Oborniki 5) Used for generation of heat in the "Zachód" Heat Plant; gas volume unit: thousand Nm3 2.3.2.7. Transport of coal
				Kozienice Power Plant			ENEA Elektrownia Połaniec				ENEA Ciepło
Main service provider in Q1 2020				PKP Cargo S.A. (98.8%)			PKP Cargo S.A. (44.42%) Kolprem Sp. z o.o. (31.10%)	FREIGHTLINER PL Sp. z o.o. (21.19%)			LW Bogdanka (100%)

2.3.2.7. Transport of coal

Main service provider in Q1 2020	PKP Cargo S.A. (98.8%)	PKP Cargo S.A. (44.42%) FREIGHTLINER PL Sp. z o.o. (21.19%) Kolprem Sp. z o.o. (31.10%)	LW Bogdanka (100%)

The decrease in the length of connections compared to the previous year resulted from data verification carried out as part of grid passporting.

2.3.4. Trading Sales of electricity and gaseous fuel to retail customers by ENEA S.A. In Q1 2020, compared to the corresponding period of 2019, the total sales volume increased by 177 GWh, or more than 3%. This increase was driven by sales of electricity in the business customer segment (by 91 GWh, or approx. 2%) and in the household segment (by 2 GWh, or approx. 0.2%). The sales volume of gaseous fuel also increased compared to the corresponding period of the previous year (by 84 GWh, or approx. 27%). Total revenue from sales in Q1 2020 increased compared to Q1 2019 (without compensations) by PLN 188 million, or approx. 13%. The increase in revenue was recorded in both sales of electricity and gaseous fuel.

Sales of electricity and gaseous fuel to retail customers of ENEA S.A. [GWh]

Sales of electricity and gaseous fuel to retail customers of ENEA S.A. [PLN million]

2.4. Growth strategy

MISSION:

ENEA provides reliable products and services to its customers by building lasting relationships based on respect for the environment and shared values

VISION: ENEA is a leading supplier of integrated products and services valued for quality, comprehensive approach and reliability

Implementation of the ENEA Group Development Strategy until 2030 with an outlook to 2035

Implementation of the ENEA Group Development Strategy until 2030 with an outlook to 2035 Environment and key stakeholder

expectations On 12 December 2019, by the power of a Supervisory Board resolution, ENEA S.A. accepted for implementation the Strategy for 2030 with the 2035 outlook. ENEA Group intends to conduct its business in a sustainable manner while minimizing its impact on the natural environment. The development directions were updated. The key directions include: 1) Transformation of generation assets towards zero- and low-emission sources; 2) Innovative services for ENEA's 3) Contemporary communication with 4) Electromobility, hydrogen technologies; 6) Automation, robotization and digitization of 7) Internet of Things, artificial intelligence, 8) Energy storage; 9) Sourcing of fuels in accordance with best

• customers;
• customers and modern cooperation models;
• customers;
• processes;
• blockchain;
• practices and respect for the environment.

1) Reliability and continuity of electricity supply; 5) Smart Grid – smart solutions for ENEA assumes that it will transition into an innovative lowemission concern offering not only electricity but comprehensive bundles of products and services expected by its Customers. Climate protection

The development directions form a foundation, which is used to define strategic goals for the Group. ENEA has identified five key strategic goals supporting the transformation of ENEA Group into a low-emission concern. Diversification of the ENEA Group's generation portfolio;

• Customers;

2) Responsible partner in sustainable management of relations with local communities, the environment and 3) Ensuring financial security of the ENEA Group; 4) Innovativeness in all aspects of the ENEA Group's activity. Its overriding objective will entail its sustainable development. In connection with the above, the ENEA Group's overriding objective is "Continuous growth of the value of the ENEA Group, while ensuring sustainable development". Financial stability

reduction of unit CO₂ emissions

More than 4x -30%

increase in the share of RES in electricity

43%

share of zero- and lowemission sources in installed capacity production

Value creation

Competitive advantages

Green energy

Energy security

2.5. Actions and investments pursued

2.5.1. Capital expenditures

2.5. Actions and investments pursued 2.5.1. Capital expenditures Capital expenditures [PLN million] Q1 2019 Q1 2020 Generation 88.6 115.9 Distribution 197.0 173.2 Mining 80.0 266.3 Support and other 16.4 6.5
			Plan 2020
			751.6
			1,181.1
			654.2
			123.8
181.2 2.1 Capital investments			57.0
Total plan performance 563.2 564.0			2,767.7
	Item
Actuals Q1 2020 [PLN million]	Adjustment to BAT conclusions (Połaniec)
39.6	Adjustment to BAT conclusions (Kozienice)
10.0	Other	1.7
	Total investments related to environmental protection	51.3

Investments related to environment protection

Total investments related to environmental protection	51.3

2.5.2. Execution of other projects

Area	2.5.2. Execution of other projects Event
	• ENEA Operator taps into the available support programs and is very active in obtaining grants under both regional and national programs. In total, the Company is executing over 30 investment and research projects under by co-financing agreements.
	• Continuation of existing investment projects and launching of new ones will be carried out in 2020 and later.
	• Research, development and innovation activities are carried out to improve the efficiency of the Distribution Area and respond to challenges arising from the role of a DSO in the new electricity market model, including:
	‒ Innovative system services of energy warehouses increasing the quality and efficiency of electricity use;
	‒ System of power and energy balancing and monitoring the quality of electricity supply of dispersed energy sources and storage facilities;
	‒ Flexible system of increasing competences of technical service staff using virtual reality technology. For this project, ENEA Operator received the Diamond Top Industry 2019 award in the category "Innovation of the Year",
	‒ Improved potential of the power grid of ENEA Operator Sp. z o.o. in order to collect energy generated from renewable sources in Kujawsko Pomorskie Voivodship, as part of the Regional Operational Program of Kujawsko-Pomorskie Voivodship for 2014-2020. The main objective of the project is to improve the potential for collecting energy generated from renewable sources and to automate the grid.
	‒ Completion of a number of investments focused on expansion and modernization of power grids, including network connections, and the construction of a 110 kV Babimost-Zbąszynek overhead line coupled with the construction of HV fields at the 110/15 kV Babimost and Zbąszynek stations, reconstruction of the HV/MV Pila South station.
Distribution	• Construction and modernization of a number of grid infrastructure elements, such as high, medium and low voltage lines and transformer stations, related to the pursuit of the following objectives: fulfilling the public-legal obligation, ensuring energy security for the region, improving the reliability and quality of electricity supply – grid automation, change of the MV network structure from overhead to cable, activities aimed at achieving the "smart grid" standard.
	• Implementation of statutory obligations of ENEA Operator with respect to electromobility. The purpose of the project is for ENEA Operator to implement the solutions and products that meet the requirements for DSOs under the Act on Electromobility and Alternative Fuels.
	• Cooperation with the National Center for Research and Development, other utility companies and Poczta Polska under the "e-VAN" program to develop an innovative, emission-free delivery vehicle with a maximum total weight of up to 3.5 tons, intended for the performance of a DSO's key tasks.
	• ENEA Operator Sp. z o.o. is a member of a task force along with other utility companies, Polska Grupa Zbrojeniowa and AUTOSAN, striving to design a special/functional vehicle to be used for a DSO's day-to-day operations.
	• Further development of IT tools supporting grid management and grid automation, including:
	‒ Implementation of a FDIR module on a larger scale in the SCADA system to enable automatic detection of failures, isolation of the damage location and resumption of supplies to unaffected areas of the grid.
	‒ Completed implementation of the Central Metering Data Acquisition System with the AMI application used for the remote acquisition, processing and analysis of data from balancing meters installed in MV/LV transformer stations;
	‒ Pending implementation of the SCADA system at low voltage, which will enable the management of the LV network in respect of LV lines, MV/LV stations as well as distributed generation and renewable energy connected to the LV distribution network. The system will enable real-time monitoring of the operation of the LV network and separate devices in the LV network in each Distribution Region.

Area	Event
Retail area	• Of key significance were the following issues related to the regulated tariff for Tariff Group G customers for 2020: a) on 14 January 2020, the tariff approved by the President of the Energy Regulatory Office for Q1 2020 was put into effect, b) the tariff application for Q2-Q4 2020 was submitted. • A new product called "ENEA Optima" was prepared for roll-out, targeted at business customers looking to effectively monitor and optimize their electricity consumption. • Continuation of activities related to the settlement of the "Price Freeze Act": a) submission of a request to the Settlements Authority for the payments constituting compensation for the application of statutory pricing mechanisms for 2019 for December 2019. ENEA has received the requested amounts, b) commencement of work on the preparation of data and algorithms necessary to prepare and submit to the Settlements Authority a request for an 'annual correction', i.e. a correction of requests submitted for 2019 (mainly in connection with obtaining actual readout data for 2019 from the DSO).
Customer Service area	• Continuation of work on introducing automation processes in the customer service area through, e.g., robotic process automation (RPA) that will translate into timely achievement of key indicators within the implemented processes. • Shortening the contract execution process by: a) restoring the option of a written customer statement for consumers about the acceptance of a proposal made within the Simple Customer Service framework, b) activating prosumer contracts without waiting for the return of the contract with the customer's signature and by decentralizing the processes. • Activities taken to ensure continuity and improve service during the epidemic after the imposition of the lockdown on 13 March 2020 affecting physical Customer Service Offices: a) enabling the execution/termination of the contract by the customer based on the image of documents and a qualified electronic signature, b) simplifying the process of changing the seller by accepting scanned notices of termination and sending letters to all sellers with a request to accept scanned declarations notices of termination, c) active promotion of accounts in the Electronic Customer Service Office (eBOK) and e-invoices that provide on-line access to up-to-date information and invoices, along with the option to submit applications, requests and complaints without leaving home, d) working out with Bank Pekao S.A. and PKO BP the option of electronic authorization of newly received consents to debit the account, instead of paper form, e) in the debt collection area, suspending electricity supply shutdowns to customers in households under the G tariff who have overdue
Wholesale area	liabilities toward the Company, in accordance with the guidelines of the Anti-Crisis Shield Act. • Project entitled "Creation of a logistical support system for biomass deliveries through seaports to ENEA Elektrownia Połaniec Spółka Akcyjna". • Project entitled "Main capacity auction 2024 and secondary market", whose main goal is to prepare the ENEA Group's assets for general certification and to develop and implement the strategy for participating in the main capacity auction for 2024, additional auctions for 2021

Area Particulars	Event
Development investments	• Ostrów Field – design work
Mining	• Purchase of finished goods, machinery and equipment
Operating investments	• New mining pits and modernization of existing ones – in Q1 2020, 6.7 km of roadways were made • A shearer system was purchased and installed
Generation ENEA Wytwarzanie	• Installation of a catalytic flue gas denitrification system and modernization of electrostatic precipitators for AP-1650 boilers of units 9 and 10 within the framework of modernization program for 2 x 500 MW units – continuation from 2018. Unit 9 with a electrostatic precipitator replacement in unit 9 has been in operation since 30 June 2019. The Adjustment Run began on 5 February 2020. On 6 March 2019, the Parties signed a report on completion of the Adjustment Run – SCR installation on Unit 9 without the DRiM II Station. Due to the noticeable delay at various stages of execution, the project is continued in 2020. It is currently anticipated that the project may be completed in Q1 2021. • Modernization of Unit 9 as part of the modernization program for 2 x 500 MW units – after the modernization, the unit was started up on 27 June 2019 and commissioned for operation on 11 September 2019. • Modernization of Unit 7 – after the modernization, the unit was started up on 15 April 2019 and commissioned for operation on 4 July 2019. • Modernization of Unit 2 – after the modernization, the unit was started up on 31 July 2019 as scheduled. • Adaptation of the Must-Run Power Plants Segment in ENEA Wytwarzanie sp. z o.o. to the BAT conclusions: 1. Modernization of electrostatic precipitators in Units 1, 2, 4, 5 and 7 ‒ Electrostatic precipitator of Unit 4 – completed disassembly of internal parts of the electrostatic precipitator. The assembly of bearings and bushings on the shafts of collective and discharge electric rappers began. Deliveries of parts for the electrostatic precipitator are as scheduled. The modernization of the electrostatic precipitator of Unit 4 is carried out as scheduled. The time limit for its completion is not at risk. ‒ Electrostatic precipitator of Unit 5 – due to the postponement of the downtime of Unit 5 from 20 April 2020 – 18 July 2020 to 3 August 2020 – 31 October 2020, it is expected that an annex will be signed along with a new work and payment schedule. ‒ Electrostatic precipitator of Unit 1 – functional tests were completed on the modernized systems of the electrostatic precipitator and the ash removal system. A voltage test and adjustment of the gas distribution system in the electrostatic precipitator were performed. Functional tests of rectifying units, the rapper heating system and the system part of the operator network were performed. A 72-hour Unit Test Run was carried out. The contract completion deadline is not at risk. ‒ Electrostatic precipitator of Unit 2 – the work was completed. The final acceptance procedure was carried out on 24 September 2019. ‒ Electrostatic precipitator of Unit 7 – the work was completed. The final acceptance procedure was carried out on 15 May 2019. 2. Installation of a system for partial removal of heavy metals from flue-gas desulphurization (FGD) wastewater – the quality of wastewater from each FGD was completed, the results of the tests were analyzed and any potential exceedances of BAT guidelines were determined. The electrical part of the works was accepted and measurements were performed confirming the fulfillment of the guaranteed parameters. 3. Modernization of the flue-gas desulphurization system FGD I – the project is nearing its completion. Warranty measurements, the test run and the adjustment run are yet to be performed. Following the completion of the warranty and QAL2 measurements, certain doubts arose as to the results of these measurements and the completed modernization. Some measurements must be performed once again to verify whether the modernization was carried out properly. Payments for the last 2 stages of the modernization process, namely (1) the warranty measurements and (2) the test run and the adjustment run, have been suspended. 4. EW's formal and legal adjustment to the requirements of the BAT conclusions – on 11 July 2019, an agreement was signed terminating the contract with EKO-NET, thereby ending the first stage of the project. An agreement was entered into with Energopomiar Gliwice to perform the tests necessary to fulfill the BAT9 requirements. 5. Continuous monitoring of NH3, HCl, HF and Hg levels on the smoke stack. Continuation of work under the 2019 contract.

Area Particulars Event • Modernization of Unit 5 - the "Phoenix" project on Unit 5. Generation ENEA Elektrownia Połaniec • EEP's adaptation to the BAT conclusions • Restoration of the TZ3 turboset ‒ Operations were continued on the restoration of TZ3 in accordance with the required work reports (performance of additional works arising from the actual condition of the equipment) ‒ The dynamic status of the equipment was inspected • Upgrade of the Experion PKS system (a DCS-class system controlling the power units and auxiliary systems). Work on Unit 2 was continued. • Restoration of the TZ4 fan cooler: ‒ Restoration work was continued on the fan cooler in the construction, structural and technological area Generation ENEA Ciepło • Modernization of the electrostatic precipitator for boiler K8 – the work included: ‒ Dismantling the existing electrostatic precipitator ‒ Repair of the existing electrostatic precipitator support structure ‒ Delivery and assembly of elements of the electrostatic precipitator ‒ Comprehensive construction and assembly work on modernization of the electrostatic precipitator ‒ Start-up, adjustment run and test run of the electrostatic precipitator ‒ On 4 March 2020, the facility was transferred to the Company's assets (following favorable warranty measurements)
	• Annex to Multi-Year excise declaration	Steam Coal Purchase Agreement the intended use of coal products for	ENEA Wytwarzanie Sp. z o.o. and Jastrzębska Spółka Węglowa. The Annex introduced to the agreement
between on 2020.	• Annex 7 to KWK	between ENEA Wytwarzanie Sp. z o.o. which will be stored by JSW. The	and Jastrzębska Spółka Węglowa (JSW). The annex introduced the purchase of 92,000 tons of steam coal extended the term of agreement 17 to 30 September 2020.
Agreement Knurów-Szczygłowice, annex	• Annex to the Annual settlement of the	Agreement forming Appendix to performance of the agreement	between Lubelski Węgiel Bogdanka S.A. and ENEA Wytwarzanie Sp. z o.o. The annex introduced the amended the monthly delivery schedule while maintaining the total quantities for 2020.
an from Agreement annual quantitative and

-

2.5.3.2. Sources of funding for the investment program

ENEA S.A. funds its investment program using financial surpluses from business operations and by incurring external debt. The ENEA Group pursues an investment financing model whereby ENEA S.A. acquires funds from external sources and distributes them to its subsidiaries. In its subsequent activities, ENEA S.A. will focus on ensuring appropriate diversification of external sources of financing for investments planned in the "ENEA Group Development Strategy until 2030 with an outlook to 2035" in order to optimize the volume of costs and debt repayment terms. During the 3-month period ended 31 March 2020, ENEA S.A. did not enter into any new loan agreements. As at 31 March 2020, the nominal debt of ENEA S.A. arising from issued bonds and contracted loans totaled PLN 8,873 million. In Q1 2020, the ENEA Group companies did not grant any sureties or guarantees of a significant value. As at 31 March 2020, the total value of corporate sureties and guarantees granted by ENEA S.A. to secure the liabilities of the ENEA Group companies was PLN 56.9 million, while the total value of bank guarantees issued at the request of ENEA S.A. and as collateral for liabilities of the ENEA Group companies was PLN 103.2 million. In Q1 2020, as part of its pursuit of the "Currency Risk and Interest Rate Risk Management Policy in the ENEA Group", ENEA S.A. entered into transactions hedging the interest rate risk for exposures worth PLN 1,000 million and FX forward transactions hedging the currency risk with a total volume of EUR 1.1 million. The ENEA Group adopted a model of funding investments carried out by subsidiaries of ENEA S.A. through intra-group financing. ENEA S.A. acquires long-term cash funds on the financial market by taking out loans or issuing bonds, which funds it then distributes within the ENEA Group. Currently, ENEA S.A. has intra-group bond issue programs in place with a total value of PLN 5,797 million. These programs have been fully utilized and are partly redeemed in installments. As at 31 March 2020, the total nominal exposure arising from bonds held by ENEA S.A. and issued under these programs was PLN 5,110 million. 2.5.3.6. Loans and borrowings incurred by the ENEA Group companies from external sources As at 31 March 2020, the total nominal amount of external debt under the loans and borrowings incurred by the ENEA Group companies (without ENEA S.A.) was PLN 71.9 million. In 2020, no ENEA Group company terminated any loan agreement.

2.5.3.3. Guarantees and sureties given

2.5.3.4. Transactions hedging against the interest rate risk and the currency risk

2.5.3.5. Bond issue programs effected by subsidiaries

2.5.3.7. Loans granted by ENEA S.A. In Q1 2020, ENEA S.A. entered into three loan agreements: with ENEA Wytwarzanie Sp. z o.o. on 30 January 2020 for PLN 2,200 million, with ENEA Elektrownia Połaniec S.A. on 28 February 2020 for PLN 500 million and with ENEA Operator Sp. z o.o. on 12 March 2020 for PLN 950 million. These loans were granted to finance the planned expenses of these companies. The interest rate on the loans is equal to a base rate plus a margin. The availability period of the loans expires on 31 December 2020, whereas the loans will be repaid in 2024. In Q1 2020, under the said agreements, ENEA Wytwarzanie Sp. z o.o. launched two loan tranches for a total amount of PLN 1,100 million, whereas ENEA Elektrownia Połaniec S.A. launched the first tranche of a loan of PLN 200 million after the balance sheet date of 3 April 2020. On 30 March 2020, ENEA S.A. entered into an annex with ENERGA S.A. and Elektrownia Ostrołęka Sp. z o.o. to the loan agreement for PLN 29 million extending the balloon repayment date of the loan to 30 June 2020. As at 31 March 2020, the nominal debt of these companies toward ENEA S.A. totaled PLN 2,067 million. 2.5.3.8. Transactions with related parties In Q1 2020, ENEA and its subsidiaries did not enter into any transactions with related parties other than on an arm's length basis. Information on transactions with related parties entered into by ENEA or its subsidiaries is provided in note 24 to the condensed interim consolidated financial statements of the ENEA Group for the period from 1 January to 31 March 2020.

2.6. Market environment

Coal prices on the Polish market million tons

Energy prices on the Polish market

257,13 239,18 the corresponding period of 2019. The level of electricity prices on the spot market in Q1 2020 was affected by the following factors: • higher-than-average air temperature in winter (price-suppressing effect), • high volume of wind generation (price-suppressing effect), • average demand for power in the National Power System (NPS) at a lower level compared to 2019 (price-suppressing effect), • high (and higher than in the corresponding period of 2019) energy imports from neighboring countries (price-suppressing effect), • collapse in prices on the CO² emission allowance market after 11 March 2020 (additional price-suppressing effect).

• -9%
  -
  -

PLN/MWh

Source: TGE, clearing prices

Prices of CO2 emission allowances and "green" property rights

CO₂ (Dec-20) emission allowances

Source: ICE, clearing prices

2020 was EUR 22.82 per ton. corresponding period of 2019.

24,8 until March 2020. The decreases in PMOZE_A prices in March, like those of other listed commodities, were caused by concerns about the consequences of the spread

22,8 of the SARS-CoV-2 coronavirus. The rapid decrease in the prices of "green" property rights in Q1 2019 was associated with the publication of a draft amendment to the RES Act, in which the substitution fee was tied to the price of electricity. Following the withdrawal of the Ministry of Energy from the proposed changes in the calculation of the substitution fee, the market reacted again with a quick rebound, i.e. a significant increase in prices. As a result of the December auction, almost half the energy to be contracted, i.e. approx. 91 TWh, with a total value of PLN 20.6 billion, was sold. The lion's share of support will go to new installations. At the end of Q1 2020, the number of unreleased rights in the register was 33.7 TWh. +0,4%

Prices of "green" property rights (PMOZE_A)

3. Financial standing

3.1. Selected consolidated financial data

3. Financial standing
	3.1. Selected consolidated financial data
[PLN 000s]				Q1 2019	Q1 2020	Change	% change
Revenue from sales and other income				4,009,610	4,592,082	582,472	14.5%
Operating profit / (loss)				441,340	531,876	90,536	20.5%
Profit / (loss) before tax				372,785	555,099	182,314	48.9%
Net profit / (loss) for the reporting period				279,806	459,047	179,241	64.1%
EBITDA				798,784	912,960	114,176	14.3%
Net cash flows from: operating activities				453,590	(85,941)	-539,531	-118.9%
investing activities				(832,492)	(630,180)	202,312	24.3%
financing activities				(147,848)	(1,025,339)	-877,491	-593.5%
Cash at the end of the period				2,124,088	2,020,487	-103,601	-4.9%
	Net profit/(loss) attributable to shareholders of the parent company			246,154	444,597	198,443	80.6%
Weighted average number of shares				441,442,578	441,442,578	-	-
Earnings per share [PLN] Diluted earnings per share [PLN]				0.56 0.56	1.01 1.01	0.45 0.45	80.4% 80.4%
					PLN million
					913
[PLN 000s] Total assets	31 December 2019 32,843,854	31 March 2020 31,895,019	Change -948,835	% change -2.9%	799
Total liabilities	17,364,083	16,036,044	-1,328,039	-7.6%
Non-current	10,855,419	10,797,494	-57,925	-0.5%
liabilities							459
Current liabilities	6,508,664	5,238,550	-1,270,114	-19.5%
Equity	15,479,771	15,858,975	379,204	2.4%		280
Share capital	588,018	588,018	-	-
Book value per share [PLN]	35.07	35.93	0.86	2.5%
Diluted book value per	35.07	35.93	0.86	2.5%	EBITDA	net profit
share [PLN]

					PLN million
						913
					799
Non-current
Equity	15,479,771	15,858,975	379,204	2.4%
Share capital	588,018	588,018	-	-
Book value per share [PLN]	35.07	35.93	0.86	2.5%
Diluted book value per share [PLN]	35.07	35.93	0.86	2.5%

3.2. Key operating data and ratios 1)

	Unit	Q1 2019	Q1 2020	Change	% change
Revenue from sales and other income	PLN 000s	4,009,610	4,592,082	582,472	14.5%
EBITDA	PLN 000s	798,784	912,960	114,176	14.3%
EBIT	PLN 000s	441,340	531,876	90,536	20.5%
Net profit / (loss) for the reporting period	PLN 000s	279,806	459,047	179,241	64.1%
Net profit/(loss) attributable to shareholders of the parent company	PLN 000s	246,154	444,597	198,443	80.6%
Net cash flow from operating activities	PLN 000s	453,590	(85,941)	-539,531	-118.9%
CAPEX	PLN 000s	563,215	563,998	783	0.1%
Net debt / EBITDA 1)	-	2.60	2.11	-0.49	-18.8%
Return on assets (ROA) 1)	%	3.7%	5.8%	2.1 p.p.	-
Return on equity (ROE) 1)	%	7.3%	11.6%	4.3 p.p.	-
Trading
Sales of electricity and gaseous fuel to retail customers	GWh	5,417	5,594	177	3.3%
Number of customers (Power Delivery Points) Distribution	thous.	2,506	2,531	25	1.0%
Sales of distribution services to end users	GWh	5,143	5,025	-118	-2.3%
Number of users (closing balance)	thous.	2,598	2,633	35	1.3%
Generation
Total net generation of electricity, of which:	GWh	6,108	5,431	-677	-11.1%
from conventional sources	GWh	5,590	4,737	-853	-15.3%
from renewable sources	GWh	518	694	176	34.0%
Gross heat generation	TJ	2,696	2,261	-435	-16.1%
Sales of electricity, including:2)	GWh	7,256	6,757	-499	-6.9%
from conventional sources	GWh	5,590	4,737	-853	-15.3%
from renewable sources	GWh	518	694	176	34.0%
from purchase	GWh	1,148	1,326	178	15.5%
Sales of heat	TJ	2,442	2,056	-386	-15.8%
Mining
Net production	000s tons	2,532	2,066	-466	-18.4%
Sales of coal	000s tons	2,365	1,918	-447	-18.9%
Inventories at the end of the period	000s tons	255	327	72	28.2%
Excavation works	km	7.9	6.7	-1.2	-15.2%

3.3. Financial performance of the ENEA Group in Q1 2020

Consolidated statement of profit and loss in Q1 2020

Consolidated statement of profit and loss in Q1 2020
[PLN 000s]	Q1 2019	Q1 2020	Change	% change
Revenue from sales of electricity	3,017,800	3,463,500	445,700	14.8%	Q1 2020
Revenue from sales of heat	124,544	117,403	-7,141	-5.7%	EBITDA drivers in the ENEA Group (up PLN 114 million):
Revenue from sales of gas	41,980	101,043	59,063	140.7%	(+) an increase in revenue from sales of electricity by PLN 446 million, driven mainly by a 209 GWh
Revenue from sales of distribution services Revenue from certificates of origin	693,115 3,022	780,168 2,406	87,053 -616	12.6% -20.4%	increase in sales volume, a 12% increase in the average sales price and higher revenues from Regulatory
Revenue from sales of goods and materials	25,460	19,697	-5,763	-22.6%	System Services (-) a decrease in revenue from sales of heat by PLN 7 million, driven mainly by a 392 TJ decrease in sales
Revenue from sales of other products and services	43,822	43,165	-657	-1.5%	volume and a concurrent increase in the average sales price by approx. 12% (+) an increase in revenue from sales of natural gas by PLN 59 million, driven mainly by a 720 TJ increase
Revenue from sales of coal	57,304	59,659	2,355	4.1%	in the sales volume and a 15% decrease in the average sales price (+) an increase in revenue from sales of distribution services by PLN 87 million as a result of higher rates in
Net revenue from sales	4,007,047	4,587,041	579,994	14.5%	the approved 2020 tariff
Revenue from leases and operating subleases 2)	2,563	5,041	2,478	96.7%	(-) a decrease in revenue from sales of goods and materials by PLN 6 million resulting from a lower demand for goods from external buyers
Revenue from sales and other income	4,009,610	4,592,082	582,472	14.5%	(+) an increase in revenue from sales of coal by PLN 2 million driven by higher prices
					(-) an increase in employee benefit costs by PLN 50 million driven mainly by higher average headcount and
Amortization and depreciation	361,723	381,084	19,361	5.4%	higher payroll costs and payroll-related charges (+) a decrease in the costs of consumption of materials and supplies and cost of goods sold by PLN 16
Employee benefit expenses Consumption of materials and supplies and cost	431,200	480,888	49,688	11.5%	million results from:
of goods sold Purchase of energy and gas for subsequent	807,452	791,431	-16,021	-2.0%	(-) lower costs of purchasing coal coupled with higher costs of purchasing biomass and CO2 emission allowances for the whole Generation Segment (+) a decrease in the value of goods and materials sold – mainly due to lower sales
sale	1,548,787	1,872,796	324,009	20.9%	1) (+) CO2 remeasurement
Transmission services	98,228	121,465	23,237	23.7%	(-) an increase in the costs of purchasing electricity and gas by PLN 324 million resulting mainly from: (-) electricity: price +4%; volume +1,087 GWh
Other third-party services	208,365	205,011	-3,354	-1.6%	(-) natural gas: price -19%; volume +714 GWh
Taxes and fees	121,420	131,717	10,297	8.5%	(-) an increase in costs of transmission services by PLN 23 million, mainly due to higher rates in the
Tax-deductible expenses	3,577,175	3,984,392	407,217	11.4%	approved 2020 tariff (-) a decrease in costs of third-party services by PLN 3 million caused mainly by a decrease in the costs of
Other operating income Other operating expenses	61,824 65,066	53,165 138,549	-8,659 73,483	-14.0% 112.9%	drilling and mining services and extraction services
Change in provision related to onerous	21,556	24,347	2,791	12.9%	(-) an increase in taxes and fees by PLN 10 million caused partly by a higher property tax and higher fees
contracts					on the establishment of transmission easements (+) change in provisions related to onerous contracts by PLN 3 million – in Q1 2019, the use of the
Profit/(loss) on change, sale and liquidation of property, plant and equipment and right-to-use assets	(13,688)	(14,777)	-1,089	-8.0%	provision for onerous contracts was posted in the amount of PLN 21.6 million, regarding the financial effects of the entry into force of the Act amending the Excise Duty Act and Certain Other Acts of 28
Impairment loss/(reversal of impairment loss) on	(4,279)	0	4,279	100.0%	December 2018, while in Q1 2020 a portion of the provision in the amount of PLN 24.3 million, established in December 2019, was partly used in the costs for the loss on the G tariff approved by the Energy
non-financial non-current assets					Regulatory Office in the amount of PLN 68.6 million.
Operating profit / (loss)	441,340	531,876	90,536	20.5%	(-) result on other operating activities down by PLN 83 milion: 1) (-) remeasurement of CO2 contracts by PLN 105 million
Financial costs	79,477	108,377	28,900	36.4%	(+) higher balance of refunds from the insurer by PLN 12 million
Financial income	17,947	131,274	113,327	631.5%	(+) an increase in fixed assets accepted free of charge by PLN 10 million, partly as a result of a larger number of agreements providing for interferences on network assets
Impairment allowances/(reversal thereof) on financial assets measured at amortized cost	0	1,042	1,042	100.0%
Share in the results of associates and joint ventures	-7,025	1,368	8,393	119.5%
Profit / (loss) before tax	372,785	555,099	182,314	48.9%
Income tax	92,979	96,052	3,073	3.3%
Net profit / (loss) for the reporting period	279,806	459,047	179,241	64.1%
EBITDA	798,784	912,960	114,176	14.3%

Q1 2020 EBITDA drivers in the ENEA Group (up PLN 114 million): (+) an increase in revenue from sales of electricity by PLN 446 million, driven mainly by a 209 GWh increase in sales volume, a 12% increase in the average sales price and higher revenues from Regulatory System Services (-) a decrease in revenue from sales of heat by PLN 7 million, driven mainly by a 392 TJ decrease in sales volume and a concurrent increase in the average sales price by approx. 12% (+) an increase in revenue from sales of natural gas by PLN 59 million, driven mainly by a 720 TJ increase in the sales volume and a 15% decrease in the average sales price (+) an increase in revenue from sales of distribution services by PLN 87 million as a result of higher rates in the approved 2020 tariff (-) a decrease in revenue from sales of goods and materials by PLN 6 million resulting from a lower demand for goods from external buyers (+) an increase in revenue from sales of coal by PLN 2 million driven by higher prices (-) an increase in employee benefit costs by PLN 50 million driven mainly by higher average headcount and higher payroll costs and payroll-related charges (+) a decrease in the costs of consumption of materials and supplies and cost of goods sold by PLN 16 million results from: (-) lower costs of purchasing coal coupled with higher costs of purchasing biomass and CO² emission allowances for the whole Generation Segment (+) a decrease in the value of goods and materials sold – mainly due to lower sales (+) CO² remeasurement 1) (-) an increase in the costs of purchasing electricity and gas by PLN 324 million resulting mainly from: (-) electricity: price +4%; volume +1,087 GWh (-) natural gas: price -19%; volume +714 GWh (-) an increase in costs of transmission services by PLN 23 million, mainly due to higher rates in the approved 2020 tariff

(-) a decrease in costs of third-party services by PLN 3 million caused mainly by a decrease in the costs of drilling and mining services and extraction services (-) an increase in taxes and fees by PLN 10 million caused partly by a higher property tax and higher fees on the establishment of transmission easements (+) change in provisions related to onerous contracts by PLN 3 million – in Q1 2019, the use of the provision for onerous contracts was posted in the amount of PLN 21.6 million, regarding the financial effects of the entry into force of the Act amending the Excise Duty Act and Certain Other Acts of 28 December 2018, while in Q1 2020 a portion of the provision in the amount of PLN 24.3 million, established in December 2019, was partly used in the costs for the loss on the G tariff approved by the Energy Regulatory Office in the amount of PLN 68.6 million. (-) result on other operating activities down by PLN 83 milion: (-) remeasurement of CO² contracts by PLN 105 million 1) (+) higher balance of refunds from the insurer by PLN 12 million (+) an increase in fixed assets accepted free of charge by PLN 10 million, partly as a result of a larger number of agreements providing for interferences on network assets

Financial performance of the ENEA Group in Q1 2020

Financial performance of the ENEA Group in Q1 2020
EBITDA [PLN 000s] Trading	Q1 2019 -10,819	Q1 2020 7,690	Change 18,509	% change 171.1%
Distribution	248,834	307,270	58,436	23.5%
Generation	399,767	472,258	72,491	18.1%
Mining	219,416	129,385	-90,031	-41.0%
Other activity	26,430	23,410	-3,020	-11.4%
Unassigned items and elimination	-84,844	-27,053	57,791	68.1%

Trading Area

Retail sales of electricity are carried out by ENEA S.A. Wholesale trade is carried out by ENEA Trading Sp. z o.o.

Trading Area
Retail sales of electricity are carried out by ENEA S.A. Wholesale trade is carried out by ENEA Trading Sp. z o.o.
[PLN 000s]	Q1 2019	Q1 2020	Change	% change
Revenue from sales and other income	2,239,456	2,048,280	-191,176	-8.5%
EBIT	-11,054	7,371	18,425	166.7%
Amortization and depreciation	235	319	84	35.7%
EBITDA	-10,819	7,690	18,509	171.1%
CAPEX1)	32	14	-18
Share of the area's sales revenue in the Group's net revenue from sales	40%	37%	-3 p.p.
1) Without equity investments of ENEA S.A.				-56.3% -
28.2 PLN

-10.8
EBITDA Q1 2019			onerous contracts related to onerous contracts		Q1 2020
property rights contracts (+) partial remeasurement Own costs (-) direct selling costs up by (-) costs of shared services (-) general and administrative	by PLN 2.3 million of CO2 contracts2) PLN 3.9 million up by PLN 1.8 million expenses up by PLN 0.9 million		Other drivers: (-) litigation costs up by PLN (-) donation costs up by PLN	4.1 million 1.0 million
2) The adjusted first contribution margin exchange differences is presented	presents partial measurement of CO ₂ in financial activities and reduces the financial	emission rights presented result in that part.	in operating activity. However, it should be	noted that the measurement	of CO in terms of realized and posted ₂	31

in terms of realized and posted

Generation Area

Generation Area [PLN 000s]	Q1 2019	Q1 2020	Change	% change
Net sales revenues	1,929,362	2,095,701	166,339	8.6%	In the Generation area, the financial data of ENEA Wytwarzanie
electricity	1,727,261	1,875,749	148,488	8.6%	Sp. z o.o. are presented together with its subsidiaries, ENEA Ciepło Sp. z o.o., ENEA Ciepło Serwis Sp. z o.o., ENEA
certificates of origin	69,763	95,437	25,674	36.8%
heat	122,348	114,991	-7,357	-6.0%	ENEA Bioenergia Sp. z o.o.
other	9,990	9,524	-466	-4.7%
Revenue from leases and operating subleases 1)	34	136	102	300.0%	ENEA Wytwarzanie owns, among others, 11 high-efficiency and
Revenue from sales and other income	1,929,396	2,095,837	166,441	8.6%	modernized power units in the Kozienice Power Plant. ENEA
					Elektrownia Połaniec owns 7 coal-fired units with the total
EBIT Amortization and depreciation	262,569 137,198	331,288 140,970	68,719 3,772	26.2% 2.7%	attainable capacity of 1,657 MW and the world's largest
EBITDA	399,767	472,258	72,491	18.1%	biomass-fired unit with the total installed gross capacity of 225
CAPEX	88,650	115,939	27,289	30.8%	MW.
Share of the area's sales revenue in the Group's net revenue	35%	38%	3 p.p.	-	The annual production capacity in this area is approx. 38 TWh of
from sales					electricity.
1) presentation change of data on revenue from leases and operating subleases for Q1 2019
		Q1 2020
		EBITDA drivers:
		System Power	Plants Segment	– up by PLN 61.5	million
				(+) trading and Balancing Market margin up by PLN 97.8 million
				(+) revenues from Regulatory System Services up by PLN 16.6 million
		(+) other drivers up by PLN 10.5 million
		(-) generation margin down by PLN 63.4 million
PLN million
		Heat segment –	up by PLN 12.0 million
12.0 61.5	472.3	(+) ENEA	Ciepło up by PLN 11.1 million
-1.0					(+) costs of consumption of materials and supplies down by PLN 11.0 million
399.8				(+) revenues from certificates of origin up by PLN 6.0 million
				(+) other operating income up by PLN 4.2 million
				(+) revenue from sales of electricity down by PLN 5.3 million
				(-) revenue from sales of heat down by PLN 2.7 million

In the Generation area, the financial data of ENEA Wytwarzanie Sp. z o.o. are presented together with its subsidiaries, ENEA Ciepło Sp. z o.o., ENEA Ciepło Serwis Sp. z o.o., ENEA Elektrownia Połaniec S.A., ENEA Połaniec Serwis Sp. z o.o and ENEA Bioenergia Sp. z o.o.

ENEA Wytwarzanie owns, among others, 11 high-efficiency and modernized power units in the Kozienice Power Plant. ENEA Elektrownia Połaniec owns 7 coal-fired units with the total attainable capacity of 1,657 MW and the world's largest biomass-fired unit with the total installed gross capacity of 225 MW.

The annual production capacity in this area is approx. 38 TWh of electricity.

• (+) trading and Balancing Market margin up by PLN 97.8 million
• (+) revenues from Regulatory System Services up by PLN 16.6 million

• (+) other drivers up by PLN 10.5 million

• (+) costs of consumption of materials and supplies down by PLN 11.0 million

• (+) revenues from certificates of origin up by PLN 6.0 million
• (+) other operating income up by PLN 4.2 million
• (+) revenue from sales of electricity down by PLN 5.3 million
• (-) revenue from sales of heat down by PLN 2.7 million
• (-) employee benefit costs up by PLN 1.5 million
• (-) costs of third-party services up by PLN 0.8 million

million RES Segment – down by PLN 1.0 million

(+) result of other companies in the segment (PEC Oborniki, MEC Piła, ENEA Elektrownia Połaniec, ENEA Ciepło Serwis) by PLN 0.9 (-) Wind Area (PLN -9.9 million): revenue from certificates of origin down by PLN 7.5 million, result on other operating activities down by PLN 1.3 million, revenue from sales of electricity down by PLN 1.0 million, fixed costs up by PLN 0.1 million

(-) Hydro Area (PLN -4.4 million): revenue from certificates of origin down by PLN 2.9 million, revenue from sales of electricity down by PLN 1.2 million, fixed costs up by PLN 0.3 million

(-) Biogas Area (PLN -0.7 million): costs of consumption and transport of substrates up by PLN 0.7 million, revenue from certificates of origin down by PLN 0.4 million, revenue from sales of electricity down by PLN 0.3 million, result on other operating activities up by PLN 0.1 million

(+) Biomass Area (Green Unit): PLN +14.0 million (of which PLN 1.5 million from ENEA Bioenergia Sp. z o.o.): margin on renewable energy generation up by PLN 23.7 million, Green Block's margin on sales/remeasurement of green certificate inventories up by PLN 10.8 million, fixed costs up by PLN 0.3 million 32

Distribution Area

Distribution Area
[PLN 000s] Q1 2019 Q1 2020 Change % change
Net sales revenues 704,502 793,081 88,579 12.6%	ENEA Operator Sp. z o.o. is responsible for the
distribution services to end users 670,082 747,083 77,001 11.5%	distribution of electricity to 2.6 million
grid connection fees 13,571 11,889 -1,682 -12.4%	Poland in the area of 58.2 thousand km2.
other 20,849 34,109 13,260 63.6%	The key task of ENEA Operator is to provide
111,726 157,645 45,919 41.1%	energy in a continuous and reliable manner, while maintaining appropriate quality
141,387 149,625 8,238 5.8%	parameters.
EBIT Amortization and depreciation Impairment loss/(reversal of impairment loss) on non-financial (4,279) 0 4,279 100.0% non-current assets
EBITDA 248,834 307,270 58,436 23.5%	the following companies:
CAPEX 196,944 173,192 -23,752 -12.1%	The Distribution Area includes financial data of • ENEA Operator Sp. z o.o. • ENEA Serwis Sp. z o.o.

ENEA Operator Sp. z o.o. is responsible for the distribution of electricity to 2.6 million Customers – in western and north-western Poland in the area of 58.2 thousand km².

• ENEA Operator Sp. z o.o.
• ENEA Serwis Sp. z o.o.
• ENEA Pomiary Sp. z o.o.
• Annacond Enterprises Sp. z o.o.

PLN million

Q1 2020 EBITDA drivers:

Margin from licensed activities 307.3

(+) revenue from sales of distribution services to end users up by PLN 77 million

(-) revenue from grid connection fees down by PLN 2 million

(-) costs of purchasing transmission and distribution services (balance) up by PLN 18 million

Operating expenses

(-) employee benefit costs up by PLN 18 million

(-) costs of taxes and charges up by PLN 12 million

(-) costs of third-party services up by PLN 1 million EBITDA

Other operations

(+) change in provisions related to grid assets by PLN 22 million

• (+) revenues from interferences up by PLN 9 million
• (+) other income and expenses of PLN 1 million

Mining Area

[PLN 000s]	Q1 2019	Q1 2020	Change	% change
Net sales revenues	540,818	461,594	-79,224	-14.6%
coal	526,308	450,560	-75,748	-14.4%
other products and services	8,778	7,672	-1,106	-12.6%
goods and materials	5,732	3,362	-2,370	-41.3%
Revenue from leases and operating subleases	0	2,489	2,489	100.0%
Revenue from sales and other income	540,818	464,083	-76,735	-14.2%
EBIT	138,834	53,220	-85,614	-61.7%
Amortization and depreciation	80,582	76,165	-4,417	-5.5%
EBITDA	219,416	129,385	-90,031	-41.0%
CAPEX	80,004	266,274	186,270	232.8%

The Mining Area presents the financial results of the LW Bogdanka Group with the parent company - Lubelski Węgiel Bogdanka S.A. and its subsidiaries.

Q1 2020 EBITDA drivers:

- (-) a decrease in revenue from sales of coal: lower volume of sales (-447 thousand tons; -18.9%) and higher price

• (-) in Q1 2019, reversal of the provision for claims under the dispute with ZUS (PLN 16.4 million)

Other Activities Area

Other Activities Area
[PLN 000s]	Q1 2019	Q1 2020	Change	% change
Net sales revenues	155,171	146,706	-8,465	-5.5%
Revenue from leases and operating subleases1)	2,529	2,428	-101	-4.0%
Revenue from sales and other income	157,700	149,134	-8,566	-5.4%
EBIT	12,915	5,351	-7,564	-58.6%
Amortization and depreciation	13,515	18,059	4,544	33.6%
EBITDA	26,430	23,410	-3,020	-11.4%
CAPEX	16,400	6,482	-9,918	-60.5%
Share of the segment's sales revenue in the Group's sales revenue	3%	3%	-	-
1) presentation change of data on revenue from leases and operating subleases for Q1 2019
The Other Activities Area consists of companies from the following areas:
• activities supporting other Group companies: ENEA Centrum Sp. z o.o. – the Shared Services Centre in the Group in the field of accounting, human resources, ITC and customer service
ENEA Logistyka Sp. z o.o. – a company specializing in logistics, warehousing and procurement
ENEA Innowacje Sp. z o.o. – deals with ventures that offer a chance to become, in the future, innovative and modern products offered by the Group
ENEA Badanie i Rozwój Sp. z o.o. – responsible for research and experimental development on other natural sciences and engineering
• accompanying activities:
ENEA Oświetlenie Sp. z o.o. – a company specializing in indoor and outdoor lighting; it designs and builds road lighting, illumination for urban spaces, illumination for historic and public buildings, provides
services of construction and comprehensive operation of photovoltaic power plants.
Ratio analysis 2)
	Q1 2019	Q1 2020
Profitability ratios
return on equity	7.3%	11.6%
ROE – ROA – return on assets Net profitability	3.7% 7.0%	5.8% 10.0%

Ratio analysis 2)

1) presentation change of data on revenue from leases and operating subleases for Q1 2019
The Other Activities Area consists of companies from the following areas:
services of construction and comprehensive operation of photovoltaic power plants.
Ratio analysis 2)
	Q1 2019	Q1 2020
Profitability ratios
ROE – return on equity	7.3%	11.6%
ROA – return on assets	3.7%	5.8%
	7.0%	10.0%
		11.6%
	11.0%
	19.9%	19.9%
Net profitability Operating profitability EBITDA profitability Liquidity and financial structure ratios
	1.2	1.5
Current liquidity ratio Coverage of non-current assets with equity	65.2%	65.8%
Total debt ratio	49.1%	50.3%
	2.60	2.11
	47	54
Net debt / EBITDA Economic activity ratios Current receivables turnover in days3) Trade and other payables turnover in days4)	57	52

Financial position –
	structure of assets and liabilities of the ENEA Group	As at:			Structure of property, plant and equipment
Assets [PLN 000s]	31 December 2019	31 March 2020	Change	% change	PLN million 21,471 2)	21,633 2)
Non-current assets	23,792,019	24,099,116	307,097	1.3%
Property, plant and equipment	21,470,804	21,633,061	162,257	0.8%
Right-to-use asset1)	719,948	719,829	-119	0.0%
Intangible assets Investment property	379,024 23,109	373,054 22,828	-5,970 -281	-1.6% -1.2%
Investments in associates and jointly controlled entities	373,016	374,384	1,368	0.4%
Deferred tax assets	569,369	566,524	-2,845	-0.5%
Financial assets at fair value	40,172	44,774	4,602	11.5%
Debt financial assets measured at amortized cost	48,649	0	-48,649	-100.0%
Trade and other receivables	20,862	217,552	196,690	942.8%
Costs incurred to obtain a contract	12,749	12,887	138	1.1%
Receivables under leases and finance subleases1) Funds accumulated in the Mine Liquidation	319	213	-106	-33.2%	allowances
Fund	133,998	134,010	12	0.0%
Current assets	9,051,835	7,795,903	-1,255,932	-13.9%
CO₂ emission allowances Inventories	1,375,128 1,376,295	1,011,664 1,381,644	-363,464 5,349	-26.4% 0.4%
Trade and other receivables	2,123,567	2,802,769	679,202	32.0%
Costs incurred to obtain a contract	12,646	12,351	-295	-2.3%
Assets arising from contracts with customers	330,447	428,685	98,238	29.7%
Receivables under leases and finance subleases1)	950	1,037	87	9.2%
	59,746	30,908	-28,838	-48.3%
Current income tax receivables		52,900	45,844	649.7%
Financial assets at fair value	7,056
Debt financial assets measured at amortized cost	3,576	52,976	49,400	1381.4%	2020
Other short-term investments	477	482	5	1.0%
Cash and cash equivalents	3,761,947	2,020,487	-1,741,460	-46.3%

Structure of property, plant and equipment

- allowances

• million in sales of allowances, PLN 54 million in purchase of allowances for • increase in trade and other receivables by PLN 679 million – mainly due to a change in the value of initial deposits related to the contracting of CO² emission allowances • increase in debt financial assets measured at amortized cost by PLN 49 million – chiefly due to reclassification of non-current assets to current

• 2020

Financial position – structure of assets and liabilities of the ENEA Group As at: Equity and liabilities [PLN 000s] Change % change 31 December 2019 31 March 2020 Total equity 15,479,771 15,858,975 379,204 2.4% Share capital 588,018 588,018 - - Share premium 3,632,464 3,632,464 - - Revaluation reserve – measurement of financial instruments -16,295 -15,848 447 2.7% Revaluation reserve – measurement of hedging instruments -17,356 -97,646 -80,290 -462.6% Retained earnings 10,268,882 10,713,479 444,597 4.3% Non-controlling interest 1,024,058 1,038,508 14,450 1.4% Total liabilities 17,364,083 16,036,044 -1,328,039 -7.6% Non-current liabilities 10,855,419 10,797,494 -57,925 -0.5% Current liabilities 6,508,664 5,238,550 -1,270,114 -19.5% Total equity and liabilities 32,843,854 31,895,019 -948,835 -2.9%
Structure of non-current liabilities [PLN million] Structure of current liabilities [PLN million] - 2 000 4 000 6 000 8 000 10 000
- 1 000 2 000 7 803 Loans, borrowings and debt securities			3 000
7 693 2 103 Loans, borrowings and debt securities 984 1 263
Employee benefit liabilities 993 774
Provisions for other liabilities and other charges 776 1 913 Trade and other payables 504 1 555 Lease liabilities

• redemption of bonds and reclassification of non-current liabilities to current liabilities
• to Energa S.A. on account of the assumption of a loan granted to Elektrownia Ostrołęka
• of IRS financial instruments hedging against an increase in costs caused by changes in interest rates

Change drivers for current liabilities (down by PLN 1,270 million)

• of bonds and reclassification of non-current liabilities to current liabilities
• decrease in trade payables by PLN 358 million: PLN -110 million decrease in liabilities on the purchase of property, plant and equipment and intangibles, PLN -242 million decrease in trade liabilities, PLN -35 million decrease in tax liabilities (excluding income tax) • decrease in employee benefit liabilities by PLN 64 million
• decrease in lease liabilities by PLN 16 million
• in the provision for the purchase of CO² emission allowances with a concurrent decrease in provisions related to onerous contracts (use, in Q1 2020, of a PLN 24.3 million portion of the provision established in December 2019 to cover the PLN 68.6 million loss in the G tariff) 37

Cash position of ENEA Group

PLN million

Cash position of ENEA Group
Statement of cash flows [PLN 000s]	Q1 2019	Q1 2020	Change	% change
Net cash flow from operating activities	453,590	(85,941)	-539,531	-118.9%
Net cash flow from investing activities	(832,492)	(630,180)	202,312	24.3%
Net cash flow from financing activities	(147,848)	(1,025,339)	-877,491	-593.5%
Net increase / (decrease) in cash	(526,750)	(1,741,460)	-1,214,710	-230.6%
Cash at the beginning of reporting period	2,650,838	3,761,947	1,111,109	41.9%
Cash at the end of reporting period	2,124,088	2,020,487	-103,601	-4.9%
Cash flows Q1 2020			ENEA Group's Q1 2020 capital expenditures	1)

4. Shares and shareholding structure

4.1. Equity and shareholding structure The share capital of ENEA S.A. as at 31 March 2020 and the date of this report was PLN 441,442,578, divided into 441,442,578 ordinary bearer shares with a par value of PLN 1 each. The total number of votes resulting from all outstanding shares of the Issuer corresponds to the number of shares, translating into 441,442,578 votes. All shares in the Company are book-entry bearer shares registered in the National Depository of Securities. Since the date of publication of the previous periodic report, no changes have been made to the Issuer's shareholding structure.

The table below presents the shareholding structure of ENEA S.A. as at the date of the periodic report for Q1 2020. Number of shares Interest in the share capital Shareholder / number of votes at the / share in the total number Shareholder Meeting of votes State Treasury 227,364,428 51.5% Others 214,078,150 48.5% TOTAL 441,442,578 100.0% 4.2. ENEA S.A. stock prices on the Warsaw Stock Exchange ENEA S.A. stock has been listed on the Warsaw Stock Exchange (WSE) since 17 November 2008. In Q1 2020, the ENEA S.A. stock price declined from PLN 7.915 to PLN 4.734, that is by PLN 3.181, or 40.2%. The highest closing price of ENEA S.A. stock in the period under analysis was recorded on 3 January 2020 (PLN 8.06), while the lowest price was recorded
	on 12 March 2020	(PLN 3.87).

Since the date of	publication of the previous periodic	report, no changes have been made to	the Issuer's shareholding structure.
periodic report for Q1 2020.	The table below presents the shareholding structure of ENEA S.A. as at the date of the		The following table presents data on the Company's shares in Q1 2020.
			Data		Q1 2020
Shareholder	Number of shares / number of votes at the	Interest in the share capital / share in the total number	Number of shares		441,442,578
	Shareholder Meeting	of votes	Minimum [PLN]		3.87
State Treasury	227,364,428	51.5%	Maximum [PLN]		8.06
Others	214,078,150	48.5%	Stock price at the end of the period [PLN]		4.734
TOTAL	441,442,578	100.0%	Stock price at the end of the previous period [PLN]		7.915
			Average trading volume [PLN]		596,087
	4.2. ENEA S.A. stock prices on the Warsaw Stock Exchange	Stock Exchange (WSE) since 17
ENEA S.A. stock has November 2008.	been listed on the Warsaw
In Q1 2020, the ENEA PLN 3.181, or 40.2%. analysis was recorded	S.A. stock price declined from The highest closing price of on 3 January 2020 (PLN 8.06),	PLN 7.915 to PLN 4.734, that is by ENEA S.A. stock in the period under while the lowest price was recorded	Share of the Company's stock in stock exchange indices as at 31 March 2020:
on 12 March 2020 (PLN	3.87).

4.2. ENEA S.A. stock prices on the Warsaw Stock Exchange

5. Company authorities 5.1. Composition of the ENEA S.A. Management Board During Q1 2020 and until the date of this report, the Company's Management Board was composed of the following persons: • Mirosław Kowalik – President of the Management Board,

-

-

• Jarosław Ołowski – Management Board Member for Financial Matters, • Piotr Adamczak – Management Board Member for Commercial Matters,

• Zbigniew Piętka – Management Board Member for Corporate Matters. On 4 June 2020 Mr. Mirosław Kowalik tendered his resignation from the position of President of the ENEA S.A. Management Board and from membership in the Company's Management Board effective as of 5 June 2020. On the same date, the Company's Supervisory Board adopted a resolution to second, starting 6 June 2020, Mr. Paweł Szczeszek, Supervisory Board Member, to temporarily perform the duties of the President of the ENEA S.A. Management Board until the appointment of a new President of the Company's Management Board, but no longer than for a period of three months from the date of his secondment. Considering the above, as at the date of this report, the Company's Management Board consisted of the following: • Paweł Szczeszek – Acting President of the Management Board • Jarosław Ołowski – Management Board Member for Financial Matters, • Piotr Adamczak – Management Board Member for Commercial Matters, • Zbigniew Piętka – Management Board Member for Corporate Matters.

-

-

5.2. Composition of the ENEA S.A. Supervisory Board As at 1 January 2020, the Supervisory Board was composed of the following persons: • Stanisław Kazimierz Hebda – Supervisory Board Chairman • Michał Dominik Jaciubek – Supervisory Board Secretary • Paweł Koroblowski – Supervisory Board Member • Ireneusz Kulka– Supervisory Board Member • Maciej Mazur – Supervisory Board Member

-

-

-

-

• Piotr Mirkowski – Supervisory Board Member • Mariusz Pliszka –Supervisory Board Member • Roman Stryjski – Supervisory Board Member. On 3 February 2020, the Company received a statement from the Minister of State Assets that the Minister of State Assets has exercised its powers to appoint a member of the ENEA S.A. Supervisory Board pursuant to § 24 sec. 1 of the Company's Articles of Association. In accordance with these powers, Mr. Bartosz Nieścior was appointed to the Company's Supervisory Board as of 3 February 2020. On 6 February 2020, Mr. Mariusz Pliszka tendered his resignation as Deputy Chairman of the ENEA S.A. Supervisory Board. On 6 February 2020, the Supervisory Board elected Mr. Bartosz Nieścior to serve as Deputy Chairman of the ENEA S.A. Supervisory Board. On 6 February 2020, Mr. Stanisław Hebda tendered his resignation as a Member of the ENEA S.A. Supervisory Board, effective as of the same date.

On 19 March 2020, the Extraordinary General Meeting of the Company appointed, effective as of 19 March 2020, Ms. Izabela Felczak-Poturnicka, who was appointed Chairwoman of the Supervisory Board, and Mr. Mariusz Fistek. On 27 May 2020, the Company received statements from the Minister of State Assets that the Minister of State Assets has exercised its powers to appoint and dismiss a member of the ENEA S.A. Supervisory Board pursuant to § 24 sec. 1 of the Company's Articles of Association. According to the said statements, the Minister of State Assets, in exercise of the powers conferred on him, dismissed, effective as of 27 May 2020, Mr. Bartosz Nieścior from the Company's Supervisory Board and, at the same time, appointed Mr. Paweł Szczeszek to the Company's Supervisory Board. On 4 June, the Company's Supervisory elected Mr. Roman Stryjski to serve as Deputy Chairman of the ENEA S.A. Supervisory Board. On 4 June, the Company's Supervisory Board adopted a resolution to second, starting 6 June 2020, Mr. Paweł Szczeszek, Supervisory Board Member, to temporarily perform the duties of the President of the ENEA S.A. Management Board until the appointment of a new President of the Company's Management Board, but no longer than for a period of three months from the date of his secondment.

As at the date of publication of this report, the Company's Supervisory Board is composed of ten members and operates in the following composition: • Izabela Felczak-Poturnicka – Supervisory Board Chairwoman • Roman Stryjski – Supervisory Board Member Deputy Chairman • Michał Dominik Jaciubek – Supervisory Board Secretary • Mariusz Fistek – Supervisory Board Member • Paweł Koroblowski – Supervisory Board Member

-

-

-

-

• Ireneusz Kulka Supervisory Board Member • Maciej Mazur – Supervisory Board Member • Piotr Mirkowski – Supervisory Board Member

• Mariusz Pliszka –Supervisory Board Member • Paweł Szczeszek – Supervisory Board Member delegated to temporarily perform the duties of the President of the ENEA S.A. Management Board. In accordance with the provisions of the Rules and Regulations of the Supervisory Board, the following standing committees operate within the Supervisory Board: the Audit

Michał Dominik Jaciubek Mariusz Pliszka	Function Supervisory Board member Supervisory Board member	Number of shares in ENEA S.A. as at 4 June 2020 5,020 3,880	in ENEA S.A. as at 18 June 2020 5,020 3,880
Full name
Board
5.3. Number of	shares and rights to	shares held by	members of the Management Number of shares	Board and Supervisory
1) An independent member within the auditing firms and public supervision the Best Practice for WSE Listed 2) A member having knowledge and 3) A member having knowledge and	meaning of Article 129(3) of the Act of and within the meaning of the corporate Companies 2016, skills in the area of accounting or auditing skills in the industry in which the Company	11 May 2017 on certified auditors, governance principles included in financial statements, operates.	1) An independent member within the meaning of the Practice for WSE Listed Companies 2016.	corporate governance principles included in the Best
Mariusz Pliszka 3) Roman Stryjski 1)		Member Member	1) Piotr Mirkowski	Member
Piotr Mirkowski 1) 3)		Member	Paweł Koroblowski	Member
Maciej Mazur		Member	Michał Dominik Jaciubek	Member
Ireneusz Kulka 1) 2) 3)		For the Council	Izabela Felczak-Poturnicka	Member
Full name		Function	Nominations and Remuneration Committee Full name	Function
The composition of the Audit	Committee is as follows: Audit Committee		The composition of the Nominations and	Remuneration Committee is as follows:
• Mariusz Pliszka –Supervisory • Paweł Szczeszek – In accordance with the Committee and the Nominations	Board Member Supervisory Board Member delegated provisions of the Rules and and Remuneration Committee.	to temporarily perform the Regulations of the Supervisory	duties of the President of the ENEA S.A. Management Board, the following standing committees operate	Board. within the Supervisory Board: the Audit

The composition of the Nominations and Remuneration Committee is as follows: composition of the Audit Committee is as follows: Audit Committee Nominations and Remuneration Committee Full name Function Full name Function Ireneusz Kulka 1) 2) 3) For the Council Izabela Felczak-Poturnicka Member Maciej Mazur Member Michał Dominik Jaciubek Member Piotr Mirkowski 1) 3) Member Paweł Koroblowski Member Mariusz Pliszka 3) Member 1) Piotr Mirkowski Member Roman Stryjski 1) Member	Paweł Szczeszek – Supervisory Board Member delegated to temporarily perform the duties of the President of the ENEA S.A. Management Board. accordance with the provisions of the Rules and Regulations of the Supervisory Board, the following standing committees operate within the Supervisory Board: the Audit and the Nominations and Remuneration Committee.
	• In Committee The

Board

	Audit Committee		Nominations and Remuneration Committee
Ireneusz Kulka 1) 2) 3)		For the Council
Piotr Mirkowski 1) 3)		Member
Mariusz Pliszka 3)		Member
Roman Stryjski 1)		Member
5.3. Number of Board Full name	shares and rights Function	to shares held by Number of shares	members of the Management Number of shares	Board and Supervisory
		in ENEA S.A. as at 4 June 2020	in ENEA S.A. as at 18 June 2020
Michał Dominik Jaciubek	Supervisory Board member	5,020	5,020

6. Other information relevant to evaluation of the issuer's standing and factors that the Issuer believes will affect its performance.

6.1. Regulatory environment

The business of ENEA S.A. and its subsidiaries is conducted in an environment that is subject to special legal regulation, both at the national level and at European Union level (regulated economic activity). A number of legal regulations applicable to utility companies have been enacted based on decisions of a political nature. For this reason, these regulations are subject to frequent amendments that the Company is unable to foresee or predict their effects on its business. This notwithstanding, ENEA S.A. and its subsidiaries ("ENEA Group") are subject to legal regulation in the field of tax system, competition and consumer protection, employee law and environmental protection. It cannot be ruled out that changes in these areas arising from specific legislation or individual interpretations related to significant areas of the ENEA Group's business may become a source of potential risks for this economic activity. On 14 June 2019, Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity entered into force. This regulation is

6.1.1. Internal electricity market

part of the "Winter Package" and forms the basic legal act forcing the introduction of new solutions pertaining to electricity markets and system services, both in Poland and in other Member States of the European Union. The main changes in national legal systems include the need to align the principles of operation of the national Balancing Market. In the last quarter of 2019, a concept of changes in the Balancing Market was presented by Polskie Sieci Elektroenergetyczne S.A. as a Transmission System Operator responsible for the operation of the Balancing Market. A detailed description of the planned changes in the operation of the Balancing Market was presented by the Transmission System Operator in the document entitled "Concept of changes in the principles of operation of the balancing market in Poland", published on the Operator's website at: https://www.pse.pl/konsultacje-aktywne/konsultacje-dotyczace-koncepcji-zmian-zasad-funkcjonowania-rynku-bilansujacego. At the same time, work was also initiated on amendments to the Capacity Market Act of 8 December 2017, aligning Poland's capacity market mostly to Article 22(4) and (5) of Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity, which provisions require that support from the capacity market may be provided for generating units that fail to meet the so-called 550 g CO2/kWh emission standard, but leave intact the support from the capacity market for units that fail to meet this emission standard if such support results from capacity contracts entered into before 31 December 2019. At the end of 2018 (on 21 December 2018), Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council, entered into force. This regulation has introduced the requirement to develop a National Plan for Energy and Climate within the framework of implementation of the Energy Union comprising the following 5 dimensions: energy security, internal energy market, energy efficiency, reduction of

emissions and research, innovation and competitiveness. The main purpose of the Energy Union management mechanism is to enable achievement of the Energy Union goals, in particular the climate and energy policy goals by 2030 in terms of reducing greenhouse gas emissions, generating renewable energy and improving energy efficiency. The National Plan for Energy and Climate was submitted to the European Commission at the end of 2019, thereby fulfilling the requirement imposed on Poland in this respect. The document was prepared on the basis of national development strategies, taking into account the draft Polish Energy Policy until 2040. It sets the following climate and energy goals for 2030: 7% reduction in greenhouse gas emissions in non-ETS sectors compared to 2005, 21-23% share of renewable energy sources in final gross energy consumption (with 23% of the goal considered achievable if additional EU funds are allocated to Poland, including those allocated to equitable transformation), energy efficiency up by 23% compared to PRIMES2007 forecasts, share of coal in electricity generation down to 56-60%. According to the forecasts included in the document entitled "Update of the fuel and energy requirements until 2030", demand for electricity in the coming years will grow in all sectors of the economy. As stated in this document, net electricity production in Poland will increase to 193.3 TWh by 2030.

6.1.2. Demand for electricity

At the same time, according to the document entitled "Conclusions from forecasting analyses for the power sector"1) forming an attachment to the draft "Polish Energy Policy until 2040", domestic demand for electricity will reach nearly 200 TWh in 2030 and 230 TWh in 2040. At the same time, the total increase in demand for in 2020-2040 will reach 40.4%. The peak demand for electricity will increase 35.5% during this period.

6.1.3. Amendments of the RES Act

On 29 August 2019, the Act amending the Act on Renewable Energy Sources (RES Act) and Certain Other Acts came into force. It has introduced a change to the RES Act and the Energy Law from 'prosumer' to 'renewable energy prosumer'. Currently, a renewable energy prosumer may be any end user generating electricity exclusively from renewable energy sources for own needs in a micro-installation (with an installed electrical capacity of at most 50 kW or a maximum available thermal capacity in cogeneration of at most 150 kW), provided that, in the case of end users who are not a household electricity consumer, such generation does not constitute their prevailing economic activity, as determined in accordance with the regulations issued under Article 40(2) of the Public Statistics Act of 29 June 1995. The definition of and rules of settlement with energy cooperatives have been changed – currently, settlements with energy cooperatives will be carried out in the same manner as those with renewable energy prosumers, but by applying the ratio of electricity fed into the grid to energy taken from the grid of 1:0.6. The amendment to the RES Act will also permit larger installations to benefit from public support mechanisms.The amendment has extended the maximum time limit for starting up energy generation from wind farms covered by support from 24 to 33 months, and for solar farms – from 18 to 24 months. To other technologies, the period of 42 months will apply, instead of 36 months before the amendment to the RES Act. The Act has imposed on utility companies the obligation to align the provisions of their contracts with renewable energy prosumers to the amended provisions of the RES Act and contracts with renewable energy prosumers and electricity producers in renewable energy installations with the amended provisions of the Energy Law, within 3 months from the date of entry into force of the amending Act, that is by 29 November 2019. The amendment to the RES Act has introduced provisions for the FIP guaranteed tariff, according to which the upper capacity limit for renewable energy installations eligible for the FIP tariff has been increased from 1 MW to 2.5 MW, however these provisions will not apply before the date of a positive decision of the European Commission on the compatibility of public aid provided for in these regulations with the internal market or recognition by the European Commission that the amendments to these provisions do not constitute new public aid. The President of the Energy Regulatory Office (ERO) approved the "Tariff for electricity distribution services" of ENEA Operator. The decision was published in the ERO Industry Bulletin "Energia Elektryczna" (Electricity) No. 304 (2939) of 17 December 2019. The new tariff has been approved for application until 31 December 2020. The tariff will result in an average increase in distribution fees for all tariff groups by 4.6%, while for consumers from the G tariff groups a smaller increase is anticipated at 4.0%. The tariff has been in force since 1 January 2020.

6.1.4. Tariff for electricity distribution services in 2020

6.1.5. Financial markets (EMIR Refit)

On 17 June 2019, Regulation (EU) 2019/834 of the European Parliament and of the Council of 20 May 2019 amending Regulation (EU) No 648/2012 as regards the clearing obligation, the suspension of the clearing obligation, the reporting requirements, the risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty, the registration and supervision of trade repositories and the requirements for trade repositories (EMIR Refit), entered into force. As a result of the introduced amendments, the duty has been introduced to report OTC derivative transactions (albeit, providing for an exception to this rule for intragroup derivative transactions, in the form of an possible waiver of the reporting obligation). Detailed information on the capacity market is provided in Chapter 10 of the "Management Board Report on the Activity of ENEA S.A. and the ENEA Group in 2019".

6.1.6. Capacity market

6.1.7. REMIT REMIT – Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency. In accordance with this regulation, the electricity market is subject to specific restrictive rules governing the publication and disclosure of all information that may affect the prices of energy products on the wholesale energy market, including an absolute prohibition of any market manipulation. REMIT requires that every market participant be registered in the national register of market participants. Market participants are required to report data on the transactions they execute on wholesale energy markets, including any orders they place. Basic data on the capacity and use of generating infrastructure are subject to reporting. REMIT requires that inside information be published in the form of public disclosure. REMIT prohibits manipulation or attempts to manipulate the market and prohibits the use of inside information. REMIT equips regulatory authorities with powers to conduct investigations and enforce the provisions of the regulation. 6.1.8. Electromobility and Alternative Fuels Act "The Electromobility and Alternative Fuels Act of 11 January 2018 imposes an obligation on selected townships to build on their land publicly available charging stations for vehicles with alternative drive systems. If this obligation is not fulfilled by the end of 2019, it is passed on to distribution system operators, in accordance with their area of activity. Due to the fact that this obligation was not fulfilled by local governments, the company is currently under the obligation to build nearly 450 publicly available charging points in 5 urban areas: Poznań, Szczecin, Bydgoszcz, Gorzów Wielkopolski and Zielona Góra. This number is the difference between the minimum number of publicly available charging points, which according to the Act should be built in the territory of the said 5 municipalities, and the existing and planned number of such points to be built by private investors. For this reason, ENEA Operator is currently carrying out a project entitled "Implementation of ENEA Operator's statutory obligations related to electromobility". 6.1.9 Impact of the electricity tariff for Tariff Group G January to 31 March 2020 ("Tariff"). The ERO President approved the ENEA S.A. electricity sales price for Tariff Group G consumers at the level that did not cover the costs incurred by the Company. Considering the above and acting in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets, the Company recognized a provision for onerous contracts in

the amount of PLN 68.6 million as at 31 December 2019. In Q1 2020, the Company used PLN 24.3 million of the provision for onerous contracts. 6.1.10. Operating reserve Detailed information on the operating reserve mechanism embedded in the concessions is provided in Chapter 10 of the "Management Board Report on the Activity of ENEA S.A. and the ENEA Group in 2019". 6.1.11. Increase in the number of customers exercising their right to change the seller As at the end of March 2020, the number of business customers (tariff groups A, B, C) which changed their energy seller was 213,661, having increased by 3,726 (or 1.8%) since the end of 2019. As regards customers in the household segment (tariff group G), the number was 671,781, having increased by 14,558, or 2.2%, since the end of 2019. These figures indicate a relatively small number of customers who decided to change their electricity seller in Q1 2020.

On 30 December 2019, the President of the Energy Regulatory Office ("ERO President") made a decision to approve the electricity tariff for Tariff Group G for the period from 14

6.1.12. Exemption from the duty to submit household tariffs for approval Pursuant to Article 49 of the Energy Law, the President of the Energy Regulatory Office may exempt a utility company from the duty to submit tariffs for approval if the ERO President considers the company to operate in a competitive environment. An optional exemption from the duty to submit tariffs for approval may have a favorable impact on the energy sales margin in the future.

6.1.13. Significant trends in the Distribution area The provisions of EU law, in particular those of the energy regulations called Clean Energy for All Europeans, have an increasing impact on ENEA Operator's business. These regulations contribute to the achievement of the EU's goals of achieving a more competitive, secure and sustainable energy system and reducing greenhouse gas emissions by 2030. Commitments in this respect provide for a reduction of emissions by at least 40% compared to 1990 levels while increasing energy efficiency by 32.5% and increasing the share of energy generation from renewable sources to 32% of final consumption. A consequence of the pursuit of these commitments will be a steady, as has already been observed, increase in installed capacity from renewable energy sources, which has created room for new energy market participants and has changed the roles of existing participants, including DSOs.

The rapid development of distributed energy sources combined with new technologies, including ICT technologies, has had a significant impact on the distribution network, while shaping the new role of DSOs on the energy market. New challenges in this area for ENEA Operator include: the new role of DSOs as entities supporting market development (local markets in particular), tapping into the flexibility of distributed energy sources, data management, cooperation with TSOs/DSOs, new IT and ICT technologies, development of smart grids, activation of customers, emergence of energy communities (energy clusters and cooperatives), cyber security and development of research and development and innovation activities. Innovations form a significant growth factor, which is why ENEA Operator has adopted a framework enabling external entities to suggest and jointly execute various pilot and innovative projects. The pursuit of such initiatives will provide the opportunity to jointly develop or test innovative solutions in real-life conditions. For more information, please visit: https://www.operator.enea.pl/innowacje 6.1.14. Key Service Operator According to the provisions of the Act of 5 July 2018 on the National Cybersecurity System, members of the ENEA Group, namely ENEA S.A., ENEA Operator Sp. z o.o., ENEA Wytwarzanie Sp. z o.o., ENEA Elektrownia Połaniec S.A., ENEA Ciepło Sp. z o.o. and MEC Piła Sp. z o.o., have been recognized as Key Service Operators. ENEA Operator joined a project initiated by the Ministry of Energy and signed an agreement on cooperation in the power sector to improve the country's cybersecurity. The project calls for concerted action toward improving the IT security of the energy distribution area and protecting it against potential external attacks. The agreement was signed by: ENEA Operator, Tauron Dystrybucja, PGE Dystrybucja and Energa Operator. Detailed information on the quality regulation model is provided in Chapter 10 of the "Management Board Report on the Activity of ENEA S.A. and the ENEA Group in 2019".

6.1.15. Quality regulation model On 19 March 2020, Fitch Ratings affirmed ENEA S.A.'s long-term foreign- and local-currency issuer default ratings at 'BBB' with a stable outlook. The affirmation reflects ENEA S.A.'s business profile as an integrated utility with large electricity generation and distribution businesses, and moderate financial leverage. The ENEA S.A.'s ratings are supported by a high proportion of regulated and quasi-regulated income from electricity distribution and capacity payments, respectively. The main risk factors are close-to-full reliance on coal in electricity generation as well as exposure to higher-risk mining and supply divisions. The GDPR (Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC) is a piece of EU legislation that has been in force since 25 May 2018 in all Member States. It has introduced new rules for processing personal data and imposed new obligations on data controllers. In its business, the ENEA Group observes the requirements of these new regulations, also by ensuring an appropriate level of security for the personal data it processes, paying particular attention to the protection of the rights and freedoms of data

6.1.16. Rating

6.1.17. General Data Protection Regulation (GDPR)

subjects.

6.1.18. Court and administrative proceedings As at the date of this report, there are no proceedings are in progress regarding payables or receivables to which ENEA S.A. or any of its subsidiaries would be a party. A detailed description of the proceedings is provided in Note 25 to the condensed interim consolidated financial statements of the ENEA Group for the period from 1 January to 31 March 2020. 6.1.19. Litigation related to actions for annulment or revocation of shareholder meeting resolutions The Company is a party to three proceedings related to actions for annulment or derogation of shareholder meeting resolutions. The following is a summary of information on each

description of the proceedings is 31 March 2020.	provided in Note 25 to the condensed	interim consolidated financial statements of the ENEA Group for the period from 1 January to
6.1.19. Litigation related	to actions for annulment or	revocation of shareholder meeting resolutions
The Company is a party to three of these proceedings.	proceedings related to actions for annulment	or derogation of shareholder meeting resolutions. The following is a summary of information on each
Plaintiff	Subject of the statement of claim (literal wording)	Status of the proceedings
		1. By decision of 20 June 2018, the Regional Court in Poznań dismissed the petition for an injunction (by decision of 7 August 2018, the Court of Appeals in Poznań dismissed the plaintiff's complaint against the decision to dismiss the petition for an injunction.)
Synergia Inter-Company Trade	Statement of claim for annulment of a resolution of the Company's shareholder meeting or, alternatively, for revocation	2. By judgment of 26 March 2019, the Regional Court in Poznań dismissed the statement of claim. 3. On 15 May 2019, the plaintiff appealed against the judgment of 26 March 2019 through the Regional Court in Poznań.
Union of ENEA Group Employees	of a resolution of the Company's shareholder meeting with a petition for an injunction 1)	4. On 3 December 2019, the plaintiff's appeal was delivered to the defendant (the extension of the inter-instance proceedings resulted from the need for the court to examine the plaintiff's petition for a waiver of the appeal fee).
		5. On 17 December 2019, the defendant filed a reply to the appeal to the Court of Appeals in Poznań.
		6. The case is currently pending before the court of second instance (Court of Appeals in Poznań).
"CLIENTEARTH Lawyers for the Earth" Foundation	Statement of claim for annulment or, alternatively, ascertainment of non existence or, alternatively, revocation of a resolution of the Shareholder Meeting of a Joint Stock Company 2)	On 31 July 2019, the Regional Court in Poznań issued a judgment stating that Resolution No. 3 of the Extraordinary Shareholder Meeting of the defendant ENEA S.A. with its registered office in Poznań of 24 September 2018 to express a directional consent to proceed with the construction stage under the Ostrołęka C project is invalid. On 17 September 2019, the attorney representing ENEA S.A. appealed against the judgment issued by the Regional Court in Poznań. The case is currently pending before the court of second instance, i.e. the Court of Appeals in Poznań.
Synergia Inter-Company Trade Union of ENEA Group Employees 2)	Statement of claim for annulment of a resolution of the Company's shareholder meeting or, alternatively, for revocation of a resolution of the Company's shareholder meeting 2)	Proceedings before the court of first instance – suspended

6.1.20. Collective disputes

As at the date of publication of this report, no collective disputes are in progress. 6.1.21. Headcount

As at 31 March 2020, the ENEA Group had 17,277 staff under an employment contract. As at 31 March 2020, ENEA S.A. had 408 staff under an employment contract. 6.1.22. Analyses of the transmission and collection of gaseous fuel from the transmission grid by ENEA Wytwarzanie ENEA Wytwarzanie Sp. z o.o. is in the process of negotiation with GAZ-SYSTEM S.A. of an agreement to establish the terms of transmission and collection of gaseous fuel from the

transmission grid by ENEA Wytwarzanie, enabling the feeding of gas-fired equipment and installations located in the area directly adjacent to ENEA Wytwarzanie. Analyses are underway regarding the possible use of existing coal-fired installations for operation based on the consumption of gaseous fuel. On 11 February 2020, ENEA Wytwarzanie Sp. z o.o. and GAZ-SYSTEM S.A. signed an agreement to design the connection of Kozienice Power Plant to the GAZ-SYSTEM transmission network. The agreement will open the process of designing a gas connection for the Kozienice Power Plant. Expansion of the transmission system by GAZ-SYSTEM will increase its capacity to supply higher volumes of natural gas throughout Poland. This will increase the capacity for connecting industrial plants as well as individual customers to the network. On 15 April 2015, KGHM, PGE, TAURON and ENEA entered into a Share Purchase Agreement in PGE EJ 1. KGHM, TAURON and ENEA purchased from PGE a stake of 10% each (a combined stake of 30%) in PGE EJ 1. ENEA paid PLN 16 million for the purchased shares. In accordance with the Shareholders' Agreement, the financial exposure of ENEA S.A. in the initial phase of the Project (Development Stage) it will not exceed approx. PLN 107 million. ENEA S.A.'s total expenditure resulting from the purchase of the shares and the increase in the company's share capital have to date reached PLN 32.5 million. On 19 October 2016, PGE Polska Grupa Energetyczna S.A., Energa S.A., ENEA S.A. and Tauron Polska Energia S.A. founded a company by the name of ElectroMobility Poland S.A. The company's business is intended to contribute to the execution of a program aimed at building a Polish electric vehicle, marketing it on a mass sale and creating an electromobility system in Poland. Each of the founding companies of ElectroMobility Poland acquired a 25% stake, thereby obtaining 25% of votes at the company's

6.1.23. Participation in the nuclear power plant construction program

6.1.24. Interest in ElectroMobility Poland S.A. shareholder meeting. Currently, the company's share capital is PLN 70 million.

6.1.25. Research program ENEA and the Electric Power Research Institute (EPRI) signed an agreement under which the ENEA Group will participate in research projects concerning energy storage and

distributed generation. The cooperation between the two entities will cover challenges related to energy storage, integration of storage facilities with dispersed energy sources and micro networks as well as the creation of new services based on energy storage units. Owing to its participation in the program, the ENEA Group will have the opportunity to acquire professional knowledge from EPRI and exchange experience with other research

participants. Joint research will help identify and assess the benefits of energy storage, learn new energy storage technologies and draw conclusions from implementation and integration projects in the United States and other countries. The Group's participation in the research program will improve its internal capacity to implement and use energy storage solutions in the ENEA Group. The research program encompasses and integrates a variety of activities, including technology assessment, economic and technical modeling, to support the planning and operation of the distribution grid and technology demonstrations. The Group's participation in the program will also provide it with access to numerous tools and research results enabling the assessment of costs, values and limitations of various energy storage technologies. These technologies will provide benefits to the power system, including improvements in energy quality, operational efficiency and greater integration with renewable energy The condensed financial statements of ENEA S.A. and the ENEA Group included in the extended consolidated report of ENEA S.A. for the period of Q1 2020 have been prepared in

sources.

6.1.26. Rules for the preparation of financial statements

accordance with the requirements of IAS 34 'Interim Financial Reporting', as endorsed by the European Union. These condensed financial statements have been prepared based on the assumption that the Company will continue its business activity as a going concern in the foreseeable future. The Company's Management Board has not ascertained, as at the date of signing the condensed financial statements, any facts or circumstances that would indicate a threat to the Company's ability to continue its business activity as a going concern over the 12 months following the balance sheet date as a result of an intentional or induced discontinuation or a material curtailment of its existing activity. Unless indicated otherwise, the financial data presented in the said financial statements are expressed in thousands of Polish zloty (PLN). Detailed information on the implementation of the Ostrołęka C Power Plant construction project are described in the Extended Consolidated Quarterly Report of the ENEA Group for Q1 2020 in Note no. 11.

6.1.27. Projected financial results

The ENEA S.A. Management Board did not publish any financial forecasts for 2020.

6.1.28. Execution of the construction project of Ostrołęka Power Plant C

6.1.29. Impact of the COVID-19 epidemic on the activity of the ENEA Group

At the end of 2019, information began to emerge from China about a threat of a virus called SARS-CoV-2 causing a disease dubbed COVID-19 ("coronavirus"). The first instances o f COVID-19 appeared in Poland in mid-March 2020. The occurrence and effects of the virus as well as the consequences of actions taken by the state to counteract the pandemic

have had a significant impact on the condition of the economy both domestically and across the globe. This situation has also affected the Group's business. As at the of preparation of consolidated financial statements, it is difficult to predict how the situation will develop in the future and what negative effects it may exert on the operations and financial standing of the Company and the Group. The further spread of the virus may cause reduced business activity (at present, numerous restrictions affect the business of hotels, restaurants, cafes, shopping centers), lower demand for electricity and consequently lower production, which may affect the Group's revenue from sales. In connection with the reorganization of work and increased security measures caused by the state of epidemic, some of the scheduled overhauls and modernizations of the generating units may be delayed, including those required to ensure compliance with BAT conclusions. According to the Group's projections, it cannot be ruled out that the receivables turnover ratio will deteriorate as a result of the harsh economic reality and reduced payment capacity of electricity buyers. Also, fluctuations on global markets are translating into significant changes in the prices of electricity, CO2 emission allowances and raw materials as well as significant variation on capital markets. The Group is in the process of analyzing these trends and verifying the assumptions applied to impairment tests carried out on its assets. As at the date of preparation of consolidated financial statements, a decline in demand for coal was recorded in the Mining segment [by approx. 19% compared to Q1 2019], driven down by a slowdown of the domestic economy and weaker demand for electricity. Two factors affected the performance of the Generation segment: lower electricity generation from bituminous coal in Q1 2020 [by approx. 15% compared to Q1 2019] and higher sales of electricity in trading, the combined effect of which was an increase in revenues [by approx. 9% compared to Q1 2019]. The ENEA S.A. Management Board has established the ENEA Group Crisis Management and Coordination Center for preventing, counteracting and combating COVID-19. All Group companies have appointed Teams to coordinate continuity assurance tasks for ENEA Group companies in the context of the coronavirus threat. Management Board ENEA S.A. coordinates all activities in this respect acting through the Center. The precautions taken to prevent coronavirus infections have translated into shifts in operating expenses, which, along with changes in the level of revenues, will ultimately affect the Group's consolidated financial result. 6.1.30. Implementation of the potential investment in offshore wind farm projects On 3 June 2020, the Company signed a letter of intent with Iberdrola Eólica Marina S.A. regarding the Company's potential investment in offshore wind farm projects to be

developed in the Polish exclusive economic zone of the Baltic Sea. In connection with the signing of the Letter of Intent, the parties have entered into exclusive negotiations aimed at assessing the feasibility of execution of a joint capital expenditure project by the Company and Iberdrola in the said wind farm projects with a total capacity of up to approx. 3.3 GW and their shared preparation, construction and operation. The degree of the Company's involvement in these offshore wind farm projects will be determined at a later stage of the negotiations, yet at the time of signing of the letter of intent, the parties assume a minority shareholding on the part of the Company. In accordance with the letter of intent, the parties expect to develop a term sheet to define key parameters of the potential transaction.

6.2. Natural environment

6.2.1. Curtailing emissions of air pollutants

In accordance with the applicable EU regulations, in particular Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions – IED (integrated pollution prevention and control), new and more stringent environmental protection standards have been in force since 1 January 2016. Accordingly, all electricity generators in Poland, who predominantly use high-emission coal-firing technologies, are required to adapt their power units to the new environmental requirements. The law, with a view to accommodating some of the problems faced by commercial undertakings, provides for the possibility of using certain derogation mechanisms. The relaxation of certain IED requirements by way of derogation has permitted commercial undertakings to gain additional time to adapt their generating units to the stricter air emissions standards. On 17 August 2017, the so-called 'BAT conclusions' for large-scale power combustion facilities (Commission Implementing Decision (EU) 2017/1442 of 31 July 2017 establishing best available techniques (BAT) conclusions for large-scale power combustion facilities under Directive 2010/75/EU of the European Parliament and of the Council) were published in the Official Journal of the European Union. The BAT conclusions have introduced more stringent (than in IED) requirements for pollutants such as sulfur dioxide, nitrogen oxides and dust. The BAT-associated emission levels (BAT-AELs) also apply to other substances, such as: mercury, hydrogen chloride, hydrogen fluoride and ammonia. The BAT conclusions will apply from 18 August 2021, following the 4-year adjustment period. Kozienice Power Plant – units 1-10 SO² NO^x Dust CO² Gross electricity Q1 2020 1,523.4 0.579 837.9 1,856.1 0.705 1,020.8 80.0 0.030 29.6 2,225,589.2 846 2,631,364.5 Q1 2019 1,506.9 1) 0.633 1) 813.7 1,600.5 0.672 864.3 34.3 0.014 12.3 2,028,969.8 852 2,381,235.8 % change 1.09 -8.53 2.97 15.97 4.91 18.11 133.62 111.29 140.65 9.69 -0.70 10.50

Years	SO2 emissions [Mg]	SO2 emission factor [kg/MWh]	SO2 emission fee [PLN thousand]	NOx emissions [Mg]	NOx emission factor [kg/MWh]	NOx emission fee [PLN thousand]	Dust emissions [Mg]	Dust emission factor [kg/MWh]	Dust emission fee [PLN thousand]	CO2 emissions [Mg]	CO2 emission factor [kg/MWh]	generation [MWh]
				1) The change from the information provided in 2019 results from a typographical error.
In 2020, the emission fee rates increased:
Kozienice Power Plant –	SO2: PLN 0.54 per kg in 2019 NOx: PLN 0.54 per kg in 2019 Dust: PLN 0.36 per kg in 2019	» » »	unit 11 vs. units 1-10	PLN 0.55 per kg in 2020 PLN 0.55 per kg in 2020 PLN 0.37 per kg in 2020
Years	SO2 emissions [Mg]	SO2 SO2 emission factor [kg/MWh]	SO2 emission fee [PLN thousand]	NOx emissions [Mg]	NOx NOx emission factor [kg/MWh]	NOx emission fee [PLN thousand]	Dust emissions [Mg]	Dust Dust emission factor [kg/MWh]	Dust emission fee [PLN thousand]	CO2 CO2 emissions [Mg]	CO2 emission factor [kg/MWh]	Gross electricity generation [MWh]
Q1 2020

Years	SO2 emissions [Mg]	SO2 emission factor [kg/MWh]	SO2 emission fee [PLN thousand]	NOx emissions [Mg]	NOx emission factor [kg/MWh]	NOx emission fee [PLN thousand]	Dust emissions [Mg]	Dust emission factor [kg/MWh]	Dust emission fee [PLN thousand]	CO2 emissions [Mg]	CO2 emission factor [kg/MWh]	generation [MWh]
			1) The change from the information provided in 2019 results from a typographical error.
In 2020, the emission fee rates increased:
	SO2: PLN 0.54 per kg in 2019 NOx: PLN 0.54 per kg in 2019 Dust: PLN 0.36 per kg in 2019	» » »		PLN 0.55 per kg in 2020 PLN 0.55 per kg in 2020 PLN 0.37 per kg in 2020
		SO2			NOx			Dust		CO2
Years	SO2 emissions [Mg]	SO2 emission factor [kg/MWh]	SO2 emission fee [PLN thousand]	NOx emissions [Mg]	NOx emission factor [kg/MWh]	NOx emission fee [PLN thousand]	Dust emissions [Mg]	Dust emission factor [kg/MWh]	Dust emission fee [PLN thousand]	CO2 emissions [Mg]	CO2 emission factor [kg/MWh]	Gross electricity generation [MWh]
Q1 2020 11 1) Unit	368.7	0.337	202.8	473.8	0.433	260.6	18.0	0.016	6.7	819,444.5	750	1,093,153.7
Q1 2019 Unit 11 1)	475.0	0.279	256.5	617.8	0.363	333.6	25.6	0.015	9.2	1,256,608.9	738	1,703,351.0
Q1 2020 Units 1-10	1,523.4	0.579	837.9	1,856.1	0.705	1,020.8	80.0	0.030	29.6	2,225,589.2	846	2,631,364.5
Q1 2019 Units 1-10	1,506.9 2)	0.633 2)	813.7	1,600.5	0.672	864.3	34.3	0.014	12.3	2,028,969.7	852	2,381,235.8
			1) Data for unit 11 include emissions and fees for the start-up boiler house. 2) The change from the information provided in 2019 results from a typographical error.									51

ENEA Elektrownia		Połaniec
Years	SO2 emissions [Mg]	SO2 SO2 emission factor [kg/MWh]	SO2 emission fee [PLN thousand]	NOx emissions [Mg]	NOx NOx emission factor [kg/MWh]	NOx emission fee [PLN thousand]	Dust emissions [Mg]	Dust Dust emission factor [kg/MWh]	Dust emission fee [PLN	CO2 CO2 emissions [Mg]	CO2 emission factor [kg/MWh]	Gross electricity generation [MWh]
Q1 2020	1,309.28	0.681	720.10	1,371.18	0.713	754.15	87.19	0.045	thousand] 32.26	1,204,067.76	626.0	1,923,477.0
Q1 2019	1,455.58	0.634	786.02	1,519.71	0.662	820.64	120.16	0.052	43.26	1,690,574.71	736.5
% change	-10.1	7.4	-8.4	-9.8	7.7	-8.1	-27.4	-13.5	-25.4	-28.8	-15.0	2,295,358.1 -16.2
Białystok Combined Heat and Power Plant
		SO2 SO2	SO2		NOx NOx	NOx		Dust Dust	Dust	CO2 CO2	CO2

Białystok Combined Heat and Power Plant

Years	SO2 emissions [Mg]	SO2 emission factor [kg/MWh]	SO2 emission fee [PLN thousand]	NOx emissions [Mg]	NOx emission factor [kg/MWh]	NOx emission fee [PLN thousand]	Dust emissions [Mg]	Dust emission factor [kg/MWh]	Dust emission fee [PLN thousand]	CO2 emissions [Mg]	CO2 emission factor [kg/MWh]	generation [MWh]
	Białystok Combined Heat and Power Plant
										CO2
Years	SO2 emissions [Mg]	SO2 emission factor [kg/MWh]	SO2 emission fee [PLN thousand]	NOx emissions [Mg]	NOx emission factor [kg/MWh]	NOx emission fee [PLN thousand]	Dust emissions [Mg]	Dust emission factor [kg/MWh]	Dust emission fee [PLN thousand]	CO2 emissions [Mg]	CO2 emission factor [kg/MWh]	generation [MWh]
Q1 2020	52	0.10	28.4	123	0.24	67.5	21	0.04	7.7	114,800	222.7	148,845.267
Q1 2019	148	0.25	80.1	97	0.17	52.6	12	0.02	4.3	174,502	297.3	166,781.981
% change	-65	-60	-65	26	44	28	75	99	80	-34	-25	-11
	Białystok "Zachód" Heat Plant	SO2			NOx			Dust		CO2
Years	SO2 emissions	SO2 emission factor	SO2 emission fee [PLN thousand]	NOx emissions [Mg]	NOx emission factor [kg/MWh]	NOx emission fee [PLN thousand]	Dust emissions [Mg]	Dust emission factor [kg/MWh]	Dust emission fee [PLN thousand]	CO2 emissions [Mg]	CO2 emission factor [kg/MWh]	Gross electricity generation [MWh]
	[Mg]	[kg/MWh]
Q1 2020	4.0	-	2.2	3.3	-	1.8	0.4	-	0.1	6,575.0	-	-
Q1 2019	12.4	-	6.7	2.9	-	1.6	0.6	-	0.2	5,554.6	-	-

Białystok "Zachód" Heat Plant

Years	SO2 emissions [Mg]	SO2 emission factor [kg/MWh]	SO2 emission fee [PLN thousand]	NOx emissions [Mg]	NOx emission factor [kg/MWh]	NOx emission fee [PLN thousand]	Dust emissions [Mg]	Dust emission factor [kg/MWh]	emission fee [PLN thousand]	CO2 emissions [Mg]	CO2 emission factor [kg/MWh]	generation [MWh]
Years	SO2 emissions [Mg]	SO2 SO2 emission factor [kg/MWh]	SO2 emission fee [PLN thousand]	NOx emissions [Mg]	NOx NOx emission factor [kg/MWh]	NOx emission fee [PLN thousand]	Dust emissions [Mg]	Dust Dust emission factor [kg/MWh]	Dust emission fee [PLN	CO2 CO2 emissions [Mg]	CO2 emission factor [kg/MWh]	Gross electricity generation [MWh]
Q1 2020	4.0	-	2.2	3.3	-	1.8	0.4	-	thousand] 0.1	6,575.0	-	-
Q1 2019	12.4	-	6.7	2.9	-	1.6	0.6	-	0.2	5,554.6	-	-

7. Corporate social responsibility

Fight against COVID-19: was donated by LW Bogdanka, which gives the total amount of PLN 4.2 million. and personal protection items.

Awards and events:

career.

Educational projects: In January, the jury and site users selected the winners of the third edition of the ENEA Talent Academy program. Twenty students will receive scholarships of PLN 3,000 to develop their scientific, artistic and sporting talents. Moreover, owing to grants worth PLN 10,000, nine schools and youth organizations will carry out their ENEA Group offering their knowledge and competences. Charitable campaigns parents, seniors and people in need.

• "We have energy in our blood" – execution of a permanent blood donation • Execution of a grant competition called The Power of Help

Development of permanent CSR projects:

- campaign in the ENEA Group;

8. Appendices

[PLN 000s]	Q1 2019	Q1 2020	Change	% change
Revenue from sales of distribution services to end	662,305	732,199	69,894	10.6%
users
Revenue from additional fees Revenue from non-invoiced sale of distribution	1,214	1,225	11	0.9%
services	7,777	14,884	7,107	91.4%
Settlement of the balancing market	2,145	12,511	10,366	483.1%
Grid connection fees	13,571	11,889	-1,682	-12.4%
Revenue from illegal consumption of electricity	1,717	1,574	-143	-8.3%
Revenue from services	7,286	7,088	-198	-2.7%
Sales of distribution services to other entities	4,386	5,886	1,500	34.2%
Sales of goods and materials and other revenue	620	347	-273	-44.0%
Net revenue from sales Depreciation of fixed assets and amortization of	701,021	787,603	86,582	12.4%
intangible assets	139,534	147,948	8,414	6.0%
Employee benefit expenses	106,888	124,521	17,633	16.5%
Consumption of materials and supplies and cost of goods sold	8,136	8,347	211	2.6%
Purchase of energy for own needs and grid losses	84,194	94,414	10,220	12.1%
Costs of transmission services Other third-party services	97,812 66,526	117,090 67,216	19,278 690	19.7% 1.0%
Taxes and fees	64,215	76,448	12,233	19.1%
Tax-deductible expenses	567,305	635,984	68,679	12.1%
Other operating income	8,531	24,709	16,178	189.6%
Other operating expenses	31,683	17,062	-14,621	-46.1%
Profit / (loss) on the sale and liquidation of property, plant and equipment	(2,624)	(975)	1,649	62.8%
Operating profit / (loss)	107,940	158,291	50,351	46.6%
Financial income	521	701	180	34.5%
Financial costs	18,356	21,591	3,235	17.6%
Profit / (loss) before tax	90,105	137,401	47,296	52.5%
Income tax	21,960	27,445	5,485	25.0%
	68,145	109,956	41,811	61.4%
Net profit / (loss) for the reporting period	247,474	306,239	58,765	23.7%

ENEA Operator Sp. z o.o. – EBITDA drivers (up by PLN 59 million): (-) higher costs of purchasing transmission and distribution services (balance) by PLN 18 million resulted from higher rates in the approved 2020 tariff

(-) revenue from grid connection fees down by PLN 2 million

(-) higher operating costs by PLN 31 million resulting mainly from higher employee benefit costs and higher costs of taxes and charges

[PLN 000s]	Q1 2019	Q1 2020	Change	% change
Revenue from sales of electricity	1,074,036	1,294,670	220,634	20.5%
generation license	999,069	1,046,282	47,213	4.7%
trading license	74,967	248,388	173,421	231.3%
Revenue from certificates of origin	10,875	15,143	4,268	39.2%
Revenue from sales of heat	357	330	-27	-7.6%
Revenue from sales of other products and
services	2,504	1,493	-1,011	-40.4%
Revenue from sales of goods and materials	4,152	3,034	-1,118	-26.9%
Net revenue from sales	1,091,924	1,314,670	222,746	20.4%
Revenue from leases and operating subleases	34	89	55	161.8%
Revenue from sales and other income	1,091,958	1,314,759	222,801	20.4%
Depreciation of fixed assets and amortization of
intangible assets	108,166	110,855	2,689	2.5%
Employee benefit expenses	60,377	66,095	5,718	9.5%
Consumption of materials and supplies and cost of goods sold	618,274	728,615	110,341	17.8%
Purchase of energy for subsequent sale	123,386	177,525	54,139	43.9%
Transmission services	158	162	4	2.5%
Other third-party services	29,707	31,883	2,176	7.3%
Taxes and fees	21,557	20,062	-1,495	-6.9%
Tax-deductible expenses	961,625	1,135,197	173,572	18.0%
Other operating income	6,851	18,181	11,330	165.4%
Other operating expenses	819	4,718	3,899	476.1%
Profit / (loss) on the sale and liquidation of property, plant and equipment	(111)	(180)	-69	-62.2%
Operating profit / (loss)	136,254	192,845	56,591	41.5%
Financial income	1,086	198	-888	-81.8%
Financial costs	35,477	35,051	-426	-1.2%
Profit / (loss) before tax	101,863	157,992	56,129	55.1%
Income tax	19,824	30,776	10,952	55.2%
Net profit / (loss) for the reporting period	82,039	127,216	45,177	55.1%
	244,420	303,700	59,280	24.3%

Q1 2020

ENEA Wytwarzanie Sp. z o.o. – EBITDA drivers (up by PLN 59 million):

(+) trading and Balancing Market margin up by PLN 98.8 million

(+) revenues from Regulatory System Services up by PLN 19.8 million

RES Segment (down by PLN 15 million):

(-) Wind Area (PLN -9.9 million): revenue from certificates of origin down by PLN 7.5 million, result on other operating activities down by PLN 1.3 million, revenue from sales of electricity down by PLN 1.0 million, fixed costs up by PLN 0.1 million

[PLN 000s]	Q1 2019	Q1 2020	Change	% change	Q1 2020
Revenue from sales of electricity	612,664	545,842	-66,822	-10.9%	ENEA Elektrownia Połaniec – EBITDA drivers (up by PLN 0.01 million):
generation license	500,235	481,224	-19,011	-3.8%
trading license	99,802	55,638	-44,164	-44.3%	System Power Plants Segment (EBITDA down by PLN 12.2 million): (-) generation margin down by PLN -4.0 million
Regulatory System Services	12,627	8,980	-3,647	-28.9%	(-) trading and Balancing Market margin down by PLN -1.0 million
					(-) revenue from sales of Regulatory System Services down by PLN -3.2 million (-) fixed costs up by PLN -3.9 million
Revenue from certificates of origin	54,781	69,617	14,836	27.1%
Revenue from sales of heat	14,581	10,059	-4,522	-31.0%	RES Segment (EBITDA up by PLN 12.5 million): (+) RES energy production margin up by PLN +23.7 million
Revenue from sales of other products and services	1,329	1,338	9	0.7%	(-) Green Block's margin on sale/remeasurement of green certificate inventories
Revenue from sales of goods and materials	0	1,019	1,019	-	down by PLN -10.8 million (-) fixed costs up by PLN -0.3 million
Excise tax Revenue from sales and other income	16 683,339	14 627,861	-2 -55,478	-12.5% -8.1%
Depreciation of fixed assets and amortization of					Heat Segment (EBITDA down by PLN 0.3 million) (-) margin on heat down by PLN -0.6 million due to a lower volume of heat
intangible assets	14,540	14,985	445	3.1%	generation by PLN -0.6 million (+) lower fixed costs by PLN +0.3 million
Employee benefit expenses Consumption of materials and supplies and cost of	15,388	16,808	1,420	9.2%
goods sold	416,039	394,907	-21,132	-5.1%
Purchase of energy for subsequent sale	81,731	39,481	-42,250	-51.7%
Transmission services	87	113	26	29.9%
Other third-party services	53,874	55,997	2,123	3.9%
Taxes and fees	8,518	8,675	157	1.8%
Tax-deductible expenses	590,177	530,966	-59,211	-10.0%
Other operating income	4,638	425	-4,213	-90.8%
Other operating expenses	130	81	-49	-37.7%
Operating profit / (loss)	97,670	97,239	-431	-0.4%
Financial income	678	94	-584	-86.1%
Financial costs	337	1,132	795	235.9%
Profit / (loss) before tax	98,011	96,201	-1,810	-1.8%
Income tax	27,894	63,211	35,317	126.6%
Net profit / (loss) for the reporting period	70,117	32,990	-37,127	-53.0%
	112,210	112,224	14	0.0%

Q1 2020

System Power Plants Segment (EBITDA down by PLN 12.2 million):

ENEA Elektrownia Połaniec – EBITDA drivers (up by PLN 0.01 million): (-) revenue from sales of Regulatory System Services down by PLN -3.2 million (-) fixed costs up by PLN -3.9 million

RES Segment (EBITDA up by PLN 12.5 million):

Heat Segment (EBITDA down by PLN 0.3 million)

14. Glossary of terms and abbreviations

	Below are the formulas for financial ratios and the list of industry terms and abbreviations used in this document.
Ratio	Formula
EBITDA	Operating profit/ (loss) + depreciation and amortisation + impairment losses on non-financial fixed assets
Return on equity (ROE)	Net profit/ (loss) for the reporting period Equity
Return on assets (ROA)	Net profit/ (loss) for the reporting period Total assets
Net profitability	Net profit/ (loss) for the reporting period Sales revenue and other income
Operating profitability	Operating profit/ (loss) Sales revenue and other income
EBITDA profitability	EBITDA Sales revenue and other income
Current liquidity ratio	Current assets Short-term liabilities
Coverage of non-current assets with equity	Equity Non-current assets
Total debt ratio	Total liabilities Total assets
Net debt / EBITDA	Interest-bearing liabilities – cash and cash equivalents LTM EBITDA
Current receivables turnover in days	Average trade and other receivables x number of days Sales revenue and other income
Trade and other liabilities turnover in days	Average trade and other receivables x number of days Cost of products, goods and materials sold
Inventory turnover in days	Average inventory x number of days Cost of products, goods and materials sold
Cost of products, goods and materials sold	Consumption of materials and raw materials and value of goods sold; Purchase of energy for sale purposes; Transmission services; Other third party services, taxes and levies, excise tax
Net debt	loans, borrowings and non-current and current debt securities + non-current and current finance lease liabilities + non-current and current financial liabilities 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

Financial ratios	Item
CAPEX	Capital expenditures
EBITDA LTM	EBITDA for the last 12 months
EBIT	Operating profit (loss)
Operating expenses	Depreciation and amortization; Employee benefit costs Consumption of materials and supplies and cost of goods sold; Purchase of energy and gas for resale; Transmission services; Other third-party services; Taxes and charges
External financing	Sum of the following Statement of cash flows items: Loans and borrowings received, Issue of bonds, Repayment of loans and borrowings, Redemption of bonds
Fixed costs	Costs that are independent of the electricity production volume. In a power plant, these costs include: payroll costs and charges, depreciation and amortization, costs of consumption of materials and supplies, costs of third-party services, costs of taxes and charges and other fixed costs
Own costs	Direct and indirect selling costs of ENEA S.A. and ENEA Trading Sp. z o.o.
Margin on heat	Margin on the sales of heat calculated as the difference between revenue from sales of heat and its variable production costs
Margin on trading	Difference between revenue from sales of electricity purchased in trading operations and the costs of purchasing electricity incorporating the result on sales of CO₂
Margin on RES energy production	Margin on the sales of energy and production of green certificates from the Green Unit, calculated as the difference between revenue from sales of energy and from the valuation of certificates produced and the variable costs of producing them
Margin on the balancing market	Difference between revenue from sales of electricity purchased on the balancing market and the costs of purchasing that electricity incorporating the result on CO₂ sales
Margin on generation	Difference between revenue from sales of electricity produced and revenue from certificates, and the variable costs related to production of that electricity
Margin from licensed activities	Margin from licensed activities is a management indicator incorporating revenues and costs related to business activity involving distribution of electricity to customers located in a specified area. Those include primarily: – revenue from sales of distribution services to end users – costs of transmission and distribution services – costs of electricity purchased to cover the balancing difference and for own needs – revenue from grid connection fees ENEA Operator Sp. z o.o. holds a concession granted by the President of the Energy Regulatory Office until 1 July 2030.
Green Block's margin on sale/remeasurement of green certificate inventories	Margin on the sale of green certificates from the Green Block calculated as a difference between revenue from sales and the cost of sales of the certificates, which takes into account the updated inventories of green certificates, i.e. the updated average weighted price of the inventory of certificates to market price in case their market price drops significantly. Margin on retail trading of electricity and gaseous fuel earned by ENEA S.A., presented together with wholesale sales of ENEA
Adjusted first contribution margin	Trading Sp. z o.o. adjusted for presentation by other conditional factors, such as costs of provisions for claims of terminated PMOZE agreements, revenues and costs from sales and purchases of CO₂ emission allowances, partial measurement of CO₂ emission allowances posted in operating activities. However, it should be noted that the measurement of CO₂ in terms of realized and posted exchange differences is presented in financial activities and affects the financial result in that part.
Result on other operating activities	Change in the following items: other operating income, other operating expenses, profit/loss on a change, sale and liquidation of property, plant and equipment
Change in working capital	An item from the statement of cash flows

Abbreviation/term	Full name/definition
AMI, Advanced Metering	Smart meters
Infrastructure
Baseload price (BASE)	Contract price for delivery of the same volume of electricity in each hour of the day
BAT	Best Available Techniques – a document drawing conclusions on best available techniques for the installations concerned and indicating the emission levels associated with the best available techniques
	A decentralized platform with a dispersed network infrastructure used to account for transactions, payments or accounting entries. Advantages of this technology include, among others, safety, which is ensured by the application of cryptographic algorithms, resilience to failures and transparency of
Blockchain	transactions, while maintaining anonymity of users. The list of possible applications includes, among others, cryptocurrencies, the Internet of Things, exchange transactions without intermediaries and institutions, land and mortgage registers without notaries and mortgage courts, electricity trading between prosumers
	and buyers without intermediaries, accounting ledgers
Capacity auction	A mechanism introduced by the Capacity Market Act of 8 December 2017 (Journal of Laws 2020, Item 247). In capacity auctions, electricity producers offer the operator a capacity obligation for the duration of a delivery period, which means that they undertake to maintain readiness in the delivery period to deliver the
	specified electric power output to the system and to deliver the specified electric power output to the system in emergency periods
CO₂	Carbon dioxide Corporate Social Responsibility. Responsibility of an organization for the impact exerted by its decisions and actions on society and the environment; it
	ensured by transparent and ethical conduct, which: ‒ contributes to sustainable development, including wellbeing and health of the society,
CSR	‒ takes stakeholder expectations into account, ‒ complies with the applicable law and consistent with international standards of conduct,
	‒ is integrated with the organization's activities and is practiced in its relations.
DAM	Day-Ahead Market (DAM) has been operating since 2000. It is a spot electricity market in Poland. Since the beginning of quotation, DAM prices are benchmark for energy prices in bilateral contracts in Poland. The DAM is intended for the companies that want to actively and safely close their electricity purchase/sales portfolios on an ongoing basis at particular hours of the day
Energy Law	Act of 10 April 1997 - Energy Law (Journal of Laws 2019 Item 755)
Energy Law Act	The Energy Law Act of 10 April 1997
ERO	Energy Regulatory Office
FDIR	Faul Detection, Isolation, Restoration, a system enabling automatic detection of faults, isolation of the damage site and restoration of power supply
GWh	Gigawatt hour
HCl	Hydrogen chloride
HF	Hydrogen fluoride
Hg	Mercury
HV	High voltage grid. An electric power transmission grid, in which the phase-to-phase voltage ranges from 60 to 200 kV (in Poland: 110 kV). This grid is used to transmit electricity over large distances
ICE	Intercontinental Exchange - Platform for trading CO₂ EU Emission Allowances (EUAs) and Certified Emission Reduction units (CERs) on the futures market
ICT	Information and Communication Technologies
Internet of Things	A concept according to which various items, such as household appliances, lighting and heating products, may directly or indirectly collect, process or exchange data via a power installation or a computer network. The purpose of this concept is to create smart cities, transport, products, buildings, power supply systems, health systems or daily life systems
	60

Abbreviation/term	Full name/definition
LV	Low voltage grid supplying individual users with 50 Hz alternating current at 230 V phase voltage
Mg	Megagram, or a ton
MV	Medium voltage grid, in which the phase-to-phase voltage ranges from 1 kV to 60 kV
MWe	Megawatt of electrical power
MWh	Megawatthour (1 GWh = 1,000 MWh)
MWt NH3	Megawatt of thermal power Ammonia
Nm3	Normalized cubic meter of gas, i.e. the number of cubic meters that the gas would occupy in normal conditions
NOx	Nitrogen oxides
PMOZE	Property rights to certificates of origin for energy from renewable energy sources
"Green" property rights	Commonly used name of PMOZE instruments
PPE	Polish Power Exchange
PSCMI 1	Reflects the price level of class 20-23/1 thermal coal powder in sales to commercial and industrial energy sector
RAB	Regulatory Asset Base
RAB AMI	Regulatory Asset Base for AMI projects
RES	Renewable Energy Sources
SAIDI	System Average Interruption Duration Index - indicator of the average system duration of a long and very long break (expressed in minutes per Customer)
SAIFI	System Average Interruption Frequency Index - indicator of the average system frequency of long interruptions in energy supply (expressed in the number of breaks per Customer)
SCR installation	Catalytic flue gas denitrification installation
Selective catalytic reduction (SCR)	An installation for catalytic denitrification of exhaust gases. It operates based on the principle of reduction of nitrogen oxides to atmospheric nitrogen on the surface of a catalyst, using substances containing ammonia
Smart Grid	Smart electrical grids, which feature communication between all the participants on the energy market, in order to supply energy services at lower costs, enhance efficiency and integrate dispersed energy sources, including renewable energy sources
SO₂	Sulfur dioxide
SPOT market	Cash (spot) market
Stakeholder	A person or group of persons interested in decisions or activities of an organization. A stakeholder is anyone who influences an organization and anyone influenced by it
Sustainable development	Development that meets the needs of the present without compromising the ability of future generations to meet their own needs and considers the expectations of the surrounding communities and societal, environmental and economic challenges. It enables permanent increase of the value of an organization and rational management of resources
Transmission System Operator	Polskie Sieci Elektroenergetyczne S.A., a company wholly-owned by the State Treasury, which owns highest voltage grids and therefore is the operator of the power transmission system
TSO	Transmission System Operator
TWh	Terawatt hour

ENEA S.A. ul. Górecka 1 60-201 Poznań gielda@enea.pl