Enea S.A. — M&A Activity 2018

Jul 12, 2018

Current report No.: 44 /2018

Date of preparation: 12 July 2018

Short name of issuer: ENEA S.A.

Subject: Conclusion of the Public Procurement Agreement with the GeneralContractor selected in the course of the procedure conducted by theCompany for awarding a sector-specific public contract under the name of"Construction of Ostrołęka Power Plant C with approx. 1,000 MW poweroutput" through a competitive dialogue.

Legal basis: Art. 17 item 1 of Market Abuse Regulation - confidentialinformation

Content of report:

In relation to Current Report No. 43/2018 of 6 July 2018 and allprevious reports concerning the procedure for awarding a sector-specificpublic contract under the name of "Construction of Ostrołęka Power PlantC with approx. 1,000 MW power output" ("Contract") through a competitivedialogue, the Management Board of ENEA SA ("Issuer") hereby informs thaton 12 July 2018 it was notified of the conclusion by ElektrowniaOstrołęka Sp. z o.o. ("Company") on that same day of a PublicProcurement Agreement ("Agreement") with the General Contractor - theConsortium of GE Power sp. z o.o. (Leader of the Consortium) and AlstomPower Systems S.A.S. selected in the course of the procedure conductedby the Company for awarding the Contract.

The subject of the Agreement is the design, construction andcommissioning of a power unit with auxiliary installations, equippedwith a dust flow boiler fired with bituminous coal, with a fresh steampressure of 271 MPa, a closed cooling system, with a gross power outputof 1,000 MWe (931 MWe net) and net efficiency of 46%, working undersupercritical steam parameters, with a fresh steam temperature of 600degrees C and a reheated steam temperature of 620 degrees C("Investment").

Pursuant to the concluded Agreement, for the execution of the subject ofthe Agreement the General Contractor shall be paid a remuneration of PLN5,049,729,000.00 net, PLN 6,023,034,950.00 gross.

The Agreement provides for contractual penalties for the GeneralContractor, i.a. for delays in the execution of the subject of theAgreement or for failure to achieve or to maintain the so-calledguaranteed technical parameters of the Investment.

The conclusion of the Agreement is not tantamount to granting a consentto issue a Notice to Proceed (NTP) - the issuance of NTP requires, amongothers, a prior approval of the Issuer's Supervisory Board in thismatter and a prior qualified consent of the Issuer's General Meeting tocommence the Construction Stage.