Energa S.A.

Earnings Release • Feb 15, 2023

Current report No. 3/2023

Date: 15 February 2023

Subject: Estimated financial and operational data of the Energa Groupfor Q4 2022 and for 2022

Legal basis: Article 17 (1) of MAR - inside information

The Management Board of Energa SA hereby reports estimated selectedfinancial and operational data of the Energa Group ("Group") for thefourth quarter of 2022 and for 2022.

Estimated selected data for Q4 2022:

Revenues of the Group: PLN 5,268 million (vs. PLN 3,805 million in Q42021).

EBITDA of the Group: PLN -453 million (vs. PLN 340 million in Q4 2021),including:

EBITDA of the Distribution Business Line: PLN 393 million (vs. PLN 545million in Q4 2021),

EBITDA of the Generation Business Line: PLN 21 million (vs. PLN -51million in Q4 2021),

EBITDA of the Sales Business Line: PLN -846 million (vs. PLN -131million in Q4 2021).

Operating result (EBIT) of the Group: PLN -745 million (vs. PLN 41million in Q4 2021).

Net profit of the Group: PLN -633 million (vs. PLN -26 million in Q42021).

CAPEX of the Group: PLN 1,029 million (vs. PLN 742 million in Q4 2021).

Distribution of electricity: 5,751 GWh (vs. 5,880 GWh in Q4 2021).

Gross production of electricity: 1,126 GWh (vs. 1,172 GWh in Q4 2021).

Retail sales of electricity: 4,679 GWh (vs. 4,855 GWh in Q4 2021).

The Energa Group generated EBITDA (operating profit before amortizationand impairment of non-financial non-current assets) of PLN -453 millionin Q4 2022, which means a decrease by PLN 793 million compared to thesame period of the previous year. This result was mainly influenced by:

a) EBITDA achieved by the Distribution Business Line in the amount ofPLN 393 million (a decrease by PLN 152 million YoY). The reason for thedecrease in EBITDA was primarily a lower margin on sales of distributionservice with grid losses mainly due to the unfavourable volume and priceof grid losses YoY. Operating costs, including employee benefitexpenses, were also higher due to inflationary pressures.

b) EBITDA achieved by the Generation Business Line of PLN 21 million (anincrease by PLN 72 million YoY). The reason for the higher EBITDA resultwas higher revenues from the sale of electricity. The positive impact ofthe above factors was partly reduced by the higher cost of consumptionof key production fuels and the higher cost of purchasing emissionallowances.

c) EBITDA achieved by the Sales Business Line in the amount of PLN -846million (a decrease by PLN 715 million YoY). The reason for the negativeEBITDA result and its strong decrease YoY was mainly the creation of aprovision for onerous contracts in the amount of PLN 916 million inconnection with the implementation of the regulation of electricitysales prices to end users and the approval by the President of theEnergy Regulatory Office of the tariff for households for 2023.

The Group's net profit in Q4 2022 amounted to PLN -633 million. Thedecrease in the net profit YoY was mainly due to lower operating resultsof the Group.

Estimated selected data for 2022:

Revenues of the Group: PLN 20,292 million (vs. PLN 13,791 million in2021).

EBITDA of the Group: PLN 2,645 million (vs. PLN 2,449 million in 2021),including:

EBITDA of the Distribution Business Line: PLN 2,044 million (vs. PLN2,048 million in 2021),

EBITDA of the Generation Business Line: PLN 837 million (vs. PLN 112million in 2021),

EBITDA of the Sales Business Line: PLN -166 million (vs. PLN 343 millionin 2021).

Operating profit (EBIT) of the Group: PLN 1,439 million (vs. PLN 1,278million in 2021).

Net profit of the Group: PLN 960 million (vs. PLN 937 million in 2021).

Capital expenditures: PLN 3,260 million (vs. PLN 2,107 million in 2021).

Distribution of electricity: 23,233 GWh (vs. 23,074 GWh in 2021).

Gross production of electricity: 4,533 (vs. 4,136 GWh in 2021).

Retail sales of electricity: 17,992 GWh (vs. 18,578 GWh in 2021).

In 2022, the Energa Group reported an EBITDA result of PLN 2,645million, which means an increase by 8% YoY. The largest growth wasrecorded by the Generation Business Line (EBITDA higher by PLN 725million YoY), which was mainly due to higher revenues from the sale ofelectricity. The positive impact of the above factor was only partlyreduced by the higher cost of consumption of key production fuels andthe higher cost of purchasing emission allowances. The valuation of openpositions on electricity concluded by the Ostrołęka power plant also hada positive effect. The Sales Business Line reported an EBITDA resultlower by PLN 509 million, which was mainly related to the creation of aprovision for onerous contracts in the amount of PLN 916 million,referred to in the description regarding Q4 2022 above. The DistributionBusiness Line reported an EBITDA result at the same level as in 2021.The higher margin on sales of distribution service resulting from ahigher average sales price YoY was offset by a higher level of operatingcosts due to inflationary pressures and a decrease in revenues fromconnections.

The data presented are estimates and are subject to review by theauditor, therefore they may change. The final financial and operationaldata of the Energa Group for Q4 2022 and for 2022 will be presented inthe consolidated financial statements of the Energa Group for 2022.