Glossary

Margin on retail trading of electricity and gaseous fuel earned by ENEA S.A., presented together with wholesale sales of ENEA Trading and ENEA Power&Gas Trading, adjusted for presentation purposes by other conditional factors, such as: revenues and costs from sales and purchases of CO₂ emission allowances, valuation of CO₂ contracts, forward transactions for energy and gas presented in operating activities

Capital expenditures on property, plant and equipment, intangible assets and right-to-use asset.

An item of the consolidated statement of cash flows

Average balance of trade and other receivables x days / Revenue from sales and other income

A technological process of simultaneous generation of electricity and usable thermal energy in a CHP plant.

Consumption of materials and supplies and cost of goods sold, Purchase of energy for resale, Transmission services, Other thirdparty services, Taxes and charges, Excise duty

Equity / Non-current assets

Current assets / Current liabilities

The distribution system operator, which is a utility company that distributes electricity.

Net Income + Provision for Income Taxes + Interest Expense

Operating profit/ (loss)+ depreciation + impairment losses on non financial fixed assets.

EBITDA for the last 12 months

EBITDA / Net sales revenue.

A European scheme to promote the reduction of greenhouse gas emissions.

Electronic System of Information Transfer enabling immediate transmission and publishing of information that results from the obligations indicated in the law. The system is administered by the KNF.

Sum of the following items of the consolidated statement of cash flows: Loans and borrowings received, Issue of bonds, Repayment of loans and borrowings, Redemption of bonds

Costs that are independent of the electricity production volume. 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

Electricity market where forward products are listed.

Margin on generation including margin the Balancing Market

Margin on the sale of green certificates from the Green Unit 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

The Global Reporting Initiative is an international independent standards organisation that has developed globally available guidelines for public reporting of non financial data, helping companies, governments and other organisations understand and communicate their impact on labour, environmental, social, human rightsand corruption issues. The new version of the standard, compared to the previous G 4 Guidelines, which expired on 1 July 2018 is intended to be more understandable, better structured and easier to use.

European Parliament and Council Directive 2010/75 EU of November 24, 2010 on industrial emissions (the so-called IED Directive). This directive tightens the standards for the emission of sulphur dioxide, nitrogen oxides and dust from combustion plants.

Average balance of inventories x days / Cost of products, goods and materials sold

(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 - other short-term investments) / EBITDA LTM

Construed as each new activity/product/service performed or provided outside the ENEA Group’s core business, from which the ENEA Group will generate income following the marketing thereof by the Group.

Margin on the sales of heat calculated as the difference between revenue from sales of heat and its variable production costs

Difference between revenue from sales and cost of electricity purchased in trading operations

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

Indicator incorporating revenues and costs related to business activity involving distribution of electricity to customers located in a specific 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 for connection to ENEA Operator’s grid.

From May 25, 2018, the European Union and Council Regulation (EU) 2016/679 of 27 April 2016 on the protection of individuals with regard to the processing of personal data and the free flow of such data which is in force in all European Union member states and repealing Directive 95/46 / EC - also referred to as the General Data Protection Regulation (GDPR).

Property rights to certificates of origin for energy from renewable energy sources.

Polish Power Exchange.

ENEA Trading’s activity consisting of trading in contracts listed on commodity exchange markets on the company’s own account.

Same as PMOZE.

Property rights to certificates of origin confirming the production of electricity from agricultural biogas.

Property Rights to certificates of origin confirming the generation of electricity in a cogeneration unit fired with methane released and included in underground mining works or with gas obtained from biomass processing within the meaning of Article 2 (1) of the Act on biocomponents and liquid biofuels.

Property rights to certificates of origin confirming the generation of electricity in other cogeneration sources.

Property rights to certificates of origin confirming the generation of electricity in a gas cogeneration unit or with a total installed capacity of up to 1 MW.

Property rights to certificates of origin resulting from energy efficiency certificates, the so called “white” certificates.

Research, Development and Innovation activity

‘Refuse-derived fuel’ in the form of a selected fraction of municipal waste that may be used as a fuel other than conventional fuels.

Regulation on Wholesale Energy Market Integrity and Transparency which sets out a framework for monitoring wholesale energy markets in order to detect and prevent unfair practices at EU level.

Renewable energy sources. It is in accordance with the provisions of the Energy Law, a source which is used in the processing energy of wind, solar, aero thermal, geothermal, hydrothermal, wave, tidal, river fall, biomass, biogas from landfills, and the biogas produced in the process of discharge or sewage treatment or decomposition of plant and animal remains.

Result on the following items: Other operating revenue, Other operating expenses, Profit (loss) on movement in, sale and liquidation of property, plant and equipment and right-to-use asset

Describes the value of profit generated based on the assets held [net profit (loss) generated in the reporting period divided by the value of total assets at the end of the reporting period].

A measure of the value of profit generated from equity [net profit (loss) generated in the reporting period divided by equity at the end of the reporting period].

The gross inflow of economic benefits (cash, receivables, other assets) arising from the ordinary operating activities of an entity (such as sales of goods, sales of services, interest, royalties, and dividends) (from IAS 18)

Net profit (loss) for the reporting period / Net sales revenue.

Depreciation and amortization, Employee benefit costs, Consumption of materials and supplies and cost of goods sold, Purchase of energy and gas for subsequent sale, Transmission services, Other third-party services, Taxes and charges

Operating profit (loss) / Net sales revenue.

ENEA Trading’s commercial activity involving predominantly the execution of non-standard purchases of electricity from generators other than direct participants of the wholesale market, obtained from renewable energy sources and other distributed sources, such as cogeneration plants, incineration plants and industrial plants. The electricity purchased by ENEA Trading is then sold on the wholesale electricity market or is used by the ENEA Group.

Direct and indirect selling costs of ENEA S.A., ENEA Trading and ENEA Power&Gas Trading

System Average Interruption Duration Index - indicator of the average system duration of a long and very long break (expressed in minutes per Customer).

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).

A share is an indivisible unit of capital, expressing the legal ownership relations between the company and the shareholder.

A person or a group of people interested in any of the decisions or actions taken by the organization. A stakeholder is anyone who influences the organization and everyone whom it affects.

Is a development, according to which the needs of the present generation may be met without lessening the opportunities for future generations, by taking account of the management which responds to the environmental expectations, as well as social, environmental and economic challenges, facilitating the constant increase of the goodwill and rational management of resources.

Energy sold and supplied to customers connected to the high voltage grid.

Energy sold and supplied to customers connected to the medium voltage grid.

Energy sold and supplied to customers connected to the low voltage grid, excluding customers using electricity for household purposes.

Energy sold and supplied to household customers connected to the grid irrespective of the voltage level.

Average balance of trade and other payables x days / Cost of products, goods and materials sold

Total liabilities / Total assets