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Current Report No.: 6/2020

Title: Information on a revaluation write-down on the shares held in Polska Grupa Górnicza S.A.
Date: 2020.14.02
Report no.:  Current Report No.: 6/2020

Current Report No.: 6/2020

Date of preparation: 14 February 2020

Short name of Issuer: ENEA S.A.

Legal basis: Article 17(1) MAR - confidential information

Subject: Information on a revaluation write-down on the shares held in Polska Grupa Górnicza S.A.

Content of report:

The Management Board of ENEA S.A. ("Company", "Issuer") hereby informs that, in connection with obtaining on 14 February 2020 the audited financial statements of Polska Grupa Górnicza S.A. ("PGG") for 2019, in which PGG recognised a revaluation write-down on PGG's non-current assets as at 31 December 2019, it became aware of a potential need to recognise a revaluation write-down on the PGG shares held by the Company.

The estimated value of the revaluation write-down will amount to approximately PLN 53 million in the consolidated financial statements of ENEA Capital Group ("ENEA Capital Group") for 2019 and approximately PLN 48 million in the non-consolidated financial statements of ENEA S.A. for 2019.

The estimated impact of the revaluation write-down on the consolidated net result of ENEA Capital Group for 2019 will amount to about PLN 53 million and to about PLN 48 million on the Company's non-consolidated net result for 2019.

The above event is of a non-cash character and has no impact on the consolidated and non-consolidated EBITDA for 2019.

Having taken into account the revaluation write-down, the investment value measured using the equity method in relation to the PGG shares, both in the consolidated and non-consolidated statement of financial position, will amount to approximately PLN 254 million.

At the same time, the Company informs that the amount of the revaluation write-down may change, and the final value and the final impact thereof on the items and the indicator included in this current report will be presented in relevant periodic reports of the Company and ENEA Capital Group for 2019.

The Company explains that the term EBITDA is defined as the value of, respectively, operating profit (loss) + depreciation and amortisation + impairment losses on non-financial fixed assets (consolidated values for the reporting period). The above definition and the methodology of its calculation is the same as the definition and methodology of calculating this measure in the Issuer's periodic reports. The above definition is also included in the glossary of terms and abbreviations available on the Company's website (https://ir.enea.pl/slownik [in English: https://ir.enea.pl/en/glossary]).

Having in mind the diverse and international nature of Enea SA's shareholding, and also the provisions of the Best Practices of WSE Listed Companies, Enea SA guarantees the availability of its website also in English. In case of any interpretation doubts and discrepancies between the Polish and English versions, the Polish version shall prevail.