Current Report No.: 53/2022

Current Report No.: 53/2022

Date of Preparation: 19 August 2022

Issuer's Abbreviated Name: ENEA S.A.

Legal Basis: Article 17(1) of the Market Abuse Regulation - confidential information

Subject: Information on the intention to include non-recurring operations of an accounting nature in the financial statements for H1 2022

Body of the report:

The Management Board of ENEA S.A. ("Company", "Issuer") hereby reports that in connection with the preparation of financial statements (standalone and consolidated) for the first half of 2022, the need to recognize the following items was identified on 19 August 2022:

- a provision for onerous contracts in the generation segment in the total amount of approx. PLN 446.9 million, which consists of a provision in the Issuer's subsidiary ENEA Elektrownia Połaniec S.A. in the amount of approx. PLN 253.2 million and a provision in the Issuer's subsidiary ENEA Wytwarzanie Sp. z o.o. in the amount of approx. PLN 193.7 million. The above provisions are due to forward contracts for the supply of electricity, for which the costs needed to perform the contract exceeds the expected benefits in reference to the concluded 2022 contract prices with delivery dates from 1 July 2022 to 31 December 2022.

- a provision for onerous contracts in the trading segment in the amount of approx. PLN 64.2 million. On 10 June 2022, the Company filed an application with the ERO President to approve a change in the electricity tariff for ENEA S.A.'s Tariff Group G clients for 2022. The proposed change is due to an increase in electricity purchase costs, mainly due to increased energy consumption by clients and increased costs of purchasing property rights. At present, the tariff proceedings regarding the above application has not been completed and therefore there is uncertainty whether the Company will obtain the increase in revenue to cover the justified increased electricity purchase costs.

The Issuer also evaluated the status of court proceedings, in particular those associated with the termination by the Company of property rights sales agreements arising from RES certificates of origin of electricity, reviewed the methodology for calculating the provision for potential related claims and estimated the increase in the value of the "Provisions for other claims raised" by approx. PLN 74.9 million as compared to 31 March 2022, i.e. from PLN 243.6 million to approx. PLN 318.5 million.

The above events will affect the standalone financial statements of ENEA S.A. for H1 2022 by reducing EBITDA by approx. PLN 139.1 million, pre-tax profit by approx. PLN 139.1 million and the Company's net profit for the reporting period by approx. PLN 112.7 million and the consolidated financial statements of the ENEA Group ("ENEA Group") for H1 2022 by reducing EBITDA by approx. PLN 586 million, pre-tax profit by approx. PLN 586 million and net profit for the ENEA Group's reporting period by approx. PLN 474.7 million.

Please be advised that the foregoing figures are estimates and as such are subject to change, and that their final amounts will be presented in the periodic report of the ENEA Group for H1 2022.

Please note that the term EBITDA is defined as the value of operating profit (loss) + depreciation and amortization + impairment losses on non-financial non-current assets (values for the reporting period). The above definition and methodology for its calculation are the same as those used to calculate this indicator in the Issuer's periodic reports. The definition above is also included in the glossary of terms and abbreviations available on the Company's website (https://ir.enea.pl/slownik).