Current Report No.: 54/2022

Current Report No.: 54/2022

Date of Preparation: 30 August 2022

Issuer's Abbreviated Name: ENEA S.A.

Subject: Information on preliminary financial and operating results for H1 2022

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

Body of the report:

In connection with the adoption, on 30 August 2022, by the Management Board of ENEA S.A. ("Company", "Issuer"), of information on preliminary financial and operating results of the ENEA Group for the first half of 2022, the Company hereby publishes the said preliminary results.

Consolidated financial results of the ENEA Group for H1 2022:

- Revenue from sales and other income: PLN 14,711 million,

- EBITDA: PLN 1,839 million,

- Profit before tax: PLN 1,055 million,

- Net profit for the reporting period: PLN 861 million,

- Net profit attributable to shareholders of the parent company: PLN 739 million,

- Capital expenditures on property, plant and equipment and intangible assets: PLN 1,039 million,

- Net debt / EBITDA ratio: -0.28.

EBITDA in the distinct operating areas:

- Mining: PLN 606 million,

- Generation: PLN 673 million,

- Distribution: PLN 634 million,

- Trading: PLN -34 million.

Selected operating highlights:

- Net coal production: 5.6 million tons,

- Total net electricity generation: 13.3 TWh,

- Sales of distribution services to end users: 10.2 TWh,

- Sales of electricity and gaseous fuel to retail customers: 12.0 TWh.

The EBITDA result generated by the ENEA Group in H1 2022 was driven largely by the following factors (compared to H1 2021):

In the Mining Area, the higher EBITDA was driven mainly by higher sales of coal, caused by an increase in the volume and selling price of bituminous coal, partially offset by increased costs of operating activities.

In the Generation Area, the higher EBITDA was largely driven by improved performance in the Heat Segment (chiefly as a result of an increase in the unit margin) and in the System Power Plants Segment (a higher margin on generation with the concurrent establishment of provisions for onerous contracts and a lower margin on trading and the Balancing Market). In the RES Segment, EBITDA declined, largely due to the establishment of a provision for onerous contracts and an increase in the costs of biomass consumption.

In the Distribution Area, the decline in EBITDA was caused by an increase in operating expenses, lower margins on licensed activities and a weaker result on other operating activities.

In the Trading Area, the decline in EBITDA was mainly due to the following factors: lower realized margins on the retail market (as a result of a spike in the purchase prices of electricity and gaseous fuel on the wholesale market and an increase in PMOZE prices), higher costs of provisions for claims of terminated PMOZE contracts and movement in provisions related to onerous contracts. At the same time, a higher result was generated on remeasurement of CO_#8322; contracts.

Consolidated financial results of the ENEA Group for Q2 2022:

- Revenue from sales and other income: PLN 7,465 million,

- EBITDA: PLN 779 million,

- Profit before tax: PLN 396 million,

- Net profit for the reporting period: PLN 313 million,

- Net profit attributable to shareholders of the parent company: PLN 244 million,

- Capital expenditures on property, plant and equipment and intangible assets: PLN 597 million.

EBITDA in the distinct operating areas:

- Mining: PLN 332 million,

- Generation: PLN 53 million,

- Distribution: PLN 323 million,

- Trading: PLN 53 million.

Selected operating highlights:

- Net coal production: 2.8 million tons,

- Total net electricity generation: 6.8 TWh,

- Sales of distribution services to end users: 4.9 TWh,

- Sales of electricity and gaseous fuel to retail customers: 5.8 TWh.

Standalone financial results of ENEA S.A. for H1 2022:

- Revenue from sales and other income: PLN 5,733 million,

- EBITDA: PLN -220 million,

- Profit before tax: PLN 314 million,

- Net profit for the reporting period: PLN 368 million.

The preliminary results take into account the movement in provisions related to onerous contracts in the Generation Area and in the Trading Area in the total amount of approx. PLN 511.1 million and the impact of an increase in the line item "Provisions for other reported claims_quot; item in the Trading Area by approx. PLN 74.9 million compared to 31 March 2022, as disclosed by the Issuer in Current Report No. 53/2022 of 19 August 2022.

The final results will be presented in the periodic report of the ENEA Group for H1 2022 expected to be published on 14 September 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 Net debt / EBITDA ratio is equal to (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. EBITDA LTM means EBITDA for the last twelve months.

The above definitions and calculation methodologies are the same as those used to calculate these ratios in the Issuer's periodic reports. The definitions of these terms are also included in the glossary of terms and abbreviations available on the Company's website (https://ir.enea.pl/slownik).