Current Report No.: 64/2022

Current Report No.: 64/2022

Date of Preparation: 8 November 2022

Issuer's Abbreviated Name: ENEA S.A.

Subject: Information on preliminary financial and operating results for Q1-Q3 2022

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

Body of the report:

In connection with the adoption of information on preliminary financial and operating results of the ENEA Group for Q1-Q3 2022 by the Management Board of ENEA S.A. ("Company", "Issuer") on 8 November 2022, the Company hereby publishes the said preliminary results.

Consolidated financial results of the ENEA Group for Q1-Q3 2022:

- Revenue from sales and other income: PLN 22,732 million,

- EBITDA: PLN 2,295 million,

- Profit before tax: PLN 1,100 million,

- Net profit for the reporting period: PLN 907 million,

- Net profit attributable to shareholders of the parent company: PLN 789 million,

- Capital expenditures on property, plant and equipment and intangible assets: PLN 1,673 million,

- Net debt / EBITDA ratio: -0.18.

EBITDA in the distinct operating areas:

- Mining: PLN 676 million,

- Generation: PLN 281 million,

- Distribution: PLN 982 million,

- Trading: PLN 293 million.

Selected operating highlights:

- Net coal production: 7.2 million tons,

- Total net electricity generation: 20.2 TWh,

- Sales of distribution services to end users: 15.2 TWh,

- Sales of electricity and gaseous fuel to retail customers: 17.8 TWh.

The EBITDA result generated by the ENEA Group in Q1-Q3 2022 was driven largely by the following factors (compared to Q1-Q3 2021):

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

In the Generation Area, the lower EBITDA resulted predominantly from the poorer performance in the System Power Plants Segment (establishment of provisions for onerous contracts and a lower margin on the Balancing Market coupled with a concurrent increase in the margin on generation and trade operations) along with a lower result attained in the RES Segment (establishment of provisions for onerous contracts and higher costs of biomass consumption). In the Heat Segment, an increase in EBITDA was recorded, largely due to a greater unit margin.

In the Distribution Area, the decline in EBITDA was caused by an increase in operating expenses along with a concurrent greater realized margin on licensed activities and a better result on other operating activities.

In the Trading Area, the increase in EBITDA was driven by a higher realized margin on the retail market and a higher result on revaluation of CO_#8322; contracts. At the same time, the costs of provisions for claims arising from terminated contracts related to RES property rights increased, as did provisions related to onerous contracts.

Consolidated financial results of the ENEA Group for Q3 2022:

- Revenue from sales and other income: PLN 8,021 million,

- EBITDA: PLN 456 million,

- Profit before tax: PLN 45 million,

- Net profit for the reporting period: PLN 45 million,

- Net profit attributable to shareholders of the parent company: PLN 50 million,

- Capital expenditures on property, plant and equipment and intangible assets: PLN 634 million.

EBITDA in the distinct operating areas:

- Mining: PLN 70 million,

- Generation: PLN -391 million,

- Distribution: PLN 348 million,

- Trading: PLN 327 million.

Selected operating highlights:

- Net coal production: 1.6 million tons,

- Total net electricity generation: 6.9 TWh,

- Sales of distribution services to end users: 5.1 TWh,

- Sales of electricity and gaseous fuel to retail customers: 5.7 TWh.

Standalone financial results of ENEA S.A. for Q1-Q3 2022:

- Revenue from sales and other income: PLN 9,099 million,

- EBITDA: PLN 96 million,

- Profit before tax: PLN 1,247 million,

- Net profit for the reporting period: PLN 1,204 million.

The preliminary results take into account the provision for onerous contracts in the Generation Area in the total amount of approx. PLN 1,311.5 million, as was disclosed by the Issuer in Current Report No. 60/2022 of 11 October 2022.

The final results will be presented in the periodic report of the ENEA Group for Q3 2022, scheduled to be published on 23 November 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).