Current Report No.: 12/2023

Current Report No.: 12/2023

Date of Preparation: 2 March 2023

Issuer's Abbreviated Name: ENEA S.A.

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

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

Body of the report:

The Management Board of ENEA S.A. ("Company", "Issuer") hereby reports that in connection with the preparation of (standalone and consolidated) financial statements for 2022 ("Financial Statements"), as a result of tests for an impairment of assets, on 2 March 2023, the Company identified the need to reverse an impairment loss on the value of shares in ENEA Wytwarzanie sp. z o.o. of approx. PLN 1,020 million in the standalone financial statements of ENEA S.A. for 2022.

The Issuer reported on the said impairment loss in its Current Report No. 7/2021 of 25 February 2021 and in its periodic reports for 2020.

This event will affect the standalone financial statements of ENEA S.A. by increasing the Company's pre-tax profit and net profit for the reporting period by approx. PLN 1,020 million.

The event will have no impact on the consolidated financial statements of the ENEA Group.

The event is a non-cash event and therefore it has no impact on either the consolidated or standalone EBITDA for the reporting period.

With reference to Current Report No. 73/2022 of 17 December 2022 regarding the impact of the approval by the President of the Energy Regulatory Office of the electricity tariff for the set of tariff groups G ("Tariff"), the Company hereby reports that it has submitted an application to the ERO President to change the Tariff approved on 17 December 2022 and is awaiting a decision on this matter. Moreover, during the preparation of the Financial Statements, the Issuer evaluated the impact of the values of the approved Tariff on its business in connection with the current situation on the electricity market. The Issuer is of the opinion that the Tariff fails to cover the full costs of electricity purchases estimated by the Company, and for this reason, on 2 March 2023, identified the need to establish a provision of approx. PLN 368 million in the trading segment.

This event will affect the standalone financial statements of ENEA S.A. and the consolidated financial statements of the ENEA Group by reducing EBITDA by approx. PLN 368 million, pre-tax profit by approx. PLN 368 million and net profit for the reporting period by approx. PLN 298 million.

All the above events will affect the standalone financial statements of ENEA S.A. by increasing pre-tax profit by approx. PLN 652 million and net profit for the reporting period by approx. PLN 722 million, and reducing EBITDA by approx. PLN 368 million, and the consolidated financial statements of the ENEA Group by reducing pre-tax profit by approx. PLN 368 million and net profit for the reporting period by approx. PLN 298 million, and reducing EBITDA by approx. PLN 368 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 reports of the Company and the ENEA Group for 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 in question is also provided in the glossary of terms and abbreviations available on the Company's website (https://ir.enea.pl/slownik).