Current Report No.: 13/2023

Current Report No.: 13/2023

Date of Preparation: 7 March 2023

Issuer's Abbreviated Name: ENEA S.A.

Subject: Information on preliminary financial and operating results for 2022

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

Body of the report:

In connection with the adoption, on 7 March 2023, by the Management Board of ENEA S.A. ("Company", "Issuer"), of information on preliminary financial and operating results of the ENEA Group for 2022, the Company hereby publishes the said preliminary results.

Consolidated financial results of the ENEA Group for 2022:

- Revenue from sales and other income: PLN 30 118 million,

- EBITDA: PLN 2 220 million,

- Profit before tax: PLN 275 million,

- Net profit for the reporting period: PLN 119 million,

- Net profit attributable to shareholders of the parent company: PLN 45 million,

- Capital expenditures on property, plant and equipment and intangible assets: PLN 2 533 million,

- Net debt / EBITDA ratio: 1.73.

EBITDA in the distinct operating areas:

- Mining: PLN 611 million,

- Generation: PLN 310 million,

- Distribution: PLN 1 329 million,

- Trading: PLN -76 million.

Selected operating highlights:

- Net coal production: 8.4 million tons,

- Total net electricity generation: 26.2 TWh, of which 1.9 TWh from RES,

- Sales of distribution services to end users: 20.3 TWh,

- Sales of electricity and gaseous fuel to retail customers: 23.7 TWh.

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

In the Mining Area, the lower EBITDA was largely caused by a decrease in the volume of coal mined, which was offset by a higher sales price. In parallel, operating expenses went up.

In the Generation Area, the lower EBITDA resulted predominantly from the poorer performance in the System Power Plants Segment (decrease in the margin on generation related to the higher cost of coal and CO2 emission allowances, increase in fixed costs) and in the RES Segment (for the most part, increase in biomass consumption costs coupled with a lower volume of net electricity generation from renewable sources).

In the Distribution Area, a decline was recorded in EBITDA, caused by an increase in operating expenses, despite the realized higher margin on licensed activities and a stronger result on other operating activities.

In the Trading Area, the lower EBITDA loss was caused by a higher realized margin on the retail market. In parallel, provisions related to onerous contracts grew and the result on revaluation of CO2 contracts deteriorated.

Consolidated financial results of the ENEA Group for Q4 2022:

- Revenue from sales and other income: PLN 7 386 million,

- EBITDA: PLN 146 million,

- Loss before tax: PLN -825 million,

- Net loss in the reporting period: PLN -788 million,

- Net loss attributable to shareholders of the parent company: PLN -743 million,

- Capital expenditures on property, plant and equipment and intangible assets: PLN 861 million.

EBITDA in the distinct operating areas:

- Mining: PLN -65 million,

- Generation: PLN 29 million,

- Distribution: PLN 347 million,

- Trading: PLN -148 million.

Selected operating highlights:

- Net coal production: 1.2 million tons,

- Total net electricity generation: 6.0 TWh, of which 0.5 TWh from RES,

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

- Sales of electricity and gaseous fuel to retail customers: 5.9 TWh.

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

- Revenue from sales and other income: PLN 12 425 million,

- EBITDA: PLN -61 million,

- Profit before tax: PLN 2 276 million,

- Net profit for the reporting period: PLN 2 448 million.

These preliminary results take into account the reversal of the impairment allowances recognized on shares in ENEA Wytwarzanie Sp. z o.o. in the amount of approx. PLN 1 020 million and the establishment of a provision in the trading segment of approx. PLN 368 million, as was disclosed by the Issuer in Current Report No. 12/2023 of 2 March 2023.

The final results will be presented in the periodic reports of ENEA S.A. and the ENEA Group for 2022, the publication of which has been scheduled for 22 March 2023.

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).