Current Report No.: 15/2024

Current Report No.: 15/2024

Date of Preparation: 14 March 2024

Issuer's Abbreviated Name: ENEA S.A.

Subject: Information on the intention to include non-recurring operations of an accounting nature in the financial statements for 2023

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

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 2023, as a result of asset impairment tests, on 14 March 2024, the Company identified the need to recognize impairment allowances for:

- the value of shares in ENEA Wytwarzanie sp. z o.o. ("ENEA Wytwarzanie") in the amount of approx. PLN 1,424 million,

- the value of shares in ENEA Ciepło sp. z o.o. ("ENEA Ciepło") in the amount of approx. PLN 23 million,

in the standalone financial statements for 2023, as well as impairment allowances for the generation assets of the following subsidiaries:

- ENEA Wytwarzanie in the amount of approx. PLN 1,570 million,

- ENEA Elektrownia Połaniec S.A. in the amount of approx. PLN 742 million,

- ENEA Ciepło in the amount of approx. PLN 89 million,

in the consolidated financial statements of the ENEA Group ("ENEA Group") for 2023.

In addition, with reference to Current Report No. 38/2023 of 13 September 2023, the Issuer hereby reports that it has estimated the fair value ofproperty, plant and equipment in the mining segment and the value of its holding in Lubelski Węgiel Bogdanka S.A. ("LWB") at the level of PLN 1,409 million, which results in the necessity to recognize an impairment allowance for the holding in LWB in the amount of approx. PLN 77 million in the standalone financial statements for 2023, and to recognize an additional impairment allowance for property, plant and equipment in the mining segment in the amount of approx. PLN 483 million in the consolidated financial statements of the ENEA Group for 2023.

These events will affect the standalone financial statements of the Issuer by reducing the Company's pre-tax profit and net profit for the reporting period by approx. PLN 1,524 million.

The events will affect the consolidated financial statements of the ENEA Group by reducing ENEA Group's pre-tax profit by approx. PLN 2,884 million and net profit for the reporting period by approx. PLN 2,336 million. The events are non-cash items and therefore have no impact on either the consolidated or standalone EBITDA for the reporting period.

The Issuer also reports that a need has been identified to increase the provision for onerous contracts in the trading segment by approx. PLN 624 million in the standalone financial statements for 2023 and by approx. PLN 154 million in the consolidated financial statements of the ENEA Group for 2023. The increase in the provision is aimed at reflecting the impact of anticipated future losses to be incurred in connection with the performance of comprehensive contracts entered into with prosumers whose micro-installations were connected to the grid by 31 March 2022.

This event will affect the standalone financial statements of ENEA S.A. for 2023 by reducing the Company's EBITDA and pre-tax profit by approx. PLN 624 million and net profit for reporting period by approx. PLN 506 million.

This event will affect the consolidated financial statements of the ENEA Group for 2023 by reducing EBITDA and pre-tax profit by approx. PLN 154 million and net profit for the reporting period by approx. PLN 125 million.

In total, all of the above events will affect the standalone financial statements of ENEA S.A. for 2023 by reducing the Company's EBITDA by approx. PLN 624 million, pre-tax profit by approx. PLN 2,148 million and net profit for the reporting period by approx. PLN 2,030 million and the consolidated financial statements of the ENEA Group for 2023 by reducing EBITDA by approx. PLN 154 million, pre-tax profit by approx. PLN 3,038 million and net profit for the reporting period by approx. PLN 2,461 million.

Please be advised that the foregoing figures are estimates and as such are subject to change. Their final value will be presented in the periodic reports of the Company and the ENEA Group for 2023.

The Company clarifies 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).