Current Report No. 26/2020

Date: 31 March 2020

Subject: Information on the results of impairment tests of assets in the Generation Business Line and impairment tests on stakes in subsidiaries owned by Energa SA

Legal basis: Article 17 (1) of MAR – inside information

The Management Board of Energa SA (the "Company") hereby informs that on 31 March 2020 it received the information about the results of the impairment tests of assets in the Generation Business Line, which were conducted for the second half of 2019 due to the changes in market environment and the related update of forecasted price paths in the Energa Group.

As a result of the abovementioned impairment tests, it was found necessary to create the impairment losses on conventional and CHP generation assets (PLN 180 million in total), which were partially offset by the reversal of impairment losses on RES assets (PLN 18 million in total). The estimated total impact of the above impairment losses on the consolidated net result of the Energa Group for 2019 is PLN
-131 million. The above events are of a non-cash nature. They will decrease the operating results of Energa Group without affecting the EBITDA result.

At the same time, as a result of impairment tests on stakes in subsidiaries owned by Energa SA, the impairment losses in the amount of PLN 178 million were identified. The estimated total impact of the these losses on the standalone net result of Energa SA for 2019 is PLN -144 million. The above events are of a non-cash nature. They will decrease the operating results of Energa SA without affecting the EBITDA result.

The financial data presented are estimates and will be subject to auditing by the auditor, therefore they may change. The final results of the tests and the amount of the impairment losses will be presented in the consolidated financial statements of Energa Group for 2019 and in the standalone financial statement of Energa SA.