Estimated financial and operational data of the Energa Group for Q1 2022

Current report No. 23/2022

Date: 27 April 2022

Subject: Estimated financial and operational data of the Energa Group for Q1 2022

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

The Management Board of Energa SA hereby reports estimated selected financial and operational data of the Energa Group ("Group") for the first quarter of 2022.

Selected data for Q1 2022:

Revenues of the Group: PLN 4,938 million (vs. PLN 3,441 million in Q1 2021).

EBITDA of the Group: PLN 1,077 million (vs. PLN 758 million in Q1 2021), including:

EBITDA of the Distribution Business Line: PLN 712 million (vs. PLN 520 million in Q1 2021),

EBITDA of the Generation Business Line: PLN 306 million (vs. PLN 104 million in Q1 2021),

EBITDA of the Sales Business Line: PLN 59 million (vs. PLN 144 million in Q1 2021).

Operating result (EBIT) of the Group: PLN 806 million (vs. PLN 484 million in Q1 2021).

Net profit of the Group: PLN 611 million (vs. PLN 384 million in Q1 2021).

CAPEX of the Group: PLN 316 million (vs. PLN 345 million in Q1 2021).

Distribution of electricity: 6,211 GWh (vs. 5,806 GWh in Q1 2021).

Gross production of electricity: 1,278 GWh (vs. 1,027 GWh in Q1 2021).

Retail sales of electricity: 4,717 GWh (vs. 4,917 GWh in Q1 2021).

In Q1 2022, the Energa Group generated PLN 1,077 million in EBITDA (operating profit before amortization and impairment of non-financial non-current assets), up by 42% from the same period last year. This result was mainly influenced by:

a) EBITDA achieved by the Distribution Business Line of PLN 712 million (an increase of PLN 192 million y/y). EBITDA increased mainly as a result of a higher margin on distribution (taking into account grid losses) resulting from higher sales volumes of the distribution service, as well as lower volumes of grid losses and a favourable valuation of the estimated unbilled grid losses. In turn, the results were adversely affected by the effects of removing mass interruptions that took place in January and February 2022.

b) EBITDA achieved by the Generation Business Line of PLN 306 million (an increase of PLN 202 million y/y). The better Q1 2022 result, compared to the same period of the previous year, was influenced by i.a. higher electricity selling prices and higher production volumes. The above effects were partially reduced by a higher cost of fuel and emission allowances purchase.

c) EBITDA achieved by the Sales Business Line of PLN 59 million (a decrease of PLN 85 million y/y). The decrease in the result in Q1 2022, compared to the corresponding period of the previous year, was due to a lower margin on sales of electricity (the effect of lower sales volume and a decrease in the unit margin) and a lower margin on gas sales (effect of a decrease in the unit margin).

The Group's net profit in Q1 2022 amounted to PLN 611 million compared to PLN 384 million in the corresponding period of 2021. The increase in the net profit y/y was primarily due to an improvement of EBITDA.

The data presented are estimates and may change. The final financial and operational results will be presented in the consolidated quarterly report of the Energa Group for Q1 2022.