Estimated financial and operational data of the Energa Group for Q1 2023

Current report No. 10/2023

Date: 11 May 2023

Subject: Estimated financial and operational data of the Energa Group for Q1 2023

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 2023.

Selected data for Q1 2023:

Revenues of the Group: PLN 7,423 million (vs. PLN 4,938 million in Q1 2022).

EBITDA of the Group: PLN 2,331 million (vs. PLN 1,077 million in Q1 2022), including:

EBITDA of the Distribution Business Line: PLN 1,632 million (vs. PLN 712 million in Q1 2022),

EBITDA of the Generation Business Line: PLN 301 million (vs. PLN 306 million in Q1 2022),

EBITDA of the Sales Business Line: PLN 445 million (vs. PLN 59 million in Q1 2022).

Operating result (EBIT) of the Group: PLN 2,041 million (vs. PLN 806 million in Q1 2022).

Net profit of the Group: PLN 1,571 million (vs. PLN 611 million in Q1 2022).

CAPEX of the Group: PLN 713 million (vs. PLN 316 million in Q1 2022).

Distribution of electricity: 5,828 GWh (vs. 6,211 GWh in Q1 2022).

Gross production of electricity: 1,009 GWh (vs. 1,278 GWh in Q1 2022).

Retail sales of electricity: 4,583 GWh (vs. 4,717 GWh in Q1 2022).

In Q1 2023, the Energa Group generated PLN 2,331 million in EBITDA (operating profit before amortization and impairment of non-financial non-current assets), up by PLN 1,254 million from the same period last year. This result was mainly influenced by:

a) EBITDA achieved by the Distribution Business Line of PLN 1,632 million (an increase of PLN 920 million y/y). EBITDA increased mainly as a result of a higher average selling price of the distribution service y/y connected with the tariff for 2023 and a favourable valuation of the estimated grid losses.

b) EBITDA achieved by the Generation Business Line of PLN 301 million (a decrease of PLN 5 million y/y). The level of EBITDA was similar y/y despite lower production volumes.

c) EBITDA achieved by the Sales Business Line of PLN 445 million (an increase of PLN 386 million y/y). The main reason for the increase in EBITDA was an accounting event, i.e. partial reversal of the provision for onerous contracts, which was created in December 2022 in connection with the decision of the President of the Energy Regulatory Office to approve the electricity tariff for the G tariff groups for 2023 and the entry into force of the acts regulating electricity prices for certain end consumers in 2023.

The Group's net profit in Q1 2023 amounted to PLN 1,571 million compared to PLN 611 million in the corresponding period of 2022. 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 2023.