Revenues at the level of PLN 12.7 billion and better results by 11% than in the previous year. Achieving financial, operational and investment effects. Undertaking activities affecting the implementation of the United Nations Sustainable Development Goals.

Dear Sirs and Madams,

I am pleased to present you the Enea Group Sustainability Report for 2018, which summarizes the results achieved in the key areas of our activity. The past period was a time of hard work and necessary involvement in many areas. The companies from the power sector, including the Enea Group, had to meet new challenges and adapt to them. We reacted to the new regulations for the energy market, record high prices of CO2 emission allowances, as well as rising fuel and transport costs in a flexible manner. We are constantly preparing and introducing elements of the profound transformation of the Enea Group, adapting our company to the requirements of the national, European and global environment. A key element of this transformation is that of the numerous initiatives aimed at reducing the company's impact on the natural environment and at the same time increasing social awareness in the field of ecology. Policies are an invariable element in our approach to business sustainable development.

Last year, we generated PLN 12.7 billion in revenues and obtained a 11% higher value than in the previous year. The financial condition of the Group was also confirmed by external financial institutions, which assessed our situation as stable.

While focusing on operational activities and achieving financial goals, we have not limited our activity in other areas of business life. For many years, we have been a supporter of pro-environmental activities and an active participant in important social initiatives. Therefore, 2018 was also a time devoted to building real value for the environment in which we operate.

As a Group, we act in a responsible, transparent and ethical way. We endorse ideas that support companies in building a sustainable business. This year, for the first time, we wanted to share with you how we contributed to achieving the United Nations Sustainable Development Goals. Our ambition is to show the way to other entities that are ready to find a balance between the construction of financial and non-financial value. To summarize our activities in this area, we have influenced the achievement of objective 4 "Quality Education", No. 5 "Gender equality", No. 7 "Available and Clean Energy", No. 8 "Decent Work and Economic Growth" and No. 11 "Sustainable Cities and Communities".

In our activities related to the provision of good quality education and promoting the need for intellectual development, we have been involved in the organization of apprenticeships and placements that enable the acquisition of the initial professional experience of young people. We embraced the patrons of schools, offering development for students and financial support for institutions. We continued the original program "Enea Talent Academy", whose task is to support the development of passion among young people. In addition, we initiated educational projects targeted at local communities. The group also focuses on the development of our Employees, enabling them to participate in organized trainings and workshops as well as e-learning courses. We also encourage the expansion of knowledge during postgraduate studies and conferences.

We fulfil the goals relating to achieving gender equality and empowering women through initiatives addressed to them. In connection with this, we have completed a series of meetings devoted to health, beauty and safety, which were held under the slogan "Women's Power Plant - Women's Forum". In addition, together with the Enea Foundation, as part of the "Enea for Health" project, we organized cytological tests for women from the Kozienice commune. At the same time, we undertook an initiative aimed at making women aware of the necessity of regular breast examinations aimed at early diagnosis of cancerous changes. Another form of support was also Nordic walking classes, which apart from didactics made it possible to exchange experiences related to a healthy lifestyle.

An important issue for us was to contribute by providing stable access to electricity to the public. In this regard, we have undertaken partnership within the Leszno Energy Cluster, whose aim is to achieve market equilibrium between the demand and the supply of electricity. We have been developing electricity production from renewable energy sources based on our manufacturing assets. Thanks to this, in the past year, we have produced almost 11% more electricity from alternative energy sources. We also focused on reducing the unitary CO2 emissions from energy sources. We completed investments and carried out modernization works, which significantly influenced the continuity of supply and energy efficiency.

An important area of our impact has been activities that affect economic growth and ensure decent work. We achieved the aforesaid objective through transparent terms and conditions of employment for Employees. In the past year, the Enea Group has been an employer of 16,500 people. We have provided all Employees with equal access to training, as well as a transparent bonus and remuneration system. We do not differentiate between Employees due to gender, race, nationality, disability, age, sexual identity, trade union membership, ethnic or social origin, religion or political beliefs. At the same time, in an external dimension, we have carried out research work in the field of new solutions for the generation and acquisition of energy and fuels with the lowest possible emission. We have also taken steps to extend our offer to Clients for energy-efficient products, as well as design and installation services for solar panels.

A significant event in our activity was the first full year of commercial operation of block 11 of Kozienice Power Plant - the most modern in the world, while also the most environmentally friendly natural coal generation unit. The operation of the block has contributed to the increase in the volume of electricity generated in the Group, and the unit itself has become an important link in the national energy system, thus guaranteeing the availability of energy produced efficiently for the needs of several million companies and households. We have strengthened the level of competitiveness of enterprises from the north-western part of Poland by means of a total value of PLN 1 billion in numerous investments in locally operating distribution networks, thus improving the quality of energy supplies and expanding investment opportunities in this area. The activity of the Enea Group on the market of production, distribution and sale of system heat in Białystok and northern Greater Poland contributed to the improvement of air quality in these regions. In addition, we undertook activities in the area of development of electromobility in Poland.

The content presented in the Enea Group Sustainability Report for 2018 captures the most important areas of our involvement in non-financial aspects. It is my sincere hope that the report presented shall be an interesting read for you, as well as an inspiration to undertake business activities in a sustainable way, as the Enea Group does.

Mirosław Kowalik
President of the Management Board of Enea SA