DISCLOSURE OF DELAYED CONFIDENTIAL INFORMATION ON TRADING SEGMENT LOSS

The Management Board of Polenergia S.A. (‘Issuer’), acting pursuant to Art. 17 (1) of the Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse and repealing Directive 2003/6/EC of the European Parliament and the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ L 173, 2014, p. 1, as amended, ‘MAR’), hereby announces that as a result of the exceptional electricity market circumstances, the Trading Segment of the Issuer recorded a loss of PLN 20.3 million on part of electricity exchange transactions in the second quarter of 2018. This result was partially covered by profits from other markets.

The Issuer considered the occurrence of the loss of an estimated substantial value as a confidential information within the meaning of the MAR, and the same day, i.e. 11th June 2018, decided to delay publishing it, based on Art. 17 (4) of the MAR. In the Issuer’s opinion, a delay in publishing the confidential information was justified by the protection of legitimate interests of the Company, since an immediate disclosure at that time could adversely affect the Company’s negotiating position and prevent or hinder activities aimed at reducing the exposure of the Trading Segment to the risks arising from the situation on the electricity market.

Pursuant to Art. 17 (4) section 3 of the MAR, immediately after the publication of this report, the Issuer will notify Komisja Nadzoru Finansowego (Financial Supervision Authority) of the delay in disclosure of the confidential information together with the reasons for such a delay.

Legal basis: Art. 17 (1) of the Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse and repealing Directive 2003/6/EC of the European Parliament and the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ L 173, 2014, p. 1, as amended).