1. General information

1.1. General information about ENEA S.A. and the ENEA Group

The main activities of the ENEA Group (“Group”) are:

• production of electricity and heat (ENEA Wytwarzanie Sp. z o.o., Przedsiębiorstwo Energetyki Cieplnej Sp. z o.o. in Oborniki, Miejska Energetyka Cieplna Piła Sp. z o.o., Miejskie Przedsiębiorstwo Energetyki Cieplnej Sp. z o.o. in Białystok);
• electricity trade (ENEA S.A., ENEA Trading Sp. z o.o.);
• distribution of electricity (ENEA Operator Sp. z o.o.);
• distribution of heat (ENEA Wytwarzanie Sp. z o.o., Przedsiębiorstwo Energetyki Cieplnej Sp. z o.o. in Oborniki, Miejska Energetyka Cieplna Piła Sp. z o.o., Miejskie Przedsiębiorstwo Energetyki Cieplnej Sp. z o.o. in Białystok);
• mining and agglomeration of hard coal (Group Lubelski Węgiel „Bogdanka” S.A.).

As at 31 December 2015 the shareholding structure of ENEA S.A. was the following: the State Treasury of the Republic of Poland – 51.50% of shares, other shareholders – 48.50%.

As at 31 December 2015 the statutory share capital of ENEA S.A. equaled PLN 441 443 thousand (PLN 588 018 thousand upon adoption of IFRS-EU and considering hyperinflation and other adjustments) and was divided into 441 442 578 shares.

ENEA S.A. is the Parent of the ENEA Group, which as at 31 December 2015 comprised also 13 subsidiaries and 9 indirect subsidiaries.

The financial statements have been prepared under assumption that the Company will be able to continue as a going concern in the foreseeable future. No circumstances occur that would indicate a threat to the Company’s operation as a going concern.

1.2. Composition of the Management Board and the Supervisory Board

Management Board

On 7 December 2015, the Supervisory Board of ENEA S.A. dismissed Mr. Krzysztof Zamasz - the President of the Company’s Management Board and Mr. Paweł Orlof - Member of the Company’s Management Board responsible for Corporate Affairs, from the Management Board of ENEA S.A. and delegated Mr. Wiesław Piosik to temporary perform the duties of the President of the Company’s Management Board.

On 30 December 2015, the Supervisory Board of ENEA S.A. adopted a resolution to dismiss Mrs. Dalida Gepfert - Member of the Company’s Management Board responsible for Financial Affairs and Mr. Grzegorz Kinelski - Member of the Company’s Management Board responsible for Commercial Affairs from the Management Board of ENEA S.A., effective from 7 January 2016 and adopted a resolution to revoke the delegation of the Supervisory Board Member,Mr. Wiesław Piosik, to temporary perform the duties of the President of the Company’s Management Board of ENEA S.A., effective from 7 January 2016.

On 30 December 2015, the Supervisory Board of ENEA S.A. also adopted a resolution to appoint Mr. Mirosław Kowalik to the position of the President of the Company’s Management Board and Mr. Wiesław Piosik to the position of the Member of the Company’s Management Board responsible for Corporate Affairs of ENEA S.A. for the next term which commenced on 7 January 2016.Furthermore, the Supervisory Board of ENEA S.A. adopted a resolution to delegate Mr. Sławomir Brzeziński to temporary perform the duties of the Member of the Company’s Management Board responsible for Commercial Affairs of ENEA S.A. till the appointment of the Member of the Management Board responsible for Commercial Affairs.

On 21 January 2016, the Supervisory Board adopted a resolution to appoint Mr. Piotr Adamczak to the position of the Member of the Management Board responsible for Commercial Affairs and Mr. Mikołaj Franzkowiak to the position of the Member of the Management Board responsible for Financial Affairs, effective from 15 February 2016.

Supervisory Board

On 30 June 2015 the Ordinary General Meeting adopted resolutions to dismiss the following Members of the Supervisory Board of ENEA S.A. effective from the termination of the eighth term of the Supervisory Board,i.e. 1 July 2015:

- Wojciech Chmielewski,

- Jeremi Mordasewicz,

- Michał Kowalewski,

- Sandra Malinowska,

- Małgorzata Niezgoda,

- Sławomir Brzeziński,

- Przemysław Łyczyński,

- Tadeusz Mikłosz.

At the same time the Ordinary General Meeting of ENEA S.A. appointed the following Members of the Supervisory Board for the ninth term:

- Sławomir Brzeziński,

- Tadeusz Mikłosz,

- Wojciech Klimowicz,

- Wojciech Chmielewski,

- Małgorzata Niezgoda,

- Sandra Malinowska,

- Rafał Szymański,

- Marian Gorynia.

The appointment of aforementioned people was effective from 2 July 2015.

On 22 July 2015 Mr. Wojciech Chmielewski resigned from the position of the Chairman of the Supervisory Boardof ENEA S.A. and the membership in the Supervisory Board of ENEA S.A. effective from the date of the resignation.

On 23 July 2015 Mrs. Monika Macewicz was appointed to the Supervisory Board of ENEA S.A.

On 27 August 2015 the Extraordinary Shareholders’ Meeting appointed Mr. Radosław Winiarski to the Supervisory Board and appointed Mrs. Małgorzata Niezgoda to the Chairman of the Supervisory Board.

On 22 September 2015 Mr. Marian Gorynia resigned effective from the date of the resignation.

On 21 October 2015 the Supervisory Board of ENEA S.A. appointed Mr. Tomasz Gołębiowski to the Supervisory Board.

On 2 December 2015 on the basis of the statement of the Ministry of Treasury, Mrs. Monika Macewicz was dismissed from the position of the Member of the Supervisory Board of ENEA S.A. and Mr. Wiesław Piosik was appointed to the Supervisory Board of ENEA S.A.

* On 7 December 2015 the Supervisory Board of ENEA S.A. delegated Mr. Wiesław Piosik, the Member of the Supervisory Board, to temporary perform the duties of the President of the Management Board of ENEA S.A.

On 30 December 2015 the Supervisory Board of ENEA S.A. revoked the delegation of Mr. Wiesław Piosik, the Member of the Supervisory Board, to temporary perform the duties of the Chairman of the Board of ENEA S.A., effective from 7 January 2016.

On 7 January 2016 the entity received Mr. Wiesław Piosik’s resignation from the position of the Member of the Supervisory Board of ENEA S.A., effective from 7 January 2016. The resignation was connected with the appointment to the Management Board on 7 January 2016.

On 15 January 2016 the Extraordinary Shareholders’ Meeting of ENEA S.A. dismissed Mrs. Sandra Malinowska, Mr. Radosław Winiarski and Mr. Tomasz Gołębiewski, an independent member, from the Supervisory Board of ENEA S.A. and appointed four new Members: Mr. Piotr Kossak as an independent member, Mr. Rafał Bargiel, Mr. Roman Stryjski and Mr. Piotr Mirkowski to the Supervisory Board of ENEA S.A.