Enel Russia : 9m 2020 results reflect a persisting complex market context

Moscow, October 30^th, 2020 - PJSC Enel Russia has published its unaudited financial results for 9M 2020 in accordance with the International Financial Reporting Standards (IFRS).

· Revenues decreased mainly as a result of:

- lower electricity and capacity sales following the disposal of Reftinskaya power plant;

- a decline in market electricity (DAM) prices, due to lower demand in the context of a continuing low economic activity, following the COVID-19 pandemics, as well as by a substantial increase in hydro production in European Russia and Urals (the first price zone) in Q2-early Q3 2020.

These factors were only partially compensated by an annual increase of regulated tariffs and an indexation of free capacity (KOM) prices for 2020.

· EBITDA decreased mainly following the revenues, being partially offset by a reduction of variable and fixed costs in the company's new perimeter.

· Reported EBIT substantially increased from the low base of 9M 2019 which had occurred due to the impairment loss from reclassification of non-current assets of Reftinskaya GRES.

· Ordinary EBIT, being net of the reclassification effect mentioned above,declinedmainly following EBITDA, additionally adversely impacted by an increase in bad debt provisions, but, at the same time, compensated to a certain extent by decreased depreciation and amortization expenses after the coal power plant exit from company's perimeter.

· Net ordinary income was in line with ordinary EBIT, experiencing two opposite effects:

- strengthened by improved net interest expense, caused by lower average outstanding amount of net debt during 9M 2020 compared to 9M 2019;

- pressured by negative exchange difference, attributed to book revaluation of certain payables for operating expenses nominated in foreign currency caused by RUB depreciation during Q3 2020.

· Net debt as of September 30^th, 2020 increased compared to the low base of December 31^st, 2019, mostly reflecting active investment phase of renewable projects, simultaneously remaining stable over Q3 2020 following the receipt of the latest payment in connection with the sale of Reftinskaya GRES.

OPERATIONAL HIGHLIGHTS