Energa S.A.

Capital/Financing Update • Oct 31, 2022

Current Report No. 42/2022

Date: 31 October 2022

Subject: Affirmation of Energa SA's rating by Moody's

Legal basis: Article 17(1) MAR - inside information.

The Management Board of Energa SA ("Company", "Issuer") informs that on31 October 2022 the rating agency Moody's Investors Service ("Agency","Moody's") affirmed the Company's Long-Term Issuer Ratings - DomesticCurrency at "Baa2". Simultaneously, the Agency has affirmed the "Baa2"backed senior unsecured ratings and the "Baa2" guaranteed seniorunsecured EMTN program of Energa Finance AB (publ) - the Company'ssubsidiary. The outlook on all ratings has been changed to positive fromstable.

The rating action follows the upgrade by the Moody's of the rating ofthe Company's majority owner PKN ORLEN S.A. ("PKN ORLEN"), to A3 with astable outlook. The upgrade of PKN ORLEN's rating was mainly driven byits merger with the company Polskie Gornictwo Naftowe i Gazownictwo S.A.

The Agency indicates that the Issuer's ratings continue to reflect thecompany's overall low business risk profile (given that the major shareof the company's earnings stems from regulated electricity distribution)and a good liquidity position. Simultaneously, Moody's points out thatthese positives are balanced by the higher business risk profile of theCompany's power generation and energy supply businesses as well asexecution risks related to an investment program over 2021-30, whichwill increase financial leverage.

The positive outlook on the Issuer's ratings reflects Moody's views thatthe improved credit quality of its owner, PKN ORLEN, will also stand tobenefit Energa SA as the two companies further integrate.

The Agency's full report is available on the Moody's website. The ratingwas awarded at the request of the Issuer.