Enea S.A. — Capital/Financing Update 2022

Nov 29, 2022

Current Report No.: 71/2022

Date of Preparation: 29 November 2022

Issuer's Abbreviated Name: ENEA S.A.

Subject: ENEA S.A.'s outlook changed and ratings affirmed by FitchRatings

Legal Basis: Article 17(1) of the Market Abuse Regulation - insideinformation

Body of the report:

The Management Board of ENEA S.A. ("Company", "Issuer") hereby reportsthat, in a press release issued on 28 November 2022, Fitch Ratings("Agency") changed the Company's rating outlook from negative to stableand affirmed the Company's long-term foreign- and local-currency issuerdefault ratings at BBB.

The change of outlook is a consequence of the expected increase infinancial leverage in Q4 2022 and 2023, a decrease in the interestcoverage ratio and a weaker liquidity standing. The increase infinancial leverage is a result of the deterioration of the Company'sfinancial performance in 2022, especially in the Generation segment, andthe Agency's expectations of only a moderate improvement in EBITDA in2023, dampened by the unfavorable impact of the recent price caps ongeneration and sales imposed by the government. This will be combinedwith major working capital outflows expected in Q4 2022 and 2023 coupledwith large capital expenditures.

The affirmation of the ratings reflects the Company's integratedbusiness profile, encompassing a large generation fleet and electricitydistribution. The ratings are supported by the large share in theCompany's EBITDA of regulated activities in the form of electricitydistribution as well as quasi-regulated activities in the form ofinflows from the capacity market.

The full wording of the statement in English is available on theAgency's website at:

https://www.fitchratings.com/research/corporate-finance/fitch-revises-enea-outlook-to-negative-affirms-idr-at-bbb-28-11-2022

According to the clarifications published on the Agency's website(https://www.fitchratings.com/products/rating-definitions), BBB ratingsindicate that expectations of default risk are currently low, while thecapacity for payment of financial commitments is considered adequate,but adverse business or economic conditions are more likely to impairthis capacity.

Please note that the term EBITDA is defined as the value of operatingprofit (loss) + depreciation and amortization + impairment losses onnon-financial non-current assets (values for the reporting period).EBITDA is a standard measure of efficiency of a business activity, inparticular for the industry in which the Issuer's Group operates. Theabove definition and methodology for its calculation are the same asthose used to calculate this indicator in the Issuer's periodic reports.The definition above is also included in the glossary of terms andabbreviations available on the Company's website(https://ir.enea.pl/slownik).