21/03/2023
Hera Spa
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Financial Results
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Hera Group approves results at 31 December 2022
2023-03-21 The year ended positively, with growth in the main operating and financial indicators. The Group’s financial solidity and its multi-business industrial model allowed it to maintain a low risk profile and increase value creation shared with all stakeholders. The dividends proposed rise to 12.5 cents per share. Financial highlights Revenues at 20,082 million euro (+90.3%) Ebitda* at 1,295.0 million euro (+6.2%) Net profit* attributable to shareholders at 322.2 million euro Net debt at 4,249.8 million euro and Net debt/Ebitda* at 3.28x, falling to roughly 2.9x net of gas storage Proposed dividends rise to 12.5 euro cents per share (+4.2%) Operating highlights Positive results from both internal and external growth Significant contributions from the gas area and the waste management sector, with significant interventions concerning the circular economy and green gases Consolidation of the Group’s ranking as the first operator in waste management, second in the water cycle and third in energy, with over 3.5 million customers in the energy sector Shared-value Ebitda up sharply to 670.3 million (+17.5%), approximately 52% of total Ebitda Confirmed for the third consecutive year as the best company in the Multi-Utility & Water sector in the Dow Jones Sustainability Index, World & Europe Today, the Board of Directors of the Hera Group, chaired by Tomaso Tommasi di Vignano, unanimously approved the consolidated operating results at 31 December 2022 and the Report on remuneration policies and compensation paid, as well as the Sustainability report. Statement by Tomaso Tommasi di Vignano, Executive Chairman of the Hera Group “The 2022 financial year closed positively, with results exceeding expectations and fully consistent with previous quarters. After 2021, this is one of the best growth rates recorded in more than twenty years by the Hera Group, all the more appreciable in light of the external context in which it was achieved. Relying on the strength of our consolidated business model and our risk-averse policies, we have once again confirmed our commitment to creating value for the company and for all our stakeholders. The proposed increase in dividends, coming to 12.5 cents per share and in line with the communications made when presenting the Business Plan to 2026, also goes in this direction. On the one hand, we have continued to make investments, in order to face the energy crisis and ensure that all our assets remain resilient and performing, thus ensuring that our strategic plans are carried out and the quality of the services managed stays high. On the other, we have pursued the company’s development along external lines, with M&A transactions in the energy and waste management sectors, with the goal of consolidating our position in the reference markets and further improving the competitiveness and efficiency of the solutions we offer to our customers.” Statement by Orazio Iacono, CEO of the Hera Group "The positive results achieved allow us to face the future with confidence, continuing to invest to grow and increase the resilience and digitisation of our infrastructure. Our efficient financial management, along with cash flow generation, allowed us to close the financial year 2022 with a net debt/Ebitda ratio coming to 3.28x, which, excluding the gas storage investments now falling back into line, drops to below 3x, in line with the Group’s historically prudential policy. Shared-value Ebitda rose to 670 million, 51.8% of total Ebitda, and showed growth outpacing that of overall Ebitda, which proves that we are progressively making our operations more and more sustainable. 2022 was also a record year for investments, which came to over 700 million euro, 62% of which were put in place to pursue carbon neutrality, promote the circular economy, enable resilience and innovate. A number of innovative initiatives in the area of renewables also moved in this direction: for example, in 2022 we expanded our biomethane production capacity by around 50% with the construction of a second plant, and we were the first in Italy to introduce a hydrogen-natural gas blend into a city’s network intended for households. Partially thanks also to this latter operation, our gas distribution networks have become fully aligned to the European Taxonomy.” Uninterrupted growth in business and value created for stakeholders, thanks to a well-established multi-business model and sound management policies Thanks to its consolidated multi-business model, balanced between regulated and free-market activities, and its good operational, financial and fiscal management, the Hera Group closed 2022 with operating results and investments up on the previous year. It therefore dealt positively with a particularly complicated external scenario, marked by ongoing volatility on the energy market and a highly unstable international geopolitical situation. The management policies implemented by the Group, together with its solid and resilient industrial model, once again proved effective in responding to these external complexities, making it possible to guarantee continuity and quality in services and creation of value for all stakeholders, while at the same time pursuing sustainable development. In addition to the flexibility shown towards suppliers, who were allowed to revise their supply conditions based on inflation, numerous initiatives were introduced to support customers, with particular attention to those facing hardship, including reinforcing instalment plans for bills, extending protocols with municipalities and social bonuses for district heating, and supporting digital tools and qualified operators for consumption analysis and efficiency. The Group thus proved able to turn challenges into opportunities and confirmed its significant volume of investments in the energy transition, the circular economy and innovation, with concrete projects coherent with the main national and international policies. More specifically, in 2022 an increase coming to over 20% was seen in investments compared to 2021, demonstrating the Group’s ongoing focus on valorising and strengthening the resilience of assets under management, with the ultimate goal of continuing to create value for stakeholders. Furthermore, following up on its commitment to offer its customers efficient, innovative and competitive solutions in terms of costs and sustainability, the Hera Group continued to seize opportunities to expand its scope of operations through M&As. In the energy area, through Hera Comm, the company Con Energia was acquired, while in the waste management area, Marche Multiservizi acquired the company Macero Maceratese, located in the province of Macerata, specialised in waste recovery and treatment . In recent weeks, two further transactions were finalised, whose effects will be seen as of 2023. The first, particularly important, concerns the acquisition, through Herambiente Servizi Industriali, of 60% of the Modena-based company A.C.R. di Reggiani Albertino S.p.A.®, one of the largest Italian enterprises operating in the remediation sector, industrial waste treatment, industrial plant decommissioning and civil works related to oil & gas. This partnership, in addition to strengthening Hera’s leadership in the waste management area, has led to the creation of Italy’s largest operator in the environmental reclamation and industrial waste global service sector, with widespread coverage throughout the country, and will bring a contribution of approximately 20 million euro to the Group’s consolidated Ebitda. The second transaction, concluded on 14 March, concerns the acquisition of 92% of the shares of Asco TLC by the Hera Group, through its subsidiary Acantho, and by Ascopiave, which thus now have shareholdings coming to 36.8% and 55.2% respectively. Revenues rise sharply to over 20 billion euro The Hera Group’s 2022 revenues increased to 20,082 million euro, up considerably from the 10,555.3 million euro seen in 2021. In particular, strong growth occurred in the energy sector, as a result of increased energy commodity prices, which was compounded by an expanded customer base and increased activities related to sales of value-added services and solutions for energy efficiency and self-generation. Higher revenues in the waste management area mainly came from energy production, new acquisitions in the industrial market, and higher prices in the markets covered. Ebitda* up to 1,295 million euro Ebitda* for 2022 rose to 1,295 million euro, up 6.2% from the 1,219.4 recorded at 31 December 2021. This increase, due in particular to the good performance of the waste management area, up by 46.3 million, and to the overall contribution coming from the energy areas, amounting to 28.8 million, is all the more appreciable considering that it absorbs the negative effect, totalling approximately 22 million, resulting from the revision of the WACC by the Regulatory Authority for Energy, Networks and the Environment (ARERA), effective as of 1 January 2022. Financial operations essentially stable and pre-tax result* up to 502.9 million euro The result from financial operations at 31 December 2022 amounted to 125 million euro, a slight increase coming to 5.2 million compared to the previous year. This change was mainly due to an increase in net financial debt caused by gas storage activities and the working capital absorbed by increased energy commodity prices compared to 2021. Pre-tax results rose to 502.9 million euro, up 3.2% from 487.5 million in 2021, entirely offsetting the increases recorded in depreciation, amortisation and provisions and in financial operations. Net result* increases to 372.3 million euro The tax rate came to 26% for 2022, as against 26.8% in 2021. This improvement was mainly due to the non-recurring concessions, in the form of tax credits, introduced for purchases of electricity and gas, which represented positive income components that were not taxed, as well as benefits from the redemption of a number of higher values arising from corporate acquisitions. The net result* at 31 December 2022 thus amounted to 372.3 million euro, up 4.3% from 356.9 million seen one year earlier. Net profit* attributable to shareholders at 322.2 million euro Net profit* attributable to shareholders at 31 December 2022 amounted to 322.2 million, up (+1.4%) compared to the same figure for 2021, obtained by excluding non-recurring extraordinary income items coming to 12.6 million euro. Strong growth in investments and net financial debt affected by increases in gas storage In 2022, the Hera Group’s operating investments, including capital grants, reached 709.5 million euro, up 20.5% compared to 2021. The main interventions concerned plants, networks and infrastructures, in addition to regulatory upgrading mainly related to gas distribution and the integrated water cycle, respectively involving a large-scale meter replacement, with new-generation devices, and specific interventions in the purification and sewerage areas. Partially due to the significant volume of investments on the Group’s networks and assets, RAB rose to 3.4 billion euro, up 133 million compared to 2021. Consideration must furthermore go to the significant financial resources invested to increase the amount of gas stored. These resources, which at 31 December 2022 amounted to 503.7 million euro, plus a further 200 million for withdrawals made in December that have not returned as cash flows, act as a short-term strategic investment insofar as they enabled the Group to guarantee security and flexibility in the supply of gas to its customers. Net financial debt rose to 4,249.8 million euro, as against 3,261.3 million at 31 December 2021. This increase is mainly due to higher net working capital, caused by the significant investment in gas storage and higher energy commodity prices in 2022, compared to the previous year, as well as the considerable investments made during the year and M&As (acquisition of 100% of Con Energia and 70% of Macero Maceratese). The net debt/Ebitda* ratio increased to 3.28x, from 2.67x in 2021, but if the gas reserve in the now almost completely emptied storages is excluded, this ratio comes to roughly 2.9x, which is below the Group’s historical prudential policy and is perfectly in line with its performance targets. The operating result shows a double-digit return on equity (ROE), coming to 10.0%. Strong growth in Shared-value Ebitda, reaching 670.3 million: commitment to sustainability and focus on stakeholders confirmed As confirmation of Hera’s commitment to sustainability and its focus on creating shared value in the areas served, 2022 Shared-value Ebitda, referring to business activities capable of responding to the goals on the Global Agenda, rose to 670.3 million, up 17.5% compared to 2021 and corresponding to 51.8% of overall Ebitda. This result is in line with the path set out in the Business Plan, and the objective is to arrive at 70% in 2030, thanks to a process that generates concrete benefits for the areas served and for local communities, alongside the company’s own development. More specifically, in 2022 investments in shared value drivers amounted to 510 million euros, roughly 62% of total investments. In addition, roughly 90% of the investments eligible for the Taxonomy are already aligned with the criteria of the European Regulation. The Group’s best practices in ESG factors led Hera to be confirmed, for the second year in a row, among the best companies internationally in the ESG Evaluation carried out by S&P Global Ratings and, for the third consecutive year, in the Dow Jones Sustainability Index, World & Europe, one of the world’s most authoritative stock market indices for evaluating social responsibility, ranking as the best company in the Multi-Utility & Water sector. Proposed dividends increase to 12.5 cents per share Confirming its focus on creating value for shareholders, in line with the communications made in February when presenting the Business Plan to 2026 and in consideration of the positive results achieved, the Board of Directors decided to propose to the Shareholders Meeting to be held on 27 April a dividend coming to 12.5 cents per share, up 0.5 cents compared to the last dividend paid. The entire future dividend policy will benefit from this increase, reaching 15 cents per share in 2026. The ex-dividend date will be 19 June 2023, with payment starting on 21 June 2023. The dividend will be paid to the shares recorded on 20 June 2023. Report on remuneration policies and compensation paid approved The Board of Directors also approved the Report on remuneration policy and compensation paid, in line with international best practices. Gas Ebitda* for the gas area, which includes natural gas distribution and sales, district heating and energy services, increased significantly compared to the previous year, amounting to 585.1 million euro (+21.1%), as against 483.2 million euro in 2021. Growth in the gas area, in terms of both revenues and volumes sold, was mainly due to the opportunities provided, in the energy services segment, by the incentives for energy efficiency in homes (110% super-bonus and insulation bonus), confirming a sector trend already recorded in previous quarters. A contribution also came from the acquisition of Con Energia and the growth in customers, including the tenders awarded relating to the last resort and Consip markets. In particular, Hera Comm was awarded, for the period from 1 October 2021 to 30 September 2023, 6 of the 9 lots of the last resort gas service in 12 regions, all 9 lots of the gas default service tender, as well as 2 of the 12 lots of the Consip GAS14 tender for supplying natural gas to public administrations in 2022, both in Lombardy. The number of customers rose slightly, coming to 2.1 million (+1%) overall. In 2022, net investments amounting to 156 million were made (+11% compared to 2021), mainly concerning distribution, with non-recurring maintenance on networks and plants, smart gas meter commissioning, including the innovative NexMeter patented by Hera, district heating and energy services, as well as activities related to acquiring new customers. The first national trial of hydrogen injection into a municipal gas distribution network was also begun in Castelfranco Emilia in Modena area, an asset readiness test on the infrastructure that is part of the Group’s strategy to promote renewable sources, in line with European indications and confirmed gas distribution to be almost fully aligned to the European Taxonomy. The gas area accounted for 45.2% of Group Ebitda. Electricity Ebitda for the electricity area, which includes services in power generation, distribution and sales, came to 71.6 million, as against 144.7 million in 2021, mainly due to the different conditions on the energy markets, linked to the exceptional context of rising raw material prices, which affected procurement, and a lower contribution coming from dispatching services. Note the solidity of commercial development, as confirmed by growth in customers and the number adhering to innovative offers (relating to electric mobility, photovoltaics, heating and air conditioning) and value-added services. In addition to this, Hera Comm was awarded by tenders: 4 of the 17 lots of the Consip EE19 tender for supplying electricity to public administrations in 2022 in the provinces of Rome, Campania, Calabria and Sicily; 3 of the 9 lots of the gradual protected service for supplying electricity to SMEs, for the period from 1 July 2021 to 30 June 2024, in 9 regions; 1 of the 9 lots of the safeguarded market for the years 2021 and 2022 in 3 regions. Electricity customers came to over 1.4 million (+3.4%), with growth mainly in the free market, thanks to a reinforcement of commercial actions, and partly in the protected market. In the electricity area, gross and net investments amounted to 78.3 million, up 41.6% compared to the previous year. The interventions carried out mainly involved extraordinary maintenance on plants and distribution networks in the Modena, Imola, Trieste and Gorizia areas, a large-scale meter replacement and the improvement of network resilience. Requests for new connections also increased slightly compared to the previous year. The electricity area accounted for 5.5% of Group Ebitda. Water cycle The integrated water cycle area, which includes aqueduct, purification, and sewerage services, recorded an Ebitda coming to 261.9 million euro, essentially in line with the 262.4 million euro seen during the previous year, due to higher procurement costs for energy components and a rise in network and plant management costs, partially due to an increase in the price lists for suppliers of materials and services. This result is particularly positive because it shows that the Group was able to offset the reduction in WACC with technical premiums for the excellence of the services provided to citizens. Indeed, Arera’s recognition of the Hera Group’s commitment to extremely high technical quality standards must be underlined, thus rewarding significant investments, state-of-the-art plants and the use of the best technologies for an efficient management of the water cycle, to guarantee continuity, safety and quality of services in local areas, in line with Hera’s sustainability and circular economy strategies. From a regulatory point of view, note that 2022 was the third year of application of ARERA’s new tariff method. In addition, note that the Emilia-Romagna Regional Agency for the regulation of local environmental public services (Atersir) definitively awarded the concession for the integrated water service for the Province of Rimini (excluding the Municipality of Maiolo) for the years 2022 to 2039 to the Hera Group, which will therefore continue to manage this service with an eye to sustainability and innovation. Including capital grants, investments amounted to 208 million euro (+6.9%), mainly involving extensions, reclamation, and upgrading on networks and plants, as well as regulatory upgrading mainly in the purification and sewerage areas. The main interventions concerned, in particular, the aqueduct, with ongoing reclamation for networks and connections, and specific renewal and upgrading interventions, aimed above all at countering the risks of water shortages related to the increasingly frequent conditions of drought. In the sewage sector, work continued on the Rimini seawater protection plan, among the most important and avant-garde works in Italy in this field, which comes alongside network upgrading works in other areas. In the purification sector, adjustments to the Lido di Classe in Ravenna aarea, purification plant, revamping on the anaerobic digestion system at the Gramicia purification plant in Ferrara, the installation of centrifuges at the Savignano purification plant in Forlì area, and work on the San Giovanni in Persiceto purification plant located in Bologna province are all worth mentioning. The integrated water cycle area accounted for 20.2% of Group Ebitda. Waste Ebitda for the waste management area, which includes waste collection, treatment and disposal services, rose to 338 million euro, +15.9% compared to the 291.7 million euro seen in 2021, despite the fact that in 2022 the complex economic and geopolitical context led to a slowdown in production in many manufacturing sectors, with repercussions in waste production. This result was mainly due to waste treatment activities, with an Ebitda of 277.5 million, up 55 million, while waste management services for collection and street sweeping saw an Ebitda coming to 60.6 million. These figures are in line with expectations and must be set in a context marked by the beginning of new concessions in the Ravenna-Cesena, Modena and Bologna areas, and the consequent increase in service costs in the same areas. In the waste treatment sector, particular mention must go to the extraordinary results achieved by Group subsidiary Aliplast, whose Ebitda came to 53.5 million euro in 2022, more than tripling in the five years since it became part of the Hera Group. Also note the increased margins from energy management, amounting to approximately 30 million euro, in addition to an increase in the prices of waste treated, the expansion of the industrial waste market, and the contribution coming from new acquisitions. Italy’s leading operator in the waste management sector, with roughly one hundred state-of-the-art plants capable of treating all types of waste, the Hera Group thus confirmed a significant amount of growth in this sector for 2022, favoured by geographical expansion and by sound management and commercial policies. Furthermore, in 2022, Group subsidiaries Aliplast and Herambiente Servizi Industriali obtained approximately 15 million in contributions from the National Recovery and Resilience Plan (NRRP) as part of its circular economy “Lighthouse” projects, which concern the construction of platforms serving for material recovery, two of which are absolutely innovative at European level, not only from a technological point of view, but also for the strategic importance of the materials involved, i.e. one plant for regenerating carbon fibres and one for recycling rigid plastics. Protecting environmental resources was therefore confirmed as a priority objective in 2022, as was their maximal reuse. This is also proven by the special attention dedicated to increasing sorted waste collection, which, thanks to the strong commitment that the Group has made in all areas served, rose to 67.8%, up 2.5% compared to 2021. Gross investments in the waste management sector amounted to 149.2 million euro, with a sharp increase compared to the previous year (+51.9%), mainly concerning maintenance and upgrading on the set of plants. These investments include, in particular, a new plant built in Spilamberto, in the Modena area, in a partnership with the Cremonini Group company Inalca, with a biomethane production capacity of 3.7 million cubic metres, which, when fully operational, will result in a 48% increase in biomethane produced compared to the total for 2022 (equivalent to 7.7 million cubic metres, produced by the Sant’Agata Bolognese plant alone). Other interventions concerned the Ravenna plant and the landfills in Cordenons in Podernone province, work done by Marche Multiservizi on the Cà Asprete plant in Tavullia (Pesaro-Urbino), revamping on the waste-to-energy plant in Trieste and the F3 plant in Ravenna, and extraordinary maintenance for the plants in Bologna and Rimini. Increased investments were also made in ecological islands and collection equipment. The waste management area accounted for 26.1% of Group Ebitda. * In order to ensure that the results presented reflect the actual performance of the gas business more closely, and are thus more easily comparable, the figures with an asterisk include an operational adjustment based on a valuation of stocked gas at prices pertaining to the period of injection, thus excluding procurement intended for delivery to end customers with costs defined in 2021 (much lower than the costs seen in 2022). See the paragraph entitled “Special items and operational adjustments / balance sheet reconciliation”, which contains a comparison between the operating statement and the IFRS balance sheets. The manager responsible for drafting the company’s accounting statements, Massimo Vai, declares, pursuant to article 154-bis paragraph 2 of the TUF, that the information contained in the present press release corresponds to the documentation available and to the account books and entries. The financial statement and related materials will be available to the public pursuant to the terms established by law at the Company Headquarters, on the website www.gruppohera.it and on the authorised storage platform 1Info (www.1info.it). Unaudited extracts from the Consolidated Financial Statements at 31 December 2022 are attached. Press release FY 2022.pdf 14:07:00 Nuova_Palazzina_110x150.1533218221.jpg See the press release Nuova_Palazzina_110x150.1533218221.jpg
Online dal 21/03/2023
alle ore 14:07
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