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Business Plan approved, with a view to growth

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11/01/2017
Business Plan approved, with a view to growth

Solidly based on data from the 2016 forecast, the new Plan confirms the Group's track record of growth and responds to the most recent changes in the utility sector. Efficiency and innovative solutions fuelling organic growth to be pursued alongside opportunities for development through M&As

Business Plan to 2020

Today, Wednesday 11 January 2017, the Hera Group Board of Directors approved the 2020 Business Plan, with growth in economic targets and improvement in capital and financial indicators.

Operating and financial highlights

  • 2020 EBITDA: € 1,080 million
  • Capital expenditures and financial investments: almost € 2.5 billion
  • Net financial position/EBITDA ratio to improve, reaching 2.8 by 2020
  • Net profits per share to grow by roughly 5% annually over the duration of the Plan
  • Dividends expected to increase, as of 2017, reaching 10 cents per share in 2020 (+11%)

Operating highlights

  • 5 strategic priorities: growth, efficiency, excellence, innovation and agility
  • Group development based on a balanced mix of organic growth and M&As
  • Current grants confirmed in tenders for gas distribution and urban hygiene
  • Objective for 2020 energy customers set at 2.4 million
  • Growth in line with sector trends: Circular Economy and Shared Value, Customer Experience, Industry 4.0

Solidly based on data from the 2016 forecast, the new Plan confirms the Group’s track record of growth and responds to the most recent changes in the utility sector. Efficiency and innovative solutions fuelling organic growth to be pursued alongside opportunities for development through M&As.
In addition, the 2020 Plan is supported by considerable investments, reaching roughly Euro 2.5 billion (Euro 250 million more than the last strategic plan), which will be used to fuel growth over the five-year period, as well as to better respond to the main business trends emerging as a result of the Circular Economy and Shared Value, with respect to which the Hera Group has offered a tangible contribution to reaching 10 of the 17 objectives of the UN Agenda. Other key elements include the new needs of clientele, to be met with new solutions, and the most recent changes involving Industry 4.0 and processes of digitalisation, data gathering and analysis and diffusion in our cities of “intelligent” infrastructures. In a sector undergoing profound transformations, it will become indispensable for the Group to count on its own solidity and efficiency in order to remain astride these trends and continue to reinforce its own leadership.

The Group’s business model has been confirmed, with the objective of a 2020 EBITDA equal to € 1,080 million, i.e. € 50 million higher than the 2019 target included in the previous Plan, with significant growth coming in 2017-2018. The increase in EBITDA over the duration of the Plan amounts to almost € 200 million compared to 2015, obtained thanks to a balanced contribution coming from internal and external growth.

Tomaso Tommasi di Vignano e Stefano VenierTomaso Tommasi di Vignano, Hera Chairman
"Our recently approved Plan confirms a steady path of growth, sustained by traditional tools geared towards enhanced efficiency and growth by acquisitions, all reinforced by the use of new technologies. Improvements in our financial solidity will allow us on the one hand to confirm and further improve the dividend policy pursued in recent years, and on the other to consider the deep transformations currently seen in the sector as a further opportunity for development, potentially involving M&As, as has been the case in the past."

Stefano Venier, Hera CEO
"Innovation, sustainability and energy efficiency are only a few of the issues addressed by our Business Plan, which is intent on making the most of new trends such as Industry 4.0, Circular Economy and Customer Experience. Our leadership in the main reference markets has been confirmed, sustained by the competitive advantages that we have built up over the years, making us fully prepared to take on ever-changing challenges. This Plan as well has been elaborated in full respect of the financial balance that has defined us until present, with the aim of reinforcing on the one hand our credit standing while maintaining a low risk profile, and on the other continuing to create value for all our stakeholders, guaranteeing the financial flexibility best suited for further developments."

FOR FURTHER INFORMATION

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Press Relase

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Hera Group and Panasonic Industry together for the diffusion of NexMeter on the national market

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Top Employer for the 15th Consecutive Year

Once again in 2024, we confirm our position among the best performers in human resources management, thanks to substantial investments in welfare, training, and skill development

Search Results

07/12/2018

Herambiente awarded the reclamation of the port of Chioggia

Chioggia_110 To extensively reclaim Chioggia's port area and renovate the area to bring it back to life. This is the commitment of a temporary association of companies (ATI) led by Herambiente, a member of the Hera Group and the foremost Italian waste treatment operator, which was awarded a contract to renovate the strategic areas linked to this important seaport. The tender, worth 28.5 million euro, was launched by A.S.Po Azienda Speciale del Porto di Chioggia, owned by the Venice-Rovigo Chamber of Commerce. CGX Costruzioni Generali Xodo Srl, Idea Srl, and Rossi Renzo Costruzioni Srl, all companies in the Veneto region, are technical partners of the temporary association of companies. The contract, which kicks off the work, was signed this morning by Damaso Zanardo, president of A.S.Po, and Andrea Ramonda, the CEO of Herambiente. In particular, the work will begin in 2019 and lead to an overall renovation of some areas of the river-maritime terminal in Val da Rio di Chioggia. On the one hand, the operation will reclaim a 6-hectare area, used as a landfill for solid waste produced in the municipality of Chioggia from 1961 to 1984. This is a strategic intervention for the area because the contract, in line with the circular economy principles that the Hera Group is pursuing on several fronts, also involves recovering inert material amounting to 80% of the total waste, which will be used to build some of the docks in the port, thus increasing the operation's overall sustainability. By doing so, Herambiente will make available to this area all of its know-how in the field of land reclamation, a field in which the Hera Group company has consolidated experience and very high quality and safety standards. Its research, analyses, and projects enable the best possible definition of the scope of each measure. Herambiente's reclamation department, from this point of view, offers an integrated service that at every stage of the process ensures full respect for the environment, for current regulations and, indeed, for the fundamental circular economy principles. Chioggia_870 20181207_Herambiente_awarded_the_reclamation_of_the_port_of_Chioggia_def.1564384226.pdf 2019-07-29 chioggia_870.1564384158.jpg The tender, worth 28.5 million euro, was won by a temporary consortium led by Hera Group, the leading Italian waste treatment operator. The work will begin in 2019 and will lead to an overall renovation of the port area, with new docks using inert materials coming from the reclamation of land previously used as landfill Read more Hera
29/11/2018

The Hera Group wins the 2018 Budget Oscar

Oscar_bilancio_2018_110 The Hera Group has won the 2018 "Oscar di Bilancio" award. The 54th edition of the event promoted by Ferpi (Italian Public Relations Federation) to reward virtuous companies for their reporting activities, awarded Hera the prize in the category of "Medium-sized companies listed in the stock market segments FTSE MIB and FTSE ITALIA MID CAP" and, for the first time, a special mention in the new "Innovation in reporting" category. The ceremony was held in Milan, in the main auditorium of the Bocconi University, attended by its Rector Gianmario Verona. One of the strengths that convinced the Oscar's external commission to award Hera among the medium-sized listed companies was, in particular, the overall quality of its financial communication as a whole, both concerning the economic aspects of the content and its social dimension. The jury's motivation was, specifically, "strategy, well-defined objectives supported by the actions, full coverage of sustainability issues, excellent communication impact. Completeness of the statement both for its economic/financial part and for the other topics it covered. The data was also accompanied by an effective 'narrative'". The ability to measure shared value, as gross operating margin from business activities that respond to the drivers of the UN Agenda, as well as the innovative thematic sustainability reports that supplement the annual report were also particularly appreciated, as initiatives that earned Hera its ranking among the most avant-garde Italian companies, obtaining special mention in the new category. Oscar_bilancio_2018_870 20181129_Oscar_di_bilancio_rev_def.1564381357.pdf 2019-07-29 Oscar_bilancio_2018_870.1564381356.png The multi-utility wins the prize for the "Medium-sized listed companies" and a special mention for "Innovation in reporting". Award-winning strategy, completeness and effective storytelling in its reporting activities Read more Oscar_bilancio_2018_110
23/11/2018

Eni and Hera together for the circular economy: from spent vegetables oils the biofuel for waste collection vehicles

Eni-GH_110 Eni and Hera, companies long engaged in promoting a circular economy model through the continuous technological and organizational development of their respective businesses, have today signed a partnership aimed at transforming used vegetable oil into biofuel to fuel the Hera waste collection company vehicles. The agreement provides that exhausted vegetable oils for domestic use, such as those for frying, recovered by Hera through approximately 400 road containers and in about 120 collection centers, will be sent to the Eni biorefinery in Venice, in Porto Marghera, the world's first example of conversion of an oil refinery into a biorefinery, which will transform it into green diesel, a completely renewable product which constitutes 15% of Enidiesel +. The biofuel will feed the Hera company vehicles for the collection of urban waste. In the experimental phase Enidiesel + will be used by some thirty large vehicles, in order to optimize the environmental benefit, in the Modena area. The agreement signed today extends the virtuous circle already initiated by Eni with the multi-utility companies of Turin, Venice and Rome and whose tests have already demonstrated important benefits in terms of air quality, economic and industrial. In fact, compared to traditional diesel, Enidiesel + has a renewable component that reduces polluting emissions by up to 40%, saves fuel consumption by around 4% and reduces engine maintenance costs. The same technical improvement parameters deriving from the use of the biofuel will be subject to joint monitoring by the two companies, in collaboration with the CNR Institute of Motors. To further support the initiative, Hera has chosen to enhance the collection of vegetable oils by introducing 300 new dedicated containers in the areas served. In 2017 alone, 800 tons of waste vegetable oils were collected, recovered and then processed to be valued as lubricants or through energy recovery. An increasingly widespread service which, by encouraging correct recovery, also aims to prevent behavior, such as the spillage of oils in the sink, which is harmful to domestic pipes and water purification plants. Eni-GH_870 20181123_Eni_and_Hera_together_for_the_circular_economy.1563283220.pdf 2019-07-16 Eni_GH_870.1563283219.png The partnership will make it possible to transform the Eni bio-refinery in Venice into oils collected by Hera (800 tons in 2017) in Eni green diesel. Relevant environmental benefits with a reduction of up to 40% of polluting emissions Read more Eni-GH_110
12/11/2018

The Hera Group wins silver medal in online communication

Hera is still on the podium for web communication Hera Group manages to be very concrete in the presentation of its sustainability strategy and how it contributes to develop a sustainable business: in fact, it highlights commitments, objectives, data, projects and hard data. Download Whitepaper Italy listed 2018 Key information on webranking's survey 2018-11-12 Further informations infografica_webranking_eng.1542097295.png In the Webranking 2018 report on Italian digital communication conducted by Lundquist together with Comprend, the Hera Group comes in second, standing out for the presentation of its strategy, its business areas and sustainability objectives. Hera is still on the podium for web communication

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Hera SpA, Viale Carlo Berti Pichat 2/4, 40127 Bologna, Tel.051287111 www.gruppohera.it