Press releases

2018-11-26 Nuova_Palazzina_1_870x.1533219432.jpg The remaining 51% of the company, headquartered in Atessa (Chieti) and providing natural gas sales to approximately 7,000 customers, has now been purchased. The transaction, completed under the same terms as the first stage of the acquisition as finalised last March, allows the Group to further consolidate its presence and local roots in Abruzzo. Hera Group acquires 100% of Sangroservizi The Hera Group, through its subsidiary Hera Comm, has acquired the remaining 51% of Sangroservizi form the Municipalities of Atessa, San Vito Chietino and Paglieta, reaching a 100% shareholding. The transaction was carried out under the same terms as the first stage of the acquisition, completed on 20 March 2018. Established in 2003 and legally headquartered in Atessa, Sangroservizi is a company operating in natural gas sales with roughly 7,000 customers. This transaction follows up on the acquisitions of Fucino Gas, Alento Gas, Julia Servizi Più, Gran Sasso,Verducci Servizi, Enerpeligna and Blu Ranton over the last three years, thanks to which the Hera Group has become a reference operator for the Abruzzo and nearby Marche regions. The company already provides electricity and gas services to over 250,000 customers in these areas. Hera thus continues to develop a model that brings the local, material presence typical of smaller companies together with the potential for innovation in services and offers and the competitiveness ensuing from being part of a Group that is among the major players in Italy's energy market. "We are glad to welcome Sagroservizi's customers, confirming our commitment to a maintained presence in this area", remarks Cristian Fabbri, Hera Comm CEO. "In the upcoming months, we will gradually introduce numerous new services and new offers for gas. Furthermore, it will become possible quite soon to choose offers for electricity supply and services aimed at saving energy and optimising energy and gas management. We are at work every day to offer a service ever more closely tailored to the needs of our most demanding customers". Hera Group acquires 100% of Sangroservizi 20181126_comunicato_su_acquisizione_Sangroservizi_ok_eng.1543238511.pdf 2018-03-09 12:48:00 Read more Hera acquires 2.5% of Ascopiave's share capital from Amber

2018-11-23 This partnership will allow the oil collected by Hera (800 tons in 2017) to be converted into Eni Green Diesel at Eni's Venice bio-refinery. The environmental benefits are significant, with a reduction of up to 40% in polluting emissions. Bologna, 23 November 2018 - Eni and Hera are two companies that have long been committed to promoting a circular economy model by continuously developing the technology and organization of their businesses. Today they signed a partnership agreement with the aim of converting used vegetable oil into biofuel for Hera's waste collection vehicles. The agreement revolves around household waste vegetable oil, such as that used for frying, collected by Hera in around 400 roadside containers and about 120 collection centres. It will be sent to the Eni bio-refinery in Porto Marghera, Venice. This is the first oil refinery in the world to be converted into a bio-refinery for the production of Green Diesel, a completely renewable product that accounts for 15% of Enidiesel+. This biofuel will power Hera's urban waste collection vehicles. During an initial phase, Enidiesel+ will be used by around thirty large vehicles in the Modena area to test and optimise the fuel's environmental benefits. The deal signed today extends the already thriving virtuous circle Eni has established with multi-utility companies in Turin, Venice and Rome. Results from tests have shown major benefits in terms of air quality, the economy and industry. Compared to conventional diesel, Enidiesel+ features a renewable component that reduces polluting emissions by up to 40%, consumption by about 4% and engine maintenance costs. These metrics be monitored by both companies in collaboration with the Institute for Engines (Istituto Motori) at the National Research Council of Italy (CNR). To further support of the initiative, Hera has decided to boost the roadside collection of vegetable oil by introducing 300 new dedicated containers in the areas in which it operates. In 2017 alone, 800 tons of waste vegetable oil were collected, recovered and processed for use either as lubricants or energy. This service is increasingly comprehensive. It also provides an incentive to properly recycle waste oil and also works to prevent behaviour such as pouring oil down the sink, which damages household plumbing and water treatment plants. "The refinery in Venice is the first in the world to be converted into a bio-refinery and will be joined in a few months by the Gela refinery, which is also being calibrated for the bio-cycle," commented Giuseppe Ricci, Eni Chief Refining & Marketing Officer. "Eni has begun the journey towards an energy transition that envisages an increasingly important role for biofuels in the process of decarbonising our planet. The agreement with Hera adds a significant component to our concrete commitment to the circular economy and reinforces the use of waste, specifically cooking oil, as an important raw material for producing the innovative fuel Enidiesel+ and as a replacement for the edible raw materials that are currently used. As a result of the initiatives and deals that Eni has developed following the agreement with CONOE (National Consortium for the Collection and Treatment of Used Oils and Fats) and its individual members, more than 50% of the cooking oil collected in Italy is now converted into biofuel at the Venice bio-refinery, with clear benefits for the environment and the economy." "An economic model is truly circular if it addresses the entire life cycle of resources, with genuine partnerships among the businesses involved and residents. It would go beyond merely managing the final stage of collecting waste that perhaps has been delivered to third parties," explained Stefano Venier, Chief Executive Officer of the Hera Group. "Hera is therefore committed not only to extending the life cycle of materials through recycling and reuse initiatives, but also to developing solutions and plants that can turn substances into new products or draw energy from them, especially within the bio-based supply chain. Our agreement with Eni continues in this direction. It has identified a new way in which we can use waste resources to contribute to decarbonisation and energy efficiency. Waste oil that becomes advanced biofuel with a reduced carbon footprint and is reused for waste collection is a perfect example of the circular economy, one that adds to the progress of the many initiatives we've already launched in this area." ENG_Eni_Hera_23_November_2018.1542978261.pdf 2018-11-23 13:00:00 Hera Spa

2018-11-08 Results as at 30 September 2018 Consolidated 3Q results at 30 September confirm the growth in operating and financial indicators already seen in the first half of the year, with positive contributions coming from the different Group's business areas, gas and waste management in particular. /documents/1514726/4667212/GruppoHera_Consolidated_ThirdQuarterReport30September2018_eng.1541672459.pdf/4efd185a-8a09-4b8c-a66a-ef1134973617?t=1608550214672 /documents/1514726/4880892/GruppoHera_AnalystPresentation_3Q2018.1541667701.pdf/80211312-b744-bbd1-67b4-f34d827d274e?t=1610019123913 http://investornews.gruppohera.it/en/?n=57 https://eng.gruppohera.it/documents/1514726/4210710/Dati_finanziari_ed_operativi_di_sintesi_9M_2018_eng.1541601540.xls/d1d59596-0dd4-d19b-53fb-9b1dd18b0f90?t=1597907689072 /group_eng/investor-relations/results-and-presentations/interactive-data Financial report as at 30 September 2018 Analyst presentation: Results as at 30 September 2018 Newsletter 3Q 2018 Financial data: Results as at 30 September 2018 Interactive data Financial highlights Revenues at € 4,348.4 million (+8.0%) Ebitda at € 748.6 million (+3.3%) Net profits for Shareholders at € 208.7 million (+14.1%) Net debt at € 2,642.0 million Operating highlights Good contribution to growth coming from all businesses and gas in particular Good results achieved through internal growth Solid customer base in Energy (approximately 2.5 million), rising by approximately 100,000 over the first three quarters of 2017 Sorted waste increases to an average of 61.4% across all areas served Today, the Hera Group’s Board of Directors unanimously approved the consolidated financial results at30 September 2018, which confirm the positive trend in operating results seen in previous quarters and show further improvement in financial and fiscal management. These results once again reward the Group’s balanced and agile way of operating, following a business model that has always combined the strategic levers of internal and external growth. In addition to remarkable internal growth, partially deriving from higher efficiencies, developments in market shares and an increase in volumes sold in the energy sector both contributed to the accounts for the first three quarters of 2018. Revenues rise to € 4,348.4 million In the first nine months of 2018, revenues amounted to € 4,348.4 million, up 8% over the € 4,027.8 million seen at 30 September 2017, with a contribution coming from all business areas. In particular, trends in gas and electricity trading and sales benefitted from an increase in volumes. Ebitda increases to € 748.6 million The Group’s consolidated Ebitda at 30 September 2018 grew from € 724.7 to € 748.6 million (+3.3%). This result is due to the good performance seen in all main activities, and the gas sector in particular, whose contribution included rising earnings derived from sales and trading. Positive results were also seen in the integrated water cycle and waste management areas. Ebit and pre-tax profits grow, owing in part to financial management Ebit grew to € 376.5 million, up compared to the € 357.9 seen at 30 September 2017 (+5.2%), while pre-tax profits rose to € 311.0 million, as against the € 283.5 seen at the same date in 2017 (+9.7%). This was due to financial management, which in the first nine months of 2018 improved by € 8.9 million compared to 30 September 2017, settling at € 65.5 million, with aperformance partly made possible by efficiency in rates and higher financial income for commercial activities. Net profits for Shareholders increase to € 208.7 million (+14.1%) Profits pertaining to Group Shareholders rose to € 208.7 million, compared to the € 182.9 million recorded at 30 September 2017 (+14.1%), for reasons including a tax rate coming to 30.1%, an improvement over the 32% seen in the same period of the previous year. The considerable investments made by the Group in Utility 4.0 projects allowed fiscal optimisation opportunities to be grasped, thanks to incentives for large and very large amortisations. Approximately € 300 million in investments, and an essentially stable financial position The Group’s operating investments at 30 September 2018, including capital grants, amounted to € 296.6 million, up 7.0% over the same period in 2017 and in line with the content of the Business plan. Operating investments mainly concerned work done on plants, networks and infrastructures, in addition to regulatory upgrading, above all concerning gas distribution with a large-scale metre substitution, and the purification and sewerage activities. Net debt came to € 2,642.0 million at 30 September 2018, essentially stable compared to the € 2,610.0 million recorded after the first nine months of 2017, considering the dividends paid. Gas Ebitda for the gas business, which includes services in natural gas distribution and sales, district heating and heat management, reached € 222.2 million at 30 September 2018, up 10.3% over the same period one year earlier thanks to commercial development, higher intermediated volumes and higher revenues for distribution services. The number of gas customers came to 1.413 million in the first nine months of 2018, rising by 1.6% over the same period in 2017. This growth was caused by an expansion in market share and by the companies Blu Ranton and Verducci Servizi becoming part of the Group’s consolidated scope. The gas business accounted for 29.7% of Group Ebitda. Water cycle Ebitda for the integrated water cycle, which includes aqueduct, purification and sewerage services, increased by 4.4%, going from € 178.3 million in September 2017 to € 186.2 million at 30 September 2018, thanks to higher revenues from dispensing, higher recognised costs and the efficiencies reached. The integrated water cycle accounted for 24.9% of Group Ebitda. Waste management The results for the waste management, which includes services in waste collection, treatment, recovery and disposal, also showed increasing figures, with Ebitda going from € 181.4 million at 30 September 2017 to € 188.2 million at the same date in 2018 (+3.7%). This trend was largely caused by changes in the prices set for waste treatment, along with increased results from Aliplast. Further growth was also seen in sorted waste, which went from 56.6% during the same period in 2017 to 61.4% at 30 September 2018, thanks to the numerous services offered. In the month of September, moreover, the Sant’Agata Bolognese biomethane production plant was launched, fully respecting the timing set out in the Business plan. The waste management area accounted for 25.1% of Group Ebitda. Electricity Ebitda for the electricity business, which includes services in electricity generation, distribution and sales, went from € 147.4 million in the first nine months of 2017 to € 133.2 million at 30 September 2018. Sales and trading results benefitted from a higher amount of intermediated volumes (+15.5%) and the enlarged customer base (+7.8%, reaching 1.039 million), thanks to increased market shares and a wider scope of operations. This result partially offset the effect coming from a few suspended generation plants, which became fully functional once again in the third quarter. The electricity business accounted for 17.8% of Group Ebitda The manager responsible for drafting the company’s accounting statements, Luca Moroni, 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 third-quarter management report and related materials are available to the public at Company Headquarters and on the website www.gruppohera.it. Unaudited extracts from the Intermediate Management Report at 30 September 2017 are attached. news_engnewsProfit & Loss (m€) 30/09/2018 Inc% 30/09/2017 Inc.% Ch. Ch. % Sales 4,348.4 4,027.8 +320.6 +8.0% Other operating revenues 321.1 7.4% 327.3 8.1% -6.2 -1.9% Raw material (1,966.6) -45.2% (1,776.4) -44.1% +190.2 +10.7% Services costs (1,529.2) -35.2% (1,428.6) -35.5% +100.6 +7.0% Other operating expenses (42.9) -1.0% (45.3) -1.1% -2.4 -5.3% Personnel costs (410.1) -9.4% (409.1) -10.2% +1.0 +0.2% Capitalisations 28.0 0.6% 29.1 0.7% -1.1 -3.8% Ebitda 748.6 17.2% 724.7 18.0% +23.9 +3.3% Depreciation and provisions (372.2) -8.6% (366.8) -9.1% +5.4 +1.5% Ebit 376.5 8.7% 357.9 8.9% +18.6 +5.2% Financial inc./(exp.) (65.5) -1.5% (74.4) -1.8% -8.9 -12.0% Pre tax profit 311.0 7.2% 283.5 7.0% +27.5 +9.7% Tax (95.1) -2.2% (90.7) -2.3% +4.4 +4.9% Net profit before special items 215.9 5.0% 192.8 4.8% +23.1 +12.0% Special items 4.8 0.1% - 0.0% +4.8 +100.0% Net profit 220.7 5.1% 192.8 4.8% +27.9 +14.5% Attributable to: Shareholders of the Parent Company 208.7 4.8% 182.9 4.5% +25.8 +14.1% Minority shareholders 11.9 0.3% 9.9 0.2% +2.1 +20.9% Balance Sheet (m€) 30/09/2018 Inc.% 31/12/2017 Inc.% Ch. Ch.% Net fixed assets 5,837.0 107.2% 5,780.6 110.5% +56.4 +1.0% Working capital 186.4 3.4% 23.2 0.4% +163.2 +703.4% (Provisions) (578.5) (10.6%) (574.8) (10.9%) (3.7) +0.6% Net invested capital 5,444.9 100.0% 5,229.0 100.0% +215.9 +4.1% Net equity 2,802.9 51.5% 2,706.0 51.7% +96.9 +3.6% Long term net financial debt 2,841.9 52.2% 2,735.4 52.4% +106.5 +3.9% Short term net financial debt (199.9) (3.7%) (212.4) (4.1%) +12.5 (5.9%) Net financial debts 2,642.0 48.5% 2,523.0 48.3% +119.0 +4.7% Net invested capital 5,444.9 100.0% 5,229.0 100.0% +215.9 +4.1% Press Release Q32018 2018-11-06 13:00:00 be_110x150.1525945155.png

2018-10-25 The Hera Group's top management and regional alderwoman Gazzolo inaugurated today, just outside Bologna, the first biomethane-from-organic-waste plant created by a multi-utility. Investments totalling 37 million euro have thus given new impetus to the future of renewable energies on an industrial scale, with 7.5 million cubic metres of biomethane and 20 thousand tonnes of compost sustainably fuelling, each year, a range of sectors including motor vehicle transport and agriculture. biomethane plant How can energy amounting to 6 thousand tonnes of oil equivalent be obtained each year, without consuming a single drop of crude oil and thus avoiding 14,600 tonnes of CO2 emissions? As of today, the answer can be found in Sant'Agata Bolognese, just outside the capital city of the Emilia-Romagna region, where the Hera Group has inaugurated a major plant producing biomethane from the organic portion of waste, designed and created on the basis of the most advanced precedents seen in this sector internationally. The opening ceremony - that saw the participation of the region's alderwoman Paola Gazzolo, Hera's top management and the main local and sector institutions - ushered in a new phase in the decarbonisation of energy production, giving further impetus to the circular economy towards which the region has been moving for some time now. Thanks to this plant, indeed, sorted organic waste coming from our houses will serve the community under the form of gas. Once injected into the network, this gas will fuel public and private transportation vehicles running on natural gas, aiding a sector that is increasingly exposed to the issue of carbon dioxide emission. In line with policies adopted by the Region, the National Energy Strategy and the European Union, the Sant'Agata Bolognese plant will now begin extracting value from this 37 million euro investment. The plant furthermore represents an enrichment of the range of plants belonging to Herambiente, the national leader in waste treatment that has been active for years in biogas production for renewable electricity. A 100% renewable combustible from organic waste In terms of volume, the plant is capable of treating 100 thousand tonnes of sorted organic waste each year, in addition to 35 thousand tonnes resulting from plant clipping and pruning. Thanks to the implementation of new and improved technologies in anaerobic digestion and upgrading, in particular, these resources will allow 7.5 million cubic metres of biomethane, a 100% renewable combustible, to be obtained along with 20 thousand tonnes of compost, a bio-fertiliser mainly intended for agriculture. An architectural project conceived to bring the plant and the area served into harmony, minimising its environmental impact With no combustion plants whatsoever, the plant is located within a pre-existing composting site, with no additional land use required for its construction. Planned with an eye to minimising its acoustic and odoriferous impact, the structure furthermore meets architectonic criteria aimed at harmonising it with the surrounding area. Even its outer covering, which will be added over the next few months, will be dense with themes and motifs that relay the sense of what goes on inside: in particular, images will portray vegetation blossoming out of an arid and cracked ground, calling to mind the transformations undergone by the organic product within the plant. Lastly, a redevelopment of the surrounding green areas will be accompanied by the creation of a path intended to welcome those visiting the plant itself. "We have been working with biomethane for some time now", comments Tomaso Tommasi di Vignano, Executive Chairman of the Hera Group. "Today's inauguration, in particular, is a crowning achievement that represents years of work. Our community will now be served by a plant born out of research, studies and European tenders that allowed us to choose the best of what is currently available on the market. What's more, renewable energies must necessarily become part of industrialisation processes capable of expressing their potential on a large scale. In this sense the Sant'Agata plant is an excellent example that can be replicated elsewhere, above all in light of a regulatory framework that is finally favourable and provides fundamental added value for sector development." "The ribbon has been cut in front of a highly innovative construction project that moves towards an energy transition, pointing in the direction of a low carbon economy: biomethane presents a significant opportunity for reducing the use of fossil fuels and lessening our region's energy footprint, with an eye to a circular economy", states the alderwoman of the Emilia-Romagna Region, Paola Gazzolo. "Renewable energy is a fundamental part of the green turn supported by the Emilia-Romagna government with the policies implemented since the beginning of its mandate. This change of pace is intended to offset the effects of climate change as currently seen and reduce the use of raw materials, promoting recovery and reuse. Precisely because these products and materials are available in limited quantities, we must save them and preserve their value: the project realised by Hera in Sant'Agata is headed in exactly this direction". 20181025_Biometano_il_futuro_dellenergia_green_passa_da_SantAgata_Bolognese_final_eng.1540462958.pdf 2017-06-23 13:17:00 biomethane plant

2018-10-24 Approval arrived today for the agreements concerning a planned integration between the natural gas distribution services provided by Inrete and CMV Servizi, as well as energy sales activities of Hera Comm and CMV Energia e Impianti. Hera Spa Today, the Boards of Directors of the companies involved began a process aimed at developing a solid business project in the northern Ferrara area, bearing on CMV Servizi and CMV Energia e Impianti, both active in the energy sector. The two companies are owned by the Municipalities of Cento, Vigarano Mainarda, Bondeno, Poggio Renatico, Terre del Reno and Goro, which following the transaction will see an increase in their shareholding in the Hera Group. The agreement's implementation is subject to the customary conditions applied in similar transactions, as well as the approval of the various shareholders in their respective meetings, as is expected within the end of the year. The transaction will concern roughly 25 thousand customers (21,300 in gas and 3,500 in electricity) and approximately 30 thousand delivery points (26,500 in the Ferrara area and over 3,100 in the area surrounding Bologna) in natural gas distribution. Following the transaction, the personnel currently employed in the two branches of activity of CMV Servizi and CMV Energia e Impianti will be maintained, as will the local business units, which will converge towards other activities carried out by the Hera Group in the same area. CMV will be able to adopt many Group solutions and policies, going to the advantage of the quality and innovative nature of the service offered to its customers. GH_CMV_press_release_eng.1540394806.pdf 2018-10-24 19:05:46 CMV Servizi and CMV Energia e Impianti's energy activities part of the Hera Group as of 1 March

2018-09-06 Logo_Thomson_Reuters_250x_s1_1507625922.1533221375.jpg Conceived to provide orientation for investors showing interest towards companies committed to promoting diversity, inclusion and people development, this index evaluates over 7,000 of the world's publically listed companies and this year, once again, includes the Group among the most outstanding firms. With 73.5 points overall, Hera indeed comes in 2nd in Italy and 22nd worldwide. And, among multi-utilities, it ranks first in the world. Thomson & Reuters The Hera Group has been confirmed as one of the most interesting companies, in Italy and worldwide, for investors who sustain all those committed to promoting diversity and inclusion. The results, which stem directly from the integration of these policies within the Group's strategy, have been approved by the 2018 edition of Thomson Reuters Diversity and Inclusion Index, whose candidate universe is made up of over 7,000 publicly traded companies worldwide. Hera, with a score of 73.5 points, proved to be the 2nd company in Italy and the 22nd across the world of this international ranking. Moreover, its position within its own sector was outstanding, coming in first worldwide among multi-utilities. The "Diversity and Inclusion Index" is an indicator, conceived and realised by Thomson Reuters, an international giant in financial information, that analyses companies' performances based on a range of factors, grouped into four areas: diversity, inclusion, people development and news & controversies. The performances of the Hera Group were therefore highly positive: giving concrete form to the strategic relevance of its diversity and inclusion policies, this multi-utility is indeed continuing its work in developing internal and personalised career paths, an approach that allowed the company to reach an amount of women in roles with responsibility coming to 31.3% in 2017. Rising overall, the percentage of female personnel furthermore ranked above the sector average (24.3%, as compared to 15.9%). This data is accompanied by a percentage of employees with disabilities that reaches 4.3% of the company's total workforce and also includes roles in management. From all these points of view, the contribution coming from training is significant, with particularly important initiatives such as leadership and smart working courses favouring the development of human resources, based on factors including the diverse characteristics of each resource (gender, age, training, ability, inclination and ability). Further positive effects no doubt derived from the corporate welfare plan, which sustains employees and their families in many different forms. Not by chance, encouraging results continue to emerge from this enquiry into the Group's corporate milieu, with further confirmation coming from a complete lack of controversies involving diversity and inclusion. Lastly, many initiatives make plurality management concrete, including agreements with daycare centres, summer camps, a range of programmes aimed at creating a positive work-life balance and the arrangements made for leave time, available not only for mums and dads but also for those who provide assistance to relatives or the elderly. The Hera Group's commitment to policies promoting inclusion and diversity, in any case, has a long history. It was first consolidated in 2009, when the Charter for equal opportunity and equality on the workplace was signed: with this document the company engaged, alongside other private and public bodies, in the struggle against discrimination on the workplace. The introduction in 2011 of a Diversity Manager, whose task involves giving even greater emphasis to developing policies aimed at inclusion and the valorisation of diversity, was also fundamental. Lastly, for some time now Hera has adhered to the fifth of the United Nation's objectives for sustainable development, specifically dedicated to gender equality. "Diversity has great value for us at the Hera Group", comments Stefano Venier, Group CEO. "Over the years, we have resolutely introduced policies aimed at favouring insertion, integration and growth among our employees. Over one fifth of the latter are in fact women, a figure that rises to 31.3% in management, far above the average seen in the sector. This result must be considered alongside the positive outcome of the welfare policies launched in 2016, giving particular attention to balancing the home and the workplace: the welfare plan, which concerns the Group's almost 9 thousand employees, has gained a virtually unanimous consensus and has enriched a service offer whose value comes to over 3.5 million euro each year." 06092018_CS_diversity_inclusion_eng.1536227548.pdf 2017-06-23 sinistra 11:26:00 Read more Thomson & Reuters

2018-07-30 Results as at 30 June 2018 The consolidated half-year report at 30 June confirms growth in operating and financial indicators, in line with the first quarter, with a positive contribution coming from business areas, gas and waste management in particular. Thanks to the efficiencies achieved, ROE reaches 10% Hera BoD approves 1Q 2018 results /group_eng/investor-relations/results-and-presentations/1h2018 /documents/1514726/4880892/GruppoHera_relazione_semestrale_consolidata_al_30_06_2018_eng.1533290641.pdf/61b32b21-49d9-70cc-d10d-6383dfc8c8a2?t=1610019108070 /documents/1514726/4210713/Dati_finanziari_ed_operativi_di_sintesi_1H_2018_eng.1532612151.xls/82a13ce9-8ebb-99e2-2f9e-cebba27c7aa8?t=1597907726700 /documents/1514726/4880892/GruppoHera_Analyst_Presentation_1H_2018.1532936431.pdf/45de5ad1-4585-c1be-317d-aadef7a99760?t=1610019109893 /group_eng/investor-relations/results-and-presentations/archive/financial-benchmark http://investornews.gruppohera.it/en/?n=56 /group_eng/investor-relations/results-and-presentations/interactive-data First Half 2018 report in HTML format Financial Report as at 30 June 2018 Financial data as at 30 June 2018 Analyst presentation: H1 2018 Benchmark of consolidated results Newsletter: H1 2018 Interactive data Financial highlights Revenues at € 2,996.7 million (+7.7%) Ebitda at € 523.6 million (+3.5%) Ebit at € 273.6 million (+4.3%) Net profits for Shareholders at € 158.1 million (+12.1%) Net debt at € 2,625.0 million Operating highlights Good contribution to growth coming from gas and waste management, respectively due to volumes sold and positive trends in market prices Management characterised by the results of internal growth Solid customer base in energy sectors (roughly 2.5 million), up by 110,000 over 1H2017 Sorted waste increases to anaverage of 60% across all areas served Today, the Hera Group’s Board of Directors unanimously approved the financial results for the first half-year, which confirm the ongoing positive trend and show all main indicators rising. These results once again reward the Group’s balanced and agile way of operating, following a business model that has always combined the strategic levers of internal growth and external development. In addition to remarkable internal growth, partially deriving from higher efficiencies, developments in market shares and positive trends in tariffs and prices benefitted the accounts for the first half of 2018. Revenues amount to almost € 3 billion In the first half of 2018, revenues reached € 2,966.7 million, up € 212.7 million (+7.7%) over the € 2,754.0 million seen in the same period of 2017. The factors most responsible for this result include a higher amount of trading along with increased revenues from gas and electricity sales and waste management. Ebitda rises to € 523.6 million Ebitda settled at € 523.6 million, showing growth amounting to € 17.7 million (+3.5%) over June 2017. This increase is due to the good performances seen in all the Group’s main activities, and the gas area in particular thanks to higher volumes sold and income for sales and trading. Positive results also came from waste management and the integrated water cycle. Financial management among the factors responsible for an 8.4% increase in pre-tax profits Ebit rose to € 273.6 million, up 4.3% over the € 262.2 seen in the same period of 2017. Financial management also improved, settling at € 39.2 million, € 6.7 million less than the same period in 2017, a performance made possible by efficiency in rates and higher financial income for commercial activities. In light of this situation, pre-tax profits increased by 8.4%, going from € 216.3 million at 30 June 2017 to € 234.4 million at the same date in 2018. Sharp increase in net profits for Shareholders, reaching € 158.1 million (+12.1%) Profits pertaining to Group Shareholders at 30 June 2018 rose to € 158.1 million, +12.1% compared to the € 141.0 million seen in the first half of 2017. The elements underlying this result include an improvement in the tax rate, which went from 31.6% to 30.1%, thanks to the Group’s continuous commitment to grasping the tax opportunities offered by large and very large amortisations related to major investments made in introducing Utility 4.0, in addition to tax credits for research and development and the final balance on previously acquired benefits, as well as € 4.8 million in capital gains from divestments. Approximately € 184 million in investments, financial position essentially stable The Group’s operating investments for the first six months of 2018, including capital grants, amounted to € 183.8 million, up € 13.7 million (+8.1%) over June 2017. Operating investments mainly involved interventions on plants, networks and infrastructures, as well as regulatory upgrading involving gas distribution above all, with a large-scale metre substitution, and the purification and sewerage areas. Net debt came to € 2,625.0 million at 30 June 2018, with a slight increase over the € 2,523.0 million seen at 31 December 2017 but essentially stable compared to the € 2,611.7 million witnessed in the first half of 2017, in spite of the higher amount of dividends paid (9.5 cents/share, instead of the 9 cents paid one year earlier). Net debt/Ebitda, an indicator of financial solidity, improved from 2.74 in the first half of 2017 to 2.62 at 30 June 2018. Gas Ebitda for the gas area, which includes services in natural gas distribution and sales, district heating and heat management, reached € 188.4 million in the first half of 2018, up compared to the € 171.8 million seen at 30 June 2017 (+9.6%), thanks to higher volumes of gas sold, an increase in trading and higher income from distribution services. The number of gas customers, which came to roughly 1.41 million, rose by 1.9% compared to the same period in 2017; this growth was brought about by expanding market shares and the entry of Blu Ranton and Verducci Servizi within the Group’s scope of operations. The gas area accounted for 36.0% of Group Ebitda. Water cycle Ebitda for the integrated water cycle area, which includes aqueduct, purification and sewerage services, went from € 111.3 million in the first half of 2017 to € 112.8 million at 30 June 2018, up 1.3%, thanks to higher revenues from dispensing and higher recognised costs. The integrated water cycle area accounted for 21.5% of Group Ebitda. Waste management In the first half of the year, Ebitda for the waste management area, which includes waste collection, treatment and disposal services, reached € 125.9 million (+3.8%), rising over the € 121.3 million seen at 30 June 2017. Initiatives aimed at recovering materials and improving energy efficiency contributed to this positive trend, in particular the full operation of Aliplast, as well as further development of an accurately focused marketing plan intended to broaden the customer portfolio and a continuous presence in the tender market. Moreover, the positive trend seen in prices for special waste treatment continued during this half-year, with double-digit growth rate. Further increases were also witnessed in sorted waste, which went from 58% in the first half of 2017 to 60% at 30 June 2018, thanks to the numerous services offered. The waste management area accounted for 24% of Group Ebitda. Electricity Ebitda for the electricity area, which includes services in electricity production, distribution and sales, went from € 91.6 million in the first half of 2017 to € 84.0 million at 30 June 2018, owing to the temporary closure of a few plants for planned maintenance. This area recorded additional growth in total customers, which increased by 82.8 thousand (+8.9%) compared to the first half of 2017, reaching 1.01 million customers, and also saw a 22.1% rise in volumes sold on both the free and safeguarded markets. This noteworthy result owes much to the Group’s continuous reinforcement of marketing actions and a broadening of its customer base. The electricity area accounted for 16% of Group Ebitda. Statement by Executive Chairman Tomaso Tommasi di Vignano “This half-year report confirms the trend of uninterrupted growth shown by the Hera Group over the last 15 years, respecting the content of its Business plan, in spite of an often difficult macroeconomic scenario. At present, the increase in Ebitda indicates that we should reach the milestone of one billion by the end of 2018, while the profits accumulated over the last six months, corresponding to 10.8 cents per share, already entirely cover the 10 cent dividend foreseen by the Business plan for the current year. These figures and outlooks provide further confirmation of the solidity of our multi-business model and the constant attention we show towards our shareholders”. Statement by CEO Stefano Venier “The results for the first half of 2018 once again reward the accuracy of the choices and initiatives implemented regarding operations, taxes and finance. Internal growth, as defined by factors including the efficiencies achieved, has brought ROE to 10%. These results are also sustained by all quantitative performance measures, which show positive trends, with an energy customer base growing by 110,000 in only 12 months and bringing us just one step away from 2.5 million customers. Taken as a whole, these elements allow us to show further determination towards reaching all of the objectives outlined in the Business plan”. The manager responsible for drafting the company’s accounting statements, Luca Moroni, 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 half-year financial report and related materials will be made available to the public pursuant to the terms established by law at Company Headquarters, on the website www.gruppohera.it and on the authorised storage platform 1Info (www.1info.it). Unaudited extracts from the Abbreviated Consolidated Half-Year Financial Statements at 30 June 2017 are attached. Profit & Loss(m€) 30/06/18 Inc% 30/06/17 Inc.% Ch. Ch. % Sales 2,966.7 2,754.0 +212.7 +7.7% Other operating revenues 209.8 7.1% 202.3 7.3% +7.5 +3.7% Raw material (1,327.6) -44.7% (1,178.4) -42.8% +149.2 +12.7% Services costs (1,031.6) -34.8% (981.7) -35.6% +49.9 +5.1% Other operating expenses (30.3) -1.0% (25.8) -0.9% +4.5 +17.5% Personnel costs (281.7) -9.5% (282.4) -10.3% (0.7) (0.2%) Capitalisations 18.3 0.6% 17.9 0.6% +0.4 +2.2% Ebitda 523.6 17.6% 505.9 18.4% +17.7 +3.5% Depreciation and provisions (250.0) -8.4% (243.7) -8.9% +6.3 +2.6% Ebit 273.6 9.2% 262.2 9.5% +11.4 +4.3% Financial inc./(exp.) (39.2) -1.3% (45.9) -1.7% (6.7) (14.6%) Pre tax profit 234.4 7.9% 216.3 7.9% +18.1 +8.4% Tax (72.0) -2.4% (68.3) -2.5% +3.7 +5.4% Net profit before special items 162.4 5.5% 148.0 5.4% +14.4 +9.7% Special items 4.8 0.2% - 0.0% +4.8 +100.0% Net profit 167.2 5.6% 148.0 5.4% +19.2 +13.0% Attributable to: Shareholders of the Parent Company 158.1 5.3% 141.0 5.1% +17.1 +12.1% Minority shareholders 9.1 0.3% 7.0 0.3% +2.2 +30.9% Balance Sheet (m€) 30/06/2018 Inc.% 31/12/2017 Inc.% Ch. Ch.% Net fixed assets 5,828.2 109.1% 5,780.6 110.5% +47.6 +0.8% Working capital 84.2 1.6% 23.2 0.4% +61.0 +262.9% (Provisions) (571.8) (10.7%) (574.9) (10.9%) +3.0 (0.5%) Net invested capital 5,340.6 100.0% 5,229.0 100.0% +111.6 +2.1% Net equity 2,715.6 50.8% 2,706.0 51.7% +9.6 +0.4% Long term net financial debt 2,847.4 53.4% 2,735.4 52.4% +112.0 +4.1% Short term net financial debt (222.4) (4.2%) (212.4) (4.1%) (10.0) +4.7% Net financial debts 2,625.0 49.2% 2,523.0 48.3% 102.0 +4.0% Net invested capital 5,340.6 100.0% 5,229.0 100.0% +111.6 +2.1% Press release 1H2018 2017-05-08 12:29:53 Related contents be_110x150.1525945155.png