News

lundquist_future_110 For a company, attention to sustainability does not incorporate only the implementation of current and future practical actions, but also the way in which these initiatives are described, for example with stories, initiatives and poignant videos. Being sustainable has always been in the Hera Group's DNA. For this reason, the multiutility is in the top eight companies in Italy in terms of on-line communication of the theme of sustainability in the ".future" research of Lundquist, the study that takes into consideration the 100 biggest Italian companies. In the Italian panorama, around twenty companies stand out for the practical and clear way in which they address the significant themes of sustainability and the attention reserved to users of digital channels. The Hera Group is among the six "Silver class" companies, alongside major names like Generali, Tim and Terna, which combine story-telling and involvement in their on-line communication. In particular, the first section of the research conducted by Lundquist, called "Substance", evaluates the sustainability strategy and the transparency of communication. Indeed in this ".future" chapter, the Hera Group distinguished itself as an "excellent example", because it presents clear and detailed information relating to the sustainability strategy and the priority company issues, relating them to the priorities of the global agenda and business opportunities". The most recent products, in terms of communication effectiveness, include the latest Sustainability Report of the Group, in which the contents focus on the creation of shared value, i.e. the multiutility's ability to meet the needs of the local area and tackle the challenges in terms of change geared towards sustainability. Furthermore, it is worth pointing out the new report of the Hera Group "Building the future together", dedicated to the initiatives in which the local community plays an active role, by creating a long-term relationship and a significant environmental impact. lundquist_future_870 2019-07-18 Read more lundquist_future_870.1560148207.1563434959.jpg The multiutility is an excellent example of the ".future" research of Lundquist, which evaluates sustainability and transparency strategy https://lundquist.it/our-thinking/future/ /group_eng/who-we-are/hera-group-strategy/shared-value Visit Lundquist.future website Find out Hera's commitment to create shared value lundquist_future_110

lundquist_future_110 Overview Exploring the transition that the cities of the near future will have to implement to counter the effects of climate change: a transformation that involves institutions, companies, associations and, more generally, citizens. It is the main theme addressed at the conference "Re-inventing the city: smartness and resilience to face new challenges", organized by the Hera Group in Bologna, in the multi-utility headquarters. The young actress Ludovica Nasti stepped in first, performing in a reading of the touching text "I have a dream" by the writer Stefano Massini. Regeneration of resources and sustainability as a business leverage were the focus of the opening speech by the Executive Chairman of the Hera Group, Tomaso Tommasi di Vignano, who then gave the floor to the moderator of the entire afternoon, the director of Rai News 24 Antonio Di Bella. The first intermezzo was dedicated to the video with the results in terms of sustainability achieved by the Group in 2018, and collected in the Sustainability Report. "The most important contribution to urbanization, to tackle climate change, is to improve social cohesion", said during his speech the guest of honor Paul Romer, Nobel Prize 2018 for Economics and professor at NYU Stern School of Business. Then, the other speakers of the conference took turns on the stage, from the architect Stefano Boeri to the Global Ambassador of the B Corp Marcello Palazzi, from the full professor to the Ecole Polytechnique Fédérale de Lausanne and to the IUAV University of Venice, Paola Viganò, to the former mayor of Bogotà, Antanas Mockus, and the current first citizen of Bologna, Virginio Merola. The concluding remarks were made by the Chief Executive Officer of the Hera Group, Stefano Venier, who in his speech also emphasized: "In addition to the technological upgrade, the city of tomorrow will have to be based on the circular and resilient economy, able to adapt to change climate to ensure continuity of essential services for everyone's life”. Finally, the attention of those present was all for the children’s choir "Mariele Ventre" of the Antoniano of Bologna, which performed a moving cover of "Sing For The Climate", the famous song about the environment born in Belgium, in 2012, at the initiative of environmental director and activist Nic Balthazar. Reinventing the city - Regenerating resources to move to a society based on the circular economy During the event the 2018 Sustainability Report has been presented Watch the video with the results achieved in 2018 for the benefit of the served areas lundquist_future_870 2019-07-18 Read more On the occasion of the presentation of its sustainability report, an event to discuss together with so many authoritative voices of how cities will have to change to face climate change and guarantee wellbeing to future generations. Among the guests, the Nobel Prize for Economics Paul Romer https://paulromer.net/about/ https://www.stefanoboeriarchitetti.net/stefano-boeri-biografia/ https://nl.linkedin.com/in/marcellopalazzi http://www.studiopaolavigano.eu/at06/at06.html https://it.wikipedia.org/wiki/Antonio_Di_Bella https://en.wikipedia.org/wiki/Virginio_Merola https://en.wikipedia.org/wiki/Antanas_Mockus https://www.antoniano.it/91-piccolo_coro/ Paul Romer Stefano Boeri Marcello Palazzi Paola Viganò Antonio Di Bella Virginio Merola Antanas Mockus Piccolo coro dell'Antoniano di Bologna lundquist_future_110

1Q_2019_110 Financial Highlights Revenues at 1,940,4 million euro (+11,4%) Ebitda at 330,8 million euro (+2,5%) Net profit at 129,7 million euro (+3,0%) Net financial position at 2,622 million euro Operating Highlights Good contribution to growth coming from all main business, above all water cycle and gas Solid customer base in energy sectors, rising to approximately 2.6 million customers Today, the Hera Group’s Board of Directors, chaired by Tomaso Tommasi di Vignano, unanimously approved the Group’s consolidated economic results for the first quarter of 2019, which improved over the same period of the previous year, showing constant growth in all main indicators. The company’s winning multi-business strategy was thus confirmed, balanced as it is between regulated and free market activities, with high attention given to sustainability and a circular economy. The Hera Group, indeed, pursues this model through both internal and external growth, always prepared to grasp the opportunities offered by the market also thanks to the financial solidity. The Group’s path of 16 years of uninterrupted growth took a step further on 18 March 2019, when it was included in Borsa Italiana’s FTSE MIB index, which brings together the 40 companies with the highest capitalisation on the Italian stock exchange. In general, the results for the first quarter of 2019 benefited from the higher tariffs on regulated services introduced by the Authority’s updates, in addition to commercial expansion and the creation of efficiencies. Among the changes in the Group’s scope of operations compared to the first quarter of 2018, mention must go to Blu Ranton and Sangroservizi in Abruzzo, Megas Net in the Marche region and, as of March 1st 2019, the integration, in the Ferrara area, of the energy sales activities carried out by CMV Energia e Impianti and the natural gas distribution activities carried out by CMV Servizi, including the subsidiary company ATR. Furthermore, 9 May saw the formal acquisition of 100% of the shares of Cosea Ambiente, a company that manages urban and similar waste services owned by 20 municipalities in the Tuscan-Emilian Apennine. This operation also involved a ten-year concession for the Cosea Consorzio landfill in Gaggio Montano, effective as of the second quarter of 2019. Revenues reach 1.94 billion euro In the first quarter of 2019, revenues amounted to 1,940.4 million euro, rising compared to the 1,741.3 million seen in the same period of 2018. Contributions to this result came above all from growth in revenues from trading activities, power generation and waste treatment business, as well as higher revenues and higher volumes in gas and electricity sales. Ebitda rises to 330.8 million euro Ebitda went from 322.7 million euro in the first quarter of 2018 to 330.8 million at 31 March 2019, showing an 8.1 million increase (+2.5%). This growth is due to the good performances in all Group’s main areas, in particular the water cycle and gas. Improvement was also seen in the results from the waste management area and in other services, while the electricity area remained essentially stable. Operating results and pre-tax profits grow Net operating results also increased, coming to 205.0 million euro at 31 March 2019, up compared to the 197.6 million seen in the same period of 2018 (+3.7%). The change in financial operations came to 3.6 million euro, amounting to 21.1 million at the end of the first quarter, owing to lower dividends received and the application of accounting standard IFRS 16 on operating leases. Pre-tax profits grew by 2.1%, going from 180.1 million in the first quarter of 2018 to 183.9 million euro in the same period in 2019. Net profits up, settling at 129.7 million (+3.0%) Net profits for the first quarter of 2019 increased to 129.7 million euro, as compared to the 125.9 million recorded one year earlier (+3.0%). Profits pertaining to Group Shareholders, instead, came to 124.2 million euro, with a 3.1% growth over the 120.5 million seen in the same period of 2018. These results, considered alongside the improved tax rate (which came to 29.5%, compared to 30.1% in the first quarter of the previous year), are due to factors including the Group’s continuous commitment towards grasping the benefits offered by current legislation, in particular through the depreciations involved in the significant investments made in the direction of Utility 4.0. Profit & Loss (m€) 31/03/2019 Inc.% 31/03/2018 Inc.% Ch. Ch. % Sales 1,940.4 1,741.3 +199.1 +11.4% Other operating revenues 121.0 6.2% 95.3 5.5% +25.7 +27.0% Raw material (1,024.6) (52.8%) (831.4) (47.7%) +193.2 +23.2% Services costs (556.7) (28.7%) (538.5) (30.9%) +18.2 +3.4% Other operating expenses (13.1) (0.7%) (12.7) (0.7%) +0.4 +3.1% Personnel costs (142.9) (7.4%) (140.0) (8.0%) +2.9 +2.1% Capitalisations 6.7 0.3% 8.7 0.5% (2.0) (23.1%) Ebitda 330.8 17.0% 322.7 18.5% +8.1 +2.5% Depreciation and provisions (125.8) (6.5%) (125.0) (7.2%) +0.8 +0.6% Ebit 205.0 10.6% 197.6 11.3% +7.4 +3.7% Financial inc./(exp.) (21.1) (1.1%) (17.5) (1.0%) +3.6 +20.6% Pre tax profit 183.9 9.5% 180.1 10.3% +3.8 +2.1% Tax (54.2) (2.8%) (54.2) (3.1%) +0.0 +0.0% Net profit 129.7 6.7% 125.9 7.2% +3.8 +3.0% Attributable to: Shareholders of the Parent Company 124.2 6.4% 120.5 6.9% +3.7 +3.1% Minority shareholders 5.5 0.3% 5.4 0.3% +0.1 +2.3% Balance Sheet(m€) 31/03/2019 Inc.% 31/12/2018 Inc.% Ch. Ch.% Net fixed assets 6,042.1 108.5% 5,905.1 108.7% +137.0 +2.3% Working capital 118.9 2.1% 115.4 2.1% +3.5 +3.0% (Provisions) (591.8) (10.6%) (588.2) (10.8%) (3.6) +0.6% Net invested capital 5,569.2 100.0% 5,432.3 100.0% +136.9 +2.5% Net equity 2,947.2 52.9% 2,846.7 52.4% +100.5 +3.5% Long term net financial debt 2,760.4 49.6% 2,558.8 47.1% +201.6 +7.9% Short term net financial debt (138.4) (2.5%) 26.8 0.5% (165.2) (616.4%) Net financial debt 2,622.0 47.1% 2,585.6 47.6% +36.4 +1.4% Net invested capital 5,569.2 100.0% 5,432.3 100.0% +136.9 +2.5% 1Q2019 results 2019-05-15 For further informations be_870x320_slide_eng_senzafascia.1557916317 (1).png Consolidated 1Q report shows growing results and a positive contribution coming from all main business areas, in particular the water cycle and gas. Focus on sustainability and circular economy confirmed /-/hera-bod-approves-1q-2019-results?inheritRedirect=true Press release Read more be_110x150.1557916320.png

GH-Cosea_110 The Hera Group has been definitively awarded the tender for purchasing 100% of the shares of Cosea Ambiente S.p.A., a company managing urban and similar waste services owned by 20 Municipalities in the Tuscan-Emilian Apennine area (15 in the province of Bologna, already Hera Group shareholders, and 5 in the province of Pistoia). The documents involved were signed today, 9 May 2019. The tender was accompanied by a ten-year concession for the Cosea Consorzio’s Ca’ dei Ladri landfill, in the Municipality of Gaggio Montano, also covering assets and resources involved in its operation. The concession, also dated today, was stipulated between Herambiente and Cosea Consorzio. The 18 Municipalities owning Cosea Consorzio are also shareholders in Cosea Ambiente, even while holding different percentages in the two companies, with the exception of two Municipalities with no shareholding. Thanks to this acquisition, the Hera Group will be able to manage its waste management services in an increasingly synergic way across the entire Province of Bologna. These services will be integrated with the others already offered in the Apennine area (mainly water and gas), guaranteeing at the same time that the personnel currently employed is maintained. As for the Municipalities previously served by Cosea Ambiente, they will benefit from the scale economies ensuing from an advanced industrial approach in service management and fully meet the goals set by the regional law on recycling and recovery. Further benefits will also come from the multi-utility’s many infrastructures, which already guarantee a high level of environmental performance in the areas served by Hera (selection, disposal and biomethane production plants, etc.). Additionally, the Hera Group will invest in currently existing infrastructures and activities over the next few months. GH-Cosea_870 Press release Cosea acquisition 2019-05-09 Read more GH_Cosea.1557416645 (1).jpg The multi-utility has consolidated its leadership in the waste management area by acquiring the entire shareholding of the company operating in waste management, owned by 20 Municipalities in the Tuscan-Emilian Apennine area http://www.coseambientespa.it/ visit Cosea Ambiente website GH-Cosea_110