Press releases

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

2018-05-10 Results as at 31 March 2018 The consolidated quarterly report at 31 March shows growth in all operating and financial indicators, with a positive contribution coming from all business areas and further improvement in net debt. Hera BoD approves 1Q 2018 results /documents/1514726/4880892/GruppoHera_relazione_trimestrale_consolidata_al_31_03_2018_eng.1525946951.pdf/eb209a34-d9c9-040c-9f99-624083c0090a?t=1610019058696 /documents/1514726/4667212/Dati_finanziari_ed_operativi_di_sintesi_1Q_2018_eng.1525768847.xls/0def4519-5b1f-7457-26b8-3919a059699f?t=1608550138175 /documents/1514726/4667212/GruppoHera_Analyst_Presentation_1Q_2018.1525940338.pdf/8f6496cb-d392-7c7f-01a3-43a2f3de9304?t=1608550138945 /group_eng/investor-relations/results-and-presentations/archive/financial-benchmark http://investornews.gruppohera.it/en/?n=55 Financial results as at 31 March 2018 Financial data as at 31 March 2018 Analyst presentation: financial results as at 31 March 2018 Benchmark of consolidated results Newsletter: financial results as at 31 March 2018 Financial highlights Revenues at € 1,741.3 million (+10.4%) Ebitda at € 322.7 million (+5.2%) Net profits for shareholders at € 120.5 million (+9.6%) Net debt decreased, coming to € 2,502.1 million Operating highlights Good contribution to growth coming from the main businesses, and the gas area in particular Solid customer base in Energy, increasing to roughly 2.4 million customers Management geared towards extracting efficiencies and expansion Today, the Hera Group’s Board of Directors unanimously approved the consolidated operating results for the first quarter of 2018, which confirm the ongoing positive trend and show rises in all main performance measures. These results were achieved thanks to the Group’s time-tested multi-business strategy, balanced between regulated and free market activities. This model was pursued by calibrating internal growth with the opportunities offered by the market and external development. In particular, the changes in the scope of operations witnessed during the first quarter were due to the consolidation of the Aliplast Group and Verducci Servizi, the transfer of Medea to Italgas and the exclusion of waste collection and street sweeping services in the Forlì area. M&As, instead, were concentrated above all in the energy area, with the acquisitions of Blu Ranton and 49% of Sangroservizi, in addition to 13,000 new “maggior tutela” customers served in the municipality of Gorizia through EnergiaBaseTrieste. Revenues amount to roughly € 1.74 billion Revenues for the first quarter of 2018 came to € 1,741.3 million, increasing compared to the € 1,577.8 million seen in the same period of 2017. A larger amount of commodity trading and higher revenues coming from gas and electricity sales were mainly responsible for this result, as were revenues from the waste management area and energy efficiency certificates. Ebitda rises to € 322.7 million Ebitda went from € 306.8 million in the first quarter of 2017 to € 322.7 in the same period of 2018, recording an increase of almost € 16 million (+5.2%). While this growth is due to the good performances seen in the Group’s main areas, the gas area contributed in particular, thanks to higher volumes sold and an increase in income from trading. Operating results and pre-tax profits increase, financial management improves Operating profits at 31 March 2018 came to € 197.6 million, up compared to the € 187.3 million recorded at the same date in 2017 (+5.5%). A € 5.6 million improvement was seen in financial management, coming to € 17.5 million at the end of the first quarter, thanks to efficiency in interest rates and higher income for interest derived from safeguarded customers. In light of this situation, pre-tax profits went from € 164.2 million in the first three months of 2017 to € 180.1 million in the same period of 2018, showing an increase in the rate of growth, which came to +9.7%. Net profit for shareholders grow to € 120.5 million (+9.6%) Net profit at 31 March 2018 rose to € 125.9 million, up compared to the € 115.3 million seen in 2017. € 120.5 million is the profit pertaining to Group shareholders, which increased by € 10.6 million over the € 109.9 million in the same period in 2017. These results, corresponding to a tax rate of 30.1%, are due to the Group’s continuous commitment to grasping opportunities recognised by law regarding the amortisation of the consistent investments made in a move towards Utility 4.0, in addition to tax credits for research and development and the final balance of previously acquired benefits. Roughly € 85 in investments, and a slightly improved net debt In the first three months of 2018, Group investments amounted to € 84.6 million, including the acquisitions made in the companies Blu Ranton and Sangroservizi. Operating investments grew by 5.9% and mainly concerned interventions on plants, networks and infrastructures, in addition to investments in an extensive meter substitution and in the purification and sewerage areas. Net debt improved for the third consecutive quarter, coming to € 2,502.1 million (compared to the € 2,523.0 million recorded at 31 December 2017). This was due to a positive and increasing cash generation, which among other things allowed the recent acquisitions to be financed. The 12-month rolling net debt/Ebitda ratio settled at 2.5, pointing towards further improvement in financial solidity. Gas Ebitda for the gas business, which covers services in natural gas and LPG distribution and sales, district heating and heat management, came to € 148.2 million in the first quarter of 2018, an increase over the € 135.6 million recorded at 31 March 2017 (+9.3%), thanks to higher volumes of gas sold, a rise in trading volumes and the larger scope of operations for this service. The number of gas customers rose to 1.4 million, up 1.1% over the same period in 2017, thanks to marketing initiatives. The gas business accounted for 45.9% of Group Ebitda. Water cycle Ebitda for the integrated water cycle, which covers aqueduct, purification and sewerage services, went from € 53.3 million in the first quarter of 2017 to € 55.6 million in the same period of 2018 (+4.3%), thanks above all to higher revenues from dispensing. These results also benefited from “quality premium”, granted by the regulatory authorities based on current methods for tariff calculation. The integrated water cycle accounted for 17.2% of Group Ebitda. Waste management Ebitda for the waste management business, which covers services in waste collection, treatment, recovery and disposal, went from € 64.0 million in the first quarter of 2017 to € 66.5 million at 31 March 2018 (+3.9%). This trend is mainly due to the encouraging results achieved in the area of waste treatment, which followed positive market trends. Good results were also seen in sorted waste, which rose to 59.5% compared to the 57.5% recorded in the first three months of 2017, thanks to the many projects launched over all areas served. The waste management area accounted for 20.6% of Group Ebitda. Electricity Ebitda for the electricity business, which covers services in electricity production, distribution and sales, showed a slight drop, going from € 48.4 million in the first quarter of 2017 to € 45.3 million at 31 March 2018, owing to the temporary suspension of some plants for planned maintenance. In spite of this, electricity reached the goal of 1 million customers for the first time, rising 10.6% over the first quarter of 2017, and also saw a 23.7% overall increase in volumes sold, with considerable growth in both the free and safeguarded markets. This significant result is due to the Group’s continuous reinforcement of marketing initiatives and the enlargement of its customer base. The electricity area accounted for 14% 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 quarterly management report and related materials are available to the public at Company Headquarters and on the website www.gruppohera.it. Unaudited extracts from the Interim Financial Statements at 31 March 2018 are attached. Profit & Loss (m€) 31/03/2018 Inc% 31/03/2017 Inc.% Ch. Ch. % Sales 1,741.3 1,577.8 +163.5 +10.4% Other operating revenues 95.3 5.5% 89.8 5.7% +5.5 +6.1% Raw material (831.4) -47.7% (732.2) -46.4% +99.2 +13.5% Services costs (538.5) -30.9% (488.8) -31.0% +49.7 +10.2% Other operating expenses (12.7) -0.7% (12.0) -0.8% +0.7 +5.8% Personnel costs (140.0) -8.0% (137.2) -8.7% +2.8 +2.0% Capitalisations 8.7 0.5% 9.4 0.6% -0.7 -7.5% Ebitda 322.7 18.5% 306.8 19.4% +15.9 +5.2% Depreciation and provisions (125.0) -7.2% (119.6) -7.6% +5.4 +4.5% Ebit 197.6 11.3% 187.3 11.9% +10.3 +5.5% Financial inc./(exp.) (17.5) -1.0% (23.1) -1.5% -5.6 -24.3% Pre tax profit 180.1 10.3% 164.2 10.4% +15.9 +9.7% Tax (54.2) -3.1% (48.9) -3.1% +5.3 +10.8% Net profit 125.9 7.2% 115.3 7.3% +10.6 +9.2% Attributable to: Shareholders of the Parent Company 120.5 6.9% 109.9 7.0% +10.6 +9.6% Minority shareholders 5.4 0.3% 5.4 0.3% -0.0 -0.1% Balance Sheet (m€) 31/03/2018 Inc.% 31/12/2017 Inc.% Ch. Ch.% Net fixed assets 5,792.4 109.1% 5,780.6 110.5% +11.8 +0.2% Working capital 92.3 1.7% 23.2 0.4% +69.1 +297.8% (Provisions) (576.7) (10.8%) (574.9) (10.9%) (1.9) +0.3% Net invested capital 5,308.0 100.0% 5,229.0 100.0% +79.0 +1.5% Net equity 2,805.9 52.9% 2,706.0 51.7% +99.9 +3.7% Long term net financial debt 2,739.9 51.6% 2,735.4 52.4% +4.5 +0.2% Short term net financial debt (237.8) )4.5%) (212.4) (4.1%) (25.4) +12.0% Net financial debts 2,502.1 47.1% 2,523.0 48.3% (20.9) (0.8%) Net invested capital 5,308.0 100.0% 5,229.0 100.0% +79.0 +1.5% Press release 1Q2018 2017-05-08 11:30:53 Hera BoD approves 1Q 2018 results

2018-04-04 Publication of the draft Separate and consolidated financial statements at 31/12/2017, the Sustainability report - consolidated non-financial statement and Shareholders meeting documentation Kindly note that the following documents, approved by the Board of Directors, have been made available to the public at company headquarters, on the website www.gruppohera.it and on the authorised storage platform 1INFO (www.1Info.it): folder containing the draft Separate and consolidated financial statements at 31/12/2017; Sustainability report - consolidated non-financial statement drafted pursuant to decree 254/2016. In the same form, the following documents are also available: the Hera S.p.A. Board of Directors' Explanatory report for item 2 on the Agenda; the Hera S.p.A. Board of Directors' Explanatory report for item 3 on the Agenda. press_release_pubblication_report.1522854149.pdf 2018-04-04 18:56:42 Hera Spa

2018-03-27 be2017_870x320_slide_eng.1522151642.jpg Improvement seen in all operating, financial and sustainability indicators. These results, which exceeded expectations, crown a path of development that has led the multi-utility to quintuple its EBITDA over its 15 years of operations. The Group's multi-business model and the balance between internal and external growth prove once again to be key factors in its success. Proposed dividends rise to 9.5 cent/share. S&P upgrades the outlook from stable to positive. Hera Group approves results at 31/12/2017 /group_eng/investor-relations/results-and-presentations/y2017 /documents/1514726/4210743/Financial+results+as+of+31_12_2017.pdf/103e1350-e7eb-ee2d-5f2f-6e985bffc353?t=1629971620065 /documents/1514726/4210743/GH_Analyst_Presentation_Y2017.1522145272.pdf/c3609f23-0deb-f41b-fc1f-3605403b85f5?t=1597908284022 http://investornews.gruppohera.it/en/?n=54 /documents/1514726/4210743/Dati_finanziari_31_12_17_eng.1522145521.xls/62fdb8c6-aa55-736c-1dfb-5e5c82422c2b?t=1597908283687 https://www.slideshare.net/Gruppo_Hera/analyst-presentation-y2017 /group_eng/investor-relations/results-and-presentations/archive/benchmark-by-business /group_eng/investor-relations/results-and-presentations/archive/financial-benchmark /group_eng/investor-relations/results-and-presentations/interactive-data HTML Y2017 results Financial results as at 31/12/2017 Analyst presentation: Y2017 results ( 1077kb - PDF) Newsletter: Y2017 results Financial data as at 31 December 2017 Slideshare Y2017 Benchmark by business Benchmark of consolidated results Interactive data Financial highlights Turnover at € 6,136.9 million (+10.3%) EBITDA at € 984.6 million (+7.4%) Net profits at € 266.8 million (+21.1%) Net debt improves, coming to € 2,523.0 million Proposed dividends rise to 9.5 cent/share S&P rating: BBB with positive outlook Operating highlights Contributions to growth come from all business areas, in particular free market activities, such as the Electricity and Waste Benefits derive from recent Group acquisitions in liberalised waste management and energy markets (most notably Aliplast) Further reinforcement of the energy customer base, reaching 2.4 million users, thanks to marketing operations, recent acquisitions and the tender awarded for safeguarded services Improvement in all sustainability indicators, with 2017 shared value EBITDA rising by 10% to € 329 million Today, the Hera Group’s Board of Directors unanimously approved the consolidated financial results at 31 December 2017, along with the Sustainability Report. All operating, financial and sustainability indicators improve, crowning 15 years of uninterrupted growth The 2017 financial year closed for the Hera Group with results higher than expected, and with all operating, financial and sustainability indicators showing clear improvement over 2016. These particularly positive results, in line with the content of the Business Plan to 2021, confirm the validity of the company’s multi-business strategy, which allows it to successfully balance regulated and free-market activities, in addition to maintaining a sustainable risk profile. The combination of two fundamental levers, internal growth and external development, furthermore permitted the Group to achieve continued growth, which resulted from factors including its ability to foresee and grasp the best opportunities in an increasingly challenging regulated and free-market scenario, whose models for future development continue to evolve. These results represent the culmination of a path that has led the multi-utility to achieve significant goals over its 15-year lifespan: from a quintupled EBITDA to almost eight times the amount of net profits (compared to 2002), only to mention a couple, without counting the 25 acquisitions brought to completion, which have produced considerable synergies. Moreover, the results reached confirm the Group’s constant pursuit of objectives involving all aspects of sustainable development: environmental, social and economic. A 10% rise in shared value created was in fact seen in 2017, through activities that meet the UN Agenda’s drivers for sustainable development and the goals defined by various levels of government. Turnover exceeds 6 billion, rising by 10.3% In 2017, turnover came to € 6,136.9million and, on equal terms, showed an increase over the € 5,561.5 seen in the previous year (+10.3%). This result reflects, in addition to the entrance of the Aliplast Group and other minor acquisitions now part of the company’s scope of operations, a higher amount of trading, a rise in regulated revenues from the water service and an increase in revenues and volumes of gas and electricity sold. EBITDA grows to € 984.6 million (+7.4%) EBITDA rose to € 984.6 million, with a sharp increase over the € 916.6 million seen in 2016 (+7.4%). This growth in EBITDA was sustained by the good performance shown by all businesses, above all the energy areas, which recorded a € 50.3 million increase. This rise was driven above all by Electricity, ensuing from higher earnings in asset management and trading activities, and in free market and safeguarded sales. The contribution coming from the waste area was also remarkable, for reasons including an enhancement of recycling activities. Operating results and pre-tax profits rise, and financial management improves Operating profits increased to € 479.3 million, compared to the € 457.1 million recorded in 2016 (+4.9%), in spite of the higher amortisation owing to changes in the scope of operations and higher provisions for bad debt, mainly involving the new safeguarded customers acquired through the tenders held in late 2016. Pre-tax profits increased to € 377.8 million (+11.2% compared to the € 339.7 million seen in 2016), as an effect of the improvement in financial management, which contributed with € 16 million more than in the previous year. These good performances can be ascribed to higher financial revenues and a more efficient and flexible financial structure, which allowed the cost of debt to be lowered. Strong increase in net profits, reaching € 266.8 million (+21.1%) Group net profits rose to € 266.8 million, with a significant increase (+21.1%) compared to the € 220.4 million witnessed in the previous year, owing among other things to a lower average tax rate, which settled at 29.6% instead of the 35.1% seen in 2016. Profits pertaining to Group Shareholders came to € 251.5 million, up 21.3% over the previous year. Investments reach € 440 million, Net debt/EBITDA ratio further improves to 2.56, S&P rating BBB with positive outlook In 2017, Group investments amounted to € 396.2 million. Including approximately € 44 million in capital grants, the Group’s overall investments came to € 440.5 million, growing by roughly 14% compared to the previous year and mainly destined to interventions on plants, networks and infrastructures. These were flanked by regulatory upgrading above all concerning gas distribution, with an intensive meter substitution, and the purification and sewerage areas. Net debt in 2017 came to € 2,523.0 million, improving by roughly € 36 million compared to the € 2,558.9 recorded in 2016, thanks to an increase in operating cash flows that allowed higher investments and M&A operations to be financed and June’s annual dividend payment to be entirely covered (coming to € 140 million overall). The net debt/EBITDA ratio fell to 2.56, with a further decrease following the one seen in 2016; this ratio benefitted from both rising operational results and a reduction in net debt. The results reached, the resilience of the Group’s business model and the solid foundations of its Business plan allowed it to obtain a revision in the outlook of its rating from Standard & Poor’s, going from stable to positive. Further improvement in the Group’s sustainability profile, along with a 10% increase in shared value EBITDA The positive operating results were matched by data confirming the multi-utility’s growing attention towards sustainability, as witnessed by the approval of the Sustainability Report at the same time as the year-end financial statements for the twelfth consecutive year. Furthermore, the Hera Group was among the first to introduce, as of last year, a new and evolved approach to sustainability, including shared value in its financial reporting, i.e. all business activities that in addition to generating EBITDA for the company respect the drivers of sustainable development defined by the UN Agenda and the goals set by various levels of government. In 2017, the Hera Group’s shared value EBITDA reached € 329 million, increasing by 10% over the previous year: this result perfectly reflects the path marked out in the Business Plan, in which this indicator is projected to reach 40% by 2021. Improvements were seen in all performances measured by energy consumption (from decarbonisation to energy efficiency operations and renewable source development), and by material recovery (from indicators concerning recycling, landfill use and initiatives promoting the concrete development of a circular economy), in addition to all social and local factors involved. In line with this perspective, the Group is now part of international programs such as the CEO Water Mandate and the Ellen MacArthur Foundation’s CE100, a network made up of the world’s 100 companies most committed to the transition towards a circular economy. Proposed dividends rise to 9.5 cent/share The Board of Directors, in light of the results achieved and the solidity of the Group’s assets, has decided to put a dividend of 9.5 cents per share to the Shareholders Meeting to be held on 26 April, higher than in the past and in line with the content of the Business Plan. The ex-dividend date has been set at 18 June 2018, with payment as of 20 June 2018. Gas EBITDA for Gas, which includes services in natural gas distribution and sales, district heating and heat management, rose to € 301.7 million, fundamentally in line with the € 300.6 million seen in 2016. This result was obtained mainly thanks to internal growth, with positive contributions coming from the management of distribution and sales activities, an expanded customer base, the positive trend seen in prices and higher volumes of trading. These positive results proved more than able to offset lower earnings in district heating. The results were also sustained by the acquisition of the Abruzzo company Verducci Servizi and the default gas service, which allowed volumes sold to increase, with the number of customers rising to roughly 1.4 million (+14,900 customers), to which sales activities and customer loyalty programs also contributed. Net investments in Gas exceeded € 100 million in 2017, with a € 6.2 million increase compared to 2016, mainly destined to non-recurring maintenance on networks and plants and the large-scale meter substitution introducing new-generation devices and making the networks smarter. The gas business accounted for 30.6% of Group EBITDA. Water cycle The integrated water cycle, which includes aqueduct, purification and sewerage services, recorded an EBITDA of € 229.9 million, showing a slight growth over the € 228.8 million seen in 2016, thanks to higher regulated revenues and operative efficiencies, which offset the lower revenues for new connections. Owing to the high level of service quality, moreover, the corresponding bonuses were granted by the Authority. Net investments in the integrated water cycle amounted to € 113.1 million. Including capital grants, investments in this area came to € 156.6 million (up compared to the € 131.8 million seen in 2016), of which € 63.8 million in the aqueduct, € 42 million in sewerage and € 50.8 million in purification. The integrated water cycle business accounted for 23.3% of Group EBITDA. Waste EBITDAfor Waste, which includes waste collection, treatment and disposal services, settled at € 246.0 million, growing by 6.6% over the € 230.7 million recorded in 2016. This positive result is due to both changes in the scope of operations, with the 2017 acquisitions of the Aliplast Group and Teseco, which gave an important impulse towards a circular economy and the management of industrial waste, and internal growth sustained by higher volumes of market waste treated and a positive trend in prices. This allowed the loss of incentives concerning the Isernia plant and a few non-recurring entries to be offset, the latter mainly involving a temporary halt in some WTE plants (in the first part of the year) and costs for demolition in the S. Agata Bolognese site, where one of Italy’s first plants for bio-methane production is now in the advanced stages of construction, which will become operational within 2018. Good results were also seen in the area of sorted urban waste collection, which rose to 57.7%, compared to the 56.4% seen in 2016, thanks to a range of projects implemented across all areas served. The waste management business accounted for 25% of Group EBITDA. Electricity Electricity, which includes services in electricity production, distribution and sales, recorded an EBITDA of € 184.5 million, with a sharp improvement compared to the € 135.3 million recorded in 2016 (+36,4%), thanks to activities in trading, higher income in production and in free market and safeguarded market sales. The number of electricity customers is now over 980,000 (+9% compared to 2016), thanks to reinforced marketing operations and the larger customer base deriving from the tender awarded for safeguarded services. The amount of Group EBITDA accounted for by the electricity area rose to 18.7%. Statement by Executive Chairman Tomaso Tommasi di Vignano “The results reached allow us to draw a few conclusions as to the path of growth followed by Hera over these first 15 years of its history: an operating performance that clearly shows through in Group EBITDA, which has quintupled compared to the one seen in 2002, without counting the positive effects of financial and fiscal management, which in turn bear witness to an even more considerable growth, given that 2017 net profits reached 7.8 times those recorded in 2002. Opportunities for internal and external development (with 25 companies acquired over the years) have led not only to an increase in size, but above all to higher efficiencies and productivity, as is proven by EBITDA per employee, which has virtually tripled. The central role given to creating value for our shareholders has also been confirmed: on the basis of the results reached, we will put to the Shareholders Meeting a dividend of 9.5 cents/share, up 5.5% compared to the dividend paid in 2016 and in line with the policy communicated last January. The return implied by this dividend would thus come to 3.3% and, considering the 32.8% rise in the price of Hera stock seen over 2017, the overall return for shareholders will exceed 36%.” Statement by CEO Stefano Venier “The 2017 results confirm the validity of our actions in financial planning and management, to the point that they have already allowed us to lower our debt more than was expected. The substantial improvement in operating and financial indicators, furthermore, was accompanied by excellent working performances, confirming the quality of the business initiatives deployed to achieve a long-lasting and sustainable growth. Even the targets met in terms of higher creation of shared value allow us to affirm that 2017 was, for us, an important milestone along our path of growth and, in various senses, represented a new starting point to give an effective response and a tangible contribution to the noteworthy challenges that lie in the future.” 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 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), within 4 April 2018. Unaudited extracts from the Financial Statements at 31 December 2017 are attached. PROFIT & LOSS(M€) 31/12/2017 INC% 31/12/2016 RECLASSIFIED* INC.% CH. CH. % Sales 5,612.1 5,131.3 +480.8 +9.4% Other operating revenues 524.8 9.4% 430.2 8.4% +94.6 +22.0% Raw material (2,606.8) -46.4% (2,176.8) -42.4% +430.0 +19.8% Services costs (1,952.2) -34.8% (1,896.7) -37.0% +55.5 +2.9% Other operating expenses (84.6) -1.5% (75.0) -1.5% +9.6 +12.8% Personnel costs (551.6) -9.8% (524.1) -10.2% +27.5 +5.2% Capitalisations 43.0 0.8% 27.8 0.5% +15.2 +54.7% Ebitda 984.6 17.5% 916.6 17.9% +68.0 +7.4% Depreciation and provisions (505.3) -9.0% (459.6) -9.0% +45.7 +9.9% Ebit 479.3 8.5% 457.1 8.9% +22.2 +4.9% Financial inc./(exp.) (101.5) -1.8% (117.4) -2.3% -15.9 -13.5% Pre tax profit 377.8 6.7% 339.7 6.6% +38.1 +11.2% Tax (111.8) -2.0% (119.3) -2.3% -7.5 -6.3% Net profit before special items 266.0 4.7% 220.4 4.3% +45.6 +20.7% Special items 0.8 0.0% - 0.0% +0.8 +100.0% Net profit 266.8 4.8% 220.4 4.3% +46.4 +21.1% Attributable to: Shareholders of the Parent Company 251.5 4.5% 207.3 4.0% +44.2 +21.3% Minority shareholders 15.3 0.3% 13.1 0.3% +2.3 +17.4% *The amount of 2016 revenues has been adjusted (with no effect on results) to account for the reclassification of system charges and contributions coming from former green certificates. BALANCE SHEET(M€) 31/12/2017 INC.% 31/12/2016 INC.% CH. CH.% Net fixed assets 5,780.6 110.5% 5,564.5 108.7% +216.1 +3.9% Working capital 23.2 0.4% 99.9 2.0% (76.7) (76.8)% (Provisions) (574.8) (10.9%) (543.4) (10.7%) (31.4) +5.8% Net invested capital 5,229.0 100.0% 5,121.0 100.0% +108.0 +2.1% Net equity 2,706.0 51.7% 2,562.1 50.0% +143.9 +5.6% Long term net financial debt 2,735.4 52.4% 2,757.5 53.9% (22.1) (0.8)% Short term net financial debt (212.4) (4.1%) (198.6) (3.9%) (13.8) +6.9% Net financial debts 2,523.0 48.3% 2,558.9 50.0% (35.9) (1.4)% Net invested capital 5,229.0 100.0% 5,121.0 100.0% +108.0 +2.1% Press release Y2017 2018-03-22 13:31:00 Hera Group approves results at 31/12/2017

2018-03-20 Nuova_Palazzina_1_870x.1533219432.jpg Headquartered in Atessa (Chieti), Sangroservizi offers natural gas sales services to roughly 7,000 customers. Following the recent acquisition of Blu Ranton and prolonging the operations concluded over the last three years, Hera thus further consolidates its presence and its strong local roots in the Abruzzo region. Hera Group: green light for the merger between Marche Multiservizi and Megas.net Slightly over a month after the acquisition of Blu Ranton, the Hera Group continues consolidating its locally rooted presence in the Abruzzo region. Through its subsidiary Hera Comm, indeed, it has purchased 49% of Sangroservizi S.r.l. from the Municipalities of Atessa, San Vito Chietino and Paglieta (all located in the Province of Chieti). Established in 2003 and legally headquartered in Atessa, Sangroservizi is a company active in natural gas sales with roughly 7,000 customers. This operation prolongs the series of acquisitions involving Fucino Gas, Alento Gas, Julia Servizi, Gran Sasso,Verducci Servizi and Enerpeligna, in addition to the aforementioned Blu Ranton. Thanks to them, in the last three years the Hera Group has become an outstanding operator in Abruzzo and in the adjacent Marche region, where it already provides electricity and gas services to over 240,000 customers, including its progressive integration with Hera Comm Marche. The multi-utility thus continues to pursue its development of a model that brings together the local, physical kind of presence typical of smaller enterprises on the one hand, and on the other the potentialities for innovation in services and offers and the competitiveness that ensue from belonging to a Group that is among the main operators in Italy's energy market. "With this operation, we have reinforced our presence in the Province of Chieti, fully respecting the process of developing our activities in the Abruzzo and Marche regions" explains Cristian Fabbri, CEO of Hera Comm. "Applying our business model, which unites local management of services for citizens and a global vision to guarantee greater opportunities and competitiveness, allows us to have an increasingly widespread and well-structured presence over the localities served. This system makes it possible for us to meet all of our customers' needs, from daily assistance to a growing request for tailor-made services, improving, day after day, their customer experience. Our new customers as well will soon be able to tangibly appreciate this improvement". press_release_sangroservizi.1521563231.pdf 2018-03-09 17:13:00 Read more Hera Group: green light for the merger between Marche Multiservizi and Megas.net