News

From 7 to 10 November 2023, “Ecomondo” (the European fair that acts as a reference point on ecological transition, technological and industrial innovation of environmental services and green economy, particularly waste and resources, circular bio-economy, and water) is at the Fiera di Rimini. We are there again this year, in Hall C1 at Stand 500, with a two-storey exhibition space covering 550 square metres: the entire Hera Group is present with Hera S.p.A., Herambiente, Aliplast, Hera Comm, HERAtech and Hera Luce. During the fair, the business offers of the Group's trading companies are also presented. As every year, the stand is decorated with works of art made from recycled materials by SCART, the Hera Group project devoted to the artistic regeneration of industrial waste, in full compliance with the circular economy. Once again this year, SCART presents a new project in collaboration with the Fine Arts Academies of Florence, Ravenna and Rimini and the young people from the San Patrignano rehab centre. These are 30 new works made up of waste from sports activities. Even outside the expo, it is possible to admire a Formula 1 car created with the waste collected by the Group following the floods of May 2023. For further information Visit the Ecomondo website null null null null null null null null null null null null null null null null null null null null null null null null null Ecomondo_2023_1.jpg Ecomondo_2023_2.jpg Ecomondo_2023_3.jpg Ecomondo_2023_4.jpg Ecomondo_2023_5.jpg Ecomondo_2023_6.jpg Ecomondo_2023_7.jpg Ecomondo_2023_8.jpg Ecomondo_2023_9.jpg Ecomondo_2023_10.jpg Ecomondo_2023_11.jpg Ecomondo_2023_12.jpg Ecomondo_2023_13.jpg Ecomondo_2023_14.jpg Ecomondo_2023_15.jpg Ecomondo_2023_16.jpg Ecomondo_2023_17.jpg Ecomondo_2023_18.jpg Ecomondo_2023_19.jpg Ecomondo_2023_20.jpg Ecomondo_2023_21.jpg Ecomondo_2023_22.jpg Ecomondo_2023_23.jpg Ecomondo_2023_24.jpg Ecomondo_2023_25.jpg null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null null ecomondo_2023_870x320.png 110x150_Ecomondo_2023.jpg

Financial highlights Ebitda at 718.3 million euro (+13.8%) Net profit attributable to shareholders at 187.7 million euro (+2.4%) Overall investments rise to 403.4 million euro (+22.4%) Net debt at 4,145.7 million euro, down by 104.1 million euro compared to the 31/12/22 figure, with net debt/Ebitda ratio at 3x Business highlights Significant contribution to growth from the energy sectors, the waste management area and the water business Ongoing growth in the energy customer base, which rose to over 3.7 million, up 7.9% in 12 months Further development of initiatives for the energy transition and the circular economy, thanks to state-of-the-art plants and increasingly green services The Board of Directors of the Hera Group, chaired by Cristian Fabbri, unanimously approved the consolidated results for the first half of 2023. The first half of the year ended with operating results and investments up compared to the previous year, although in the first months of 2023 some of the served areas were affected by extreme weather phenomena and the uncertain global context continues to generate volatility in commodity prices, a generalised rise in inflation and an increase in the interest rates. The consolidated half-year report at 30 June, indeed, shows positive operating and financial performances, demonstrating once again the Group’s financial solidity and strength of its business model, balanced between internal and external growth and between regulated and free market activities. Cristian Fabbri, Executive Chairman of the Hera Group: “The first half of 2023 closed with substantial growth in results, with Ebitda reaching 718.3 million euro, up 13.8%, mainly due to the overall contribution coming from the energy area, which also saw an increase in services for decarbonisation, while growth in the waste management area confirms our commitment to the circular economy. The results for this half-year see us moving rapidly towards achieving the goals set out in our Business Plan and are the fruit of our consolidated multi-business strategy, which has always been geared towards combining corporate growth with the sustainable development of the local ecosystem. This is additionally confirmed by the 22% rise in investments, both for developing the Group’s industrial assets and for M&As that focus on growth towards the ecological transition, innovation and resilience. Our business model is capable of continuously innovating while maintaining strong local roots, and has allowed us to once again respect the commitments made to our shareholders, to whom a dividend up by 4.2% was paid last month, consistent with what was announced during the presentation of the Business Plan to 2026.” Orazio Iacono, CEO of the Hera Group: “The consolidated half-year financial report at 30 June shows significant growth in Ebitda, with a contribution coming from all business areas, in particular the energy sector with 239 million euro (+30%) and the waste management area with 162.9 million euro (+8%), and increased investments and M&A transactions, amounting to over 400 million euro. All of this was made possible by a significant cash generation and a solid financial position. The financial structure was further reinforced during the first half of the year by sustainable sources of financing on favourable terms, including the issue of a sustainability-linked bond, a new revolving credit line and a recent EIB loan. These initiatives allowed us to maintain our net debt/Ebitda ratio at roughly 3x, in line with the previous half-year and the targets defined.” Revenues at 8.3 billion In the first half of 2023, revenues amounted to 8,297.5 million euro, as against 8,896.0 million euro at 30 June 2022, mainly due to the drop in energy commodity prices and lower volumes of gas sold, as a result of the mild weather in the first half of the year. Revenues related to the higher volumes of electricity sold, instead, were up, thanks to commercial development actions, Consip tenders and the lots awarded in the protected and gradual protection services, as well as higher revenues from energy services, in which opportunities related to energy efficiency incentives in residential buildings and increased activities in value-added services for customers remained. A positive contribution also came from revenues in the waste management sector, due to increased treatment activities and acquisitions in the industry market. Ebitda rises to 718.3 million euro Ebitda for the first half of 2023 rose to 718.3 million euro (+13.8%), compared to 631.2 million euro at 30 June 2022. This increase is mainly due to the overall contribution coming from the energy areas, amounting to 68.1 million euro, and the positive performance of the waste management area, up by 12.2 million euro. Net operating result grows The net operating result at 30 June 2023 rose to 374.7 million euro, up 11.9% compared to the 334.9 million euro seen one year earlier. This performance remained positive even after higher depreciation and amortisation, due to the significant increase in investments, and conservative provisions for bad debts, due to the increased turnover in last resort markets. Financial charges increased, mainly due to the medium- and long-term credit lines stipulated in 2022 and the significant change in the interest rate scenario, which saw a significant increase in the cost of money. Net profit attributable to shareholders up to 187.7 million euro Net profit rose to 208.0 million euro (+3.1%), compared to 201.7 million euro in the first half of 2022, with a tax rate coming to 26.8%. Net profit attributable to Group shareholders* totalled 187.7 million euro, up (+2.4%) from 183.3 million euro at 30 June 2022. Strong growth in operating investments and Group solidity reinforced In the first half of 2023, the Hera Group made investments and corporate acquisitions totalling 403.4 million euro (+22.4% compared to the same period in 2022). Operating investments, including capital grants, amounted to 318.4 million euro, up by 31.3 million euro compared to the previous year (+10.9%), and were mainly related to the development of plants, networks and infrastructures. In addition, regulatory upgrading mainly concerned gas distribution, with a large-scale meter replacement, and the purification and sewerage area. Income statement (mn€) Jun-23 % inc. Jun-22 % inc. Abs. change % change Revenues 8.297,5 8.896,03 -598,5 -6,7% Other operating revenues 299,3 3,6% 219,4 2,5% +79,9 +36,4% Raw and other materials (5.961,0) -71,8% (7.062,2) -79,4% -1.101,2 -15,6% Service costs (1.576,2) -19,0% (1.105,2) -12,4% +471,0 +42,6% Other operating expenses (41,5) -0,5% (39,3) -0,4% +2,2 +5,6% Personnel costs (330,4) -4,0% (308,7) -3,5% +21,7 +7,0% Capitalised costs 30,6 0,4% 31,2 0,4% -0,6 +1,9% Ebitda * 718,3 8,7% 631,2 7,1% +87,1 +13,8% Amortization, depreciation and provisions (343,6) -4,1% (296,3) -3,3% +47,3 +16,0% Ebit * 374,7 4,5% 334,9 3,8% +39,8 +11,9% Financial operations (90,5) -1,1% (50,9) -0,6% +39,6 +77,7% Pre-tax result * 284,2 3,4% 284,0 3,2% +0,2 +0,1% Taxes (76,2) -0,9% (82,3) -0,9% -6,1 -7,4% Net result * 208,0 2,5% 201,7 2,3% +6,3 +3,1% Attributable to: - - + Shareholders of the Parent Company * 187,7 2,3% 193,3 2,1% +4,4 +2,4% Minority shareholders 20,3 0,2% 18,4 0,2% +1,9 +10,3% Invested capital and sources of financing (mn€) 30-giu-23 Inc.% 31-dic-22 Inc.% Var. Ass. Var.% Net non-current assets* 7791,2 100,7% 7522,3 94,5% 268,9 3,6% Net working capital* 612,2 7,9% 1096,0 13,8% (483,8) (44,1)% (Provisions) (668,1) (8,6)% (657,6) (8,3)% (10,5) 1,6% Net invested capital* 7.773,6 100,0% 7960,7 100,0% (225,4) (2,8)% Equity* 3589,6 46,4% 3710,9 46,6% (121,3) (3,3)% Long-term borrowings 5067,5 65,5% 5598,5 70,3% (531,0) (9,5)% Net current financial debt (921,8) (11,9)% (1348,7) (16,9)% 426,9 (31,7)% Net debt 4145,7 53,6% 4249,8 53,4% (104,1) (2,4)% Total sources of financing* 7735,3 100,0% 7960,7 100,0% 225,4 (2,8)% * Adjusted results For further information Press release Investors web area img_1H_primo_piano_eng.png The consolidated half-year report at 30 June shows growth in all main operating-financial indicators, confirming Hera’s financial solidity and once again demonstrating the effectiveness of the choices made by management 110x150_risultati_Q1_23_primo_piano.jpg

The European Investment Bank (EIB) has granted a €460 million loan to Hera Group. The main goals of the financing are to strengthen the resilience of integrated water services, increase the production of renewable energy, foster energy efficiency, decarbonisation and the circular economy, and bolster waste processing and collection, all in order to support Hera Group’s areas of operation on their path to a sustainable environmental transition and help combat climate change. This EU bank loan will finance over 60 Hera Group projects aligned with the EU taxonomy and in line with the objectives of the UN 2030 Agenda, helping the communities served by the Italian multi-utility on their path to a green transition closely connected to local society and industry. The EIB financing will therefore cover almost 60% of the total value of these investments (over €800 million) already planned by the company in its 2022-2026 industrial plan. Operations will mainly take place in Emilia-Romagna, but also in other areas served such as Veneto and Friuli-Venezia Giulia. In concrete terms, the EU bank resources will contribute to improving integrated water services via operations to further cut losses and renew rainwater collection and wastewater treatment facilities. Hera Group will increase its capacity for processing, recycling, and recovering waste by renovating existing collection centres and building new, cutting-edge plants for recycling plastic and carbon fibre and for the pre-treatment and storage of industrial waste. The EIB financing will also enable Hera Group to install over 370 000 second-generation smart meters in the regions concerned, as well as develop district heating and combined heat and power systems and build photovoltaic plants — even small-scale ones — to increase renewable energy production. Almost 40% of the EIB-financed investments will be made in the parts of Emilia-Romagna that were hit the hardest by the recent floods. The financed operations will improve the resilience of water services to future extreme weather events, including via the construction of underground rainwater collection tanks in areas of the Romagna coast subject to high hydrogeological risk. Elsewhere, a number of measures will be taken to make the sewerage network more resilient to flooding. The financing announced today is part of the REPowerEU initiative supported by the EIB, which will invest an additional €30 billion over the next five years to unlock €115 billion, promoting the green transition and gradually reducing Europe's dependence on fossil fuels. For further information Press release primo_piano (1).png The EIB loan will help improve the resilience of the integrated water cycle, energy efficiency and the management of environmental services in the areas served by Hera new_sede_hera_110.jpg

Only two months after the establishment of Horowatt, a NewCo between Hera Group and Orogel that within 2024 will create an innovative and sustainable agrivoltaic plant in the agricultural cooperative’s Cesena facilities, Hera’s programme for developing cutting-edge integrated solutions in the field of clean energy is making rapid progress. Hera Group finalised the acquisition of Tiepolo Srl, owned by Combigas and Greenfield Renewables (each one holding 50% of the shares), which has developed a project for constructing a solar park in Bondeno (Ferrara) capable of meeting the needs of over 5,000 households. The plant, which will have a capacity of 8.9 megawatts and will generate approximately 13 GWh/year when fully operational, is one of the Hera Group’s numerous projects aimed at producing renewable energy and already included in the Business Plan to 2026, to support citizens, businesses and public administrations in the decarbonisation and electrification of their consumption. In order to make a significant contribution to reducing climate-changing gas emissions in all localities served and accompany them towards carbon neutrality, the Group has not only allocated significant investments for the energy transition in its Business Plan but has also set up a new business unit entirely dedicated to renewable energy production and energy management. For further information Press release acquisizionetiepolo_870.png This transaction represents a major new commitment made by the Group to promote the energy transition and decarbonisation in the areas it serves sede-hera-110.jpg