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Hera included in the FTSE MIB

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18/03/2019
Hera included in the FTSE MIB

As of today, Monday 18 March, the multi-utility is part of the index comprising the 40 largest companies listed on the Italian stock exchange

Hera has been included, as of today, Monday 18 March, in the FTSE MIB, the main index of Borsa Italiana, which comprises the 40 largest stocks listed on the Italian stock exchange in terms of capitalisation, liquidity and trading volume.

Hera, one of Italy's leading multi-utilities, has become part of this index based on the amount of free-float capitalisation and the value of shares traded over the last six months (+52% compared to the 2018 average).

This achievement was made possible by Hera's path of uninterrupted growth, which began 16 years ago and is based on a multi-business model that combines internal and external growth and shows a mix of activities offering resilience towards the main macro-variables seen in its reference scenario.

The new Business plan to 2022 shows further prospects for growth in Ebitda (+200 million euro in the period from 2018 to 2022), sustained by 3.1 billion in investments (of which 1.1 going towards development). Increases in cash generation will also ensure the Group's ability to maintain its financial soundness (with the 2022 target for the net debt/Ebitda ratio coming to 2.9).

The Plan also confirms the importance of creating value for shareholders, with a dividend policy aimed at paying 11 cents per share in 2022 (compared to the 9.5 cents paid in 2018).

For more information

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Asset Publisher

14/05/2024

Hera Group BoD approves results for 1Q 2024

The consolidated quarterly report at 31 March shows improvement in the main operating and financial indicators

30/04/2024

Hera Shareholders Meeting: 2023 financial statements approved and dividend increased to 14 cents

The Group continues along its path of uninterrupted growth, closing 2023 with record performance in the main operating and financial indicators, thus constantly creating value for its stakeholders

26/03/2024

Hera Group approves results as at 31/12/2023

The year closed with main financial indicators rising and the targets included in the strategic Plan to 2026 exceeded three years ahead of schedule

04/03/2024

The passing of Hera S.p.A.'s Vice Chairman, Mr. Gabriele Giacobazzi

We hereby inform you that on March 3, 2024, the Vice Chaiman of the Board of Directors, Mr. Gabriele Giacobazzi, passed away.

04/03/2024

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

The Japanese electronics leader collaborates with the multi-utility to distribute the NexMeter 4.0 gas meter, with advanced features in the field of measurement

06/02/2024

Over 1 million new electricity customers as of 1 July

With the 7 lots awarded in the tender for the Gradual Protection Service for non-vulnerable household customers, the Hera Group consolidates its position as the sector’s third largest operator in Italy

25/01/2024

Hera Group expands in the industrial waste sector with TRS Ecology

With the acquisition of 70% of the Piacenza-based company, the Group reinforces its leadership in the waste management sector

24/01/2024

Hera Group presents Business Plan to 2027

Development, resilience and creating shared value for stakeholders are at the heart of the Group’s new strategic document, which foresees investments totalling 4.4 billion to speed up the ecological transition and enhance asset resilience to climate change

18/01/2024

Top Employer for the 15th Consecutive Year

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

09/12/2023

In the Dow Jones Sustainability Index for the fourth year straight

Once again recognizing decades-long strategy for long-term value creation for shareholders and for all stakeholders

Search Results

04/09/2018

Hera Group and Salesforce sign new staretgic agreement for an increasingly smarter management of customers

hera-salesforce_110 The message from overseas arrives loud and clear: focusing on innovation and digitalisation means meeting customers' needs. This is evidenced by the new agreement signed by Hera Group and Salesforce, the global leader in CRM. Herambiente, national leader and European benchmark in the waste treatment industry, selects Salesforce Sales Cloud to support its sales force with advanced sales applications, customer support, marketing and community management support, and other important management tools based on artificial intelligence and data analytics. The agreement just signed, in particular, aims to accompany the development and reinforcement of a big industrial reality such as Herambiente, providing increasingly innovative tools to better manage the relationship with its customers, who can rely on integrated services for taking on every type of waste. Herambiente treats 6.3 million tons of waste every year and nowadays is facing a growth path that new CRM applications can direct towards further efficiency and functionality objectives, by optimizing and harmonizing the processes of its various companies. Moreover, the agreement includes other innovative tools that will allow Area Managers of Hera Group to manage relations with public administrations in a more flexible and collaborative way, in the interest of local communities and in line with the orientation of the Italian multiutility, historically oriented to team up with local territories. Hera Group and Salesforce also agree on a common business concept, oriented for both companies to creating shared value. The two companies are committed to promoting renewable energy use: Hera electricity consumption is 100% offset by renewable sources which are equally used by Salesforce for two of its office buildings at global headquarters in San Francisco. All this means lower carbon emissions in support of the fight against climate change, a cause which both companies are particularly active and involved. Both Hera Group and Salesforce are members of CDP, formerly the Carbon Disclosure Project, non-profit organization that offers companies, countries, regions and cities, a system to measure, detect, manage and share information on their environmental impact at global level, with the aim of encouraging all parties to undertake sustainable development. hera-salesforce_870 20180904_press_release.1536059516.pdf 2018-09-04 Read more hera_salesforce_870.1536059515.png The Italian multiutility company signed an agreement with Salesforce aimed to ensure benefits not only to Herambiente's customers, thanks to new tools for relations with the company, but also to local area and communities, providing dedicated solutions to improve communications with public administrations. Positive effects expected also for the environment hera-salesforce_110
30/07/2018

Hera BoD approves 1H2018 results

Hera BoD approves 1H2018 results 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% 1H 2018 2018-07-30 For further informations 1H 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-1h-2018-results?inheritRedirect=true /documents/1514726/4880892/GruppoHera_relazione_semestrale_consolidata_al_30_06_2018_eng.1533290641.pdf/61b32b21-49d9-70cc-d10d-6383dfc8c8a2?t=1610019108070 http://investornews.gruppohera.it/en/?n=56 Press release Financial report as at 30/06/2018 Newsletter as at 30/06/2018 centrata Il CdA Hera approva i risultati del terzo trimestre 2018
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23/07/2018

Hera, increasingly smart payments: agreement with UniCredit for 6 million digital accounts

HeraGroup_110 Increasingly "smart" digital payments. This is the objective that the Hera Group has set itself to continue to improve and facilitate its relationship with its customers. An multi-faceted and challenging process for which the multi-utility has signed a cooperation agreement with UniCredit to develop a "Virtual Account" service, which will promote a significant simplification of payments and of the related book-keeping. Under this agreement, the bank has generated 6 million dedicated "virtual" IBANs that Hera - the first company in Italy to do so on a large scale - will make available to each customer, in their bill or invoice. As a result, customers will be able to pay conveniently from their online bank account, without waiting in queues, and with an automatic and unambiguous acknowledgement of the payment. UniCredit will then credit the multi-utility's account with all incoming transfers, regardless of their type, and send the company a statement of the transactions carried out. In addition to the "virtual" IBAN system, Hera is developing additional mobile payment methods for its customers, such as digital wallets, to make transactions increasingly easy, straightforward and user-friendly. Hera has thus consolidated its position as one of the most focused and innovative companies in adopting advanced digitalisation solutions, also aimed at constantly improving the customer experience. The initiative belongs to its more extensive process of digitalising infrastructures and services that the Hera Group initiated some time ago, with the goal, among others, of identifying and responding to the needs of an increasingly "connected" and demanding clientele. The process supports the objectives of the UN Agenda for 2030, and is also entirely consistent with the European Union's strategy on the creation of a digital single market based on three pillars: improving access to digital goods and services for consumers and businesses, creating an environment conducive to the development of digital networks and services, and maximising the growth potential of the digital economy. HeraGroup_870 HeraGroup_870 20180723_smart_payments_agreement_with_UniCredit_for_6_million_digital_accounts.1534760361.pdf 2018-08-20 sede_Gruppo_Hera_4505.1534760417.jpg The agreement with UniCredit, the first of its kind in Italy, will make available a "virtual" IBAN to each of the multi-utility's customers, thus greatly facilitating payments and increasing cost efficiency. For Hera, the initiative is part of its overall service digitalisation process, to provide more payment options for customers and to respond to an increasingly "connected" and demanding clientele HeraGroup_870 Read more HeraGroup_110
02/07/2018

Emergencies, Hera signs with Lepida for the use of the ERretre mobile radio network

GH-Lepida_110 In case of emergency, the last thing you need is an emergency logic. This is why the Hera Group, with Acantho - Digital Company of the Group, and Lepida have decided to carry on, by signing an important strategic collaboration agreement in the field of civil protection which contributes to improving the safety of the reference territories. Following a memorandum of understanding previously signed by the Region and the multi-utility, the agreement concerns the strengthening of the Regional Radiomobile Network (ERretre), the digital cellular network based on the European TETRA standard that supports all emergency services, guaranteeing efficiency and security of communications, from which the safeguard of the territory and the security of the local communities depend. Thanks to the agreement, Hera will initially make three of its sites available to Lepida, with which additional radio equipment will be installed that can increase the ERretre network and improve its efficiency. In particular, the sites identified are three piezometric reservoirs located in San Lazzaro di Savena in Bologna, and in Alfonsine and Cervia in the Ravenna area. In turn, the multi-utility can use the ERretre network to support its emergency services, improving the flow of communications to the Civil Protection and other bodies. In this way it will be possible to increase the overall level of functional integration among all the players who are in charge of various critical situations in the area. A key role was played by Acantho, Digital Company of the Hera Group, which has worked to set the scene for the signing of the agreement and will supply the TETRA standard radio terminals necessary to use the ERretre network. The Hera Group has always been committed to collaborating with the relevant public bodies, thus confirming its historic vocation to continuously improve its work. The agreement with Lepida, more precisely, is fully inscribed within the framework of a medium and long-term planning thanks to which the multi-utility, also in the face of particularly critical situations such as the drought events of 2017 or the bad weather in the Apennines of the winter just ended, aims to guarantee quality and continuity of the services provided, in the interests of the environment and local communities. GH-Lepida_870 20180702_Hera_signs_with_Lepida_for_the_use_of_the_ERretre_mobile_radio_network.1563281077.pdf 2019-07-16 GH_Lepida_870.1563281076.png A strategic collaboration that aims to increase the resilience of the regional territory in the field of civil protection: the multi-utility, in fact, will be able to use the ERretre regional mobile radio network to support its emergency services, making three of its sites already available to Lepida for the implementation of other radio installations, to further consolidate the existing network. Among these is the piezometric tank of San Lazzaro di Savena in Bologna read more GH-Lepida_110
21/06/2018

Hera invests in the future: 50 new scholarships for the children of its employees, and 10 to support study experiences abroad

scolarships_110 Hera Group repeated its commitment to support the school-age children of its employees and enriched the programme once again, for 2018. In fact, in addition to the 40 scholarships provided for the second year in a row to the most deserving university students, this year ten more have been added for high school students, who will be able to participate in study experiences abroad in collaboration with the Intercultura foundation. The initiative, launched to reward scholastic achievement based onto principles of fairness and meritocracy, as well as the ability to rise to challenges right from the educational stage, reached its conclusion today as prizes were awarded during a ceremony held in Bologna, at the Spazio Hera, attended by the Executive Chairman, Tomaso Tommasi di Vignano. The forty most deserving university students were identified by an excellence ranking drawn up according to the following parameters: being on schedule with the 2016-2017 academic year exam deadlines, the number of credits obtained and the average number of exams passed during the year. The company received more than 170 applications (more than twice as many as last year). Each of the 40 winners (graduates and undergraduates in economics, engineering, humanities and medicine) was awarded an individual scholarship worth 750 euro, for a total of 30,000 euro invested by the company. Among the winners there were also students studying abroad: a way to support a more complex life choice and to stimulate value creation, determined by acquiring experience in a range of settings. For high school students, on the other hand, the selection was carried out entirely by Intercultura's experts and consisted of aptitude tests, individual and group interviews, a meeting with the family and a health check-up. The ten winners were awarded 2,000 euro grants that will support the cost of attending a one-month study period abroad in Europe (UK, Finland and Denmark are the most popular destinations), the US (Washington is the favourite location) and South America (Argentina). scolarships_870 20180621_scholarships_for_the_children_of_its_employees.1534759933.pdf 2018-08-20 Read more borsedistudio_870.1534759932.jpg In addition to the 40 scholarships of 750 euro each awarded for the second year in a row to the most deserving university students, ten 2,000 euro scholarships were also awarded to high school students to help them participate in study experiences with Intercultura. The initiative, backed by a total investment of 50,000 euro, is part of "HExtRA", the multi-utility's corporate welfare plan scolarships_110
04/06/2018

Sustainability, a Hera conference in Bologna to rethink development

sachs_110 Among the conference guests there was Prof Jeffrey Sachs, of Columbia University, who played an important role in drawing up the Sustainable Developments Goals identified by the UN Agenda for 2030, which the Hera Group has chosen as a guideline for its commitment to sustainability. In its sustainability report, in fact, the multi-utility reports the shared value, i.e. the portion of EBITDA that comes from activities that generate operating margins for the company and also meet 10 of the 17 sustainability objectives set out in the Global Agenda. This share, up 10% compared to 2016, amounted to 329 million euro in 2017 (1/3 of total EBITDA) and the objective is to increase it to 40% of the EBITDA by 2021, thus contributing more and more to the needs of the area it serves and to the challenges for change. The investments already made were quite significant, and in 2017 alone contributed to generating the shared value of 200 million euro, i.e. 41% of the total. Among the main measures, there was the construction in Sant'Agata Bolognese of an important plant to produce biomethane from organic waste. In addition, the development of waste recycling through the Aliplast and Waste Recycling companies is also essential in order to fully implement the circular economy. The upgrade of the wastewater treatment service, the digitalisation of services from a Utility 4.0 perspective and, lastly, investments in innovation to make networks increasingly smart, complete the picture. [block]div:row-fluid::db:hr_press_comunicazione::box:111[/block] Moreover, in the new edition of the Sustainability Report, which from this year also offers useful food for thought on the national and international scenario, shared value has become the true hub around which Hera has organised the document's entire content, so as to highlight the contribution that the various activities make to its generation. The information contained in the report is divided into three main areas: smart use of energy, efficient use of resources, innovation and contribution to local development. 2017 Sustainability report embraces shared value https://www.youtube.com/watch?v=vRUqhHO3MGI 20180604_Sustainability_a_Hera_conference_in_Bologna_to_rethink_development.1533303274.pdf 2018-08-01 Read more valore_condiviso_870x320_eng.1533281374.png At the European Week for Sustainable Development, the multi-utility relaunches the debate on the challenges facing companies, countries and the international community, and illustrates the excellent results contained in its sustainability report, with almost 2 billion euro distributed by Hera in 2017 alone to local stakeholders and suppliers. Among the guests there was also Prof Jeffrey Sachs, one of the proponents of the UN's sustainability objectives, to which Hera contributed around 330 million euro of shared-value EBITDA last year alone sachs_110
17/05/2018

Hera introduces Italy's first sustainable revolving line of credit

sedeGH_110 Today, the Hera Group formalised an agreement with four credit institutions to activate a new € 200 million sustainable revolving credit line, intended to contribute to and maintain its financial solidity while at the same time enhancing the mix of financial products and instruments adopted by the company. This agreement is the first of its kind in Italy. The new credit line, named “ESG Linked RCF Facility”, introduces elements of sustainability through a bonus mechanism tied to specific environmental, social and governance objectives (ESG). In the commitment signed with the banks, indeed, a number of ESG performance measures were defined, which will determine the Group’s ability to benefit over time from more favourable rates. The sustainability objectives concern, for example, further reductions in the carbon footprint from energy production, new targets in energy efficiency and improvements in sorted waste collection. Hera has been a leader in all these areas for some time, as is recorded in its latest sustainability report, which at 2017 showed a 16% fall in the carbon footprint, a 3.6% reduction in the Group’s own energy consumption since 2013, with the goal of reaching a 5% decrease within 2020, and sorted waste at 57.7%, above the national average. After launching Italy’s first green bond in 2014, the Hera Group thus confirms its role as a pioneer in identifying innovative financial instruments linked to sustainability. "Environmental, social and governance objectives have long been a significant part of our Group's strategic planning", comments Stefano Venier, Hera's CEO, "and contribute to charting our course, in line with the goals set out in the UN's 2030 Agenda. We therefore consider it to be natural, perhaps even inevitable, for our financial instruments as well to reflect this vision, in addition to respecting the market's increasing sensitivity towards ESG issues. Hera has proven able to keep in step with this renewal in basic terms, interpreting the changes currently underway and providing itself with innovative models that now allow it not only to be appealing for the market, but also to explore paths that have never been followed before". In defining the agreement, the Hera Group collaborated with Vigeo Eiris, a leading European social and environmental rating agency. Vigeo Eiris formulated a second-party opinion concerning the importance of the measures defined and the degree of future improvements that can be expected as regards these same measures, which will determine the success of the operation. Hera was sustained within the club deal by: BBVA acting as Sustainable Coordinator, BNP Paribas and UniCredit acting as Documentation Agents, Crédit Agricole CIB acting as Facility Agent. All financial institutions acted also as Mandated Lead Arrangers. Sede Hera 20180517_press_release.1526553280.pdf 2018-05-17 Read more Sede Hera After launching the first green bond in 2014, the Group now confirms its place at the nations' forefront in the use of new sustainable financial instruments. Signed with four financial institutions, the € 200 million credit line is linked to a system of bonuses subject to reaching specific goals in environmental sustainability /group_eng/investor-relations/debt-and-rating/bond-issuances /group_eng/investor-relations/hera-strategy Hera Green Bond Hera Group strategy and shared value centrata sedeGH_110
10/05/2018

Hera BoD approves 1Q 2018 results

Hera BoD approves 1Q 2018 results 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% 1Q 2018 2018-05-10 For further informations 1Q 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-1?inheritRedirect=true /documents/1514726/4880892/GruppoHera_relazione_trimestrale_consolidata_al_31_03_2018_eng.1525946951.pdf/eb209a34-d9c9-040c-9f99-624083c0090a?t=1610019058696 http://investornews.gruppohera.it/en/?n=55 /documents/1514726/4667212/Dati_finanziari_ed_operativi_di_sintesi_1Q_2018_eng.1525768847.xls/0def4519-5b1f-7457-26b8-3919a059699f?t=1608550138175 Press release Financial results as at 31/03/2018 Newsletter as at 31/03/2018 Fiancial data as at 31/03/2018 centrata Hera BoD approves 3Q 2018 results
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10/05/2018

Hera participates in the Circular Economy Network

Hera is one of 13 companies and associations which, together with the Foundation for Sustainable Development, have created the Circular Economy Network, the circularity observatory in Italy. The observatory was founded to promote the development of the circular economy in Italy, formulating policy proposals and helping to spread good practices and further system innovation. In order to tackle the transition to a circular economy we will need new business models that enable raw materials to remain in the economic cycle for as long as possible and products to reach the end of their life cycle after repeated re-use. Our country holds a position of excellence in what is an actual economic and productive revolution, which will bring about the complete redesigning of industrial design, new products and services and new companies, together with a further leap in quality in the recycling of waste. All these subjects will be addressed by the observatory in its future activities. Hera participates in the Circular Economy Network 2018-08-24 Read more infografica_economia_circolare_eng.1507627941.1535125945.png Hera is one of 13 companies and associations which, together with the Foundation for Sustainable Development, have created the Circular Economy Network, the circularity observatory in Italy Hera participates in the Circular Economy Network circulareconomy.1535125754.png
26/04/2018

Hera Shareholders Meeting: 2017 financial statements and dividends rising to 9.5 cent/share approved

president_110 Hera's Ordinary Shareholders Meeting called to approve the 2017 financial statements was held in Bologna this morning. Furthermore, the 2017 sustainability report (a consolidated non-financial statement drafted pursuant to legislative decree 254/2016) was presented and the appointment of Alessandro Melcarne, priorly co-opted as member of the Board of Directors during the session held on 8 November 2017, was confirmed. Approval of the financial statements and a dividend rising to 9.5 cent/share In the Ordinary session, the Shareholders Meeting approved the balance sheets pertaining to 2017, which showed improvement in all operating-financial indicators, with results exceeding expectations: turnover reached € 6,136.9 million, up 10.3% over the previous year, Ebitda came to € 984.6 million (+7.4%) and net profits amounted to € 266.8 million (+21.1%). In 2017, overall Group investments, including capital grants, came to € 440.5 million (+14% compared to 2016). Net debt improved, amounting to € 2,523 million and the net debt/EBITDA ratio saw a further decrease compared to the previous year, settling at 2.56, thanks to growth in operating results and the reduction in net debt. These results are particularly positive, and confirm the validity of the Group's multi-business strategy, which allows the company 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, moreover allowed the Group to continue expanding, owing to factors including its ability to anticipate and grasp the best opportunities seen within an increasingly challenging regulated and market scenario, whose development models are progressively evolving. These results, in line with the content of the Business Plan to 2021, are the crowning achievement of the multi-utility's 15 years of activity, which have seen it reach significant goals: from a quintupled Ebitda to net profits that have grown by almost 8 times compared to 2002, without counting the 25 acquisitions completed, producing remarkable synergies. The Meeting then approved the Board of Directors' proposal to pay a 9.5 cent/share dividend, showing an increase over the past and in line with what had previously been announced in the Business Plan to 2021. The ex coupon date has been set at 18 June 2018, with payment beginning on 20 June 2018. The dividend paid, based on the price of Hera stock at 31/12/2017, corresponds to an annual return of over 3%. This confirms once again the Group's high degree of attention towards the creation of shared value, as indicated in the recent Business Plan, which calls for a policy of rising dividends compared to the Group's historical trend, with a further increase foreseen reaching 10 cent/share in 2018 and 2019, and coming to 10.5 cents in 2020 and 2021. The results achieved, the business model's resilience and the solid bases of the Business Plan, it is worthwhile noting, all recently allowed the Hera Group to obtain a revision of the company's outlook rating from Standard & Poor's, going from stable to positive. An entirely renewed sustainability report, with shared value Ebitda coming to € 329 million The 2017 sustainability report was also presented during the Meeting: entirely renewed from every angle, regarding both editorial criteria and content, it brings to light an increasingly strong attention towards the creation of shared value. This is accomplished by recording business activities that, in addition to generating operating income for the company, are also in line with the drivers for sustainable growth set out in the UN Agenda. More specifically, the Hera Group's shared value Ebitda amounted to € 329 million, up 10% over the previous year. This result perfectly matches the path marked by the Business Plan, which expects this value to reach 40% by 2021. Furthermore, in 2017 the Group also invested roughly € 200 million (approximately 41% of total investments) in the development of shared value. A rise was also seen in the overall wealth distributed in local areas, benefiting workers, shareholders, financers, banking institutions, public administrations, local communities and suppliers. This wealth came close to 2 billion euro in 2017, showing a 6.5% growth over 2016, with positive consequences for local economies and employment rates. The main interventions involved producing biomethane from the organic portion of waste, developing waste recycling, upgrading the wastewater purification service and digitalising services in a move towards utility 4.0. With sorted waste rising to 57.7% of the total, the Hera Group has continued reducing the use of landfills, which decreased to 7% as compared to the European target of 10% within 2035. An excellent performance was moreover seen in packaging recycling, which reached 68%, already over the European target of 65% by 2025. The strategic companies in recovering materials were Waste Recycling and Aliplast: in 2017 alone, the latter's plants in fact produced roughly 103 thousand tonnes of recycled plastic. The Group continues to show commitment to decarbonisation, with a 16% reduction in the carbon footprint in energy production compared to 2015. In the area of energy efficiency, the interventions implemented allowed the company to decrease its own energy consumption by 3.6% compared to 2013, surpassing the target of 3% and approaching the 5% set for 2020. Furthermore, for all the activities it manages in the Emilia-Romagna region, as of 2017 Hera has been using exclusively renewable energy, a choice made this year by AcegasApsAmga and Marche Multiservizi as well. Moreover, 67.5% of the energy produced by the Group itself comes in turn from renewable sources and cogeneration. Other resolutions approved The Meeting approved the renewal of its authorisation for the Board of Directors to purchase treasury shares (and arrangements for their disposal), for a maximum amount of € 200 million over 18 months, at the same time annulling the unimplemented part of the prior resolution, dating to the previous year.This renewal of authorisation was requested to pursue the aims provided for by current regulations and accepted market practices, including investment opportunities entailing the use of treasury shares to increase the creation of value, any acquisitions of holdings that may involve equity trading, and transactions involving financial instrument issuance. The Meeting furthermore approved the remuneration policy report, in line with international best practices. Lastly, the report on corporate governance was presented to the Meeting. The appointment of Alessandro Melcarne as member of the BoD confirmed The meeting lastly confirmed the appointment of Alessandro Melcarne as member of the Board of Directors of Hera S.p.A. Melcarne had previously been appointed by cooptation during the Board of Directors meeting held on 8 November 2017, substituting the resigning Aldo Luciano, and will remain in office until the date set for the appointment of the next Board of Directors, i.e. until the Meeting called to approve the financial statements for 2019. Director Melcarne confirmed that he meets the independence requisites foreseen by law and does not hold any shares in Hera S.p.A. His CV can be consulted on the website www.gruppohera.it, within the Corporate Governance/BoD section. Presidente e AD del Gruppo Hera 2018-04-26 For further informations TTV_SV_870.1524741022.png Improvement seen in all operating-financial and sustainability indicators, with results exceeding expectations and a renewed commitment to creating shared value. Appointment of Alessandro Melcarne, co-opted last November as member of the Board of Directors, confirmed /-/hera-shareholders-meeting-2017-financial-statements-and-dividends-rising-to-9.5-cent-share-approved-1?inheritRedirect=true /group_eng/corporate-governance/shareholders-meetings /documents/1514726/4210743/Financial+results+as+of+31_12_2017.pdf/103e1350-e7eb-ee2d-5f2f-6e985bffc353?t=1629971620065 Press release Go to Stakeholders' meeting session 2017 Financial results president_110
18/04/2018

Hera now part of the Leading Utilities of the World

LUOTW_110 The Hera Group - Italy's second operator in the water cycle, with 300 million m 3 of water sold and 3.6 million citizens served - has now become part of the Leading Utilities of the World (LUOW), a network that brings together the planet's most innovative and successful companies in the water and wastewater sector and aims at promoting shared knowledge, projects and new objectives, in addition to favouring collaboration. This new entry came about during the 2018 Global Water Summit, which was brought to a close yesterday in Paris. Hera is Italy's first operator to obtain this recognition, which chronologically follows its membership in the CEO Water Mandate, an initiative launched by the Global Compact of the United Nations and designed to encourage companies to show greater commitment in sustainable water management. In order to become part of the LUOW, the Hera Group passed the four phases involved in selection. The company was requested to provide extensive documentation proving its commitment and innovative contribution to managing water and wastewater activities. Following an additional phase of dialogue with the evaluation committee, which took place in France during the last few days, the Group became the twenty-eighth company to join the network. Hera thus confirms the international status of its activities, which for some time now - as recorded in detail in its sustainability report - have been fully in line with the path set out by the European Union and the UN's 2030 Global Agenda. The water sector, after all, is the area in which Hera has always concentrated the majority of its investments, coming to an average of more than 110 million per year over the last five years. This allows the Group to maintain over 53 thousand km of network in good health, in addition to approximately 900 production, treatment and purification plants. All users are thus provided with safe and inexpensive water, guaranteed by over 2 thousand analyses per day and capable of successfully overcoming periods of serious drought, such as the one seen during 2017. One of the strong points of Hera's integrated water service lies in its orientation towards innovation, with cutting-edge solutions based on automation and remote control of networks and plants, to guarantee continuity in supply and maintain leakage in its networks among the lowest in the country. This context includes, for example, the development of a technique involving satellite research for water leaks that Hera, the first to do so in Italy, developed in collaboration with the Israeli company Utilis, significantly increasing the amount of water recovered. Acting together with the National Health Institute, moreover, Hera is currently implementing the Water Safety Plans, a European protocol for monitoring all phases involved in drinking water production and distribution. LUOTW_870 https://www.leadingutilities.org/ press_release_leading_utilities_.1524143605.1524149783.pdf 2018-04-19 Read More Hera_SpA_2380_GWI_870.1524149606.jpg The first Italian company to be admitted within this network, Hera confirms the international standing of its activities in the water cycle, reflecting its participation in the Global Compact's CEO Water Mandate and its entry as part of the CE100. The Group's commitment takes concrete shape with over 110 million invested in the sector each year /group_eng/sustainability/thematic-reports/in-good-waters /group_eng/business-activities/water https://www.leadingutilities.org/ In good waters - thematic report on water quality Water: Hera Group's key figures Water: Hera Group's key figures - external link - the link will open in a new window Visit the Leading Utilities of the World website LUOTW_110
06/04/2018

Hera Group: transfer of Medea to Italgas completed

Tommasi_Galli_Venier110 Hera and Italgas completed today in Milan the transfer of 100% of Medea S.p.A., the company holding the concession for gas distribution and sales in the city of Sassari. This acquisition follows up on the binding agreement signed by the parties on 21 December 2017 and results from all conditions set forth in the contract having been met. Medea's overall enterprise value was set at € 24.1 million. The entire price was paid on a cash basis, net of debt. This transaction is part of a larger process through which the Hera Group is rationalising its holdings and concentrating on its own reference territories. The baton was handed to Italgas, Italy's main operator in the gas distribution sector, following a fruitful twenty-year collaboration between Hera and the municipals administrations in office over this period of time, which allowed Medea to be transformed into the largest company of its kind in Sardinia. Thanks to investments reaching over 20 million euro in favour of this area, the company now serves approximately 13,000 customers, all of whom reside in the city centre of Sassari and to whom it distributes a volume of over 5 million m3 per year. Hera-Italgas870 press_release.1523003727.pdf 2017-12-21 Read more Hera_Italgas870.1513853697.jpg All conditions set forth in the agreement having been fulfilled, the 100% divestment of the company holding concessions for gas distribution and sales in the city of Sassari has been completed. Hera thus continues in its process of rationalizing the Group's holdings Read more Tommasi_Galli_Venier110
27/03/2018

Hera Group approves results at 31/12/2017

Hera Group approves results at 31/12/2017 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. 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. 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 EBITDA for 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." BE 2017 2018-03-27 For further informations BE 2017 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. Proposed dividends rise to 9.5 cent/share. /-/hera-group-approves-results-at-31-12-2017-1 /documents/1514726/4210743/Financial+results+as+of+31_12_2017.pdf/103e1350-e7eb-ee2d-5f2f-6e985bffc353?t=1629971620065 http://investornews.gruppohera.it/en/?n=54 http://15anni.gruppohera.it/en/ Press release Financial results as at 31/12/2017 Newsletter as at 31/12/2017 Visit the website 'Hera: a 15-year stream of services' centrata Hera Group approves results at 31/12/2017
07/03/2018

Hera Group: green light for the merger between Marche Multiservizi and Megas.net

The project for an incorporation of Megas.Net and Marche Multiservizi (MMS), the largest multi-utility in the Marche region and part of the Hera Group (which currently holds 49.59% of MMS), has now become reality. Today, indeed, the two companies' Shareholders Meetings approved, in an extraordinary session, the project for a merger by incorporation of Megas.Net into Marche Multiservizi. The merger, which had already been given the go-ahead by the majority of the town councils of the two companies' Municipality shareholders and by trade unions, complies with the regulatory indications provided by legislative decree 175/2016 (so-called "Madia decree"). Above all, however, it represents a strategic operation for the area in question, allowing a range of objectives to be reached, including enhanced service efficiency, expense rationalisation and a more consolidated MMS. The final act of this corporate operation will see the stipulation of a deed of merger, after the amount of time required by law as of the shareholders meetings' resolutions. When the operation is concluded, public shareholders will hold roughly 55% of the share capital of Marche Multiservizi. MMS_Megas_870 press_release.1533042727.pdf 2018-07-31 Read more MMS_Megas870.1520433311.1533042726.png Today, the two companies' Shareholders Meetings approved, in an extraordinary session, the project for merger by incorporation of Megas.Net into Marche Multiservizi mms_megas110.1520433314.1533042728.png
07/03/2018

Hera consolidates its leadership in Italy for its ability to attract talents

Potentialpark_110 "In an increasingly competitive and challenging context, we need to know how to adapt continuously in order to attract talents that allow the company to keep up with the times - commented Giancarlo Campri, Central Director of Personnel and Organization of the Hera Group. That is why we are particularly pleased with Potentialpark's recognition, and it confirms that we have chosen the right direction. Both inside and outside the company we have always tried to promote two-way communication that is focused on the Group's values, on its growth objectives and on how we can achieve them. Personnel development is one of the levers to achieve these results and explaining what we do, through forms of storytelling and employer branding, is instrumental not just to promote the company, but to get in touch with people that can add value and contribute to our growth." Giancarlo Campri 20180307_CS_Potentialpark_Hera_ENG_REV_DEF.1533304694.pdf 2018-08-03 Related contents campri.1534241219.jpg Again this year, the renowned Swedish research company Potentialpark has included the multi-utility among the most "talent-friendly" companies, thanks to its online communication aimed at young graduates looking for their first job sinistra Potentialpark_110
22/02/2018

Top Utility 2018, Hera confirms its place at the top of Italy's sustainability rankings

toputility110 Achieving excellence in any field or industry is no easy feat, doing so year after year even less so. Yet this is exactly what the Hera Group has succeeded in doing at the sixth edition of Top Utility Analysis, which declared the Bologna-based Group to be Italy's most eco-sustainable public service company out of 100 contenders. The report, drawn up by independent company Althesys, rewarded Hera for its"attention to efficient use of energy and resources, improved corporate social responsibility results and the centrality of sustainability to its strategy". This acknowledgement - a repeat of the recognition obtained in the same area in 2015 - follows the Top Utility Absolute award received in 2013 and the Top Utility Communication award of 2014. A shared goal throughout the company, sustainability is the subject of a specific yearly report that ensures all parties can count on complete up-to-the-minute information on the Group's social and environmental impact. The sustainability report is constantly evolving. Following last year's introduction of an indicator showing what proportion of gross operating margin is generated by activities that respond to UN Global Agenda 2030 goals, next year will see an in-depth overhaul to ensure ever-more effective representation of the direct links between actions taken and the contribution to sustainable development. A clear example of this takes the form of the biomethane plant being built at Sant'Agata Bolognese, expected to come on line in the last quarter of 2018. It has been cited by the Global Compact as a world-class example of how to achieve UN Agenda goal n. 7 ("Clean, accessible energy"). Once fully operational, the use of innovative anaerobic digestion and upgrading technologies will allow the facility to produce 20,000 tons of high-quality natural fertiliser and 8 million cubic metres of biomethane (a 100% renewable fuel) from the separate collection of organic waste every year. This is a major project that aims to convert and modernise an existing facility without taking up any more land. It will save over 6,000 tons of oil a year and provide tangible proof that sustainability is, indeed, the way forward. A way forward that starts with families, by collecting and using their kitchen scraps (i.e. the separated organic waste) and ends with real local benefits in the form of a gas that can, for example, power private vehicles or public transport, with immediate improvements in air quality. While that's just one of many examples of how Hera efficiently blends innovation with sustainable development (a wider set of activities was assessed by the survey), it does, perhaps, best represent how the Group's commitment to sustainability translates into a variety of sound initiatives which positively impact quality of life. toputility870 press_release.1519659248.pdf 2018-02-26 Read more toput870.1519659328.png The Hera Group comes out on top again at the sixth edition of the Award, which analyses and promotes the performance levels of the country's main public utility companies toputility110
15/02/2018

Aliplast plastic incorporated in the artworks of Matteo Peretti, on show in Rimini

petisland110 For the Hera Group, sustainability continues to be synonymous with art. Through Aliplast, the Group company that puts plastic through a treatment process that allows its reutilisation, Hera has, fact, provided the raw material with which artist Matteo Peretti created the works that make up PET Island, an exhibition being held at Fabbrica Arte Rimini (FAR) from 17 February to 2 April. The technical sponsor of Peretti's exhibition, Aliplast, engages, every day, in the fight against the pollution that has created the vast island of plastic floating in the Pacific Ocean. It is this island that the title of the Roman artist's exhibition half-jokingly refers to. In this sense, the perception of public duty behind Peretti's work, which examines the collective and social aspects of the subject matter, immediately won favour with the Hera Group, itself engaged in environmental education projects involving some 100,000 students from local schools. With this initiative the multiutility aims to restate its own distinctive commitment to the circular economy; for some time now, this has involved significant initiatives aimed at involving the art world in the regeneration of materials that would otherwise be headed for disposal. One such initiative is the SCART project, which, thanks to close collaboration between Waste Recycling (another Group company) and students from the Fine Art Academies of Bologna and Florence, has generated several events; these include a travelling exhibition consisting of works made entirely from waste, some of which were incorporated on Hera's stands during the most recent editions of the Rimini-held Ecomondo fair. petislan870 20180215_press_release.1519198486.pdf 2018-02-21 Read more pet870.1519198485.png This Hera Group company, a leader in the plastic recycling sector, provided the material for the artist's works, on show from 17 February to 2 April at Fabbrica Arte in Rimini petisland110
02/02/2018

Hera is a "Top Employer" for the ninth year running

topemployers110 For the ninth consecutive year, the Hera Group has confirmed its position as a leader in Human Resources management. This acknowledgement comes from the Holland-based Top Employers Institute which has, since 1991, been researching workplace quality standards in the world's leading companies. According to the Dutch institute, the Hera Group proved to be deserving of "Top Employer" certification on account of "the excellent working conditions enjoyed by employees, a training and development policy that reaches every level of the company and advanced HR management strategies", all of which make Hera "committed to continuous improvement of policies and best practices". Today, Top Employers is a highly sought-after international acknowledgement. The certification process, which has, over the years, become ever-stricter, is based on analysis of objective data and in-depth checks. Key analysis parameters include investment in training and development, welfare and on-boarding policies for new hires, careful planning of selection processes and career paths, targeted talent-growing strategies, a positive corporate culture and an exciting, constructive workplace. Only those companies that achieve the required standards can be listed as Top Employers. In Italy, some 90 companies have been certified this year. These include the Hera Group (the first multiutility to take part in the project, from 2010 onwards), one of just 11 companies to attain uninterrupted recognition. More specifically, the company stood out on account of the "Hextra" integrated corporate welfare plan; set up in July 2016 and covering almost all the Group's 9,000 employees, it is also characterized by a quota of resources that can be "customised" by individual workers to suit their needs. Moreover, as of 2018 employees can convert their results bonuses into further welfare benefits: measures for striking a better work-life balance (smart working, leave/absence management policies and support when returning to the company), development policies and programmes aimed at raising every employee's level of health and safety awareness. What's more, the Group is one of the top Italian companies when it comes to investing in employee training and personal/professional development (it provides about 29 training hours per capita per year). Training experiences have been made more engaging and effective thanks to HerAcademy, the Corporate University that ensures close collaboration between companies and key academic institutions; moreover, 2017 saw the introduction of new, more personalised ways of getting the best out of training as part of the HER@futura programme. The company's heavy investment in training and its ties with the local communities where it operates are also evident in the Hera Educational programme. The latter focuses on providing students with work experience that aims to merge corporate skills with skills acquired in the secondary schools of Emilia-Romagna. Over 200 work experience programmes have been completed since 2015 and the project will soon be extended to schools in Veneto and Friuli-Venezia Giulia. The full Hera Group profile, with the reasons and criteria behind the certification, can be consulted at: www.topemployers.it topemployer870 press_release.1519658204.pdf 2018-02-26 Read more topemp870.1519658203.png The multiutility confirms its position as a leader in Human Resources management. The working conditions enjoyed by its employees are recognised as nothing less than excellent, as are training and development policies at every corporate level and continuous improvements to best practices topemployers110
30/01/2018

Hera responds to the UN's call and endorses the CEO Water Mandate

CEO_logo110 The Hera Group – Italy’s second operator in the water sector, with 300 million m3 of water sold and 3.6 million citizens served – now endorses the CEO Water Mandate, the United Nations Global Compact initiative promoted to re-launch the commitment shown by companies to a sustainable management of water resources. Active for years in all areas in which the CEO Water Mandate supports interventions, Hera is the second Italian company to endorse it, after Enel, thus joining over 100 companies distributed across the globe, including Veolia, Suez, Engie and E.On. The CEO Water Mandate, more specifically, indicates an approach to water services that is subdivided into six focus areas, to which the Group fully adheres. They begin with measures concerning a company’s direct use of water and continue with those involving the supply chain, with a further focus area centred around collective action, intended to incentivise collaborations with third parties and thus consolidate good practices. Another focus goes to public policy, to promote sustainable water management in public debate, develop knowledge on the topic and encourage activities related to sector associations. The CEO Water Mandate, furthermore, gives significant value to community engagement, inviting companies to operate in this sense by developing water infrastructures and environmental education initiatives. Specific attention, finally, goes to the issue of transparency, to orient companies towards accurate financial reporting as regards their progress in reaching essential objectives, such as those tied to water. After recently becoming part of the CE100, the Ellen MacArthur Foundation program that brings together the world’s 100 organisations most active in the transition towards a circular economy, and after launching its collaboration with the Global Compact Network Italia, Hera now intends to endorse the CEO Water Mandate. This will confirm the international scope of its operations, which for some time now – as recorded in its sustainability report – have fully respected the path set out by the European Union and the UN’s 2030 Global Agenda. The water sector, moreover, is the area in which Hera has always concentrated the majority of its investments, coming to over 110 million per year – on average – over the last five years. This allows the Group to maintain an over 53,000 km network in good conditions, along with roughly 900 production and purification plants, providing all with safe and affordable drinking water, as guaranteed by over 2,000 analyses per day, and successfully dealing with periods of serious drought, such as the one seen in 2017. One of the strong points of Hera’s integrated water service consists in its orientation towards innovation, turning to avant-garde technological solutions based on automation and remote control of networks and plants in order to guarantee a continuous supply and ensure that leakage in its networks remains among the lowest nationwide. This is the context that saw, for example, the implementation of a technique involving satellite research on water leakage that Hera, the first in Italy to do so, developed in collaboration with the Israeli company Utilis, substantially increasing the amount of water recovered. In a collaboration with the National Health Institute, furthermore, Hera is implementing the Water Safety Plans, European protocols for monitoring all phases of the drinking water production and distribution supply chain. "The challenges involved in water resources must be considered on a global scale", states Stefano Venier, Hera Group CEO. "This is why Hera intends to continue giving shape to its efforts according to the framework set out by the United Nations. In this sense", Venier adds, "the CEOWater Mandate represents a valid tool for activation with which companies all over the world can identify, and come together for the future of the planet. After all", concludes the multi-utility's CEO, "Hera has long been active in all of the focus areas indicated by the mandate, demonstrating its ability to anticipate many of the orientations that the international community has rightly chosen." CEO Water Mandate press_release.1517301518.pdf 2018-01-30 Read more CEO Water Mandate The second Italian company to do so, Hera thus confirms its own orientation towards the objectives set out in the UN's 2030 Agenda, re-launching its commitment to a sustainable water resource management, which in the areas served is worth over 110 million in investments per year https://ceowatermandate.org/ https://www.unglobalcompact.org/ https://www.youtube.com/watch?v=CZbpzCTnCqE /group_eng/sustainability/thematic-reports/in-good-waters CEO Water Mandate website UN Global Compact website Video - Curcular economy - Stefano Venier meets Ellen MacArthur Report in good water centrata CEO_logo110
29/01/2018

With Scart, waste becomes art also in Bologna

Scart_bo_110 Art works made from waste take their place beneath the Two Towers. From tomorrow until 18 February, the splendid setting of Palazzo Pepoli Campogrande will be hosting "SCART il lato bello e utile del rifiuto", an exhibition organised by Hera Group which brings together works by artists and students from the Fine Arts Academies of Bologna and Florence. For its Bologna visit, the entire exhibition is crowned by a giant 5-metre tall Pinocchio made by Edoardo Malagigi from thousands of old wooden Pinocchio dolls. Angela Nocentini, together with Malagigi, is the coordinator of the installation "Business Wo/men", a group work by the students of the Academies composed of fourteen life-size sculptures of business men and women. Each statue is 100% made from waste materials such as strips of leather, paper, safety belts, frozen pea packages, scraps of fabric, glass, wood and flakes of recycled plastic. The models on which the students created the artworks were made by Nocentini herself, who on Art City White Night on Saturday 3 February will be making the fifteenth model for the installation live. "Waste Anatomy", which is the title of her performance, will begin at 6 pm and involve all those present. On that particularly day, the exhibition can be visited from 10 am to midnight. The exhibition is completed by four wolves by Alberto Salvetti, assembled from tape, paper, wire, bitumen and especially from newspaper pages reporting news about the dispersion of the wolf. [block]div:row-fluid::db:hr_press_comunicazione::box:94[/block] Scart_BO_870 20180129_Con_Scart_in_Bologna.1534756168.pdf 2018-08-20 Read more IMG_20180129_WA0009.1534757655.jpg After Ravenna, Imola, Modena, Udine and Pisa, the travelling exhibition of Hera Group comes to the city tomorrow, to coincide with Arte Fiera. Until 18 February, works made out of waste by young artists can be viewed free of charge at Palazzo Pepoli Campogrande. On Saturday at 6 pm, a performance by Angela Nocentini Scart_bo_110

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