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Financial Results 2016 Financial highlights Revenue at € 4,460.2 million (-0.6%) EBITDA at € 916.6 million (+3.6%) Net profits post minorities at € 207.3 million (+14.8%) Net debt decreased, reaching € 2,558.9 million Proposed dividends of 9 cents per share confirmed Operational highlights Revenue affected by a fall in energy commodity prices and impacted by legislative and regulatory changes, in particular return on invested capital (WACC) Benefits derived from recent acquisitions in free market sectors Contribution to growth came from the electricity area and, in the second half of the year, the waste area Environmental and social sustainability improved, alongside added value generated in the area served, reaching over € 1.7 billion Today, the Hera Group’s Board of Directors unanimously approved the consolidated economic results as at 31 December 2016, along with the Sustainability Report. The 2016 financial year came to an end for the Hera Group with all economic-financial indicators rising compared to 2015, and with results more positive than expected. Particularly encouraging, this outcome was reached thanks to the Group’s consolidated multi-business strategy, that allowed it to successfully balance regulated and free-market activities, maintaining all the while a sustainable risk profile. The combination of two fundamental levers, internal growth and M&A, furthermore allowed the Group to continue along its path of expansion, in spite of an increasingly challenging context involving regulatory and market factors. These results furthermore confirm the attention given to sustainability, in all its various forms: environmental, social and economic. Gas The gas area, which includes services in natural gas distribution and sales, district heating and heat management, recorded an EBITDA which rose slightly to € 300.6 million, in line with the € 299.5 million seen in 2015. This result was obtained mainly thanks to an increase in the volume of gas sold and the contribution coming from district heating, offsetting lesser revenues in both trading and regulated services, with a reduction in the rate of return having a negative effect on the latter amounting to € 9.8 million. These results were also sustained by the recent acquisitions of Julia Servizi and Gran Sasso, two Abruzzo-based companies involved in gas and electricity sales, that contributed to enlarging the customer base roughly 30,000 clients. Due among other things to commercial and customer loyalty initiatives, at the end of 2016 the number of gas customers had risen to roughly 1.4 million. In 2016, investments in the gas area came to € 94.8 million, with an increase of € 5.2 million compared to 2015, mainly destined to a large-scale meter substitution, non-recurring maintenance on networks and plants, and interventions involving cathodic protection of the gas networks in the areas surrounding Padova and Trieste. The gas area accounted for 32.8% of Group EBITDA. Water The integrated water cycle area, which includes aqueduct, purification and sewerage services, recorded an EBITDA of € 228.8 million, compared to the € 232.5 million seen in 2015, almost entirely compensating, with the operational efficiencies set in place over the year, for the negative impact of inflation and the reduction in the rate of return on invested capital, which came to € 18.4 million. Net investments in the integrated water cycle area amounted to € 111.8 million. Including capital grants, investments in this area came to € 131.8 million (increasing compared to the € 127.2 seen in 2015), of which € 61.5 million in the aqueduct, € 37.6 million in sewerage and € 32.7 million in purifying. The integrated water cycle area accounted for 25.0% of Group EBITDA. Waste management EBITDA for the waste management area, which includes waste collection, treatment and disposal services, settled at € 230.7 million, a slight improvement compared to 2015 which more than offset both the temporary suspension of plants currently being enlarged (the Ravenna landfill became operational again in August, as did the Tremonti landfill, located in the area surrounding Imola, in late December) and the expiry of incentives for renewables concerning two WTE plants. The results were also sustained by the contribution coming from the acquisitions made in late 2015 of Waste Recycling and the Geo Nova plants, which gave a considerable impulse to industrial waste management, with a 16.9% increase in the amount of market waste. Volumes of urban waste also recorded a slight increase (+0.3%). Results in the field of sorted urban waste were positive, rising to 56.4% compared to the 55.4% seen in 2015, thanks to a wide number of projects implemented in all geographical areas served. The waste management area accounted for 25.2% of Group EBITDA. Electricity area The electricity area, which includes services in electricity production, distribution and sales, recorded an EBITDA of € 135.3 million, a sharp increase over the € 101.0 million seen in 2015. The negative impact on electricity services of the resolution concerning return on regulated revenues (€ 2.9 million) was more than offset by higher earnings in sales activities and higher profit margins in electricity production, in addition to continued commercial expansion in the free market. Confirming the trend seen in recent years, the number of electricity customers reached over 880,000 (+2.7% compared to 2015), mainly owing to a reinforcement of commercial action and an enlargement of the customer base thanks to the acquisition of the Abruzzo companies Gran Sasso and Julia Servizi. The electricity area accounted for a larger amount of Group EBITDA than in the previous year, 14.8%. Statement by ExecutiveChairman Tomaso Tommasi di Vignano “The results recorded are all the more admirable considering the outstanding challenges that marked the reference scenario throughout the year, with a positive contribution coming from all growth levers, both internal and external. They furthermore represent a solid foundation, providing the premises to pursue the uninterrupted growth foreseen in the business plan to 2020, already approved by the Board of Directors, matched by a progressive increase in dividends per share, coming to 11% over the duration of the plan.” Statement by CEO Stefano Venier “A year rich in significant results, strived for and achieved coherently over time, has come to a close. This outcome is attested to not only by the economic-financial indicators, which improved appreciably, but above all by the excellent operating performances and the quality of the industrial initiatives implemented in order to attain long-lasting and sustainable growth in both the company’s worth and the social value it generates.” BE 2016 2014-03-19 For further information BE 2016 The year closes with improvement in all economic-financial and environmental indicators, with results exceeding expectations. Internal and external growth prove once again to be the key factors in development. Proposed dividends of 9 cents per share /-/hera-group-approves-results-as-at-31/12/2016-1?inheritRedirect=true /documents/1514726/4210749/Financial+results+as+of+31_12_2016.pdf/4baee448-58b8-687b-b16a-b97029e0fd8e?t=1629971637171 /documents/1514726/4210749/Hera_Group_Newsletter_Y2016_eng.1490085936.pdf/bef30ba8-31ce-bf4b-bf20-03bba8adfb41?t=1597909530669 /documents/1514726/4210764/GruppoHera_Sustainability_report_2016.1500562631.pdf/449119af-daf8-0919-95e3-8389fcb8ba99?t=1597911228598 Press release Interactive annual report Newsletter Y2016 Sustainability report 2016 centrata Financial Results 2016

Top110 Again this year, the HERA Group was awarded the "Top Employers" certification by the Dutch certifying body, Top Employers Institute, which, since 1991, has conducted research focused on the quality standards of working conditions in the best companies worldwide. Today, Top Employers is one of the most prestigious awards at international level, which recognises those companies that demonstrate an ability to offer excellent working conditions to their employees. The certification process, which has become increasingly rigorous and selective over the years, is based on an analysis of objective data and detailed assessments.A stimulating and constructive workplace environment, investments in training and development, careful career planning, targeted strategies for talent growth, tailor-made benefits, personalised pay policies and an innovative corporate culture are some of the parameters subject to scrutiny. Only the companies that achieve the high standards required by the certification may qualify as Top Employers. This year, 79 companies were certified in Italy: amongst these, the only multiutility company is HERA Group, which has participated in the project since 2010 and has been awarded this recognition for the eighth consecutive year. In particular, Hera stood out thanks to "Hextra", its new integrated company welfare plan in place since July 2016 for the Group's more than 8,500 employees, characterised by a share of resources that can be "personalised" by workers based on their own needs; thanks to its work-life balance measures (such as policies regarding leave and other absences from work, as well as the support provided when employees return to work, nurseries for employees' children in the various communities and mobility support) and its policies that provide the possibility of development opportunities for the entire company population. Hera is also one of the top Italian companies in terms of investment in employee training and personal and professional development, offering roughly 29 hours of training per capita in 2016. Training experiences have been made increasingly engaging and effective thanks to HerAcademy, the Group's Corporate University, which provides opportunities for ongoing dialogue with businesses and the main academic institutions, and initiatives aimed at supporting employees' children in selecting their path at university and as they enter the workforce. The Hera Educational project, relating towork-study programmes based on the integration between business skills and the skills acquired in upper secondary schools in Emilia-Romagna, also bears witness to the company's considerable investments in training and its connection to the communities in which it operates. Indeed, last year the first 60 courses of 2016-2019 were held with technical institutions, while another 80 were launched this academic year, also, for the first time, with the inclusion of high school students. The HERA Group' full profile, including the certification justifications and criteria, can be viewed on the website: www.topemployers.it top Employer 870 2014-03-19 FOR FURTHER INFORMATION 870.1487773774.png For the eighth consecutive year, the multiutility company reaffirms its position as one of the best Italian companies due to its focus on the working conditions of its employees top_employer_2017_110x150.png

Teseco 110 Waste Recycling, a Tuscan company belonging to the Hera Group and 100% controlled by Herambiente, has purchased the plant sector of Teseco. The company is based in Pisa, and is a leading actor in industrial waste treatment and recovery with over 30 years of experience in the sector of special waste and innovative plants (spread out over an overall area of 126,000 m 2, over 30,000 of which are covered). The purchase was conducted by Group subsidiary Waste Recycling, given that the latter has been managing for over 25 years, and with similar efficiency, complementary types of treatment in its production plants in Santa Croce sull'Arno and Castelfranco di Sotto, in the province of Pisa. This operation allows, on the one hand, a considerable segment of production in the Pisa area to be conserved and maintained active, and on the other enlarges both Herambiente's overall set of plants and the services it offers to its clients, reinforcing its leadership in waste treatment and recovery. It is furthermore part of a larger goal, which consists in broadening the Hera Group's operational area, initiated years ago and in line with the Group's strategy of geographical expansion and integration. By way of its authorisations, the quantity of waste it is able to manage, and the treatments plants at its disposal, Waste Recycling, with this operation, confirms its status as one of the nation's most important actors in the sector of industrial waste, enriching and rounding off the numerous services it offers to middle and large companies. At the same time, Herambiente will further increase its own client portfolio, through this preference given to commercial reinforcement in a region in which it is already active. Teseco 2014-03-19 FOR FURTHER INFORMATION Thanks to the purchase made by Group subsidiary Waste Recycling of the plant sector of the Pisa company Teseco, a primary figure in industrial waste treatment and recovery, Herambiente, a national leader in this sector, will further expand its commercial offer and enlarge its already significant range of plants teseco_110.bmp

Aliplast Aliplast: company history Founded by Roberto Alibardi in 1982, Aliplast is a national centre of excellence, and today is the leader in the collection and recycling of plastic industrial waste and the production of regenerated polymers. It was the first company in Italy to achieve full integration throughout the entire plastic life cycle: from waste management services and the collection of industrial scrap to the production and sale in the market of goods and packaging materials manufactured from plastic recycled in house. It has more than 300 employees working in five plants in Italy and three abroad (Spain, France and Poland). Its head office is located in Ospedaletto di Istrana (Treviso). Its main customers include the largest Italian food & beverage, home furnishings and ceramics brands. Aliplast 2014-03-19 FOR FURTHER INFORMATION The company based in Ospedaletto di Istrana (Treviso), a national centre of excellence in plastic recycling, joins the Hera Group, which thus confirms its position as one of the main players in Italy in recycling and the development of the circular economy 110_aliplast.1484140357.bmp

Piano Industriale Today, Wednesday 11 January 2017, the Hera Group Board of Directors approved the 2020 Business Plan, with growth in economic targets and improvement in capital and financial indicators. Operating and financial highlights 2020 EBITDA: € 1,080 million Capital expenditures and financial investments: almost € 2.5 billion Net financial position/EBITDA ratio to improve, reaching 2.8 by 2020 Net profits per share to grow by roughly 5% annually over the duration of the Plan Dividends expected to increase, as of 2017, reaching 10 cents per share in 2020 (+11%) Operating highlights 5 strategic priorities: growth, efficiency, excellence, innovation and agility Group development based on a balanced mix of organic growth and M&As Current grants confirmed in tenders for gas distribution and urban hygiene Objective for 2020 energy customers set at 2.4 million Growth in line with sector trends: Circular Economy and Shared Value, Customer Experience, Industry 4.0 Solidly based on data from the 2016 forecast, the new Plan confirms the Group’s track record of growth and responds to the most recent changes in the utility sector. Efficiency and innovative solutions fuelling organic growth to be pursued alongside opportunities for development through M&As. In addition, the 2020 Plan is supported by considerable investments, reaching roughly Euro 2.5 billion (Euro 250 million more than the last strategic plan), which will be used to fuel growth over the five-year period, as well as to better respond to the main business trends emerging as a result of the Circular Economy and Shared Value, with respect to which the Hera Group has offered a tangible contribution to reaching 10 of the 17 objectives of the UN Agenda. Other key elements include the new needs of clientele, to be met with new solutions, and the most recent changes involving Industry 4.0 and processes of digitalisation, data gathering and analysis and diffusion in our cities of “intelligent” infrastructures. In a sector undergoing profound transformations, it will become indispensable for the Group to count on its own solidity and efficiency in order to remain astride these trends and continue to reinforce its own leadership. The Group’s business model has been confirmed, with the objective of a 2020 EBITDA equal to € 1,080 million, i.e. € 50 million higher than the 2019 target included in the previous Plan, with significant growth coming in 2017-2018. The increase in EBITDA over the duration of the Plan amounts to almost € 200 million compared to 2015, obtained thanks to a balanced contribution coming from internal and external growth. Tomaso Tommasi di Vignano, Hera Chairman "Our recently approved Plan confirms a steady path of growth, sustained by traditional tools geared towards enhanced efficiency and growth by acquisitions, all reinforced by the use of new technologies. Improvements in our financial solidity will allow us on the one hand to confirm and further improve the dividend policy pursued in recent years, and on the other to consider the deep transformations currently seen in the sector as a further opportunity for development, potentially involving M&As, as has been the case in the past." Stefano Venier, Hera CEO "Innovation, sustainability and energy efficiency are only a few of the issues addressed by our Business Plan, which is intent on making the most of new trends such as Industry 4.0, Circular Economy and Customer Experience. Our leadership in the main reference markets has been confirmed, sustained by the competitive advantages that we have built up over the years, making us fully prepared to take on ever-changing challenges. This Plan as well has been elaborated in full respect of the financial balance that has defined us until present, with the aim of reinforcing on the one hand our credit standing while maintaining a low risk profile, and on the other continuing to create value for all our stakeholders, guaranteeing the financial flexibility best suited for further developments." Business Plan to 2020 2014-03-19 FOR FURTHER INFORMATION Business Plan to 2020 Solidly based on data from the 2016 forecast, the new Plan confirms the Group's track record of growth and responds to the most recent changes in the utility sector. Efficiency and innovative solutions fuelling organic growth to be pursued alongside opportunities for development through M&As /group_eng/investors hera-group-approves-business-plan-to-2020 Go to IR section Press Relase centrata Piano Industriale

en pulita 110 "We have worked on this for some time now, and for us the achievement of this goal in 2017 represents a highly important accomplishment", affirms Stefano Venier, Hera Group CEO. "We are planning to apply this standard throughout our entire Group as soon as possible. Precisely because the fight against climate change is an increasingly urgent global priority", Venier continues, "as a responsible company we will do our part with the objective of further reducing our internal consumption while also continuing with our constant contribution to the sustainability objectives set by the UN agenda". Venier 2014-03-19 FOR FURTHER INFORMATION The multiutility company comes into line with the best practices of important international groups and, in accordance with EU objectives and the UN agenda, it guarantees that as of this year all activities managed in Emilia Romagna will be 100% fuelled by "clean" electricity en pulita 110

WR 110 The Hera Group has earned a place on the podium at Webranking 2016, the Oscars of web communications. The multiutility company was awarded the "silver medal" based on the research conducted by Lundquist and the Swedish Comprend, digital communications experts. Every year, they screen the websites of the largest Italian companies listed on the stock exchange and their respective web communications strategies in order to draw up a national ranking, which this year included 70 companies. Hera finished in second place in this 15th edition of the report, with a score of 91.8/100, improving by a good two positions since last year and coming in ahead of large companies like Eni, which placed third. Snam was classified in first place. In addition, Hera was first in the utilities sector. All of the results can be viewed here. The multiutility company's strengths included its online publication of theSustainability Report - a report featuring non-financial information which is prepared by just half of the companies observed. Hera, however, has prepared this report for its stakeholders since 2002 and has made it available online since 2006. Lundquist also surveyed the history of the best companies on the web in Italy by analysing the Webranking results from 2011 to date. In this hall of fame encompassing 15 years of rankings, Hera came in third, just after Eni and Telecom. The Webranking study is also a kind of stress test on company transparency: it assesses their digital communications based on the needs of stakeholders, who seek out not only interesting content, but also simple forms of online navigation. According to the report accompanying the study, only slightly more than one company out of three passes the test, and this year the trend observed by Lundquist is that what counts is the commitment to transparency, not big budgets. Indeed, the best results were achieved precisely by midcaps like Hera, medium-sized companies that have a strong desire to improve and stand out in the market. The awards ceremony will be held on 30 November in the Buzzati room at the Corriere della Sera headquarters in Milan, during an event organised by Lundquist which will provide the opportunity to discuss the new frontiers of digital corporate communications. WR 870 2014-03-19 FOR FURTHER INFORMATION 870.1481122046.jpg The Oscars of online communications have been awarded. The multiutility company's website placed second, preceded only by Snam. The award is based on a national study of the websites of 70 companies conducted by the experts from Lundquist and Comprend WR 110

Once again it is time for Ecomondo, the much anticipated meeting that brings together national and international operators in the industry revolving around the world of environmental services and the green economy in the Rimini Fiera pavilions. The Hera Group will be located in Pavilion C1 at stand 120: an exhibition space of more than 300 m2 inspired by and designed with a view to reuse, in keeping with corporate sustainability principles and intended to bring to mind the idea of the circular economy. As the key topic of the entire 2016 edition of Ecomondo, the circular economy will indeed be the common thread of the stand and the communications that Hera, Herambiente and Waste Recyclingwill bring to the trade fair this year. These three companies will represent our Group at the Rimini event, reconfirming from one year to the next our leading role in activities relating to the recycling and disposal of municipal and special waste, with more than 80 plants within an integrated and complete model that is unique in Italy. It is precisely the integrated system between services and plants that provides Hera with full control over the entire waste management cycle, guaranteeing the recovery of materials and energy and making the Group a fundamental link in the chain of our country's circular economy. And since speaking of the circular economy also means talking about creativity in a certain sense, the Group's stand will also play host to the SCART project, by means of which the Herambiente subsidiary Waste Recycling will artistically interpret the concept of the circular economy. 2016-11-02 Link 870x278_eng.1478088980.png 8-11 November 2016, Rimini Fiera 110x150_eng.1478088116.png