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Reichlin, "a European agreement on investments is needed for growth" [block]div:row-fluid::db:hr_press_comunicazione::box:59[/block] "It is useless to negotiate the flexibility of budget rules: we need to favour the liquidity of the capital held by Italian households and, at European level, an agreement for investments is needed". This was the claim made by Lucrezia Reichlin today at the conference "Resilience and innovation: a strategy for business and the community", organised by the HERA Group to present its Sustainability Report. The well-known Italian economist, a professor at the London Business School, took on the topic of the Eurozone's weak recovery, touching on Italy's traditional delays in innovation, efficiency and investments, which hinder the creation of conditions favourable to sustainable economic development. Sustainability was the real focus of the meeting, which throughout the morning featured the participation of important institutional, economic and academic experts. Presentations were given by, aside from the Group's top management, amongst others, Angelo Rughetti (Under-Secretary of State for Public Administration and Simplification), Valentina Orioli (Councillor for Urban Planning and Environment for the Municipality of Bologna), Francesco Ubertini (Rector of the University of Bologna), Gian Carlo Muzzarelli (Mayor of Modena) and Riccardo Illy (Chairman of the Illy Group). Two words at the very heart of these reflections - resilience and innovation - were used as a basis from which to comprehend the contribution that a multiutility company like Hera can make to the system of the communities it serves and to new development models, made even more urgent by the scenario outlined by Professor Reichlin. In this sense, positive signs emerge from the Sustainability Report of the Group, which in 2015 alone transferred over Euro 1.65 billion in wealth to the areas it serves, performing a fundamental countercyclical function in favour of the local economies, which is even more important considering the significant slowdown in GDP reported by ISTAT in its August monthly report. "If we look at the Group's entire history, from 2002 until today," said Stefano Venier, Hera's CEO, "investments exceed Euro 5 billion: this means that every resident served has received a significant structural contribution in his or her community". On the same wavelength, Chairman Tomaso Tommasi di Vignano also recalled the multiutility company's commitment to promoting and protecting considerable levels of employment: "The Group has more than 8,500 direct employees," he specified, "and in addition to them, there are more than 5,600 jobs created downstream". At the same time, Hera, defined by Reichlin as "an experience of success in a context of crisis", continues to improve its environmental and energy performance, anticipating important European objectives for 2025 (on the recycling of packaging, already at 66%) and 2030 (on the reduction of landfill use, which has declined to 8.6%), with separated collection rising to 55.4% and electricity production from renewable sources exceeding 70%. Confirming its dedication to local development, with more than Euro 127 million invested in the water sector alone in 2015, the Group is increasingly becoming a "healthy carrier of resilience", capable of transmitting its efficiencies to the system in which it is integrated. This is good news for everyone, but especially for the cities served by the multiutility company, seven of which are in the top 30 in Italy due to their level of innovation. This ranking was compiled by EY based on research conducted on 116 provincial capital municipalities and presented during the conference by Francois De Brabant, EY Senior Advisor. Analysing the strengths of the areas in which the HERA Group operates, the study highlighted the contribution its services have made to the development of smart cities. Based on a precise survey of innovation initiatives carried out, using the Smart City Index methodology, the study points to the excellent results achieved by Bologna (1st), Modena (8th), Ravenna (10th), Padua (14th), Forlì (18th), Ferrara (19th) and Rimini (21st), while Udine (31st), Trieste (46th) and Pesaro (50th) also performed well.Hera's contribution makes a difference primarily through waste collection and water cycle management, but it has also had important effects in terms of energy efficiency, smart building (with cogeneration and district heating systems) and renewable energies, without overlooking the 1,250 km of fibre optics available to Hera through the company Acantho. 2016-09-27 The well-known economist commented on the issue of recovery during the conference dedicated to the presentation of the HERA Group's Sustainability Report, devoted this year to resilience and innovation. The multiutility company has made a significant contribution to the development of smart cities, with seven cities served amongst the top 30 in Italy based on level of innovation. Bilancio di Sostenibilità

Sisma 110 Comieco (National Consortium for the Recovery and Recycling of Cellulose-based Packaging), in collaboration with Anci and the Consortium for the recovery of packaging - Conai - has launched a national campaign for the municipalities struck by the 24 August earthquake: in the month of September, for every additional 100 kg of paper, cardboard and paperboard collected compared to the same month of 2015, the Consortium will donate Euro 7. Hera has answered the call of Comieco and in themunicipalities it serves, it invites households and commercial and production businesses, in particular those which by their nature generate large quantities of paper, to support this solidarity campaign by recycling their paper materials using the services available in their area, street and residential collection bins and drop-off points. In this case, aside from being a choice that we make to defend and protect the environment, separate waste collection multiplies its value, as it offers all residents the possibility to contribute to a concrete action to support the populations affected by the earthquake. Sisma 870 2014-03-19 870.1473860874.jpg Hera has answered the call of Comieco, which will provide the areas of central Italy impacted by the August earthquake with Euro 7 for every 100 kg of paper collected this month Sisma 110

Half financial results as at 30 june 2016 Financial highlights Revenues at € 2,152.7 million (-2.7%) EBITDA at € 470.1 million (+2.4%)Net profits for shareholders at € 121.0 million (+12.8%) Net financial position reduced to € 2,624.4 million Operating highlights Regulated revenues affected by lower return on invested capital (WACC) M&A initiatives contribute to results Energy market expands, with total customers reaching almost 2.3 million Today, the Hera Group's Board of Directors unanimously approved the consolidated economic results for H1, whose main indicators show positive figures and growth through to net profits. Gas The gas business EBITDA, which includes services in natural gas and LPG distribution and sales, remote heating and heat management, settled in the first half of 2016 at € 162 million, down from the € 172.5 recorded at 30 June 2015, mainly due to lower margins in trading and the negative impact of the mild winter, as well as a resolution that modified the method used to calculate the rate of return on invested capital for infrastructure services in the gas sector. The results were also sustained by the recent acquisition of Julia Servizi, a company in the Abruzzo region operating in gas and electricity sales. The gas business accounts for 34.5% of Group EBITDA. Water In the first half of 2016, the water business, which includes aqueduct, purification and sewerage services, recorded a slight drop compared to the same period in 2015, with EBITDA passing from € 107.6 million in the first half of 2015 to € 106.6 million at 30 June 2016. The negative impact of the resolution on revenues and on EBITDA for the WACC effect and the redefinition of the restriction on revenue, came to € 11.1 million, almost entirely compensated by the operative efficiencies implemented over the six months in question and, in particular, a series of optimisations concerning general management costs. The integrated water cycle accounts for 22.7% of Group EBITDA. Waste management EBITDA pertaining to the waste business, which includes services in collecting, treating and disposing of waste, went from € 119.8 million in the first half of 2015 to € 116.5 million at 30 June 2016, an essentially stable result in spite of the reduced operating capacities of a few landfills, which are currently being enlarged. Activities related to treatment of special waste showed a 20.1% growth in volume and a further improvement in prices. One fundamental contribution came from the acquisitions, dating to late 2015, of Waste Recycling and the Geonova plants, which gave greater impetus to management of industrial waste and compensated for the temporary closure of landfills presently being expanded (the Ravenna landfill is due to be reopened shortly). Good results also came from sorted waste collection, which rose to 56.9% of the total, compared to the 55.4% seen in the first half of 2015, thanks to the wide range of projects implemented across all areas served. The waste business accounts for 24.8% of Group EBITDA. Electricity The electricity business, which includes services in electricity production, distribution and sales, showed an EBITDA that grew from € 49.6 million for the first six months of the previous year to € 76.3 million at 30 June 2016. The negative impact on electricity services of the resolution on revenues and EBITDA, regarding WACC alone (€ 1.4 million in the first six months), was more than compensated by the balance payments involved in 654/15/R/eel, thanks to a revision of the criteria used for the treatment of investments made in previous years, and the continuous expansion of the customer base. The electricity business accounts for 16.2% of Group EBITDA. Statement of Executive Chairman Tomaso Tommasi di Vignano "The figures that appear in the 2016 interim report are once again positive, showing the extent to which the Group has been able to offer its shareholders a solid response in terms of both economic results and financial structure, which is all the more appreciable in light of a macroeconomic context still marked by instability. This outcome was also fuelled by M&A operations, that allowed waste treatment plants to be acquired and increased our customer base". Statement of the Managing Director Stefano Venier "We are highly satisfied, in that the operations introduced have led to the good results we expected, allowing us, in only six months, to compensate for the cut in regulated revenues. A good financial and fiscal performance also made it possible for us, in a difficult year, to close the first half with growth in net profits and other main indicators as well as a reduction in debt." 1H 2016 2015-08-26 For further information 1H 2016 Interim report at 30 June 2016 shows rising profits, positive cash flows and lesser borrowing. /documents/1514726/4210755/Hera_Group_Consolidate_half_year_financial_report_as_at_30_june_2016.1470389788.pdf/c10e9d21-76b4-2589-28b3-24d6c2bbef80?t=1597910997787 /-/hera-board-of-directors-approves-results-for-1h-2016-1 /documents/1514726/4210755/Hera_Newsletter_1H2016_eng.1469701438.pdf/0583d746-cfd6-9b22-d84d-466aa0dafcbb?t=1597910996793 /documents/1514726/4210755/Dati_finanziari_operativi_di_sintesi_1H_2016_eng.1469542136.xls/3562a414-ad03-7f51-fa6e-7505d4ce5d0f?t=1597910989700 /documents/1514726/4210755/Analyst_presentation_1H2016.1469703526.pdf/cd804341-2bdb-7a71-66b9-af7b2fc2b474?t=1597910997228 /documents/1514726/4880888/audioconference+H12016+results.1470907152.mp3/dea26a04-edb1-d007-8cfc-aa7552b7f985?t=1610038453962 /group_eng/investors First Half 2016 report Press release Newsletter 1H 2016 Financial data 1H 2016 Analyst presentation 1H 2016 Conference 1H 2016 Go to IR section centrata Half financial results as at 30 june 2016

quologo 110 Use your smartphone to read your own water metre, receive prompt notifications about temporary water service interruptions for scheduled work, report leaks in the road and discover average tap water quality values, all with a simple click. Starting today, all of this is possible with the Acquologo (Water Expert), the new free app created by Hera. After the success of the Rifiutologo (Waste Expert), which helps to best separate waste and makes it possible to send geolocalised photo-reports about litter, the multiutility company is offering yet another app dedicated to residents in the communities it serves, to put a new, innovative and immediate tool in the palm of their hands, with all of the information about the local water service. The Acquologo is available for iOS, Android and Windows Phone operating systems. Water metre self-reading with one click With the Acquologo, customers that have a contract with Hera can simply and quickly read their own water metres and report their actual water consumption using a smartphone. All they need to do is select "Water metre reading", enter the contract code and then send the numbers from their metre. The self-reading function is valid for all users that receive a Hera bill for their water service. It is not available for customers that rely on other metre reading companies. The app provides advance notification of water service interruptions The Acquologo can also notify residents beforehand about water service interruptions for scheduled work (for example, pipeline upgrades or replacements). The notifications system can be activated on any smartphone by simply choosing the post code, allowing customers to always stay informed. Hera customers can also receive a notification by SMS by entering their mobile phone number in addition to the post code. The Acquologo provides information about tap water quality Hera manages the water service while guaranteeing its customers good drinking water, in line with regulatory requirements and with careful oversight along the entire purification and distribution chain. The Acquologo provides additional confirmation of this, as it allows users to use theirsmartphones to check the average values (calcium, pH, hardness, dry residue and much more) of the quality of the water provided in each municipality served by the multiutility company, and also compare them with legal limits. There is also a function that calculates the financial savings generated by consuming tap water rather than bottled water: in the "How much do you save" section, users can enter how many litres of water they drink per week and select the brand they typically buy. The Acquologo will estimate how much they can save. Water leaks can be reported to Emergency Services by sending a photo In the future, it will also be possible to use the Acquologo to send reports, for example about water leaks on public land due to pipe breakages below the road. To do this, users can simply take a photo with their own smartphone and, if necessary, attach a brief description. The report will be sent directly to Hera Emergency Services and, using geolocalisation, the system will identify the exact location where the report was sent, to notify Emergency Services technicians. This service is already active on a trial basis in Bologna. Ask the expert Lastly, the application can be used to contact the Hera experts with questions and requests about the local water service and to read the answers to the most frequently asked questions in this area. This system is synchronised with information available on the Group's website. To ensure that the Acquologo loads all content from the central database, the app should be updated periodically. Acquologo 870 2014-03-19 FOR FURTHER INFORMATION acquologo_870.1469179950.jpg Thanks to this new free application, with just a few clicks you can find out about tap water quality, receive notifications about service interruptions for scheduled work, report leaks in the road and read your own water metre quologo 110

Inrete Hextra is born... It is called Hextra, and it is the new integrated company welfare plan that has been in place since July 2016 for everyone working at the Hera Group. Also thanks to recent tax incentives introduced for welfare initiatives, every year the employees of all of the Hera Group's consolidated companies, which today number more than 8,500, can benefit from the same standardised plan. This is an important commitment which works alongside other employee welfare activities in which the Group has already invested for some time now (canteen, car parks, nurseries, summer programmes, etc.). The welfare plan encompasses a wide range of thematic areas to choose from, corresponding to just as many local sectors for the supply of goods and services: health and healthcare, insurance and social security, support for the education of children, services for individuals, welfare and income support. The investment in education for children is particularly significant and involves an additional contribution provided by the company to employees who meet specific requirements. The goal of this policy is to highlight the importance placed by the Group on culture and education, traditional values underlying the company's mission, which are confirmed in the success of Heracademy, the corporate university designed to develop and enhance worker skills. Lastly, those who choose to do so may allocate part of the value of their own welfare plan to Hera Solidale, the Group project which for years has involved workers in supporting a wide range of solidarity initiatives throughout the communities served by the multiutility company. The plan's investments are also expected to have positive impacts on the communities, thanks to the downstream business generated by the services provided. Therefore, this company welfare approach places the families of workers at the very centre while also developing positive relationships with local communities. Tommasi: "We invest in the welfare of families and the community" "We began with a long phase of listening, using questionnaires and focus groups, to understand how to put together a welfare plan that could improve our commitment to our employees" explains Tomaso Tommasi di Vignano, Chairman of the Hera Group. "We are satisfied with the solution we've developed as, aside from increasing resources, it also allows for a more streamlined use of them and, especially, it allows our workers to decide how to manage their contribution based on their own personal and family needs. If we consider the expansion and consolidation of the Group, Hextra represents a significant step forward, which enables us to create value and efficiency in the interest of everyone involved, while contributing towards protecting the wallets of families during this financially difficult time". Inrete 2014-03-19 870.1469179507.jpg A transversal plan for all Group companies from Emilia-Romagna to the Triveneto region to the Marche, aiming for flexibility to meet the needs of more than 8,500 workers and their families. Inrete

Inrete The Board of Directors of Hera S.p.A. today approved, with effect from 1 July 2016, the transfer of the gas and electricity distribution line of business to the company Inrete Distribuzione Energia, a wholly owned subsidiary of the multi-utility. This marks the completion of the "unbundling" process required by Italian legislation governing the sector (AEEGSI Resolution 296/2015) in order to separate the management of regulated business activities (gas and electricity distribution) from the management of liberalised activities (production, sale and procurement). Distributing gas and electricity in the Emilia-Romagna region, Inrete will serve more than 1.1 million gas users in 140 municipalities, with a gas network covering approximately 14,000 km, and more than 260,000 electricity users in 29 municipalities, with an electricity network of over 10,000 km. In line with the approach always followed by the Group, Inrete will continue to work with commitment in the field of safety and network control, with the aim of confirming the highest possible standards of service quality, consistently above the minimum levels demanded by the Authority. Inrete will draw on the multi-utility's innovative Remote Control Technology Centre, a structure at the cutting edge within Europe. Based in Forlì, this provides integrated management of all the gas plants and networks, as well as receiving and coordinating emergency calls. Similar services for all Inrete's electricity plants and networks will be provided by the Group's Electricity Remote Control Operations Centre in Modena. Alessandro Baroncini, former Director of Energy Networks at the parent company, has been appointed as Inrete's Chief Executive Officer. Inrete 2014-03-19 870.1467015950.jpg A wholly owned subsidiary of the multi-utility, the company will be operational from 1 July 2016 pic.1466602715.bmp

The Hera Group takes the podium for the value it places on female workers: this was the important outcome of the XXVIII edition of the Maria Bellisario "Donne ad Alta Quota" (high-flying women) Award which presented the multi-utility company with the Golden Apple for the "Women-Friendly Company" category. A prestigious award, with Hera selected unanimously by the Bellisario Foundation's awarding commission for its important and innovative policies and strategies to promote the growth and well-being of women in the company. Diversity management, fighting discrimination and support for families: these are the main fronts on which the Group has been working for years to promote the value of a company culture that, rooted in present challenges, always achieves excellence, from all perspectives. And everything starts with equal opportunities. Whilst the utility sector, due to the characteristics of the services provided, has historically seen a prevalently male workforce, the percentage of female employees on permanent contracts in 2015 is at a healthy 23.7%, compared to a national average for the sector, not rising above 16.5% (2010 ISTAT data). This has been a long-term process for Hera, launched back in 2009 with the signing of the "paper for equal opportunities and equality in the workplace". Together with other entities, both public and private, Hera undertook to fight against all forms of discrimination in the workplace. Another fundamental step was the introduction in 2011 of the Diversity Manager, Susanna Zucchelli, supported by an "entirely female" working group made up of women holding very different roles united by the shared objective of further developing and consolidating equal opportunities whilst also managing and promoting diversity. Hera runs many initiatives which consolidate diversity management: from company nurseries and intercompany nurseries, with long opening hours to support the careful balance of home and work life, to provisions regarding family leave, not only available for maternity and paternity but also for those who need to assist other family members or elderly relatives. A particularly good example is "the smooth return to work policies" project, founded and realised by Hera and aimed at improving the management of family leave. This project also saw investment from the Prime Minister's Office, due to the innovative and socially important nature of the approaches employed. "The Golden Apple of the Bellisario Award presented to Hera for the Women-Friendly Company category makes us hugely proud because it represents a recognition of the long and methodical commitment which we have maintained for years in terms of time, enthusiasm, resources and ideas, involving companies of all different levels" - declared Tomaso Tommasi di Vignano, Chairman of the Hera Group. "Our attention to women in the workplace is not our only commitment in terms of personnel policies and diversity management, but this certainly represents an important moment, also because of the genuinely original talent that female employees demonstrate in their work." "A talent that we support through a series of articulated measures aimed at translating rights into practices, to help women in the performance of their daily work and in the management of their time." 2014-03-19 USEFUL LINKS 870Bellisario.1466439403.png The Maria Bellisario Foundation has awarded the multi-utility company with the Golden Apple for Women-Friendly Company. Here are the motivations for this award which recognises the Group's dedication to promoting equal opportunities in the work place. 110.1466439405.png

Hera Board of Directors approves 1st quarter 2016 results Financial highlights Revenues at € 1,235.4 million (-5.8%) EBITDA at € 278.4 million (+0.4%) Net profit post minorities at € 91.2 million (+5.3%) Net debt improves, reaching € 2,504.5 million Operational highlights Management focus on extracting efficiencies and synergies Simultaneously, commercial expansion into new markets continues Solid customer base in energy markets, with approximately 2.2 million customers Good contribution to growth coming from the electricity business Today, the Hera Group’s Board of Directors unanimously approved the consolidated financial statements at 31 March 2016, which confirm the trend of growth in all main indicators, in spite of a difficult first quarter. On the one hand, organic growth aimed at achieving efficiencies and synergies, along with complementary efforts towards market expansion, succeeded in compensating for 75% of the cut in remuneration for regulated activities; on the other, M&A operations, involving above all acquisitions made in late 2015, contributed to growth in results. Note in particular that, with reference to legislative decree 25/2016, an implementation of Directive 2013/50/EU (so-called Transparency Directive), the Hera Group has voluntarily decided to publish its interim financial statements, as in the past, taking into account the high value given to communicating with the stakeholders. This decision may be modified in the future, based on changes in regulations. Revenues amounting to € 1,235.4 million In the first quarter of 2016 revenues came to € 1,235.4 million, dropping compared to the € 1,311.9 million seen in the corresponding period of 2015. The reasons for this decrease include lesser volumes of gas sold, owing to particularly mild temperatures; lesser revenues in electricity and gas sales and trading following a drop in the price of raw materials; the impact on regulated gas, electricity and water cycle services caused by the new method for calculating return on invested capital. These negative effects were only partially compensated by an increase in revenues due to greater volumes of electricity sold and higher revenues due to an increase in disposed waste. EBITDA rises to € 278.4 million EBITDA went from € 277.2 million after the first three months of 2015 to € 278.4 million at the end of March 2016, showing a growth of € 1.2 million (+0.4%). This result is particularly significant if one recalls that it was achieved in the first quarter, the period of the year in which decreases in WACC for gas, electricity and water distribution have, due to seasonal factors, a greater negative impact on revenues and EBITDA, reaching – in the case at hand – € 9.5 million (respectively: 3.9 in gas, 0.7 in electricity and 4.9 in water). The increase in EBITDA was mainly sustained by energy activities, which maintained their margins and more than compensated for the performance of regulated activities. Growth in Ebit and pre-tax profits, improvement in liability management Ebit at 31 March 2016 came to € 170.8 million, up compared to the € 170.1 million seen in the first quarter of 2015 (+0.4%), in spite of higher depreciation due to changes in the operating area, partially compensated by lesser provisions. Liability management improved by € 3.7 million, coming to € 25.7 million at the end of the first quarter (-12.6% compared to the same period in 2015), thanks in particular to lower average debt and greater efficiency in rates. In light of this situation, pre-tax profits went from € 140.7 million in the first three months of 2015 to € 145.1 million in the first quarter of 2016, showing a further increase in the rate of growth (+3.1%). Increased net profits post minorities, reaching € 91.2 million (+5.3%) Net profits recorded an increase of 4.7%, going from € 92.5 million in the first three months of 2015 to € 96.8 million in the corresponding period in 2016, on account of a reduction of the tax burden leading to a tax rate of 33.3% (an improvement compared to the 34.3% applied in the same period in 2015, thanks to the benefits obtained in 2016 deriving from the application of the “patent box” and tax credits for research and development, in addition to tax concessions for maxi amortisations). Profits post minorities came to € 91.2 million, rising by € 4.6 million on the first three months of 2015 (+5.3%), due among other things to reduced minority interests, mainly caused by the complete acquisition of Akron and Romagna Compost. Over 70 million of capital expenditure, reduction of net debt In the first three months of 2016, the Group’s operating capex amounted to 73 million, including 4.5 million in capital grants, with an increase on the same period in 2015 (€ 64.1 million), as foreseen by the business plan. These investments mainly concerned interventions on plants, networks and infrastructures, in addition to regulatory upgrading above all in the gas area, due to a massive meter substitution, and water purifying and sewerage plants. Net debt reduced by no less than € 147 million, going from 2,651.7 in 2015 to 2,504.5 at 31 March 2016 (-5.6%). This result, which is partially natural, tied to seasonal factors in the gas business, was sustained by both a reduction in working capital, owing to a continuous and constant attention in trade receivables management, and the generation of a higher operating cash flow. The debt/equity ratio thus dropped below 0.96x, showing an improvement in financial solidity. Gas EBITDA for the gas business, which includes services in distribution and sales of natural gas and LPG, district heating and heat management, reached € 128.7 million in the first quarter of 2016, with a slight growth compared to the € 128.4 seen at 31 March 2015, thanks to greater margins for activities in sales and trading and greater margins for district heating and heat management services. These positive effects more than compensate for the lesser volumes of gas sold on account of mild temperatures, and the € 3.9 million drop in gas distribution revenues, an effect of the WACC reduction. The gas area accounted for 46.2% of Group EBITDA. Water cycle EBITDA for the integrated water cycle business, which includes aqueduct, purification and sewerage services, went from € 50.5 million in the first three months of 2015 to € 49.8 million in the first quarter of 2016. This result was impacted above all by € 4.9 million in lesser revenues for delivery, an effect of the WACC reduction, which in turn were almost entirely compensated by the operational efficiencies created. The integrated water business accounted for 17.9% of Group EBITDA. Waste management EBITDA for the waste business, which includes services in waste collection, treatment and disposal, went from € 64.9 million in the first quarter of 2015 to € 62.4 million in the corresponding period in 2016. Among the factors with a negative influence, particular attention must go to the tariffs for waste collection and street sweeping, which have not as yet been updated and are currently under local authorities’ approval. As regards activities in waste recycle, treatment and disposal, results were equal to those seen in the previous year, thanks to the contribution obtained from acquisitions carried out in 2015, which compensated for the temporary stall in landfills currently being enlarged, the reduction in prices for energy certificates, and the lower amount of green certificates for the Ferrara WTE plant. Good results were seen in sorted waste, which rose to 56.2%, compared to 55.2% in the first three months of 2015, thanks to the many projects implemented across all geographical areas served. The waste business accounted for 22.4% of Group EBITDA. Electricity EBITDA for the electricity business, which includes services in electricity production, distribution and sales, rose from € 29.3 million in the first quarter of 2015 to € 33.2 million at 31 March 2016 (+13.3%), thanks above all to greater margins both in sales and trading activities and in electricity generation. This increase was only partially reduced by lesser revenues in the regulated distribution service, coming to € 0.7 million. In this area, furthermore, an increase in both customers (almost 60,000 more than in 2015) and volumes sold was seen, thanks among other things to reinforced commercial initiatives. The electricity business accounted for 11.9% of Group EBITDA. The person 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 interim financial statements and related materials are available to the public at the Company Headquarters and on the website www.gruppohera.it. Unaudited extracts from the Interim Financial Statements at 31 March 2016 are attached. PROFIT & LOSS (M€) MAR 2016 INC% MAR 2015 INC.% CH CH % Sales 1,235.4 1,311.9 -76.5 -5.8% Other operating revenues 73.7 6.0% 71.4 5.4% +2.3 +3.2% Raw material (608.5) -49.3% (702.3) -53.5% -93.8 -13.4% Services costs (281.7) -22.8% (266.6) -20.3% +15.1 +5.7% Other operating expenses (12.1) -1.0% (9.9) -0.8% +2.2 +22.2% Personnel costs (132.9) -10.8% (131.4) -10.0% +1.5 +1.1% Capitalisations 4.6 0.4% 4.1 0.3% +0.5 +12.1% Ebitda 278.4 22.5% 277.2 21.1% +1.2 +0.4% Depreciation and provisions (107.6) -8.7% (107.1) -8.2% +0.5 +0.5% Ebit 170.8 13.8% 170.1 13.0% +0.7 +0.4% Financial inc./(exp.) (25.7) -2.1% (29.4) -2.2% -3.7 -12.6% Pre tax profit 145.1 11.7% 140.7 10.7% +4.4 +3.1% Tax (48.4) -3.9% (48.2) -3.7% +0.2 +0.4% Net profit 96.8 7.8% 92.5 7.0% +4.3 +4.7% Attributable to: Shareholders of the Parent Company Minority shareholders 91.2 5.6 7.4% 0.5% 86.6 5.9 6.6% 0.4% +4.6 -0.3 +5.3% -4.8% BALANCE SHEET (M€) MAR 2016 INC% MAR 2015 INC.% CH CH % Net fixed assets 5,509.0 108.0% 5,511.3 106.9% (2.3) 0.0% Working capital 105.0 2.1% 157.0 3.0% (52.0) (33.1%) (Provision) (512.7) 10.1% (513.5) (9.9%) +0.8 (0.2%) Net invested capital 5,101.3 100.0% 5,154.8 100.0% (53.5) (1.0%) Net equity (2,596.8) 50.9% (2,503.1) 48.6% (93.7) +3.7% Long term net financial debt (2,746.5) 53.8% (2,743.6) 53.2% (2.9) +0.1% Short term net financial debt 242.0 (4.7%) 91.9 (1.8%) +150.1 +163.3% Net financial debts (2,504.5) 49.1% (2,651.7) 51.4% +147.2 (5.6%) Net invested capital (5,101.3) 100.0% (5,154.8) 100.0% +53.5 (1.0%) 1Q 2016 2014-03-19 FOR FURTHER INFORMATION 1Q 2016 The interim results at 31 March show positive figures and growth in all main indicators, despite a difficult first quarter, affected by the lesser revenues in gas, electricity and water distribution caused by recent regulatory changes. /documents/1514726/4210758/Hera_Group_Consolidated_quarterly_report_as_at_31_march_2016.1462960176.pdf/dcbc0211-3b72-fa0c-3a16-e9a3b70afea4?t=1597911168892 /-/hera-board-of-directors-approves-1st-quarter-2016-results-1?inheritRedirect=true /documents/1514726/4210758/Hera_Newsletter_Q1_2016.1462957906.pdf/2d938b8c-ba16-4e50-6a1e-888659f993b2?t=1597911167130 /documents/1514726/4210758/Dati_finanziari_ed_operativi_di_sintesi_1Q_2016_eng.1462877519.xls/f1199f02-3765-b6f0-acd6-6714dac6f163?t=1597911166445 Financial report as at 31/03/2016 Press release Newsletter as at 31/03/2016 Financial data as at 31/03/2016 centrata Hera Board of Directors approves 1st quarter 2016 results