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Free and open to all, the exhibition of artwork produced using waste materials can be visited from 5 to 21 May in the halls of Palazzo Rasponi. The Hera Group project, carried out in collaboration with the Academies of Fine Arts of Bologna and Florence, also provides educational workshops for children. [block]div:row-fluid::db:hr_press_comunicazione::box:64[/block] There are portraits of famous people and sculptures of animals. But above all, they are works of art made by means of reuse of waste materials destined for disposal. Precisely for this reason, they are part of "Scart: the Beautiful, Useful Side of Waste", a travelling exhibition that hosts the work of students from the Academies of Fine Arts of Bologna and Florence. Created in collaboration with Waste Recycling, a Herambiente Group company, the exhibition is free and open to all; its first stop is in Ravenna. Exhibited at Palazzo Rasponi from 5 to 21 May, it can be visited from 4 pm to 7 pm every day except Mondays. In the coming months the exhibition will stop in the cities of Imola and Modena. Accompanied by a catalogue curated by art critic and former director of the Museum of the City of Ravenna, Claudio Spadoni, the Scart exhibition is addressed to a wide audience, particularly children, with various educational and creative workshops offered on Saturdays 6, 13 and 20 May, also provided free of charge. Thanks to these workshops, children will be involved in various creative activities which encourage thought about environmental issues, focusing on problems and approaching the possible solutions through recycling and reuse. Adults can instead "lose themselves" among the exhibition's halls, and be surprised by the thousands of forms that matter can take on when it passes through the regenerating power of art. The faces of Lucio Dalla, Marilyn Monroe, Frida Kahlo, Mother Teresa, David Bowie and still others will share the stage with more sculptural works depicting various animals which, in Spadoni's words, make up "a heterogeneous bestiary of fun, in some cases carefree, with Dadaist-Surrealist tones". The Hera Group thereby continues the Scart tradition: the project was originally organized by Maurizio Giani, CEO of Waste Recycling, over 18 years ago to positively affect the mentality towards recycling and reuse, precisely through art. An integral part of the multi-utility company's daily commitment to circular economy, Scart faces these challenges in an absolutely innovative fashion, undertaking a new path toward a type of reuse and recycling that recognizes an increasing value in waste, giving it unlimited life and transforming it from a cost into a resource. "We are very pleased that a local company as important as Hera - says the Councillor for Cultural Activities of the Municipality of Ravenna, Elsa Signorino, - interprets the sense of their own work with this spirit, contributing to consolidating a culture of sustainability through art which, together with our citizens, we wholeheartedly support. Additionally, our relationship with Hera in Ravenna has always been oriented to the promotion of many cultural initiatives, and it is wonderful that a multi-utility company leverages the profile of its territorial roots in this way, in the interest of the community and in cooperation with the municipal administration". "Art is not a side-effect of matter - says Tomaso Tommasi of Vignano, Executive President of the Hera Group - but constitutes regeneration that can inspire all other regenerations which the circular economy that Hera works towards every day is based on, through people, means, processes and facilities. In this sense, the Scart project expresses important values that touch the heart of our mission. We are therefore very pleased - concludes Tommasi - to have created an exhibition which, in addition to highlighting the important collaboration with the students of Art Academies, is also worthy because it brings the fruit of their work to various cities touched by our services, in an attempt to initiate, so to speak, the virtuous contagion of ideas and emotions". scart.bmp 110 SCART 2014-03-19

Consolidated first quarter report shows growth in all operational-financial indicators and a positive contribution coming from all business areas, alongside continuing improvement in net debt. Financial highlights Revenues at € 1,585.5 million (+28.3%) EBITDA at € 306.8 million (+10.2%) Net profits for Shareholders at € 109.9 million (+20.5%) Net debt at € 2,548.7 million Operational highlights Good contribution to growth coming from all businesses, especially the energy sales area Solid customer base in the energy sectors, increasing to roughly 2.3 million customers Management geared towards creating efficiencies and synergies Net debt shows further improvement during the quarter, in spite of the recent acquisitions of Aliplast and Teseco Today, the Hera Group’s new Board of Directors, appointed on 27 April 2017, unanimously approved the consolidated first quarter results, which confirm a rising trend in all main indicators. These positive results were supported by the organic growth ensuing from market expansion, which involved recently awarded tenders for default gas and safeguarded electricity services. Efficiencies and synergies were simultaneously pursued, alongside M&A activities concerning above all acquisitions in the energy area carried out in 2016 (Julia Servizi and Gran Sasso), with the contribution coming from Teseco and Aliplast not yet recorded. Revenues reach almost € 1.6 billion In the first quarter of 2017, revenues amounted to € 1,585.5 million, with a sharp increase over the € 1,235.4 seen in the same period of 2016. This result reflects, in addition to a change in the assignment of general system charges introduced by current regulations, a larger amount of trading, higher regulated revenues in water services and the electricity area, and increased volumes of gas sold owing to climatic factors. EBITDA rises to € 306.8 million EBITDA passed from € 278.4 million in the first three months of 2016 to € 306.8 million at 31 March 2017, recording a growth of over € 28 million (+10.2%). This growth is accounted for by the good performances seen in all Group areas, in particular in the energy areas. These results were also influenced by the acquisitions made during 2016. Operational results and pre-tax profits up, financial management improves Operating profits at 31 March 2017 came to € 187.3 million, up over the € 170.8 million seen in the same period of 2016 (+9.7%). Financial management improved by € 2.6 million, amounting to € 23.1 million at the end of the first quarter, thanks to a good contribution coming from affiliated companies and higher income from safeguarded customers. In light of this, pre-tax profits went from € 145.1 million in the first quarter of 2016 to € 164.2 million in the same period in 2017, showing a further increase in the rate of growth (+13.2%). Net profits for Shareholders grow, reaching roughly € 110 million (+20.5%) Profits pertaining to Group Shareholders at 31 March 2017 rose to € 109.9 million, up 20.5% compared to the € 91.2 million seen in 2016. A considerable improvement in the tax rate was among the factors responsible, going from 33.3% to 29.8% (thanks to a decrease in the Ires rate, benefits ensuing from the application of the “patent box” and tax credits for research and development, as well as tax breaks for maxi amortisations). Over € 150 million in investments and a slight improvement in net debt, in spite of recent acquisitions In the first three months of 2017, Group investments amounted to € 154.1 million, including the acquisition of a financial holding in the Aliplast Group and the plant branch of Teseco, without which the amount is in line with the same period in 2016 (€ 68.5 million). Operating investments mainly concerned interventions on plants, networks and infrastructures, to which one must add regulatory upgrading above all in the gas area, involving a large-scale meter substitution, and the purification and sewerage areas. Net debt settled at € 2,548.7 million, with a slight drop compared to the € 2,558.9 million recorded at 31 December 2016, thanks to the positive and rising cash flow generation which allowed, among other things, the recent acquisitions to be financed. The net debt/EBITDA ratio, calculated on a rolling 12-month basis, therefore settled at 2.7, highlighting an improvement in financial solidity. Gas The gas area, which includes services in natural gas and LPG distribution and sales, district heating and heat management, recorded an EBITDA that settled at € 135.6 million in the first quarter of 2017, increasing over the € 130.3 million seen at 31 March 2016 (+4.1%) thanks to higher volumes of gas sold and the wider scope of the service offered. The number of gas customers rose to almost 1.4 million, up 4.2% over the same period in 2016, thanks to commercial actions, the new portions of the default service awarded and the two acquisitions recently carried out in Abruzzo (Julia Servizi and Gran Sasso). The gas area accounted for 44.2% of Group EBITDA. Water cycle EBITDA for the integrated water cycle area, which includes aqueduct, purification and sewerage services, went from € 49.8 million in the first quarter of 2016 to € 53.3 million in the first three months of 2017 (+6.9%), thanks in particular to higher revenues from delivery. A premium for service quality also contributed to the results, granted by the regulatory authorities based on the current tariffary method. The integrated water cycle area accounted for 17.4% of Group EBITDA. Waste The waste area, which includes waste collection, treatment and disposal services, recorded an EBITDA which went from € 62.4 million in the first quarter of 2016 to € 64.0 at 31 March 2017 (+2.6%). This trend is explained by both the good performances in the urban hygiene sector and the higher volumes of market waste treated. The operational status of the Ravenna and Imola plants in the first quarter of 2017, indeed, allowed free market activities to increase by roughly 8%. These good results were able to more than offset the impact of the end of incentives for renewables, largely linked to a WTE plant in the Molise reagion (roughly -3 million). As regards the company Aliplast, instead, given that the acquisition was formally concluded on 3 April 2017, it will contribute to the Group’s half-year results. Good results were seen in the area of sorted waste as well, which rose to 57.5%, compared to the 56.2% seen in the first three months of 2016, thanks to the wide range of projects implemented across all areas served. The waste area accounted for 20.9% of Group EBITDA. Electricity EBITDA for the electricity area, which includes services in electricity production, distribution and sales, rose from € 31.6 million in the first quarter of 2016 to € 48.4 million at 31 March 2017 (+53.2%), thanks above all to a higher amount of sales on the free market and the safeguarded market, as well as profits in electricity production. In this area, furthermore, the number of customers increased to over 900,000 (+5.6% compared to Q1 2016), thanks among other things to reinforced commercial action and the acquisition of customers from the Abruzzo companies. The electricity area accounted for 15.8% 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 interim management report and related materials will be available to the public at Company Headquarters and on the website www.gruppohera.it. Unaudited extracts from the Interim Financial Statements at 31 March 2017 are attached. PROFIT & LOSS (M€) 31/03/2017 INC% 31/03/2016 INC.% CH. CH. % Sales 1,585.5 1,235.4 +350.1 +28.3% Other operating revenues 82.1 5.2% 73.7 6.0% +8.4 +11.4% Raw material (732.2) -46.2% (608.5) -49.3% +123.7 +20.3% Services costs (488.8) -30.8% (281.7) -22.8% +207.1 +73.5% Other operating expenses (12.0) -0.8% (12.1) -1.0% -0.1 -0.8% Personnel costs (137.2) -8.7% (132.9) -10.8% +4.3 +3.2% Capitalisations 9.4 0.6% 4.6 0.4% +4.8 +104.8% Ebitda 306.8 19.4% 278.4 22.5% +28.4 +10.2% Depreciation and provisions (119.5) -7.5% (107.6) -8.7% +11.9 +11.1% Ebit 187.3 11.8% 170.8 13.8% +16.5 +9.7% Financial inc./(exp.) (23.1) -1.5% (25.7) -2.1% -2.6 -10.1% Pre tax profit 164.2 10.4% 145.1 11.7% +19.1 +13.2% Tax (48.9) -3.1% (48.4) -3.9% +0.5 +1.0% Net profit 115.3 7.3% 96.8 7.8% +18.5 +19.1% Attributable to: Shareholders of the Parent Company Minority shareholders 109.9 5.4 6.9% 0.3% 91.2 5.6 7.4% 0.5% +18.7 -0.2 +20.5% -3.5% BALANCE SHEET (M€) 31/03/2017 INC% 31/12/2016 INC.% CH. CH. % Net fixed assets 5,663.7 108.3% 5,564.5 108.7% +99.2 +1.8% Working capital 121.6 2.3% 99.9 2.0% +21.7 +21.7% (Provisions) (553.8) (10.6%) (543.4) (10.7%) (10.4) +1.9% Net invested capital 5,231.5 100.0% 5,121.0 100.0% +110.5 +2.2% Net equity 2,682.8 51.3% 2,562.1 50.0% +120.7 +4.7% Long term net financial debt 2,757.3 52.7% 2,757.5 53.9% (0.2) +0.0% Short term net financial debt (208.6) (4.0%) (198.6) (3.9%) (10.0) +5.0% Net financial debts 2,548.7 48.7% 2,558.9 50.0% (10.2) (0.4%) Net invested capital 5,231.5 100.0% 5,121.0 100.0% +110.5 +2.2% 1Q 2017 centrata 1Q 2017 For further information /documents/1514726/4210734/Hera_Group_Consolidate_quarterly_report_as_at_31_march_2017.1494411806.pdf/431600c0-8838-3de5-7c9a-80eacf5f0884?t=1597908154820 Financial report as at 31/03/2017 /-/hera-board-of-directors-approves-1q-2017-results-1?inheritRedirect=true Press release /documents/1514726/4210734/Hera_Group_Newsletter_Q1_2017_eng.1494402651.pdf/a7f8511a-3667-8939-9631-07f3357634fe?t=1597908153812 Newsletter as at 31/03/2017 /documents/1514726/4210734/Dati_finanziari_ed_operativi_di_sintesi_1Q_2017_eng.1494320025.xls/5c33e18f-6c76-66b0-43fa-a1bd7751036f?t=1597908153470 Financial data as at 31/03/2017 Risultati finanziari 2017-05-08

Number of directors passes from 14 to 15, with an additional member representing minority shareholders. Increased presence of women in the Board of Directors and the Board of Statutory Auditors Number of directors passes from 14 to 15, with an additional member representing minority shareholders. Increased presence of women in the Board of Directors and the Board of Statutory Auditors Hera’s Ordinary Shareholders Meeting took place in Bologna this morning. Among the various resolutions adopted, the Meeting appointed the members of the Board of Directors and the Board of Statutory Auditors for the upcoming three years. In addition, the 2016 financial statements were approved, as was the resulting payment of a dividend set at 9 cents per share. Approval of financial statements and dividend at 9 cent./share In its ordinary session, the Meeting approved the financial statements for 2016, which showed improvement in all operating-financial indicators, with results exceeding expectations. The presentation of the sustainability report, furthermore, confirmed the Group’s ever greater attention towards sustainability in all its facets. The key factors in this success, that allowed it to continue its growth in spite of an increasingly challenging regulatory and market scenario, were once again the Group’s consolidated multi-business strategy and its combination of internal and external growth. The 2016 financial year closed with revenues reaching € 4,460.2 million, in line with the previous year, EBITDA at € 916.6 million (+3.6%) and net profits for Shareholders at € 207.3 million (+14.8%). The Meeting therefore approved the Board of Directors’ proposal of paying a dividend of 9 cents per share, in line with the amount paid one year earlier and already announced in the business plan to 2020. It is worth mentioning that this same business plan, in reaffirming a high degree of attention towards the creation of value for shareholders as well, projects an increase in forecasted earnings and a dividend policy showing growth over its historical trend (beginning with the amount paid in 2018), with a gradual change over the upcoming four-year period of 11%. The ex coupon date has been set at 19 June 2017, with payment beginning on 21 June 2016. The dividend paid, based on the price of Hera stock at 31/12/2016, corresponds to an annual return of over 4%. Renewal of the Board of Directors, with an additional director representing minority shareholders Furthermore, the Board of Directors was renewed for the upcoming three years (in office until the Meeting held to approve the financial statements for 2019), with its components passing from the previous 14 to the current 15 members, with an additional director representing minority shareholders. This came about in implementation of the amendment of the Articles of Association (approved by the Shareholders Meeting held on 28 April 2015) calling for an increase, as of 2017, of the number of current members of the Board of Directors from 14 to 15, 4 of whom (instead of 3) to be elected from the lists presented by minority shareholders. As per the outcome of the voting, the following have been appointed to the Board of Directors: Majority list (representing Hera's public shareholders' Agreement): Tomaso Tommasi di Vignano, Stefano Venier, and the independent directors Giovanni Basile, Giorgia Gagliardi, Stefano Manara, Danilo Manfredi, Giovanni Xilo, Sara Lorenzon, Marina Vignola, Aldo Luciano, Federica Seganti. Minority list: the independent directors Massimo Giusti, Erwin Paul Walter Rauhe, Francesca Fiore, Duccio Regoli. Renewal of the Board of Statutory Auditors As regards the Board of Statutory Auditors, the following were appointed: Majority list (representing Hera's public shareholders' Agreement): Marianna Girolomini, Antonio Gaiani (standing auditors), Valeria Bortolotti (alternate auditor) Minority list: Myriam Amato(President), Stefano Gnocchi (alternate auditor) Increased presence of women in the Board of Directors and the Board of Statutory Auditors The composition of the Group's corporate bodies fully implements the provisions contained in Law no. 120 of July 12, 2011 (already transposed into Hera's Articles of Association by the 2013 Shareholders Meeting), which introduced the principle of gender balance in the corporate positions of listed companies. To this end, the law foresees that the breakdown of directors and statutory auditors to be elected be reached in such a manner that the least represented gender obtains at least one third of the members of the Board of Directors and of the Board of Statutory Auditors. The presence of women thus comes to 5 out of the 15 members of the Board of Directors and 2 out of the 3 standing members of the Board of Statutory Auditors. 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 € 180 million over 18 months. This authorisation renewal was requested to pursue the aims allowed by current regulations and accepted market practices, including investment opportunities involving the use of treasury shares to increase the creation of value and any acquisitions of holdings that also involve equity trading. The Meeting furthermore confirmed remuneration policies for members of the Board of Directors, maintaining unchanged the amount due. Lastly, the reports on corporate governance was put to the Meeting's attention, which contains a few changes in line with international best practices. Hera top management confirmed The session dedicated to the assignment of Hera's Board of Directors, appointed this morning by the multi-utility's Shareholders Meeting, was held this afternoon in Bologna. The Board appointed the Chairman, the Vice Chairman and the CEO. Tomaso Tommasi di Vignano was confirmed as Hera's Chairman, acting as executive administrator. Born in Brescia, he has been guiding the Hera Group since it was created in 2002, after accumulating at length experience in telecommunications and in the utility sector. Giovanni Basile was confirmed as Hera's (non-executive) Vice Chairman. He has held this office since 2014. Born in Modena, a licensed accountant and auditor, he is a board member and statutory auditor of a number of companies and non-profit organisations in Italy and abroad. Stefano Venier was confirmed as CEO. Born in Udine, he has been part of Hera since 2004, previously holding the position of Development and Market General Director. Prior to that, Venier held positions with increasing responsibility in the Eni Group and at a leading international consulting firm, in which he acted, between 2002 and 2004, as Vice President for Energy & Utilities. Continuity in corporate governance policies has therefore been reaffirmed as one of the Hera Group's main strengths, as shown by a study by Kepler Cheuvreux dating to 14 February 2017 of the four local utilities, in which Hera was positively evaluated thanks to no other than its stable governance and management credibility, along with its solid foundations, low-risk growth strategy, future growth opportunities and attractive dividend policy. 2017 Annual Shareholders' Meeting centrata 2017 Annual Shareholders' Meeting https://www.youtube.com/watch?v=fsxyokCvJ_g&rel=0#prettyPhoto For further information /-/hera-shareholders-meeting-corporate-offices-renewed-and-9-cent-dividend-approved-1?inheritRedirect=true Price sensitive press release /group_eng/corporate-governance/shareholders-meetings Go to Shareholders' meetings section 110_Ass.1493215127.bmp Hera's General Meeting of Shareholders 2014-04-23

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 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 centrata BE 2016 For further information /-/hera-group-approves-results-as-at-31/12/2016-1?inheritRedirect=true Press release /documents/1514726/4210749/Financial+results+as+of+31_12_2016.pdf/4baee448-58b8-687b-b16a-b97029e0fd8e?t=1629971637171 Interactive annual report /documents/1514726/4210749/Hera_Group_Newsletter_Y2016_eng.1490085936.pdf/bef30ba8-31ce-bf4b-bf20-03bba8adfb41?t=1597909530669 Newsletter Y2016 /documents/1514726/4210764/GruppoHera_Sustainability_report_2016.1500562631.pdf/449119af-daf8-0919-95e3-8389fcb8ba99?t=1597911228598 Sustainability report 2016 Financial Results 2016 Financial Results 2016 2014-03-19

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 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 870.1487773774.png top Employer 870 FOR FURTHER INFORMATION top_employer_2017_110x150.png Top110 2014-03-19

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 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 FOR FURTHER INFORMATION teseco_110.bmp Teseco 110 2014-03-19

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 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 centrata Business Plan to 2020 FOR FURTHER INFORMATION /group_eng/investors Go to IR section hera-group-approves-business-plan-to-2020 Press Relase Piano Industriale Piano Industriale 2014-03-19

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 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 FOR FURTHER INFORMATION 110_aliplast.1484140357.bmp Aliplast 2014-03-19