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The Global Commitment Annual Progress Report 2024, which provides a detailed overview of the progress made by the more than 500 signatories of the Global Commitment in the fight against plastic waste pollution, was presented today. Launched in 2018 by the Ellen MacArthur Foundation in partnership with the United Nations Environment Programme (UNEP), the Global Commitment brings together companies, governments, and NGOs in a concrete effort to promote the transition to a circular economy and innovation in materials and business models, while addressing plastic waste pollution. The signatories to the initiative, including the Hera Group, the only Italian utility company to sign up to it, commit to setting ambitious targets to report on and to publicly report progress annually. The 2024 Annual Report highlights, among others, the following progress: The signatories' efforts have prevented the use of 9.6 million tonnes of virgin plastic since 2018, equivalent to 1 trillion single-use plastic bags. For the sixth consecutive year, signatories continued to increase the use of post-consumer recycled plastic (PCR) containers. By increasing the use of recycled plastic, the signatories are avoiding the extraction of one barrel of oil every two seconds, eliminating the equivalent of the carbon emissions of a city of almost 750,000 people. In particular, the Hera Group has committed to increase the following by 2025 (compared to 2017): plastic collected in the municipalities served by 30%; plastic sorted and sent for recycling in its plants by 50%; plastic recycled by Aliplast by 70%.   The Hera Group’s figures at the end of 2023 indicate that the path taken is the right one. With regard to the plastics collected in the municipalities served, the multi-utility reached its 2025 target three years ahead of schedule, also thanks to the contribution of citizens who, in recent years, have improved sorting with a view to recycling. The Ellen MacArthur Foundation The Ellen MacArthur Foundation is an international charity whose mission is to accelerate the transition to a circular economy to address some of the greatest challenges of our time, such as climate change, biodiversity loss and pollution from plastic sources. Founded in 2010, the Foundation works with a network of public and private sector actors, as well as academia, to design and build circular economy initiatives and solutions. Since 2017, the Hera Group has taken part in the Foundation's programme.   For further information Consult the Global Commitment Annual Report 2024 img_primo_piano_commitment.png The annual report highlights the progress achieved by signatories in combating plastic pollution. Hera is the only Italian company in the sector to sign up to the initiative. It plans to increase the amount of plastic collected and sent for recycling by 2025 Global Commitment 2024_110.png

Financial highlights Revenues at 8,187.4 million euro (-25.3%) Ebitda at 1,037.6 million euro (+3.1%) Net profit for Shareholders at 282.9 million euro (+20.1%) Gross operating capex at 561.1 million euro (+9.2%) Net financial debt at 4.175,0 million euro and Net debt/Ebitda ratio at 2.74x Business highlights Growth in operating results sustained by increased volumes in energy sales and volumes treated in the waste management area, which confirmed its resilience within a less expansive macroeconomic context Positive contribution to operating growth also coming from all regulated activities, following the Authority’s revisions of tariff systems and ongoing cost-efficiency projects Continuous growth in the customer base: over 7.5 million citizens with at least one service provided by the Group Innovative initiatives maintained to accompany the ecological transition in the local areas served and strengthen the resilience of assets, in line with the strategy to achieve Net Zero by 2050 Today, the Hera Group’s Board of Directors, chaired by Executive Chairman Cristian Fabbri, unanimously approved the consolidated quarterly report at 30 September 2024. The first nine months of 2024 showed a decrease in turnover, caused by lower energy prices, and a confirmation of growth in operating results and capex, even compared to the significant growth achieved in 2023, sustained by non-recurring components as well. More specifically, the 9.2% increase in operating capex demonstrates the Group’s ongoing focus on developing, enhancing and strengthening the resilience of the assets under management, whose reliability was confirmed once again during the extreme weather and climate phenomena recently recorded in Emilia-Romagna region. Moreover, Hera’s commitment to projects capable of accelerating the path towards the green transition of the communities served remained constant, fully in line with its five-year Business Plan to 2027. Excellent results were achieved in business operations, with growth in both free market and regulated activities, which sustained the increase in Ebitda and operating income and ensured solid value creation for all stakeholders.   Cristian Fabbri, Executive Chairman of Hera Group: “Fully in line with the first half of 2024, the results for the nine months of the year point towards significant growth in all main indicators of our income statement and steady progress in the value created for all stakeholders. In particular, the rise in net profit attributable to Shareholders, which increased by more than 20%, and the increase in return on invested capital, now at 9.5%, confirm that we are fully implementing our Business Plan. The positive financial results were accompanied by an ongoing focus on sustainable growth in the areas in which we operate, and this commitment was confirmed by shared-value Ebitda, which came to roughly 54% of overall Ebitda. These results leverage the Group’s ability to grow in both its free market and regulated activities, continuing along the path of ‘structural’ sustainable development in favour of the communities served. With the beginning of the Gradual Protection Service “STG” provided to customers, and our continuous commercial development, we now supply at least one service to over 7.5 million citizens.”   Orazio Iacono, CEO of the Hera Group: "The report as at 30 September shows an increase coming to over 20% in net profit attributable to Shareholders, which rose to approximately 283 million euro. The Group achieved particularly solid growth, with an important contribution coming from regulated businesses, which benefited from changes in the regulatory framework, and from the waste management business, which showed a continuously increasing Ebitda, especially in the free market, consolidating its leadership in this sector despite a complex macroeconomic context. The operational performance, already positive, was accompanied by a significant contribution from financial management, which are progressively benefitting in 2024 from the liability management and debt rationalisation initiated in the second half of 2023. Moreover, partially thanks to the contribution coming from the EIB financing line, the Group continued to accelerate along its path of green transition, decarbonisation, circular economy and protection of water resources in the territories served. Gross operating investments were up by approximately 10%, and have been rising for many years precisely to work towards a major infrastructure development, with the aim of improving the quality of services and the resilience of all assets. The net debt to Ebitda ratio, which remained steadily at around 2.74x, provides the Group with significant financial solidity and flexibility, allowing it to successfully grasp opportunities for external growth, in line with the targets of the Business Plan".   Revenues at over 8 billion euro At 30 September 2024, revenues amounted to 8,187.4 million euro, down from 10,955.0 million euro in the same period of 2023 (-25.3%), mainly due to the drop in energy commodity prices and a reduction in incentivised activities on energy-saving services. The decrease in turnover due to lower volumes of gas was more than offset by the higher volumes of electricity sold, thanks to significant commercial development, and by higher tariff revenues in network services for regulated businesses, based on the Authority’s new return benchmarks. Ebitda rises to 1,037.6 million euro Ebitda for the first nine months of 2024 increased to 1,037.6 million euro (+3.1%), as against 1,006.8 million euro at 30 September 2023. This growth was entirely organic and structural, driven by the water cycle and the good performances of the waste management and electricity areas, which allowed the Group to fully offset the loss of margins linked to the super-ecobonus, included in the gas area, and confirming once again the solidity of its multi-business portfolio. Ebit increases to 522.5 million euro Ebit for the first nine months of 2024 rose to 522.5 million euro, up 3.5% from 504.6 million euro in the same period of 2023. This increase was supported by a normalisation of provisions, due to a standardisation in the prices of commodities in energy markets; this partly offset the increase in amortisation related to the trend in investments over the last few years, mainly linked to the development of plants in the waste management sector and in water and energy distribution networks. Financial operations: excellent results in the first 9 months Financial operations for the first nine months of 2024 amounted to 89 million euro, improving by 50.7 million compared to the same period of the previous year, mainly due to the rationalisation of the financial structure. Net profit pertaining to Shareholders up by over 20% At 30 September 2024, net profit amounted to 312.1 million euro (+16.8%), compared to 267.1 million in the same period of 2023, with a tax rate coming to 28%, up slightly mainly due to lower tax benefits. Net profit attributable to Shareholders rose to 282.9 million euro, up 20.1% compared to the 235.5 million euro seen at 30 September 2023. Strong growth in operating investments and the Group’s financial solidity confirmed In the first nine months of 2024, operating investments, including capital grants, amounted to 561.1 million euro, up 47.1 million euro compared to the previous year (+9.2%) and mainly related to development work on plants, networks and infrastructures, as well as regulatory upgrading, particularly in energy and water networks. The Group’s financial solidity was fully confirmed, with a net debt/Ebitda ratio of 2.74x. This figure remained constant throughout the year, leaving ample financial flexibility for potential new opportunities in the future. The total amount of net financial debt in the first nine months of 2024 came to 4,175 million euro, in line with the 4,148.9 million euro seen at 30 September 2023. Financial returns improved both on invested capital, which stood at almost 8 billion euro, and on equity: ROI rose to 9.5% (from 9% at 30 September 2023) and ROE to 11.7% (from 10.6% in the first nine months of the previous year).   For further information Press release Visit Investors web area   primo_piano_risultati9M_eng.png The first nine months of the year closed with growth in the main financial indicators and in capital expenditures, in line with the first two quarters and the Business Plan targets img_9M2024_110x150.jpg

From 5 to 8 November 2024, the Fiera di Rimini will host Ecomondo, the leading European fair on ecological transition, technological and industrial innovation in environmental services and the green economy, focusing on waste and resources, the circular bio-economy and water. We are at Pavilion C1, Stand 500, with a two-story exhibition space covering 550 square metres, where Hera Group is present along with Herambiente and its subsidiaries (Aliplast, Recycla, Herambiente Servizi Industriali, TRS Ecology, Vallortigara, A.c.r. Reggiani). The stand is decorated with works of art made from recycled materials by SCART, the Hera Group project devoted to the artistic regeneration of industrial waste, in full compliance with the circular economy. This year, SCART presents a new version of the "Gli Animali" project, proposed at Ecomondo in 2015. It is one of the projects that have achieved great success in many traveling exhibitions in recent years, and in 2024 it’s be proposed again with more new works. In addition to the students of the Academies of Fine Arts of Florence and Ravenna, the artists of the SCART community Alberto Salvetti and Fabrizio Giorgi worked on this new exhibition. In the external area of the main entrance dedicated to Hera Group, the “Capodoglio Giovanni” returns, created by Edoardo Malagigi by reusing over 3000 food containers. The Capodoglio is 13 meters long and is a faithful reproduction of a sperm whale that lives between Sardinia, the Island of Elba and Toulon, it’s called Giovanni and was registered in 1993.   For further information Visit Ecomondo website   null null null null null null null null null null null null gallery ecomondo 01.jpg gallery ecomondo 02.jpg gallery ecomondo 03.jpg gallery ecomondo 04.jpg gallery ecomondo 05.jpg gallery ecomondo 06.jpg gallery ecomondo 07.jpg gallery ecomondo 08.jpeg gallery ecomondo 09.jpeg gallery-ecomondo-10.jpg gallery-ecomondo-11.jpg gallery-ecomondo-12.jpg null null null null null null null null null null null null null null null null null null null null null null null null eco-870x320 eco-110x150

At ENLIT Europe 2024, one of the most important fairs for energy transition focusing on innovations in smart grid technologies for decarbonization, Hera Group and Panasonic Industry Europe strengthen their collaboration by extending the commercial agreement for the distribution of the innovative NexMeter gas meter to the European gas distribution market, with potential future partnerships with global operators. The collaboration between Gruppo Hera and Panasonic dates back to 2019, when the multi-utility launched its 4.0 smart gas meter, equipped with advanced safety and leakage reduction functions, which later evolved in terms of hardware and software. Conceived by an industrial group with a strong focus on sustainability, NexMeter is mainly built with recyclable components. Since 2021, Hera has also introduced recycled plastic components and obtained the “compatibility” label for green gas mixtures such as hydrogen and biomethane. NexMeter is now a consolidated device. The Hera Group’s development plan has led to the installation of about 300,000 meters mainly in Friuli-Venezia Giulia and Emilia-Romagna, areas classified as of high seismic risk. Thanks to its advanced features and shut off valve, the meter can detect gas leaks in the users’ homes, stop the supply in case of dangerous leaks, and alert emergency centers autonomously. To date, 70 alert cases have been recorded, 18 of which avoided serious incidents. Additionally, NexMeter’s extreme sensitivity allows the detection of even small, often hidden leaks, effectively contributing to the reduction of methane emissions into the atmosphere in homes and companies. For the Hera Group, the NexMeter is a strategic lever for reducing Scope 3 emissions as outlined in its Climate Transition Plan with a net zero target by 2050. This document, in line with the scientific community guidelines, quantifies the Group’s current and future emission impacts and illustrates both the contribution of external scenario evolution and the internal decarbonization levers the company will implement with an active stakeholder involvement. One of the most innovative aspects of Hera Group’s net zero plan is the aim to reduce emissions not only within its activities but also along the entire value chain, investing in solutions that promote energy efficiency and electrification at consumption centers. For further information Press release nexmeter_870_new.png Thanks to its advanced features in measurement and safety in case of dangerous leaks, proven performances in emission reduction and energy efficiency, the device plays an essential role in the decarbonization of consumption centers nexmeter_110.jpg

Capturing carbon dioxide emitted from the waste-to-energy plant’s chimneys and storing it in depleted natural gas fields, thereby significantly reducing plant emissions while contributing to the decarbonization of local areas. This is the goal of the pioneering project for the Ferrara plant - proposed by Hera Group, as the lead partner, in collaboration with Saipem - that has been selected to receive funding under the fourth call for mid-scale projects from the EU Innovation Fund. Once the allocation is finalized, the funding for the CO₂ emission capture project will amount to nearly €24 million. This industrial CO₂ capture project is the first of its kind in Italy designed for waste-to-energy plants and among the first in Europe. It involves the application of Bluenzyme™️, Saipem's proprietary and modular solution based on “CO₂ Solutions”, an innovative enzymatic technology for capturing carbon dioxide in industrial processes of small and medium emitters. The initiative was selected by European authorities for its high level of innovation, and its potential replicability in other waste-to-energy plants and other hard-to-abate industrial sectors in Italy, and more generally across Europe. The European Funds will cover a significant portion of the €53 million planned for the construction of the CO₂ capture plant. Depending on opportunities arising from changes in the regulatory framework, the plant is expected to be operational by 2028. The project will fully abate CO₂ emissions from the Ferrara waste-to-energy plant CO₂ capture is a crucial decarbonization tool for waste-to-energy plants, and for now, the Herambiente plant in Ferrara has been identified as the most suitable. The project will enable, in fact, the capture of approximately 90% of the emissions from one of the plant's two lines, amounting to 64 thousand tons of CO₂ per year (equivalent to the annual emissions of around 37 thousand cars), which represent the entirety of the CO₂ emitted, making the entire energy production from the waste-to-energy process sustainable. The remaining share of the CO₂ emitted by the plant is biogenic in nature and therefore environmentally neutral. The captured CO₂ will be transported via pipeline and stored in the depleted gas fields of the Northern Adriatic. The new CO₂ capture plant will ensure high standards of safety and innovation, while maximizing energy efficiency. It will be entirely green, as it will exploit renewable energy, both generated from the waste-to-energy plant itself and from geothermal heat delivered through the multiutility’s district heating network. The enzymatic capture process, with a low environmental impact, can be powered by low-temperature heat, such as geothermal heat. Further CO₂ emissions will therefore be avoided. For further information Press release sede_hera_870_rev 1 (1).png It will be the first industrial-scale example of CCS applied to a plant of this type in Italy. The project is one of the main decarbonization levers in the multi-utility's Climate Transition Plan to reduce internal emissions sede_hera_110 (2).jpg

For the 9th consecutive year, we have been confirmed as one of the world’s Top 100 companies most attentive to diversity and inclusion, according to the recognition given by the FTSE Diversity and Inclusion Index, the international index designed by FTSE Russell (formerly Refinitiv). We ranked top multi-utility overall, 3rd among Italian companies and 19th globally in the ranking compiled on the basis of data collected by FTSE Russell at 30 June 2024. This international benchmarking company analysed more than 15,500 listed companies worldwide, which were assessed according to 24 parameters divided into four pillars: gender diversity, inclusion, people development and controversies. Fairness and inclusion are also among the main pillars of the Good Work Deal signed in July with the trade unions. This broad, innovative and programmatic document represents a historic deal with the trade unions and provides an unprecedented instrument to companies in the sector. The new elements contained in the Agreement include a commitment to support parenting, frail persons, and caregivers, the valorisation of diverse abilities, investment in the growth and wellbeing of the people who work in the Group, the fight against gender-based violence and the promotion of inclusion. These results are achieved through concrete actions and by building a culture of fairness and inclusion. For further information Our commitment in D&I   D&I_870 1.png The Hera Group ranked 3rd in Italy and 19th globally among the 100 most inclusive and diversity-conscious companies D&I_110.jpg

Financial highlights Revenues at 5,536.8 million euro (-33.3%) Ebitda at 732.7 million euro (+2%*) Net profit for shareholders at 218.4 million euro (+16.4%*) Gross operating investments at 344.4 million euro (+8.2%) Net financial debt at 4,063.5 million euro (-2%), with Net debt/Ebitda ratio at 2.69x (-10%) Business highlights Contribution to structural growth coming from all business areas Significant increase in the energy customer base, further consolidating the Group’s position as Italy’s third largest operator in this sector Ongoing innovative initiatives to support sustainable growth benefitting all stakeholders, with a clear improvement in shared-value Ebitda, at 53% (+1%), and further projects favouring employees, suppliers and the reduction of climate-changing emissions Today, the Board of Directors of the Hera Group, chaired by Executive Chairman Cristian Fabbri, unanimously approved the consolidated results for the first half of 2024. The half-year ended with increased operating results and investments compared to the same period of the previous year, within a more stable market scenario due to the reduced volatility of energy commodity prices. The Group’s good operating and financial performance is the result of its consolidated multi-business model, balanced between regulated and free-market activities. The consolidated half-year report at 30 June demonstrates, once again, Hera’s considerable financial solidity and confirms its focus on the resilient and sustainable growth of the company and the local areas served, creating value for all stakeholders.   Cristian Fabbri, Executive Chairman of Hera Group: “The results for the first half of 2024, with main economic and financial indicators increasing, also testify to the constant generation of value for all our stakeholders. Ebitda rises to 732.7 million euro, thanks to the contribution of core business areas, and a strong improvement in ROI is recorded, which stands at 9.6% - 10% higher than in the same period last year - fully confirming a profitability strongly underpinned by the growth of ‘structural’ activities. This further progress, following up on the extraordinary results of 2023, shows our Group’s ability to achieve the goals included in our Business Plan, creating the conditions for further development, supported by an 8% increase in investments. The creation of value for shareholders, to whom dividends were distributed with a 12% increase, in the first half of the year, was accompanied by significant results in ESG factors, including an increase in shared-value Ebitda, now reaching 53% of total Ebitda, the definition of a strategy to reach the Net Zero target by 2050, the signing of the Good Work Deal and the supplier development programme, which further confirm the centrality of the environment, workers and suppliers as protagonists and beneficiaries of the path for sustainable development defined in our Business Plan, in favour of the communities in which we operate. Moreover, in July we further expanded our Electricity business adding one million customers, following the recent award of the tender for the Gradual Protection Service for non-vulnerable household customers”.   Orazio Iacono, CEO of the Hera Group: "Our half-year report shows a significant increase of over 16% in net profit attributable to shareholders, which rose to over 218 million euro. Industrial growth was reinforced by a relevant contribution coming from the financial structure. Financial solidity was guaranteed by the net debt/Ebitda ratio, which stands at 2.69x, confirming a full financial flexibility. Growth in operating margins was due, in particular, to the excellent performance of networks, which in total contributed almost 270 million euro to the Group's EBITDA, equal to 11%, thanks in particular to energy distribution services and the water cycle, and to the acceleration of growth in the waste area, which rose to 172 million euro (+5.3%). An infrastructure platform and an integrated multi-business strategy that makes the most of industrial synergies among the Group’s subsidiaries confirm our role as enabler of the green transition and the resilience of the activities carried out in the served areas. The achievement of the Net Zero target to 2050 will also be supported by technological innovation, such as, for example, the installation of carbon capture and storage technologies on several of the Group's waste-to-energy plants”.   Revenues at over 5.5 billion euro Revenues amounted to 5,536.8 million euro, as against 8,297.5 million at June 30, 2023 (-33.3%), mainly due to lower energy prices and lower values in trading activities. More generally, the greater stability seen in commodity prices positively influenced the performance of the entire operating and financial management during the period.   Ebitda rises to 732.7 million euro Ebitda for the first half of 2024 rose to 732.7 million euro (+2%*), compared to 718.3 million euro at June 30, 2023. This growth was driven by all core activities in the portfolio, from the integrated water cycle to both regulated and free-market activities in waste management and traditional energy sales and distribution activities, allowing the Group to compensate for the loss of margins related to the super-bonus.   EBIT and pre-tax result increase Ebit at June 30, 2024 grew to 385.1 million euro, up 2.8%* from 374.7 million euro seen in the first half of 2023. This positive performance was linked to lower provisions for bad debts, mainly involving energy customers due to lower commodity prices. This decrease almost completely offset the rise in amortisation related to development investments, in line with the Business Plan. Significant improvement was also seen in financial operations, thanks to the gradual easing of the financial absorption caused by the energy crisis and the ensuing financial rationalisation, which led to savings in expenses related to debt, and income from tax credits for incentivised work in 2023. The positive results of operational and financial management led the pre-tax result to stand at 329.6 million euro (+16%*), as against 284.2 million at June 30, 2023.   Net profit for shareholders increases significantly, reaching 218.4 million euro The net income rose to 237.3 million euro (+14.1%*), compared to 208 million in the first half of 2023, after a tax rate at 28%, as against 26.8% at June 30, 2023, the latter underpinned by non-recurrent tax benefits. A significant increase also occurred in net profit for Group Shareholders, coming to 218.4 million euro (+16.4%*), as against 187.7 million at June 30, 2023. These results confirm the creation of value for all stakeholders, perfectly in line with the expectations of the Plan.   Operating investments rise and Group solidity further strengthened The amount of investments made confirms Hera’s strategic plans and involved significant work on plants, networks and infrastructures. Operating investments in the first half of the year, including capital grants, amounted to 344.4 million euro, up 8.2% from 318.4 million euro at June 30, 2023. The total amount of net financial debt came to 4,063.5 million euro, compared to 3,827.7 million at 31 December 2023 and improving by 2% compared to the first half of 2023. The net debt/Ebitda ratio stood at 2.69x, well below the Group’s historically conservative policy, confirming the Group’s financial solidity. Maintaining low financial leverage gives Hera flexibility to further expand operations. In addition, to secure any additional extraordinary liquidity needs, the Group still has a 450 million euro sustainable revolving line, maturing in 2028, and a 460 million euro EIB financing line, usable within September 2026 with a sixteen-year term.   For further information Press release Visit Investors web area   img_1H2024_banner_en.png The consolidated half-year report at 30 June indicates growth in the Group’s main operating-financial indicators and shows its considerable financial solidity, fully in line with the targets set out in the Business Plan. img_1H2024_110x150_en.jpg

Today, the Board of Directors of the Hera Group, one of Italy’s largest multi-utility companies operating in the waste management, energy and water sectors, approved the Climate Transition Plan, a document that presents the Group’s strategy and commitment to achieve Net Zero by 2050. This goal will be pursued as regards both direct and indirect greenhouse gas emissions, reducing them by 90% overall within 2050 (compared to 2019) and removing all residual emissions at the end of the path to decarbonisation. The Climate Transition Plan sets out the key aspects of the Group’s strategy over the short, medium and long term, consistently with the indications and trajectories outlined by the scientific community, starting with the 2015 Paris Agreement, to limit global warming to within 1.5°C at the end of the century, compared to pre-industrial figures. This document therefore presents the Hera Group’s vision and commitments for a sustainable future, quantifying its current and future impact in terms of emissions and illustrating both the internal decarbonisation levers that the company will activate to achieve Net Zero with the full involvement of all stakeholders, and the contribution coming from the evolution of the external scenario. Well integrated within the Group’s more general strategy, the definition of a long-term Net Zero objective contributes to the concrete form taken by its corporate purpose – which explicitly mentions the achievement of carbon neutrality – and is consistent with the decarbonisation commitments already undertaken by the Group with an outlook to 2030. For further information Press release bannerino_netzero_rev (2).png The Hera Group’s climate change mitigation strategy is now enriched with the definition of the Climate Transition Plan and the goal of reaching Net Zero by 2050 as regards direct and indirect emissions Immagine_110_150 (1).jpg