Press releases

Herambiente's purchase of the first 40% of shares of the Treviso-based company, a national leader in plastic recycling, was completed today. A further 40% will be purchased within March 2018 and the remaining 20% within June 2022. The acquisition by Herambiente, a Hera Group company and national leader in waste treatment and recovery, of 40% of shares in Aliplast, a widely recognised protagonist in the sector of plastic waste collection and subsequent regeneration, was brought to completion in Bologna today. A further 40% of the company's shares will be acquired within March 2018, and the remaining 20% within June 2022. The overall amount involved in purchasing 40% of Aliplast comes to roughly € 35.4 million, to which one must add a further € 1.2 million for receiving, in 2014, a contribution as an energy consuming enterprise. The purchase was carried out using the Group's own resources. This important operation, complementary to the ones involving Waste Recycling (Castelfranco di Sotto, Pisa) and the environmental assets of Geo Nova (Treviso) in late 2015, as well the more recent acquisition of Teseco (Pisa) plants, is part of the path towards enlarging the Hera Group's consolidated scope, pursued as of some years, and is in line with the Group's strategy of geographical expansion and integration. Thanks to the acquisition of Aliplast, alongside the recent announcement of the beginning of works on the first biomethane production plant, in the area surrounding Bologna, the Hera Group has consolidated its position as a leader in furthering the principles of a circular economy, in which waste is transformed into resources. Suffice it to recall that even in 2016, without the contribution coming from these plants, Hera recycled 64% of packaging products, compared to the 65% set as an objective for 2025, and recovered over 94% of sorted waste. Established in 1982 by Roberto Alibardi and based in Ospedaletto di Istrana (Treviso), Aliplast is a national leader in plastic industrial waste collection and regenerated polymer recycling and producing, with over 80,000 tonnes of plastic materials recycled every year. It was the first enterprise in Italy to fully integrate the entire life cycle of plastic, from environmental services in managing and collecting industrial residues and packaging to production and market sales of manufactured goods and packaging materials, produced with plastic recycled by the company itself. Over 300 employees work in Aliplast's five plants in Italy and three abroad (Spain, France and Poland). "We are very satisfied with this signing - states Tomaso Tommasi di Vignano, Executive Chairman of the Hera Group - which represents an important step towards the complete acquisition of Aliplast. With this operation, we have given new momentum to our long-standing commitment to a circular economy, giving full value to a company that was a pioneer in Italy, offering many lessons and acting ahead of its time. The future - Tommasi continues - must be shaped by bringing to fruition the most outstanding experiences in our own tradition. This will contribute to further growth and allow us to continue overcoming, together, to the benefit of the Group and the areas served, the challenges in sustainability and innovation that await us." "Today is an important day for Aliplast - adds Roberto Alibardi, Administrator and principal shareholder of Aliplast. Now that we have concretely become part of the Hera Group, a new era has indeed opened up, in which the know-how developed by Aliplast will be given further value and expanded, working in the interests of our present and future clients. We will continue working within the company, therefore, to favour the process of integration and formulate the type of managerial contribution that is most appropriate in pursuing the industrial objectives we share with our new partner, together with whom we are eager to achieve new goals." 870_Aliplast.1501171633.jpg Hera Group: first step in Aliplast acquisition completed http://ha.gruppohera.it/ Herambiente 03.04.2017_press_release_first_step_in_aliplast_acquisition_completed.1491298540.pdf 2017-04-03 13:12:00 Hera Group: first step in Aliplast acquisition completed Hera Group: first step in Aliplast acquisition completed 2016-04-05

A virtuous circle that begins with families and returns to citizens, made possible by the new plant that Hera will create in S. Agata Bolognese within 2018, the first multi-utility in Italy to do so. A € 30 million investment, it will lead to the annual production, at full capacity, of 20,000 tonnes of high-quality natural fertiliser and 7.5 million m3 of biomethane, a 100% renewable combustible, improving the carbon footprint of the Group and the area in which it operates. A converted and fully modernised plant With this conversion and modernisation project, work will be done on an already existing site which has hosted for many years a working plant authorised for higher quantities than those now foreseen at full capacity (going from 150,000 to 135,000 tonnes per year, with an ensuing reduction in vehicle traffic) and that will exclusively process sorted waste. Previously, non-sorted waste was taken to the site to be treated and disposed of in the neighbouring landfill. Once the latter's capacity was filled, Herambiente, pursuing the objectives of a circular economy, chose not to expand it, even though authorisation had already been obtained and the project included in provincial planning. The new plant's machinery and operations will be located indoors, minimizing the impact of noise and odours. The air treatment system of the current composting plant is also scheduled to be upgraded, to reduce the odours coming from the phase in which the materials are processed. Composting will take place in cells, constructed inside the plant's buildings, closed and aspirated one by one. The exhausted air drawn out will go through a deodorisation system consisting of biofilters and a water washing unit (scrubber), a technology already used in Northern Europe in similar plants. A filter room, called a foretrough, will furthermore be created, in the area where the waste is transferred and stored, whose function will be to provide further isolation for the area in which waste coming in from the environment is unloaded and stored. Therefore, no combustion plants are foreseen. An innovative solution, and a benchmark for the Italian market The technologies used in the plant are the fruit of research, studies and European competitions that have led Hera to choose the best of what is now available on the market. The project is already becoming a benchmark for the Italian market and will undoubtedly act as a reference point for the entire country. Bearing in mind that new national legislation is expected within next summer, which will promote this type of plant as a source of renewable energy above all by encouraging biomethane production for use in automobiles, further impetus will certainly be added to projects such as this. "Environmental sustainability and a circular economy are two of the main areas on which Hera's innovative policies are focused, with the objective of valorising, and drawing the greatest benefit from, waste and refuse", comments Tomaso Tommasi di Vignano, Executive Chairman of the Hera Group. "This is why we are working on various projects, the most important of which is the S. Agata Bolognese biomethane plant, which also represents a concrete answer to needs such as treating the increasing volumes of sorted waste and contributing to improving both air quality and the carbon footprint. The project respects the guidelines contained in the European commission's "Clean energy for all" package, concerning both energy efficiency, reducing consumption of fossil sources, and second-generation bio-carburant production, including biomethane, coming from waste instead of farmed products. Furthermore, we are already looking into new and innovative processes to valorise other areas of production, such as purification sludge and prunings, to obtain new-generation combustibles". santagata_biometano_infografica_eng_opt.1501172262.png http://ha.gruppohera.it/news/biomethanehera ha.gruppohera.it/news/biomethanehera press_release_biomethane_28032017.1490712750.pdf 2017-03-28 16:26:00 From sorted organic waste to biomethane From sorted organic waste to biomethane 2016-04-05

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. Improvement in all economic-financial and sustainability indicators 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. Revenues amounting to roughly € 4.5 billion Revenues amounted to € 4,460.2 million in 2016, in line with the € 4,487.0 million seen in the previous year. This result includes lesser revenues in regulated services, caused by recent regulatory changes, and lesser revenues in electricity and gas sales and trading, following a drop in the price of raw materials. These negative effects were however almost entirely compensated by changes in the scope of operations and by the revenues produced by higher volumes of gas sold and waste disposed of, in addition to higher revenues for production activities on the dispatch market. EBITDA grows, amounting to € 916.6 million EBITDA rose to € 916.6 million, a clear increase over the € 884.4 seen in 2015 (+3.6%). This growth was sustained by all the main businesses in the company’s portfolio. The waste management area generated positive growth, benefiting among other things from the acquisitions of Geo Nova and Waste Recycling, and thus more than offset both the temporary suspension of a few landfills and the expiry of incentives for renewables concerning some WTE plants. The energy areas recorded higher profit margins deriving from power plants and a good performance of the sales and trading business. The network areas also generated sufficient internal growth to almost offset the over € 31 million reduction in return on regulated invested capital and the effect of inflation. Growth in operating results and pre-tax profits, improvements in financial management Operating profits rose to € 457.1 million, over the € 442.2 seen in 2015 (+3.4%), while pre-tax profits increased to € 339.6 million, against the € 307.9 seen in 2015 (+10.3%), thanks to improvements in financial management amounting to roughly € 17 million compared to the previous year. These positive performances were due above all to a decrease in average debt, efficiency in rates and higher earnings involving recovery of default indemnities from safeguarded customers. Net profits post minorities grow to over € 207 million (+14.8%) Profits pertaining to Group Shareholders rose to € 207.3 million, up 14.8% compared to the € 180.5 million seen in 2015, partially due to a considerable improvement of the tax rate, which went from 36.9% to 35.1% (thanks to the benefits derived from the application of the “patent box” and tax credits for research and development, in addition to tax concessions for maxi amortisations). Due weight must also be given to the negative and non-recurring effect felt by the 2015 tax rate caused by the adjustment of deferred taxes to the new IRES rate of 24%, in force as of 2017. Investments for roughly € 390 million, net debt/EBITDA ratio improves to 2.8 In 2016, Group investments amounted to € 366.4 million. Including € 20.3 million in capital grants, overall Group investments came to € 386.7 million, up compared to the previous year and mainly destined to interventions on plants, networks and infrastructures. Adaptations to regulatory standards also contributed, above all concerning gas distribution, with a large-scale meter substitution project, and the purification and sewerage area. Net debt for 2016 amounted to € 2,558.9 million, with a reduction of roughly € 100 million from the € 2,651.7 seen in 2015, thanks to the generation of positive cash flows that proved able to finance M&As and entirely cover annual dividend payments in June (for a total of € 132 million). The net debt/EBITDA ratio fell to 2.8, an improvement compared to the previous year; this ratio benefited from both growth in operating results and a decrease in net debt. Further improvement in the Group’s sustainability profile These strictly economic results are flanked by data providing evidence of an efficient use of resources (for example, the use of landfills for urban waste is considerable lower than the 10% set as an objective for 2030 by the EU), a reduction in environmental impact (the carbon footprint in energy production fell by 10%), an increase in sorted waste (now 56.4%) and in packaging recycling (now 64%, close to the EU’s 2025 objective), attention given to energy efficiency and a continuous improvement of customer services. All of this confirms the high consideration shown by the Group towards all stakeholders and the area in which it operates. Lastly, the Group’s economic value for the geographical area served now comes to over € 1.7 billion, thanks to greater investments and expanded economic activities, while the portion of EBITDA identified as “shared value” has been calculated for the first time, amounting to € 300 million, roughly one third of the Group Ebitda. Proposed dividend of 9 cents/share The Board of Directors, in light of the results achieved and the solidity of the Group’s assets, has decided to put to the Shareholders Meeting to be held on 27 April a dividend of 9 cents per share, as anticipated by the business plan. The ex-dividend date has been set at 19 June 2017, with payment as of 21 June 2017. 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 cycle 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 EBITDAfor 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 for25.2% 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 Executive Chairman 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.” 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 financial statement and related materials will be available to the public pursuant to the terms established by law at the Company Headquarters, on the website www.gruppohera.it and on the authorised storage platform 1Info (www.1info.it ), within 5 April 2016. Unaudited extracts from the Interim Financial Statements at 31 December 2016 are attached. PROFIT & LOSS (M€) 31/12/2016 INC% 31/12/2015 INC.% CH. CH. % Sales 4,460.2 4,487.0 -26.8 -0.6% Other operating revenues 403.4 9.0% 330.8 7.4% +72.6 +21.9% Raw material (2,176.8) -48.8% (2,256.6) -50.3% -79.8 -3.5% Services costs (1,198.8) -26.9% (1,132.1) -25.2% +66.7 +5.9% Other operating expenses (75.0) -1.7% (62.3) -1.4% +12.7 +20.4% Personnel costs (524.1) -11.7% (510.8) -11.4% +13.3 +2.6% Capitalisations 27.8 0.6% 28.5 0.6% -0.7 -2.5% Ebitda 916.6 20.6% 884.4 19.7% +32.2 +3.6% Depreciation and provisions (459.6) -10.3% (442.2) -9.9% +17.4 +3.9% Ebit 457.1 10.2% 442.2 9.9% +14.9 +3.4% Financial inc./(exp.) (117.4) -2.6% (134.3) -3.0% -16.9 -12.6% Pre tax profit adjusted 339.6 7.6% 307.9 6.9% +31.7 +10.3% Tax (119.3) -2.7% (113.5) -2.5% +5.8 +5.1% Net profit 220.4 4.9% 194.4 4.3% +26.0 +13.4% Attributable to: Shareholders of the Parent Company Minority shareholders 207.3 13.1 4.6% 0.3% 180.5 13.9 4.0% 0.3% +26.8 -0.8 +14.8% -5.8% Balance Sheet (m€) 31/12/2016 Inc% 31/12/2015 Inc.% Var. Ass. Var.% Net fixed assets 5,564.5 108.7% 5,511.3 106.9% +53.2 +1.0% Working capital 99.9 2.0% 157.0 3.0% (57.1) (36.4%) (Provisions) (543.4) (10.7%) (513.5) (9.9%) (29.9) +5.8% Net invested capital 5,121.0 100.0% 5,154.8 100.0% (33.8) (0.7%) Net equity 2,562.1 50.0% 2,503.1 48.6% +59.0 +2.4% Long term net financial debt 2,757.5 53.9% 2,743.6 53.2% +13.9 +0.5% Short term net financial debt (198.6) (3.9%) (91.9) (1.8%) (106.7) +116.1% Net financial debts 2,558.9 50.0% 2,651.7 51.4% (92.8) (3.5%) Net invested capital 5,121.0 100.0% 5,154.8 100.0% (33.8) (0.7%) be2016_870x320_eng_velina.1492010972.jpg /documents/1514726/4210749/GruppoHera_financialresultsY2016_eng_press_release.1490086412.pdf/d7e474bd-fa0e-6cac-907d-d48c377442dd?t=1597909528939 Press release /documents/1514726/4210749/GruppoHera_analyst_presentation_Y2016.1490102876.pdf/000a7e16-af42-a22d-91d4-9b1ee91ff1c0?t=1597909533200 Analyst presentation: Y2016 results /documents/1514726/4880888/GruppoHera+eng+Y2016.mp3/c5ec23ae-4350-9f61-15b2-86bd6f110708?t=1610038364647 Audioconference: Y2016 results /documents/1514726/4210749/Hera_Group_Newsletter_Y2016_eng.1490085936.pdf/bef30ba8-31ce-bf4b-bf20-03bba8adfb41?t=1597909530669 Newsletter: Y2016 results /documents/1514726/4210749/Dati_finanziari_31_12_16_eng.1490000670.xls/7d4a1811-b84a-af3a-4c38-6d58df64dcf0?t=1597909530091 Financial data as at 31 December 2016 https://www.slideshare.net/Gruppo_Hera/analyst-presentation-y2016 Slideshare Y2016 /group_eng/investor-relations/results-and-presentations/archive/benchmark-by-business Benchmark by business /group_eng/investor-relations/results-and-presentations/archive/financial-benchmark Benchmark of consolidated results /documents/1514726/4210749/Financial+results+as+of+31_12_2016.pdf/4baee448-58b8-687b-b16a-b97029e0fd8e?t=1629971637171 Financial results as at 31/12/2016 2017-03-21 13:45:09 Risultati finanziari Financial results Y2016 2017-03-14

We hereby announce that a note of convocation has been published on the Company's website (www.gruppohera.it) for the Ordinary Shareholders Meeting convened at the registered office of Hera S.p.A. - Viale C. Berti Pichat n. 2/4, Bologna - in the "Spazio Hera" area - on 27 April 2017 at 10:00 in a single call to discuss and resolve on the following: Agenda 1. Financial statements for the year ended 31 December 2016, management report, profit allotment proposal and Board of Statutory Auditors and Independent Auditors report: related and consequent resolutions. Presentation of the consolidated financial statements as at 31 December 2016. 2. Presentation of the corporate governance report and non-binding resolutions pertaining to remuneration policies. 3. Renewal of authorisation to purchase treasury shares and procedures for arrangement of the same: related and consequent resolutions. 4. Appointment of the members of the Board of Directors: related and consequent resolutions. 5. Quantification of compensation for members of the Board of Directors: related and consequent resolutions. 6. Appointment of the members and the Chairman of the Board of Statutory Auditors: related and consequent resolutions. 7. Quantification of compensation for members of the Board of Statutory Auditors: related and consequent resolutions. The full text of the proposed resolutions, together with the related reports and the documents which will be put to the meeting, are available to the public at the Company's registered offices and on its website (www.gruppohera.it), as well as on the authorized storage website 1Info (www.1Info.it) under the legal terms foreseen for each of the subjects treated. Right to attend and participation by proxy All those entitled to vote at the end of the accounting day of 18 April 2017 (record date), and those from whom the Company has received the appropriate notification via an authorised intermediary, are eligible to attend the Shareholders Meeting. Each person entitled to take part may request a representative to attend the Shareholders' Meeting, in accordance with the law, having the right to use the proxy form available on the Company's website for this purpose. The Company has appointed Computershare S.p.A. as a representative whom shareholders with voting rights can nominate as a proxy with instructions for voting via the dedicated proxy form available on the Company's website. Other Shareholders' rights The notice with which the Meeting has been convened is available on the Company's website (www.gruppohera.it) and contains all information and detailed instructions as to the rights Shareholders may exercise (present questions, make requests for integrations of the agenda, file lists for the appointment of members of the Board of Directors and the Board of Statutory Auditors). Nuova_Palazzina_870x.1533216684.jpg Avviso_di_convocazione_Assemblea_27_aprile_2017_eng.1488879256.pdf 2017-03-07 10:21:00 Shareholders meeting notice Shareholders meeting notice 2016-04-05