Press releases

2025-01-24 centrata In accordance with art. 2.6.2 (Required Reporting) of the “Rules of the markets organised and managed by Borsa Italiana S.p.A.", please find below our annual calendar of corporate events: 1. 26 March 2025 – Meeting of the Board of Directors to approve the previous year’s preliminary financial statements. 2. 30 April 2025 – Shareholders’ Meeting to approve the previous year’s financial statements. 3. 14 May 2025 – Meeting of the Board of Directors to approve additional financial information for the period ending on 31 March 2025. 4. 30 July 2025 – Meeting of the Board of Directors to approve the half-year financial report as at 30 June 2025. 5. 12 November 2025 – Meeting of the Board of Directors to approve additional financial information for the period ending on 30 September 2025. The Board of Directors, as communicated for the previous financial year and in line with the past, in order to guarantee regularity in the information provided to the financial market and investors, has decided to continue preparing and publishing this information quarterly, on a voluntary basis and in line with current regulations. (*) barring changes 14:48:00 sede Hera 110x150.jpg

2025-01-23 Development, resilience and creating value shared with all stakeholders confirmed as the strategic pillars of the new business plan, which allocates more than 5 billion euro in investments to accelerate the achievement of ecological transition targets and further increase the resilience of networks and plants. The preliminary results for 2024, rising once again while maintaining financial leverage stable, indicate solid organic growth centrata BUSINESS PLAN TO 2028, OPERATING AND FINANCIAL HIGHLIGHTS Five-year gross investments at 5.1 billion euro Return on net invested capital at 9.5% Structural growth in Ebitda reaching 1.7 billion euro EPS to rise by approximately 6% CAGR Dividends up 21% (rising to 17 cents per share) and average annual yield at roughly 5% Average annual total shareholder return (TSR) at 11%. Net debt/Ebitda stably below 3x over the period covered by the plan and projected at 2.8x in 2028 BUSINESS AND SUSTAINABILITY HIGHLIGHTS A portfolio balanced between regulated and free-market activities maintained, generating resilient results and capable of grasping emerging opportunities 2.6 billion euro in investments aligned with the European Taxonomy for Sustainable Investments (96% of eligible investments) Shared-value investments amounting to 77% over the entire five-year Plan 45% increase in shared-value (CSV) Ebitda over the period covered by the Plan, reaching 66% of total Ebitda in 2028 Commitment to reduce total CO2 emissions by 37% within 2030 and Net Zero by 2050 confirmed 25% of total investments will contribute to digitisation and innovation, 47% to increasing the resilience of infrastructures to climate change and 60% to the ecological transition 10.8 billion euro in economic value distributed over the 2024-2028 five-year period to stakeholders in the areas in which the Group operates 2024 PRELIMINARY RESULTS, HIGHLIGHTS Ebitda exceeds 1.55 billion euro (+4% vs 2023) Net debt/Ebitda ratio below 2.6x (stable compared to 2023) Dividends forecast at 15 eurocents (+7.1% vs 2023), higher than expected in the previous Plan The Hera Group’s Board of Directors, chaired by Executive Chairman Cristian Fabbri, reviewed the preliminary results for 2024 results and approved the Business Plan to 2028. Cristian Fabbri, Executive Chairman of Hera Group: "A 5.1-billion-euro investment plan, rising by 46% compared to the previous five-year period and supporting sustainable industrial development that increases the resilience of our infrastructures, will allow us to target a 2028 Ebitda coming to 1.7 billion euro, supported by visible growth, both internal and external. This growth fully meets the objective of creating shared value for all stakeholders: profits will indeed increase by 30% (from 2023 to 2028), as will the contribution coming from sustainable activities to Group Ebitda, reaching 66%. The improvement in the objectives of the new Business Plan, along with the positive forecasted for 2024, allow us to revise our dividend policy upwards, proposing a 7% increase, compared to 2024, as early as 2025, reaching 21% by 2028. The economic value distributed over the 5 years covered by the Plan to stakeholders in the areas in which we operate also grows, to almost 11 billion euro." Orazio Iacono, CEO of the Hera Group: “For 2024, we expect to close with Ebitda over 1.55 billion euro, a result supported by all businesses in our portfolio, especially structural activities. This is even more significant when compared to the already outstanding 2023, which was affected by several non-recurring revenue opportunities, above all in the energy sector. This performance allowed us to fund an increase in investments and to further improve our financial solidity, with a net debt/Ebitda ratio below 2.6x, stable compared to the previous year. These good results are perfectly consistent with the new Business Plan, which forecasts 5.1 billion euro in gross investments, of which roughly 3 billion euro will be dedicated to the green transition in the areas served. The significant financial commitment required to support the investment plan, benefitting industrial development, will in any case be financed by a strong cash generation, which will also make it possible to keep financial leverage below the prudential level of 3x through to 2028, confirming our financial solidity and creating further flexibility to seize future opportunities.” 2024 PRELIMINARY RESULTS The year that just ended saw a positive performance of the industrial margins of all businesses in the portfolio, with Ebitda expected to exceed 1,550 million euro, as against 1,495 million euro in 2023. The “structural” growth observed in the preliminary results, mainly supported by factors involved in organic growth, is even more significant when compared to 2023 Ebitda adjusted for non-recurring contributions, totalling roughly 100 million euro, at 1,395 million euro. A robust cash generation, also supported by efficient working capital management, allowed the net debt/Ebitda ratio to remain below 2.6x, in line with the 2023 result. Considering these figures, the dividend policy was revised upwards: the Board of Directors is expected to propose a dividend payment of 15 eurocents per share, up 7.1% with respect to the 2023 coupon paid in 2024, to be compared with the 3.5% growth forecast in the previous Business Plan (14.5 eurocents). BUSINESS PLAN TO 2028 The new Plan’s strategic framework confirms creating sustainable value benefiting all stakeholders thanks to a balanced business portfolio as the Hera Group’s goal, developing resilient industrial assets even in a scenario marked by continuous volatility and an increasing frequency of extreme weather events linked to climate change. Creating value: a target of 1.7 billion euro for 2028 Ebitda, with a 30% rise in profits The Group’s strategy focuses on creating value through four main growth levers: an efficient allocation of capital to investment projects with the best sustainability-risk-return profiles, expansion of market shares, an enlarged scope of operations thanks to M&A transactions and efficiency gains in both operating and financial costs. The plan aims to generate value benefiting all stakeholders, through financial, environmental and social sustainability objectives. The plan envisages a structural growth of Ebitda by 475 million Euro to 2028 with a CAGR of +7% exactly reflecting the targets set out in the previous Business Plan. This structural growth will more than compensates the eventual shortfall during the period covered by the Plan of some temporary business opportunities of the amount of 170 million euro and drive in any case Group Ebitda to 1,700 million euro in 2028, up from the previous target of the Plan to 2027. Organic growth, accounting for 375 million euro of the Ebitda generated over the period covered by the Plan, is the main lever and will be fuelled by the investment plan for development, expansion in volumes and customers in liberalised markets, and the efficiencies and tariff adjustments set by the Authority on all regulated activities. The Plan also foresees a contribution from M&A transactions for about 100 million euro of Ebitda, in line with the Group’s track record in the consolidation activity on the Italian highly fragmented markets, that has underpinned the Group expansion in core business exploiting significant synergies creating value. The framework agreement signed with Modena-based AIMAG, in which Hera has been a shareholder since 2009, with a 25% stake, strengthens the industrial partnership between the two parties and provides, as early as today, high visibility on M&A targets of the business plan to 2028. Indeed, the Business Plan drawn up by AIMAG expects to improve Ebitda to 77 million euro by 2028, without considering the synergies with Hera (for more details, see the recently published dedicated press release). The business plan highlights the strategy to further strengthen all three of the Group’s core businesses, maintaining their balance, applying the management policies that have guaranteed so far a strong resilience in results and uninterrupted growth within all scenarios experienced over the past two decades. This structure will see regulated activities remaining at over 60% of the invested capital in 2028 and liberalised activities accounting for the remaining 40% of the portfolio. The growth targets defined lead to a return on invested capital (ROI) of 9.5% to 2028, in line with the previous Business Plan. Earnings per share are expected to rise by an average of about 6% per year, thus supporting the increase in dividends, set to reach 17 eurocents by 2028 (+21% compared to the last dividend paid). At current Hera share prices, the dividend policy guarantees an average yield of approximately 5% and offers full visibility on the prospective dividends in each year of the Plan. The total shareholders return, which takes into account both the trend in expected profits and the dividend yield, is therefore confirmed at an average annual rate of about 11%. Focus on the sustainable development of the entire regional ecosystem, with steady growth in shared-value Ebitda, at over 1.1 billion euro in 2028 (66% of total Ebitda) The Hera Group has included initiatives in its Plan that have adequate profitability and are consistent with operating-financial balance, which at the same time guarantee that sustainable value creation is enhanced. By maintaining a focus on decarbonisation, circular economy, resilience and innovation, “shared-value Ebitda” is expected to increase significantly, exceeding 1,100 million euro in 2028, as against 776 million euro in 2023, reaching 66% of the Group’s total Ebitda and respecting the target of 70% in 2030. In the 2024-2028 five-year period, shared-value Ebitda will increase by 45%, reflecting the growing weight of initiatives that not only generate margins for the company, but are also in line with the goals on the UN Agenda. On the path towards a “just transition”, with a large number of initiatives aimed at the prosperity of its reference communities and a strong focus on social equity, Hera will continue to generate positive effects for all stakeholders, with an estimated economic value distributed over the five years covered by the Plan coming to 10.8 billion euro and investments dedicated to the green transition amounting to roughly 3 billion euro. Ongoing interventions are aimed, on the one hand, at making the Group’s assets and processes more resilient to increasingly frequent and intense exogenous phenomena and, on the other, at contributing to carbon neutrality and the energy transition. With regard to the Hera Group’s commitment to work towards decarbonisation, in line with the 37% emission reduction targets by 2030 (compared to 2019) validated by the prestigious international network Science Based Targets initiative (SBTi), in its Climate Transition Plan the Group has set itself the goal of achieving Net Zero emissions by 2050. As regards the regeneration of resources, the Hera Group confirms its adoption of circular business models, with the goals of increasing recoverable wastewater (up to 14.4% of total wastewater in 2028), reducing internal water consumption (-24% in 2028) and increasing recycled plastics by 165% in 2028 (compared to 2017, thus exceeding the previous target 2030 of +150%). Sorted waste collection is expected to increase in both quality and quantity, going from 72.2% in 2023 to 77.7% in 2028. Lastly, the application of technologies and innovations to the Group’s industrial activities also plays an essential role in the new strategic document: creating new business models and introducing pioneering solutions will, in fact, enable the Group to gain a competitive advantage and promote continuous improvement in efficiency and quality in its target sectors. Gross investments at over 5 billion euro, with financial leverage remaining below 3x Over the 2024-2028 period, the Business Plan calls for total investments amounting to 5.1 billion euro. This financial commitment is 6% higher than the one included in the previous strategic document and 46% higher than the investments made over the last five years. Indeed, in addition to the 4.6 billion euro of investments directly financed by the Hera Group, almost 500 million in resources will come from the PNRR and other institutions. Of these investments, 61% will be earmarked for regulated businesses, while the remaining 39% will go towards fuelling the growth of free-market businesses. More than half of the investments (2.5 billion euro, or 54%) will be dedicated to networks. Furthermore, approximately 8% of the resources will be used to seize external growth opportunities. In line with the content of the European framework, the Group estimates that operating investments coming to 2.6 billion euro (or 96% of eligible investments) will be aligned with the European Taxonomy for sustainable projects, thus fully accessing subsidised sustainable finance instruments, with benefits also in terms of financial costs. 77% of the investment plan (or 4 billion euro) will go towards initiatives capable of creating “shared-value Ebitda”. These investments will be allocated as follows: 2 billion euro, or 39% of the planned investments, will help reduce the consumption of natural resources through the development and adoption of circular economy solutions and models; 1.1 billion, or 22% of the resources allocated in the Plan, will reduce or contain climate-changing emissions mainly through the development of renewable plants, energy efficiency initiatives and projects supporting the transition of our stakeholders; 2.4 billion euro, or 47% of total investments, will be dedicated to increasing the resilience of the assets under management and activities intended to face increasingly frequent and intense exogenous phenomena; 1.3 billion, or 25% of the investments, will go towards applying and developing pioneering technologies and introducing innovative solutions to achieve a competitive advantage in all industrial sectors covered, helping to seize market opportunities and ensure financial sustainability, efficiency and quality. The major financial commitment required to support the investment plan, benefiting industrial development and expanding the scope of operations with external growth transactions, will in any case be fully financed by a significant cashflow, which will also allow financial leverage to be kept below the prudential level of 3x, with a target of 2.8x by 2028, confirming the Group’s financial solidity and creating further flexibility that can be used to seize additional growth opportunities on the Italian attractive reference markets. Energy: a partner for the energy transition of our customers; target of 4.5 million customers by 2028 Ebitda for the energy area is expected to increase from 549 million euro in 2023 (calculated net of a non-recurring contribution amounting to 100 million euro, mainly due to the “super-ecobonus”) to 576 million euro in 2028. This target is based on structural growth coming to 177 million euro, which is able to more than offset the hypothesis of decreased margins for “last resort markets” clients, envisage a further growth in Ebitda results even compared to the extraordinary values of 2023. This result will be achieved thanks to the normalization of the “shaping costs” incurred in 2023, the expansion of the customer base, and an increase in renewable energy production, which confirms the Hera Group’s role as a partner in the energy transition of the communities served. To support the strategy in the energy sector, 1 billion euro in overall investments has been earmarked for the 2024-2028 five-year period, equivalent to 21% of the total investments included in the Plan. The Group, which is now Italy’s third largest operator by number of customers, intends to continue developing its customer base, starting from 3.8 million in 2023 and reaching 4.5 million by 2028, with a substantial growth in electricity customers, which will reach 2.4 million, surpassing the number of gas customers, partially thanks to the significant contribution coming from the 7 lots awarded in the Gradual protection service tender in 2024. In a market scenario that sees customers increasingly attentive to environmental sustainability and containing their energy costs, a more consistent demand for decarbonisation solutions has emerged for both retail customers and companies and public administrations, increasing development opportunities for the Group’s ESCOs through integration and differentiation of the offer by segment, from energy requalification and efficiency interventions to services for sustainable mobility, public lighting and smart cities for public administrations, as well as integrated services for industrial customers and condominiums. In order to achieve its ambitious decarbonisation targets, in the area of photovoltaic power generation, the Hera Group has confirmed its goal of installing over 300 MW by 2028, with preference going to plant solutions at consumption centres that do not involve further land consumption, such as agrivoltaic plants and the numerous projects being implemented on landfills or plants in the Group’s water cycle, as well as installations at customers’ premises, including Renewable Energy Communities. The construction of the two Hydrogen Valleys in Modena and Trieste continues, aimed at producing about 800 tonnes per year of green hydrogen, contributing to the decarbonisation of companies and, more generally, the local areas in question, and at the same time redeveloping disused areas. Waste management: leadership strengthened by expanding market share through commercial development, infrastructure development and M&As Ebitda for the waste management area is expected to rise from 353 million euro in 2023 to 470 million euro in 2028, thanks to development fuelled by both organic and external growth. The increase in profits will be driven by an expanded market share, supported by the development and diversification of the asset platform, partially thanks to an investment plan allocating approximately 1.1 billion euro to the waste management area. Thanks to more than 100 state-of-the-art plants (with 5 new facilities in the pipeline to 2028) and new partnerships, the multi-utility expects to reach a total of approximately 9.6 million tonnes disposed of and marketed by 2028, compared to 7.7 million tonnes in 2023 (+24% of waste treated). In the urban waste sector, also as a result of the recently renewed long-term concessions, the Group’s aim is to make this service to local areas more complete and efficient through innovation, new devices and infrastructures, and the involvement of citizens and stakeholders. The validity of the Group’s strategy in this area is confirmed by the fact that, at present, it has already achieved targets for the recycling rate and the portion of waste sent to landfills, well ahead of the EU deadlines, and will continue to pursue these excellent results in the period covered by the Plan. More specifically, by 2028 municipal waste conferred to landfills will be less than 3%, as against the European target set at 10%, the recycling rate will come to 64%, compared to the EU target of 60% by 2030, and the packaging recycling rate will reach 68%, compared to the EU target of 70% by 2030. In the area of waste treatment, in a country severely impacted by a shortage of plants, the Hera Group has managed over time to consolidate the largest and most modern set of plants in Italy, establishing itself as the main operator in this sector, with a market share of around 10% and ample room for further growth given the fragmented nature of the competition, which mainly consists of small, non-integrated operators. In this context, precisely by leveraging the competitive advantages it has built up over time, the Group’s new Business Plan points towards a strengthened leadership and an expanded market share, accompanying the needs of an increasingly diversified and qualified customer base (first and foremost, large companies). To this end, the Plan foresees an expansion of the Group’s set of plants, further development in its commercial offers and an expanded customer base, partially achieved by leveraging its activities abroad. The set of plants, which already treats municipal waste and special waste from the Italian production network, will be expanded, for example, with the construction of the new line of the waste-to-energy plant in Padua, full operations of the F3 plant in Ravenna, and the expansion of liquid waste treatment capacity. As regards commercial development, note the opportunities for important partnerships with leading operators in the national and international production sector, such as the recent newco CircularYard established with Fincantieri. Opportunities for collaboration will also drive development in the remediation field, in this case with entities in the petrochemical industry, in which the Hera Group has significantly strengthened its market leadership with the integration of the Modena-based ACR: this business segment shows a lively demand, supported by the PNRR and the country’s need to remediate over 13 thousand sites. Resource recovery and regeneration activities complement those involving treatment, and firstly concern plastics, in which the Group stands out for the high quality of its secondary raw material products. The increasing European legislation (SUP and PPWR) will determine a progressive growth in demand, for which the Plan calls for a doubling of the plants in Novara for the regeneration of PE and PET as well as innovative projects, such as the plant for carbon fibre recovery in Imola, which will be inaugurated soon, and the one for the regeneration of high-quality rigid plastics under construction in Modena. Networks: primary role as infrastructure operator confirmed by a robust investment plan and excellent performances Ebitda for the network sector is expected to grow by 155 million euro, going from 466 million euro in 2023 to 621 million euro in 2028. The regulated networks business, which represents the Hera Group’s main asset in terms of invested capital, will benefit from a substantial investment plan amounting to approximately 2.5 billion euro (54% of total investments) by 2028, in order to further enhance the resilience and digitalisation of infrastructures, consolidate efficiency in operations and maintain leadership in terms of the quality of service provided. Of these resources, about 1.4 billion euro will be allocated to the integrated water cycle, while almost 1 billion euro will be invested in gas and electricity distribution. The strategic initiatives of the Group, Italy’s second-largest operator in the water cycle, include works to guarantee stability and security of supply, technological solutions to reduce losses and ensure more efficient distribution, the upgrading of sewage systems, and the promotion of reuse and regeneration of this resource to support the sector’s ecological transition. This includes collection, storage and interconnection works, the project for the Trieste aqueduct, water management initiatives with the completion of the installation of smart meters to encourage more efficient and aware consumption, the districtisation and reclamation of the aqueduct network and the use of predictive maintenance to reduce losses, ongoing work on the Rimini Seawater Protection Plan (the largest sewage reclamation project ever carried out in Italy, with 270 million investments in total from 2013 to 2028), and the new biodryers in the Cà Nordio plant in Padua for greater energy savings in sewage sludge treatment. To enable the electrification of local areas, instead, the Group plans to upgrade the grid, thus ensuring reliability and flexibility of assets as well as service quality and continuity, including the support of digital technologies and innovative initiatives such as the deployment of 2G smart metering and new management technology models with a predictive capacity. The goal for 2028 is to increase the grid’s hosting capacity by 30% compared to 2023, to reach over 400 MW in 2028, partially thanks to initiatives such as the development of primary and secondary substations. Projects for smart grids, such as the one serving the port and metropolitan area of Trieste, also move in this direction. To promote the decarbonisation of the gas sector, Hera will focus on enabling networks to transport green molecules as well, as in the experimentation currently underway in the municipal distribution network of Castelfranco Emilia, near Modena. At the same time, the Group’s attention will also go to innovative solutions. Among these, the Bologna power-to-gas plant, connected to one of the main water cycle purifiers, will make it possible to use purified water to produce first renewable hydrogen and then biomethane, using waste oxygen for purification processes. The drive towards innovation will also come from the installation by 2028 of around 523 thousand NexMeter gas smart meters, patented by Hera in 2019, with advanced safety functions in the event of leaks or earthquakes and which can also be used for blends with green gas. These will be accompanied by around 465 thousand second-generation (2G) electricity meters, which will enable more precise measurement of consumption, and over 640 thousand smart meters for the water cycle. Lastly, among the assets enabling the energy transition of the areas served, the Group has included in its strategy additional development of district heating. The overall cumulative net investments in district heating amount to 124 million euro, accompanied by 49.5 million euro in PNRR/MASE contributions, for a total of approximately 174 million euro, to develop and adapt the distribution network and optimise management, making the systems more efficient and reducing the carbon footprint of the heat produced. These projects for developing district heating systems in Bologna, Ferrara and Forlì are a concrete example of the Group’s commitment to decarbonising the areas served and will contribute to a reduction in annual emissions coming to 19,000 tonnes of carbon dioxide compared to 2023. Hera Group presents Business Plan to 2028.pdf 08:00:00 sede Hera 110x150.jpg

2025-01-16 The Group has been confirmed as one of the best companies in Italy and worldwide in human resource management, thanks to its commitment to combining corporate growth, collective wellbeing and sustainable development centrata For the sixteenth consecutive year, the Hera Group has been certified as a Top Employer for its labour policies. This is a remarkable achievement, since this certification is among the most significant recognitions internationally given to companies that meet high standards in human resource management by the Top Employers Institute, a global certifier of corporate excellence in HR (Human Resource), based in the Netherlands. Top Employers Certification is awarded to companies that meet the high standards required by the HR Best Practices Survey. The analysis, which is highly attentive and increasingly selective from year to year, covers 6 macro-areas related to human resource management and examines in depth 20 different topics and the respective best practices, including: recognition of people and their professionalism, work environment, career opportunities, training and development, valuing diversity, fairness and inclusion, and well-being. This year the Top Employers programme recognised and certified 2,429 Top Employers in 125 countries worldwide, including the Hera Group. The main strengths that enabled the Hera Group to achieve this important result are: safety, procurement, sustainability, inclusion, wellbeing and people development. In these areas, investments coming to 60 million euro have been planned for the 2024-2027 four-year period in staff training, a third of which will be dedicated to safety. 2,600 new hires are also foreseen along with many initiatives for the development of new skills, to support parents, frail people, caregivers and to valorise different abilities. The Group’s investment in and commitment to the growth and wellbeing of its people includes combating gender-based violence and promoting inclusion. The new elements of 2024 included the Good Work Deal, signed in July with the trade unions, a forward-looking and virtuous document that provides a new reference point nationwide, capable of combining corporate growth, sustainable development and collective wellbeing, and that encompasses the good practices of valuing people accumulated over the years, making them a resource that is shared with the trade unions. This document was drafted using an inclusive language, ensuring it could be accessed in digital format as well to make it usable for blind or visually impaired persons using screen readers. The foremost novelty in the Good Work Deal lies in the calculation of the performance bonus, which is partially based on the Hera Group’s ability to increase shared value (in addition to the progressive annual increase in the same bonus, amounting to 225 euro per year over the 2025-2027 three-year period). This is accompanied by a series of people development actions in terms of evolving working methods, accelerating process digitalisation and increasing the value of sustainability and circularity. The good quality of life of the Group’s over 10,000 employees is also supported by its extensive welfare plan, offering them a wide range of services, in which the company invests 18 million euro every year. The most significant initiatives include free psychological support sessions, personalised diet plans and sessions with physiotherapists and posturologists, health promotion and prevention programmes with free check-ups and screenings, initiatives to support parenting and childhood education, and sustainable mobility. David Plink, CEO of the Top Employers Institute “Through advances in technology, economic change and the evolving social landscape, it is inspiring to see people and organisations challenge themselves. This year, the Top Employers Certification Programme highlights the dedication of our Top Employers, who continue to set high standards through world-class HR strategies and practices, promoting growth and well-being while improving the working world. It is with great pride that we celebrate these leaders and teams, capable of putting people at the centre: the Top Employers 2025!” Cristian Fabbri, Hera Group Executive Chairman “This recognition confirms our constant commitment to enhancing our main resource: people, with their skills, professionalism and uniqueness. Our way of being a company is based on respect for their needs and satisfaction, projected towards a path of constant improvement in offering every day services that are indispensable to the lives of citizens and companies.” Hera Top Employer for 16 years without interruption.pdf sede Hera 110x150.jpg

2024-07-02 The Bureau Veritas’ certifications have been renewed, with a focus on innovation for sustainability centrata Perseverance and continuous improvement, also thanks to innovation: these are the most prominent features of the Hera Group’s commitment to applying best practices for ISO 9001 (quality management system), ISO 14001 (environmental management system) and ISO 45001 (occupational health and safety management system), applied, to the benefit of all interested parties, since 2000, 2007 and 2009 respectively. This has been confirmed by Bureau Veritas Italia, after 131 days of audits in which the integrated management system of the Hera Group and its companies Heratech (which manages the technical-commercial and operational services linked to end users, plant engineering services and analysis laboratories), Inrete Distribuzione Energia (which manages natural gas and electricity distribution) and Uniflotte (dedicated to managing the company’s vehicle fleet) was scrutinised by a team of 15 independent auditors. This work was done from February to May of this year, sampling and analysing sites and corporate processes in the provinces of Modena, Ferrara, Bologna, Imola, Forlì Cesena, Ravenna and Rimini, all served by the Group. This represents a significant commitment in terms of verification, directly proportional to the detailed management of Quality, Safety and Environment issues applied by the Group’s companies. In addition to the certification models for quality, safety and the environment, Bureau Veritas also verified the compliance of Hera’s management system with the circular economy standard (AFNOR XP X30-901) and the compliance of Heratech’s management system with UNI/PdR 74:2019 (BIM planning). The Bureau Veritas auditors particularly appreciated Hera’s commitment to sustainability through innovative projects, e.g., in the areas of photovoltaics and agrivoltaics, Green Gas or gas leak detection using predictive algorithms with the help of artificial intelligence. Marcello Guerrini, Central Director of Corporate Services: “This provides further confirmation of the fact that, with the commitment and proactive attitude shown by our people, at all levels, and thanks to the stimuli provided by Bureau Veritas, we can create a virtuous cycle working towards sustainability for the area served, for our customers and suppliers, and for all stakeholders.” Roberta Prati, Certification & Industry Director of Bureau Veritas Italia: “It is a source of pride to be able to contribute – with our audits – to the verification and continuous improvement of the processes that the Hera Group provides for the benefit of the community. It is precisely by addressing people and the environment that we find the correct, deep motivation that guides us in our daily activities.” For more info: Ufficio Stampa Bureau Veritas Italia: Star comunicazione in movimento, Barbara Gazzale, 348.4144780, www.starcomunicazione.com Ufficio Stampa Gruppo Hera: Cecilia Bondioli - Responsabile Rapporti con i Media ed Editoria, 051.287595, cecilia.bondioli@gruppohera.it, www.gruppohera.it   20240702 HERA's compliance with international standards.pdf 10:21:00 See the press release sede-hera-110.jpg

2024-06-19 Press_Hera_ESG.jpg For the fourth consecutive year, the Group is on the podium of the overall index ranking, which rewards Italian companies that stand out for integrating ESG factors into their governance. This comes as further recognition of the Group’s commitment to creating long-term value for its shareholders and all its stakeholders centrata The Hera Group, one of Italy’s largest multi-utilities operating in the waste management, energy and water sectors, has confirmed its position as the Italian company that has most fully and consciously integrated sustainability policies into its business strategies. This is proven by the ESG Identity Corporate Index (formerly the Integrated Governance Index) managed by ETicaNews. As announced today at the 2024 ESG Business Conference in Milan, Hera is among the top 3 positions for the fourth year in a row, the only Italian company to achieve this result, thus remaining in the Top 10 in all the 9 editions of this index, launched in 2016. Sustainability and local roots at the heart of Hera’s strategies Integrating ESG goals into its business strategies and cultivating local roots are among the essential features of the Group, which is committed to providing essential services to over 4 million citizens on a daily basis. The Group has always been aware of its institutional and social role in the local ecosystem and considers creating value to be a cornerstone of its relationship with all stakeholders. In fact, sustainability and creating shared value are key paradigms of its corporate purpose, which is expressed through three strategic drivers: pursuing carbon neutrality, regenerating resources with an eye to the circular economy, and enabling resilience and innovating. By expressing this purpose in its Articles of Association as of 2021, Hera has confirmed its commitment to developing a business model aimed at generating long-term value for its shareholders, by creating value shared with all stakeholders. This new approach to sustainability is now integrated into the company’s reason for being, thus providing a model that inspires strategy and guides innovation. Fully consistent with this purpose, all the Group’s initiatives confirm its will to tackle the new challenges posed by climate change and energy security, in order to make local areas increasingly competitive and resilient. The ESG Identity Corporate Index The ESG ICI is Italy’s only quantitative index that measures the ESG identity of Italian companies, assessing and recognising their commitment to integrating the principles of sustainability, social and environmental responsibility and good governance into their business strategies. The 2024 survey included the top 100 listed companies, the companies that publish a non-financial statement (pursuant to Legislative Decree no. 254 of 30 December 2016) and the top 50 non-listed and industrial companies in the Mediobanca ranking. The Hera Group’s main recognitions Publicly listed since 2003 and on the FTSE MIB since 2019, Hera was also included in the MIB ESG Index in 2021, the first Italian blue-chip index dedicated to ESG best practices, launched by Euronext - Borsa Italiana. Since several years the Group has been top-ranked by the Dow Jones Sustainability Index World and Europe, the Refinitiv’s Diversity & Inclusion Index, and is included in the Bloomberg Gender-Equality Index, confirming its commitment to promoting diversity, inclusion and people development. Press_Hera Group ranks first in the 2024 ESG ICI.pdf 11:08:00 sede-hera-110.jpg

2024-05-14 The consolidated quarterly report at 31 March shows improvement in the main operating and financial indicators. The Group’s financial solidity and commitment to sustainability and the ecological transition were confirmed, along with the creation of value for all stakeholders and significant investments in the areas served to improve our assets resilience and to guarantee service quality and continuity Financial highlights Revenues at 3,285.8 million euro Ebitda* at 417.1 million euro (+1.7%) Net profit for shareholders* at 143.1 million euro (+11.6%) Gross operating investments at 156.8 million euro Net financial debt at 3,986.6 million euro, with Net debt / Ebitda* at 2.66x Business highlights Significant contribution to growth from the water, electricity and waste management sectors Growth of energy customer base continues, now at 3.9 million New avant-garde projects for the ecological transition and investments to optimise the assets managed Today, the Board of Directors of the Hera Group, chaired by Executive Chairman Cristian Fabbri, unanimously approved the consolidated financial results for the first quarter of 2024 and appointed the Group’s new Vice Chairman. The first quarter of 2024 ended with increased operating results and investments compared to the same period in 2023 (year in which Hera recorded the highest growth in its history), in a market environment that was more stable than the previous year due to lower volatility in commodity prices, while still not returning to the levels seen prior to the crisis. This good performance is the result of the Group’s consolidated multi-business strategy, balanced between regulated and free-market activities. The consolidated quarterly report at 31 March confirms once again the Group’s financial solidity and, at the same time, its focus on resilient and sustainable growth for the benefit of all stakeholders. Cristian Fabbri, Executive Chairman of the Hera Group: “The first quarter of 2024 closed with the main operating and financial indicators showing growth, thanks to our consolidated multi-business strategy, balanced between regulated and liberalised activities: these results confirm the targets for creating value included in our Business Plan. In fact, the good operating performance led Ebitda to reach 417.1 million euro, up from last year’s exceptional results. The gradual normalisation of the energy scenario also allowed us to achieve a double-digit growth in net profit and return on our invested capital, which stands at 9.5%. In the electricity sector, the 19% increase in the customer base confirms our Group’s commercial strength and expertise, capable as we are of growing and boosting customer loyalty with value-added services for decarbonisation and energy efficiency, and conquering new market shares, reaching a total of 3.9 million energy customers.” Orazio Iacono, CEO of the Hera Group: “The 1Q 2024 solid results highlight further growth along with the Hera Group’s confirmed focus on resilience, sustainability and innovation. Operating investments, amounting to around 160 million euro, went to upgrading and making the managed infrastructures even more efficient, to ensure service quality and continuity and improve the resilience of our assets. The activities carried out in 2023 to optimise the financial structure led to a decrease in the cost of medium- and long-term debt, generating a significant saving in financial expenses compared to the same period one year earlier. This results in an increase of about 12% in net profit attributable to shareholders, which rose to over 143 million euro. The Group’s financial solidity was also fully confirmed, with the Net debt / Ebitda* ratio standing at 2.66x, improving from previous year and essentially aligned with the figure recorded on 31 December 2023.” Revenues at approximately 3.3 billion In the first quarter of 2024, revenues amounted to 3,285.8 million euro, down significantly from 5,628.9 million euro in the same period of 2023, mainly due to lower energy commodity prices and lesser trading activities, as well as reduced opportunities related to energy efficiency incentives in residential buildings. This drop was partially offset by the higher volumes of electricity sold, as a result of significant commercial development. Ebitda* rises to 417.1 million euro At 31 March 2024, Ebitda* rose to 417.1 million euro (+1.7%), as against 410.2 million euro for the first three months of 2023, demonstrating the resilience of the Group’s results within the normalisation of commodity prices. This growth is mainly due to the contribution coming from the water area, amounting to 9.8 million euro, the good performance of the electricity and waste areas, up 3.5 million euro and 2 million euro respectively, as well as the other services area, up 1.4 million euro, all of which offset the 9.8 million euro drop in the gas area due to the loss of the contribution coming from the super-ecobonus. Ebit* and pre-tax result* increase Ebit* at 31 March 2024 increased to 245.9 million euro, up 4.2% from 236.1 million euro in the first quarter of 2023. This performance was also supported by lower provisions for bad debts, due to the normalisation of commodity prices and lower gas volumes. The pre-tax result* also increased to 212.9 million euro (+11.1%), as against 191.7 million euro at 31 March 2023, thanks in particular to the positive trend in financial operations. Net profit attributable to shareholders* up to 143.1 million euro After taxes, which came to 28%, mainly due to lower tax benefits in the first quarter of 2024 compared to the same period in 2023, net profit* rose to 153.3 million euro (+9.3%), compared to 140.3 million euro at 31 March 2023. Net profit attributable to Group Shareholders* also rose, coming to 143.1 million euro, up (+11.6%) from the 128.2 million euro seen at 31 March 2023. These results supported the creation of value for all stakeholders, in line with the content of the Business Plan. Gross operating investments rise, maintaining the Group’s solidity The Group’s operating investments, including capital grants, confirmed its strategic plans and were in line with the previous year, amounting to 156.8 million euro, as against 155.7 million euro at 31 March 2023, and mainly went to works on plants, networks and infrastructures. Regulatory upgrading was also carried out, mainly concerning gas distribution, with a large-scale meter replacement, and the purification and sewerage area. The total amount of net financial debt came to 3,986.6 million euro, a slight increase (+4.2%) compared to the figure seen at 31 December 2023, while the net debt/Ebitda* ratio stood at 2.66x, confirming the company’s financial solidity. Tommaso Rotella becomes Vice Chairman of Hera The Board of Directors assigned the position of (non-executive) Vice Chairman to Mr. Tommaso Rotella, who was appointed as a board director during the Shareholders Meeting held on April 30. Mr Rotella was also appointed Vice Chairman of Hera S.p.A.’s Executive Committee and Chairman of both the Remuneration Committee and the Risk and Control Committee (also acting as the Committee for Transactions with Related Parties). Born in Modena and 52 years old, he gained a degree in law from the University of Modena. As a lawyer, he specialises in proceedings concerning the criminal and administrative defence of companies, as well as tax consultancy. He holds positions as chairman of the supervisory body in several companies, participates in conferences and is author of publications on these topics. Rotella will remain in office as Vice President until the Shareholders’ Meeting held to approve the 2025 financial statements. The Board of Directors also confirmed the appointment of Enrico Di Stasi as a member of the Risk and Control Committee and of the Committee for Related Party Transactions, after Di Stasi was appointed as director by the Shareholders Meeting held on 30 April 2024. The Board of Directors also assessed the independence of Directors Rotella and Di Stasi. Based on the declarations made by them and the information available to the company, director Rotella was found to be independent and director Di Stasi not independent. Vice Chairman Rotella and director Di Stasi also declared that they do not hold Hera shares. Gas Ebitda* for the gas area, which includes natural gas distribution and sales, district heating and energy services, stood at 184.0 million euro, compared to 193.8 million euro at 31 March 2023, mainly due to the changes in government incentives for energy efficiency activities (super-bonus), lower intermediation activities and a reduction in volumes due to climatic conditions and changes in consumption habits. This change was partially offset by growth in both sales margins in traditional markets, due to the normalisation of shaping costs, and in regulated distribution revenues, thanks to the recovery of higher inflation and the updated regulatory WACC. Moreover, the Group’s good performance in last resort markets and in supplies to public administrations continued, through subsidiary Hera Comm, thanks to the award of 8 out of 9 lots of the last resort service, all 9 lots of the default service and 3 out of 12 lots of the Consip GAS15bis tender for public administrations. In the first quarter of 2024, investments made in the gas area amounted to 37.4 million euro. More specifically, in gas distribution they involved non-recurring maintenance work on networks and plants and the replacement of measuring units for remote management, while in gas sales investments were aimed at acquiring new customers. The number of gas customers stood at 2.1 million, in line with the previous year. The gas area accounted for 44.1% of Group Ebitda. Electricity Ebitda for the electricity area, which includes the generation, distribution and sale of electricity as well as public lighting services, rose by 5.2%, reaching 71.2 million euro, compared to 67.7 million euro seen in the same period of 2023 (these values have been recalculated by including the public lighting segment, previously classified among other services). The first quarter of 2024 showed significant growth in terms of both volumes sold to end customers, thanks to commercial development mainly in the free market, and margins due to the lower cost of modulation resulting from the drop in raw material prices. Distribution also increased, due to the recovery of inflation and the increase in regulated WACC. Other factors included opportunities in safeguards service and public administrations supplies, thanks to the awarding, through the subsidiary Hera Comm, of 4 lots in the Consip EE21 tender for the public administrations, 2 lots of the safeguards service, 3 lots of the gradual safeguarded service for SMEs, and 1 lot for micro-businesses. In the first quarter of 2024, investments made in this area amounted to 27.9 million euro, up 5.7 million euro year-on-year. In electricity distribution, the interventions carried out mainly concerned extraordinary maintenance and upgrading of plants and distribution networks in the Modena, Imola, Trieste and Gorizia areas, as well as the ongoing large-scale meter replacement and interventions to improve the resilience of the network. In energy sales, investments involving activities related to the acquisition of new customers increased. The number of electricity customers increased by 18.8% compared to the same period of 2023, reaching approximately 1.8 million. This growth occurred mainly in the free market, as a result of both the reinforced commercial actions and the positive contribution coming from Consip tenders and the gradual protection service. As regards public lighting, in the first quarter of 2024 the Hera Group acquired approximately 58.4 thousand lighting points in 20 new municipalities, mainly in Tuscany, Triveneto, Umbria, Emilia-Romagna and Lombardy. The percentage of lighting points managed using LED lamps also increased, confirming the Group’s constant focus on an increasingly efficient and sustainable management of this sector. The electricity area accounted for 17.1% of Group Ebitda. Water At 31 March 2024, Ebitda for the integrated water cycle area, which includes aqueduct, purification and sewerage services, rose to 65.4 million euro, up (+17.6%) from 55.6 million euro in the same period of 2023. This growth was mainly due to the recognition of inflation and the updated regulatory WACC. In the first quarter of 2024, investments made in the water cycle area, including capital grants, amounted to 48.3 million euro (30.9 million euro in the aqueduct, 11.8 million euro in sewerage and 5.6 million euro in purification) and mainly involved extensions, reclamation and upgrading on networks and plants, as well as regulatory adjustments, mainly in the purification and sewerage areas. The main interventions included: in the aqueduct, ongoing reclamation activities on networks and connections, as well as specific modernisation and upgrading operations; in the sewerage sector, ongoing implementation of the Rimini seawater protection plan (PSBO); in the purification sector, the beginning of construction for the new ‘power to gas’ plant at the IDAR purification plant in Bologna, partially financed by NRRP funds. Lastly, note that, in line with the results of previous years, ARERA has recently reconfirmed the high-quality standards adopted by Hera in managing the integrated water service: more specifically, the Hera Group was awarded first and third place in the overall ranking of Italian utilities (2020-21 two-year period). This result recognises the Group’s contribution to the development and efficiency of the sector, thanks to significant investments and state-of-the-art plants, to guarantee service continuity, safety and quality, in line with its sustainability and circular economy strategies. The integrated water cycle area accounted for 15.7% of Group Ebitda. Waste Ebitda for the waste management area, which includes waste collection, treatment and recovery services, rose to 89.6 million euro (+2.3%), as against 87.6 million euro at 31 March 2023, mainly due to higher volumes treated and lower operating costs, especially for chemicals. Ebitda for waste treatment services rose to 73.7 million euro (up 1.2 million euro), while Ebitda for waste collection and sweeping services amounted to 15.9 million euro (up 0.8 million euro). Compared to the same period in 2023, there was an increase in waste commercialised mainly due to a rise in market waste. This growth offset the lower performance of energy management, mainly due to lower market prices and lower volumes in the Rimini and Modena waste-to-energy plants due to maintenance. In the first quarter of 2024 as well, the main initiatives concerning the circular economy set out in the business plan continued, from material recovery to the production of renewable energy. Examples of this are the biodigester in Spilamberto (Modena area) that will go on stream this year and the new plant that subsidiary Aliplast started to build in Modena for the production of high-quality recycled polymers, with the aim of making sectors such as consumer electronics and the automotive industry increasingly sustainable. Thanks to the development of new state-of-the-art infrastructures such as this one, the Group aims to further consolidate its position in the segment of second raw material production, a sector in which Hera subsidiary Aliplast, already a national market leader in high-quality recycling of PET and LDPE polymers, aims to play a key role also in recycling rigid plastics. Within a macroeconomic scenario characterised by a slight growth in GDP, a downturn in industrial production and increased competitive pressure in the markets covered, the Group, thanks to its sound management policies, continued to strengthen its leadership in the waste management sector, especially in the industrial and recovery market, equipping its plants with the best available technologies and guaranteeing a significant level of growth along the supply chain. With more than one hundred state-of-the-art facilities capable of treating any type of waste, Hera’s set of plants is a strategic and distinctive asset nationwide, in a country which still shows significant infrastructural deficiencies in this area. Protecting environmental resources was confirmed as a priority goal for the Group in the early months of 2024, as was the maximisation of their reuse. This is further proven by the special attention dedicated to developing sorted waste collection, which rose to 74.1% at 31 March 2024, up 3.4% compared to the same period in 2023, thanks to the strong commitment shown in all areas served. In the first quarter of 2024, investments made in the waste management area rose to 21.6 million euro, mainly going to maintenance and upgrading of waste treatment plants. The waste management area accounted for 21.5% of Group Ebitda. Special items and operational adjustments / balance sheet reconciliation IFRS financial statements Income statement Statement of financial position PR Hera Group BoD approves results for 1Q 2024.pdf 12:41:00 Nuova_Palazzina_110x150.1533218221.jpg

2024-04-08 Kindly note that the following documents, approved by the Hera S.p.A. Board of Directors, have been made available to the public at company headquarters, on the website https://eng.gruppohera.it/ and on the authorised storage platform 1INFO (www.1Info.it): folder containing the draft Separate Financial Statements and Consolidated Financial Statements as of 12/31/2023, including the Report of the Board of Statutory Auditors and the Report of the Independent Auditors; Sustainability Report - Consolidated non-financial statement prepared in accordance with Legislative Decree 254/2016. In the same way, the Corporate Governance Report and the Report on Remuneration Policy and Compensation Paid are also available. 15:27:00

2024-03-26 img_primopiano_BE2023_870_V2.png The year closed with main financial indicators rising and the targets included in the strategic Plan to 2026 exceeded three years ahead of schedule. The Group’s financial solidity and flexibility allowed it to continue along its path of industrial growth, increasing its investments and successfully grasping market opportunities, both internal and external, while continuing to generate value benefitting all stakeholders. The proposed dividend was raised, reaching 14 eurocents per share Financial highlights Revenues at 14,897.3 million euro Ebitda* at 1,494.7 million euro (+15.4%) Net profit* for shareholders at 375.2 million euro (+16.5%) Gross operating investments at 815.8 million euro (+15.0%) Net financial debt improves to 3,827.7 million euro (-10%), with Net debt / Ebitda* at 2.56x Proposed dividend rises to 14 eurocents per share (+12%) Operating highlights Strong performance from internal growth with contributions coming from acquisitions Significant contributions from the energy area, growth in the waste management sector, and network resilience pending the adjustment of the tariff return effective from 2024 Consolidation of ranking as Italy’s first operator in the waste management sector, second in water and third in energy Shared-value Ebitda rises sharply to 776.0 million euro (+16%) and shared-value investments amount to 558.4 million euro (69% of total investments) Today, the Board of Directors of the Hera Group, chaired by Executive Chairman Cristian Fabbri, unanimously approved the consolidated financial results as at 31 December 2023 and the Report on remuneration policy and compensation paid, as well as the Sustainability report. Cristian Fabbri, Executive Chairman of Hera Group: “We closed 2023 with record performance in our main operating and financial indicators, achieved within a macroeconomic environment that was volatile and uncertain. Ebitda reached almost 1.5 billion, net profit attributable to shareholders grew by 16.5% and investments were up by 15%, exceeding 800 million euro. As a result, the economic value distributed to stakeholders in the areas in which we operate reached 2.3 billion euro, up 36%. We achieved these results mainly thanks to the contribution coming from the waste management and energy areas. In the energy area in particular, we achieved significant growth supported by commercial development, last resort markets and energy efficiency services. At the same time, debt fell by 10%, bringing us to a Net debt / Ebitda ratio of 2.56x, allowing the Board of Directors to propose a 12% increase in dividends, equal to 14 eurocents per share. The 2023 results thus confirm the validity of our Group’s strategic vision and constitute the solid building block of our new business plan, approved in January.” Orazio Iacono, CEO of the Hera Group: “In 2023, Ebitda exceed the targets set in the previous Plan to 2026 three years ahead of schedule. The normalisation of energy prices made it possible to reduce net working capital achieving a significant financial structure and a Net debt / Ebitda ratio of 2.56x. The Group thus regained its usual financial flexibility and can continue to seize further growth opportunities in its reference markets, still highly fragmented. Evidence of this lies in the transactions carried out in 2023, which also confirm our focus on generating sustainable growth in the local areas served. This commitment was confirmed by the increase in both shared-value Ebitda, up by 16% to 776.0 million euro, 52% of overall Ebitda, and in CSV investments, which amounted to 558.4 million euro in 2023, approximately 69% of total investments. Finally, we proved our ongoing commitment to sustainable finance, a driving force for our investment plan and confirmation of our desire to create value in the areas served, with particular attention going to objectives including decarbonisation, circular economy, innovation and resilience, consistent with our corporate purpose and the path set out by the Business Plan.” Record year for the Group, that continues to create value for stakeholders and increase its scope of operations Thanks to effective choices made by management and the numerous development actions implemented, which also made it possible to seize market opportunities, the Hera Group closed the 2023 financial year with main operating results showing strong growth compared to the previous year. In particular, the Group leveraged its financial flexibility to successfully participate in recent last resort market tenders, and to acquire strategic assets in the waste management area. In a year characterised by an international geopolitical situation that remained unstable, with high energy market volatility in the first half of the year and prices that have not yet returned to the levels seen prior to the crisis, as well as a series of extreme weather and climate phenomena that affected the areas served, the Hera Group has continued to ensure service continuity and quality and the creation of value for all stakeholders. This concrete and transparent value was quantified through shared-value Ebitda and investments, with the data in question subjected for the fifth consecutive year to an external auditing company in order to validate these distinctive aspects of the Group’s reporting to all stakeholders. Hera pursued corporate growth and, at the same time, sustainable development, as shown by the increased investments in innovation and resilience of the assets managed, the circular economy and the energy transition, with concrete projects consistent with major national and international policies. In addition to internal growth, in 2023 Hera continued to expand its scope of operations through external development, with the aim of providing its customers with increasingly innovative and competitive solutions. In the waste management area, the new plant for biomethane and compost production in Spilamberto, near Modena, became fully operational, as did the partnership with A.C.R. di Reggiani Albertino, an important company operating nationwide in remediation, industrial waste treatment, decommissioning of industrial plants, and civil works related to the oil & gas sector. In the IT-TLC sector, the acquisition with Ascopiave of 92% of Asco TLC, followed by its merger by incorporation into Group subsidiary Acantho, enabled Hera to enhance its connectivity, telephony and data centre services in more than one region of Italy. In the area of renewable energy, acquisitions concerned the Ferrara-based company Tiepolo, for the construction of a photovoltaic solar park in Bondeno in Ferrara province, and of 60% of the Rimini-based company F.lli Franchini, involved in installing plumbing and electrical systems and photovoltaic solutions for business customers. The Hera Group and Orogel company also established the NewCo Horowatt for the construction of a sustainable, state-of-the-art agrivoltaic plant at the Cesena facilities owned by this agricultural cooperative. In the energy area, in November 2023 the Hera Group’s holding in EstEnergy, the largest energy operator in Northeastern Italy, rose to 75%. Furthermore, as regards the valuable intangible asset represented by its customer base, in February 2024, 7 lots were awarded in the national tender called by the Single Buyer for the gradual protection service for non-vulnerable domestic customers. The liberalisation process in the electricity sales market will lead to the entry, as of 1 July 2024, of more than 1 million new customers in the electricity service, further consolidating the Group’s position as the third largest operator in the energy sector nationwide. Lastly, as regards creating value, the Group continued to show its commitment to sustainable finance. In 2023, more than 1 billion in financing was allocated to the green transition, thanks to the issue of the Group’s second sustainability-linked bond, which included carbon neutrality and circular economy objectives, and the Revolving sustainability-linked credit line obtained. In addition, Hera obtained a dedicated loan from the European Investment Bank (EIB) for more than 60 Group projects, mainly intended for the Emilia-Romagna, Veneto and Friuli-Venezia Giulia regions and aligned with the European Taxonomy that, in addition to responding to the objectives set by the UN Global Agenda 2030, will accompany the communities served towards an ecological transition strongly rooted in the social and industrial fabric. Thanks to this strong focus on green finance, the portion of the Group’s debt financed with ESG instruments has progressively increased over the years, reaching 57% in 2023. Revenues at approximately 15 billion euro The Hera Group’s 2023 revenues amounted to 14,897.3 million, down from 20,082 million in 2022 (-25.8%), mainly due to the normalisation of energy commodity prices and gas volumes, lower trading and the mild weather seen in the first part of the year. This decrease was partially offset by higher electricity volumes sold, thanks to commercial activities related to the sale of value-added services and solutions for energy efficiency and self-generation, Consip tenders, the 2 lots of the safeguard service awarded for 2023-2024 and the gradual protection service for supplying electricity to micro-businesses starting from 1 April 2023. Revenues in the waste management sector were also up, due in particular to new operations in the industry market, above all the partnership with Modena-based A.C.R di Reggiani Albertino. Ebitda* rises to almost 1.5 billion euro (+15.4%) Ebitda* for 2023 increased to 1,494.7 million, up 15.4% compared to the 1,295.0 million recorded at 31 December 2022. This growth is due to the overall contribution coming from the energy areas, amounting to 169.4 million euro, especially thanks to commercial development, last resort market tenders and opportunities arising from incentives for energy services. A good performance also came from the waste management area, up 15.4 million euro, while the water cycle contributed with 9.5 million euro and the other services area with 5.4 million euro. Ebit* increases to 741.0 million euro (+18%) Ebit* rose to 741.0 million euro, +18% compared to 2022, with growth exceeding that of Ebitda*, since depreciation, amortisation and provisions increased less than the rise in Ebitda. Net profit* increases to 417.0 million euro The tax rate for the 2023 financial year stood at 26%, unchanged from 2022, thanks to nonrecurring concessions, tax credits for the purchase of electricity and gas, and benefits from the redemption of certain higher values arising from corporate acquisitions. Net profit* at 31 December 2023 also rose by 12%, reaching 417.0 million euro, as against 372.3 million during the previous year. Net profit* attributable to shareholders rises Net profit* attributable to shareholders amounted to 375.2 million, up 16.5%. Increased investments and improvement in net financial debt In 2023, the Hera Group’s operating investments, including capital grants, reached 815.8 million euro, up 15.0% compared to 709.5 million in 2022. Investments were mainly allocated to work on plants, networks and infrastructures, in addition to regulatory adjustments in gas distribution for the large-scale meter replacement, as well as the purification and sewage sector. This effort towards investing in the industrial growth of the Group’s regulated activities led its RAB to rise to 3.33 billion euro, up by 144 million euro compared to 2022. Net financial debt decreased to 3,827.7 million euro, as against 4,249.8 million as at 31 December 2022, mainly due to the positive performance of net working capital* caused by the progressive reduction in energy commodity prices compared to the amounts seen in late 2022, the increase in tax credits for subsidiary Hera Servizi Energia (due to the acceleration of works incentivised by expiring tax bonuses), the decreased VAT position and the lower value of gas storage, both in terms of prices and volumes. The Group’s financial structure therefore showed significant improvement, with the Net debt / Ebitda* ratio decreasing to 2.56x, compared to 3.28x at 31 December 2022. The result from operations recorded a double-digit return on equity (ROE*), coming to 11.1%. Return on invested capital (ROI*) also improved, rising to almost 10% (9.8%), as against 7.9% in 2022 and above the figures seen prior to the crisis, with an increase in value creation, due to both higher margins and a decrease in invested capital, as a result of the normalisation of net working capital. Shared-value Ebitda and investments up to 776.0 million (+16% compared to 2022) and 558.4 million (69% of total investments) respectively As confirmation of the Group’s commitment to sustainability and creating value in the areas served, 2023 shared-value Ebitda, referring to business activities that respond to the objectives of the 2030 UN Global Agenda, rose to 776.0 million, up 16% from 670.3 million in 2022 and corresponding to 52% of overall Ebitda. This result is in line with the direction defined by the Business plan and the goal of reaching over 1 billion euro in 2027 (equivalent to 64% of total Ebitda), along a path that generates concrete benefits for the local areas and communities served, alongside the company’s own development. Shared-value investments also rose, amounting to 558.4 million in 2023, roughly 69% of total gross operating investments. Moreover, about 92% of the investments eligible for the Taxonomy are already aligned with the criteria of this European Regulation and thus contribute to environmental objectives including climate change mitigation, circular economy, water resource protection and pollution prevention. The Hera Group’s best practices in ESG factors led it to be confirmed, for the fourth consecutive year, as part of the Dow Jones Sustainability Index, World & Europe, one of the world’s most authoritative stock market indices for evaluating social responsibility, with the highest rating in the Environmental and Social areas for companies in the Multi & Water Utilities sector. Furthermore, Hera was confirmed as a European leader in terms of commitment and transparency in the fight against climate change, achieving the “A-” level in the assessment drawn up by CDP (formerly the Carbon Disclosure Project), the international non-profit organisation specialising in assessing the climate strategies and performance adopted by companies. Proposed dividend increases to 14 eurocents per share Consistently with what was announced last January when presenting the Business plan to 2027, and in consideration of the significant results achieved, the Board of Directors decided to propose to the Shareholders Meeting held on 30 April to pay a dividend coming to 14 eurocents per share, up 1.5 eurocents compared to the last dividend paid (+12%). This increase will be extended to the entire dividend policy for the period covered by the Plan, reaching 16 eurocents per share in 2027, with net earnings per share rising by an average of 7% per year. The ex-dividend date has been set for 24 June 2024, with payment as of 26 June 2024. The dividend will be paid to the shares recorded on 25 June 2024. Report on remuneration policy and compensation approved The Board of Directors also approved the Report on the remuneration policy and compensation paid, in line with international best practices. Gas Ebitda* for the gas area, which includes natural gas distribution and sales, district heating and energy services, amounted to 516.9 million euro at 31 December 2023, as against 585.1 million in 2022. The decrease in Ebitda for the gas area is linked both to reduced volumes, due to the mild weather seen in the first part of the year, and lower margins for storage and trading activities, as well as the opportunities arising in the energy services segment from incentives for energy efficiency in households (110% super-bonus and insulation bonus) and the increased customer base, partially due to the last resort market and Consip tenders awarded. In particular, Hera Comm was awarded 8 of the 9 lots of the last resort gas service in 16 regions for the period from 1 October 2023 to 30 September 2025, all 9 lots of the gas default service tender and 3 lots of the Consip tender for supplying natural gas to public administrations in 2023-2024. The overall number of gas customers increased to 2.1 million (+1.3%). In 2023, net investments came to 190.9 million euro (+22.4% compared to 2022), mainly going to distribution, involving nonrecurring maintenance and development of networks and plants, smart gas meter commissioning, including the innovative NexMeter patented by Hera, initiatives related to acquiring new customers, district heating and energy services, with the activities of the company Hera Servizi Energia, and work on networks and plants. In the Udine area, 2023 saw the start of the gas distribution service for the 18 municipalities included in the ATEM Udine 2, following the tender awarded to AcegasApsAmga in late 2021. The new service contract includes over 90 thousand users, distributed along a network coming to over 1,200 km. At the end of the year, the second phase of experimentation, involving the first trials of this kind in Italy, was completed in Castelfranco Emilia, near Modena, on the use of a mixture of methane and hydrogen (2%), in a municipal gas distribution network. This asset readiness test on the network is part of Hera’s strategy to promote green gas, in line with EU indications, and allowed it to include gas distribution among the eligible activities for the European Taxonomy. The two Hydrogen Valleys under construction, in Modena and Trieste, which will produce about 800 tonnes per year of green hydrogen, will be home to photovoltaic parks to power the electrolysers, contributing to the decarbonisation of the industrial and local public transport sectors and, more generally, local areas in question, while at the same time redeveloping disused areas. The plants will be completed by 2026, partially thanks to NRRP contributions. The development of a supply chain for this renewable energy vector will therefore have significant and positive environmental, social and economic consequences. The gas area accounted for 34.6% of Group Ebitda. Electricity The electricity area, which mainly includes services in electricity distribution and sales, saw a sharp rise in Ebitda, which came to 309.2 million euro, as against 71.6 million in 2022. This was mainly due to sales activities, that benefitted from lower modulation charges compared to 2022 and a significant increase in the customer base, in both traditional and safeguarded markets. Value-added services were up, with increased earnings coming to approximately 3 million euro, partially thanks to the entry of the company F.lli Franchini within the Group’s scope of operations, in a partnership that brought new technical skills to Hera and expanded its portfolio of solutions for business customers, further strengthening its presence in the Italian energy market. One of the M&As aimed at supporting decarbonisation and electrification of consumption in the communities served was the aforementioned acquisition of the company Tiepolo for the construction of a photovoltaic solar park in Bondeno in Ferrara province. In addition, 4 lots of the Consip electricity tender for supplying electricity to public administrations in 2023 were awarded, in Rome, Campania, Calabria and the Italy lot; 3 lots of the gradual protected service for supplying electricity to SMEs for the period from 1 July 2021 to 30 June 2024, in 9 regions; 2 lots of the safeguarded service for 2023 and 2024, in 4 regions; 1 lot of the gradual protected service for supplying electricity to micro-businesses from 1 April 2023 to 31 March 2027, in 2 regions and 3 provinces in the North-East Italy. Electricity customers rose above 1.7 million (+19.2%), with growth occurring especially on the free market, thanks to reinforced commercial actions. Customer appreciation and loyalty was also confirmed, thanks to the value-added services offered by the Group. In particular, the market positioning strategy pursued by the Group led it to capitalise on the success achieved in all tenders in last resort services (both gas and electricity), supporting strong growth in results and laying the foundations for further market development. In the electricity area, gross and net investments amounted to 124.5 million, up 59% compared to the previous year. The interventions carried out mainly concerned nonrecurring maintenance on plants and distribution networks in the Modena, Imola, Trieste and Gorizia areas; a large-scale meter replacement and improvements in network resilience. Requests for new connections also increased slightly compared to the previous year. The electricity area accounted for 20.7% of Group Ebitda. Water cycle Ebitda for the integrated water cycle area, which includes aqueduct, purification, and sewerage services, amounted to 271.4 million euro, up from 261.9 million in the previous year, fully offsetting the increase in network and plant operating costs due to the rise in prices for materials and services. In addition, the Group was able to more than compensate for the considerable effect of inflation on costs, which was only recognised in tariffs as of 1 January 2024. Also note ARERA’s recognition of the significant investments, state-of-the-art plants and use of the best technologies for an efficient management of the water cycle in the areas served, in line with the Group’s sustainability and circular economy strategies. In particular, the Hera Group was awarded first and third place in the overall ranking of Italian utilities, proving the very high-quality standards adopted in managing this service. Including capital grants, investments amounted to 228.2 million euro (+9.7%), mainly going to extensions, reclamations and upgrading on networks and plants, as well as regulatory adjustments mainly in the purification and sewerage areas. The main interventions concerned the aqueduct, with ongoing reclamation activities on networks and connections, as well as major nonrecurring maintenance and restoration work following the flood emergency in May 2023. Considerable maintenance work continued on the intake from the Setta river, serving the Sasso Marconi drinking water treatment plant near Bologna, as well as upgrading on water networks in other areas served and a large-scale meter replacement. Furthermore, development began on the project for the new Castel Bolognese supply system in Ravenna province, and on the significant reclamation of a water adduction pipeline from Pontelagoscuro to Ferrara. In the sewerage sector, work continued on the Rimini seawater protection plan, one of the largest state-of-the-art works in Italy of its kind, and in network redevelopment and drain upgrading in other regions. In purification, note the construction of the new power-to-gas plant at the IDAR purifier in Bologna, as well as the expansion of the San Giovanni in Persiceto plant near Bologna, and ongoing revamping of the Gramicia purification plant in Ferrara. 2023 was also an important year for the consolidation of relations between the networks of the Friuli-Venezia Giulia and Veneto integrated water system managers, in order to improve the resilience of these systems, and projects financed by the NRRP, among others, were launched. Also note the interventions in the area of climate change to prevent flooding in both Trieste, with interventions on streams, and Padua, with nonrecurring cleaning and connections for new sewerage networks. The integrated water cycle area accounted for 18.2% of Group Ebitda. Waste Ebitda for the waste management area, which includes waste collection, treatment and disposal services, rose to 353.4 million euro, up 4.6% from 338 million in 2022, mainly due to the good performance of the waste treatment area, whose Ebitda came to 294.4 million, up 16.9 million, while Ebitda for environmental services involving collection and sweeping amounted to 59.0 million. The contribution from changes in the scope of consolidation due to recent acquisitions, the excellent performance of energy management and the higher volumes treated offset the increased costs due to inflation, the closure of the Ca’ Lucio landfill in the Marche region and the negative trend in the recovery market. In special waste treatment, the results of subsidiary ACR, which recently entered the Group’s scope of operations, were particularly noteworthy, creating approximately 4 million euro in synergies thanks to its full integration into the Group’s activities. The Hera Group is Italy’s leading operator in the waste management sector and operates in the complete waste cycle with approximately one hundred municipal and special waste treatment and plastic regeneration plants. The care and attention Hera gives to its set of plants has always set it apart, including ongoing efforts to equip plants with the best available technologies and achieve growth in this sector, favoured by regional expansion and its solid management and commercial policies. In 2023 as well, the main lines of development characterising the evolution of the Group’s activities were confirmed, transforming waste into resources with a view to the circular economy. One example of this is the new plant that became fully operational in 2023 in Spilamberto, in Modena area, born from the partnership between Herambiente and Inalca by converting an old biodigester into a state-of-the-art plant to transform organic waste and agrifood waste into 100% renewable methane and compost, making a concrete contribution to decarbonisation. Its annual production of about 3.7 million cm of biomethane will avoid the use of fossil fuels amounting to roughly 3,000 TOE (tonnes of oil equivalent) and 7,000 tonnes of CO2 emissions into the atmosphere. Protecting environmental resources was therefore confirmed as a priority objective, as was their maximal reuse. This is also proven by the special attention dedicated to increasing sorted waste collection, which, thanks to the strong commitment that the Group has made in all areas served, rose to 72.2%, up 4.4% compared to 67.8% seen in 2022. Gross investments in the waste management sector amounted to 150.8 million euro, mainly involving maintenance and expansion of the set of plants. This includes, for example, in addition to the previously mentioned new plant built in Spilamberto, the revamping on the Trieste waste-to-energy plant and the Ravenna F3 plant, as well as preparatory work for constructing Aliplast’s innovative rigid plastics regeneration plant in Modena. The waste management area accounted for 23.6% of Group Ebitda. Special items and operational adjustments / balance sheet reconciliation IFRS financial statements Income statement Statement of financial position 20240326 Press release Hera FY23 results.pdf 12:47:00 img_BE2023_110x150V2.jpg