Press Releases and Notices

2018-11-23 This partnership will allow the oil collected by Hera (800 tons in 2017) to be converted into Eni Green Diesel at Eni's Venice bio-refinery. The environmental benefits are significant, with a reduction of up to 40% in polluting emissions. Bologna, 23 November 2018 - Eni and Hera are two companies that have long been committed to promoting a circular economy model by continuously developing the technology and organization of their businesses. Today they signed a partnership agreement with the aim of converting used vegetable oil into biofuel for Hera's waste collection vehicles. The agreement revolves around household waste vegetable oil, such as that used for frying, collected by Hera in around 400 roadside containers and about 120 collection centres. It will be sent to the Eni bio-refinery in Porto Marghera, Venice. This is the first oil refinery in the world to be converted into a bio-refinery for the production of Green Diesel, a completely renewable product that accounts for 15% of Enidiesel+. This biofuel will power Hera's urban waste collection vehicles. During an initial phase, Enidiesel+ will be used by around thirty large vehicles in the Modena area to test and optimise the fuel's environmental benefits. The deal signed today extends the already thriving virtuous circle Eni has established with multi-utility companies in Turin, Venice and Rome. Results from tests have shown major benefits in terms of air quality, the economy and industry. Compared to conventional diesel, Enidiesel+ features a renewable component that reduces polluting emissions by up to 40%, consumption by about 4% and engine maintenance costs. These metrics be monitored by both companies in collaboration with the Institute for Engines (Istituto Motori) at the National Research Council of Italy (CNR). To further support of the initiative, Hera has decided to boost the roadside collection of vegetable oil by introducing 300 new dedicated containers in the areas in which it operates. In 2017 alone, 800 tons of waste vegetable oil were collected, recovered and processed for use either as lubricants or energy. This service is increasingly comprehensive. It also provides an incentive to properly recycle waste oil and also works to prevent behaviour such as pouring oil down the sink, which damages household plumbing and water treatment plants. "The refinery in Venice is the first in the world to be converted into a bio-refinery and will be joined in a few months by the Gela refinery, which is also being calibrated for the bio-cycle," commented Giuseppe Ricci, Eni Chief Refining & Marketing Officer. "Eni has begun the journey towards an energy transition that envisages an increasingly important role for biofuels in the process of decarbonising our planet. The agreement with Hera adds a significant component to our concrete commitment to the circular economy and reinforces the use of waste, specifically cooking oil, as an important raw material for producing the innovative fuel Enidiesel+ and as a replacement for the edible raw materials that are currently used. As a result of the initiatives and deals that Eni has developed following the agreement with CONOE (National Consortium for the Collection and Treatment of Used Oils and Fats) and its individual members, more than 50% of the cooking oil collected in Italy is now converted into biofuel at the Venice bio-refinery, with clear benefits for the environment and the economy." "An economic model is truly circular if it addresses the entire life cycle of resources, with genuine partnerships among the businesses involved and residents. It would go beyond merely managing the final stage of collecting waste that perhaps has been delivered to third parties," explained Stefano Venier, Chief Executive Officer of the Hera Group. "Hera is therefore committed not only to extending the life cycle of materials through recycling and reuse initiatives, but also to developing solutions and plants that can turn substances into new products or draw energy from them, especially within the bio-based supply chain. Our agreement with Eni continues in this direction. It has identified a new way in which we can use waste resources to contribute to decarbonisation and energy efficiency. Waste oil that becomes advanced biofuel with a reduced carbon footprint and is reused for waste collection is a perfect example of the circular economy, one that adds to the progress of the many initiatives we've already launched in this area." ENG_Eni_Hera_23_November_2018.1542978261.pdf 2018-11-23 13:00:00 Hera Spa

2018-11-08 Results as at 30 September 2018 Consolidated 3Q results at 30 September confirm the growth in operating and financial indicators already seen in the first half of the year, with positive contributions coming from the different Group's business areas, gas and waste management in particular. /documents/1514726/4667212/GruppoHera_Consolidated_ThirdQuarterReport30September2018_eng.1541672459.pdf/4efd185a-8a09-4b8c-a66a-ef1134973617?t=1608550214672 /documents/1514726/4880892/GruppoHera_AnalystPresentation_3Q2018.1541667701.pdf/80211312-b744-bbd1-67b4-f34d827d274e?t=1610019123913 http://investornews.gruppohera.it/en/?n=57 https://eng.gruppohera.it/documents/1514726/4210710/Dati_finanziari_ed_operativi_di_sintesi_9M_2018_eng.1541601540.xls/d1d59596-0dd4-d19b-53fb-9b1dd18b0f90?t=1597907689072 /group_eng/investor-relations/results-and-presentations/interactive-data Financial report as at 30 September 2018 Analyst presentation: Results as at 30 September 2018 Newsletter 3Q 2018 Financial data: Results as at 30 September 2018 Interactive data Financial highlights Revenues at € 4,348.4 million (+8.0%) Ebitda at € 748.6 million (+3.3%) Net profits for Shareholders at € 208.7 million (+14.1%) Net debt at € 2,642.0 million Operating highlights Good contribution to growth coming from all businesses and gas in particular Good results achieved through internal growth Solid customer base in Energy (approximately 2.5 million), rising by approximately 100,000 over the first three quarters of 2017 Sorted waste increases to an average of 61.4% across all areas served Today, the Hera Group’s Board of Directors unanimously approved the consolidated financial results at30 September 2018, which confirm the positive trend in operating results seen in previous quarters and show further improvement in financial and fiscal management. These results once again reward the Group’s balanced and agile way of operating, following a business model that has always combined the strategic levers of internal and external growth. In addition to remarkable internal growth, partially deriving from higher efficiencies, developments in market shares and an increase in volumes sold in the energy sector both contributed to the accounts for the first three quarters of 2018. Revenues rise to € 4,348.4 million In the first nine months of 2018, revenues amounted to € 4,348.4 million, up 8% over the € 4,027.8 million seen at 30 September 2017, with a contribution coming from all business areas. In particular, trends in gas and electricity trading and sales benefitted from an increase in volumes. Ebitda increases to € 748.6 million The Group’s consolidated Ebitda at 30 September 2018 grew from € 724.7 to € 748.6 million (+3.3%). This result is due to the good performance seen in all main activities, and the gas sector in particular, whose contribution included rising earnings derived from sales and trading. Positive results were also seen in the integrated water cycle and waste management areas. Ebit and pre-tax profits grow, owing in part to financial management Ebit grew to € 376.5 million, up compared to the € 357.9 seen at 30 September 2017 (+5.2%), while pre-tax profits rose to € 311.0 million, as against the € 283.5 seen at the same date in 2017 (+9.7%). This was due to financial management, which in the first nine months of 2018 improved by € 8.9 million compared to 30 September 2017, settling at € 65.5 million, with aperformance partly made possible by efficiency in rates and higher financial income for commercial activities. Net profits for Shareholders increase to € 208.7 million (+14.1%) Profits pertaining to Group Shareholders rose to € 208.7 million, compared to the € 182.9 million recorded at 30 September 2017 (+14.1%), for reasons including a tax rate coming to 30.1%, an improvement over the 32% seen in the same period of the previous year. The considerable investments made by the Group in Utility 4.0 projects allowed fiscal optimisation opportunities to be grasped, thanks to incentives for large and very large amortisations. Approximately € 300 million in investments, and an essentially stable financial position The Group’s operating investments at 30 September 2018, including capital grants, amounted to € 296.6 million, up 7.0% over the same period in 2017 and in line with the content of the Business plan. Operating investments mainly concerned work done on plants, networks and infrastructures, in addition to regulatory upgrading, above all concerning gas distribution with a large-scale metre substitution, and the purification and sewerage activities. Net debt came to € 2,642.0 million at 30 September 2018, essentially stable compared to the € 2,610.0 million recorded after the first nine months of 2017, considering the dividends paid. Gas Ebitda for the gas business, which includes services in natural gas distribution and sales, district heating and heat management, reached € 222.2 million at 30 September 2018, up 10.3% over the same period one year earlier thanks to commercial development, higher intermediated volumes and higher revenues for distribution services. The number of gas customers came to 1.413 million in the first nine months of 2018, rising by 1.6% over the same period in 2017. This growth was caused by an expansion in market share and by the companies Blu Ranton and Verducci Servizi becoming part of the Group’s consolidated scope. The gas business accounted for 29.7% of Group Ebitda. Water cycle Ebitda for the integrated water cycle, which includes aqueduct, purification and sewerage services, increased by 4.4%, going from € 178.3 million in September 2017 to € 186.2 million at 30 September 2018, thanks to higher revenues from dispensing, higher recognised costs and the efficiencies reached. The integrated water cycle accounted for 24.9% of Group Ebitda. Waste management The results for the waste management, which includes services in waste collection, treatment, recovery and disposal, also showed increasing figures, with Ebitda going from € 181.4 million at 30 September 2017 to € 188.2 million at the same date in 2018 (+3.7%). This trend was largely caused by changes in the prices set for waste treatment, along with increased results from Aliplast. Further growth was also seen in sorted waste, which went from 56.6% during the same period in 2017 to 61.4% at 30 September 2018, thanks to the numerous services offered. In the month of September, moreover, the Sant’Agata Bolognese biomethane production plant was launched, fully respecting the timing set out in the Business plan. The waste management area accounted for 25.1% of Group Ebitda. Electricity Ebitda for the electricity business, which includes services in electricity generation, distribution and sales, went from € 147.4 million in the first nine months of 2017 to € 133.2 million at 30 September 2018. Sales and trading results benefitted from a higher amount of intermediated volumes (+15.5%) and the enlarged customer base (+7.8%, reaching 1.039 million), thanks to increased market shares and a wider scope of operations. This result partially offset the effect coming from a few suspended generation plants, which became fully functional once again in the third quarter. The electricity business accounted for 17.8% of Group Ebitda The manager responsible for drafting the company’s accounting statements, Luca Moroni, declares, pursuant to article 154-bis paragraph 2 of the TUF, that the information contained in the present press release corresponds to the documentation available and to the account books and entries. The third-quarter management report and related materials are available to the public at Company Headquarters and on the website www.gruppohera.it. Unaudited extracts from the Intermediate Management Report at 30 September 2017 are attached. news_engnewsProfit & Loss (m€) 30/09/2018 Inc% 30/09/2017 Inc.% Ch. Ch. % Sales 4,348.4 4,027.8 +320.6 +8.0% Other operating revenues 321.1 7.4% 327.3 8.1% -6.2 -1.9% Raw material (1,966.6) -45.2% (1,776.4) -44.1% +190.2 +10.7% Services costs (1,529.2) -35.2% (1,428.6) -35.5% +100.6 +7.0% Other operating expenses (42.9) -1.0% (45.3) -1.1% -2.4 -5.3% Personnel costs (410.1) -9.4% (409.1) -10.2% +1.0 +0.2% Capitalisations 28.0 0.6% 29.1 0.7% -1.1 -3.8% Ebitda 748.6 17.2% 724.7 18.0% +23.9 +3.3% Depreciation and provisions (372.2) -8.6% (366.8) -9.1% +5.4 +1.5% Ebit 376.5 8.7% 357.9 8.9% +18.6 +5.2% Financial inc./(exp.) (65.5) -1.5% (74.4) -1.8% -8.9 -12.0% Pre tax profit 311.0 7.2% 283.5 7.0% +27.5 +9.7% Tax (95.1) -2.2% (90.7) -2.3% +4.4 +4.9% Net profit before special items 215.9 5.0% 192.8 4.8% +23.1 +12.0% Special items 4.8 0.1% - 0.0% +4.8 +100.0% Net profit 220.7 5.1% 192.8 4.8% +27.9 +14.5% Attributable to: Shareholders of the Parent Company 208.7 4.8% 182.9 4.5% +25.8 +14.1% Minority shareholders 11.9 0.3% 9.9 0.2% +2.1 +20.9% Balance Sheet (m€) 30/09/2018 Inc.% 31/12/2017 Inc.% Ch. Ch.% Net fixed assets 5,837.0 107.2% 5,780.6 110.5% +56.4 +1.0% Working capital 186.4 3.4% 23.2 0.4% +163.2 +703.4% (Provisions) (578.5) (10.6%) (574.8) (10.9%) (3.7) +0.6% Net invested capital 5,444.9 100.0% 5,229.0 100.0% +215.9 +4.1% Net equity 2,802.9 51.5% 2,706.0 51.7% +96.9 +3.6% Long term net financial debt 2,841.9 52.2% 2,735.4 52.4% +106.5 +3.9% Short term net financial debt (199.9) (3.7%) (212.4) (4.1%) +12.5 (5.9%) Net financial debts 2,642.0 48.5% 2,523.0 48.3% +119.0 +4.7% Net invested capital 5,444.9 100.0% 5,229.0 100.0% +215.9 +4.1% Press Release Q32018 2018-11-06 13:00:00 be_110x150.1525945155.png

2018-10-25 The Hera Group's top management and regional alderwoman Gazzolo inaugurated today, just outside Bologna, the first biomethane-from-organic-waste plant created by a multi-utility. Investments totalling 37 million euro have thus given new impetus to the future of renewable energies on an industrial scale, with 7.5 million cubic metres of biomethane and 20 thousand tonnes of compost sustainably fuelling, each year, a range of sectors including motor vehicle transport and agriculture. biomethane plant How can energy amounting to 6 thousand tonnes of oil equivalent be obtained each year, without consuming a single drop of crude oil and thus avoiding 14,600 tonnes of CO2 emissions? As of today, the answer can be found in Sant'Agata Bolognese, just outside the capital city of the Emilia-Romagna region, where the Hera Group has inaugurated a major plant producing biomethane from the organic portion of waste, designed and created on the basis of the most advanced precedents seen in this sector internationally. The opening ceremony - that saw the participation of the region's alderwoman Paola Gazzolo, Hera's top management and the main local and sector institutions - ushered in a new phase in the decarbonisation of energy production, giving further impetus to the circular economy towards which the region has been moving for some time now. Thanks to this plant, indeed, sorted organic waste coming from our houses will serve the community under the form of gas. Once injected into the network, this gas will fuel public and private transportation vehicles running on natural gas, aiding a sector that is increasingly exposed to the issue of carbon dioxide emission. In line with policies adopted by the Region, the National Energy Strategy and the European Union, the Sant'Agata Bolognese plant will now begin extracting value from this 37 million euro investment. The plant furthermore represents an enrichment of the range of plants belonging to Herambiente, the national leader in waste treatment that has been active for years in biogas production for renewable electricity. A 100% renewable combustible from organic waste In terms of volume, the plant is capable of treating 100 thousand tonnes of sorted organic waste each year, in addition to 35 thousand tonnes resulting from plant clipping and pruning. Thanks to the implementation of new and improved technologies in anaerobic digestion and upgrading, in particular, these resources will allow 7.5 million cubic metres of biomethane, a 100% renewable combustible, to be obtained along with 20 thousand tonnes of compost, a bio-fertiliser mainly intended for agriculture. An architectural project conceived to bring the plant and the area served into harmony, minimising its environmental impact With no combustion plants whatsoever, the plant is located within a pre-existing composting site, with no additional land use required for its construction. Planned with an eye to minimising its acoustic and odoriferous impact, the structure furthermore meets architectonic criteria aimed at harmonising it with the surrounding area. Even its outer covering, which will be added over the next few months, will be dense with themes and motifs that relay the sense of what goes on inside: in particular, images will portray vegetation blossoming out of an arid and cracked ground, calling to mind the transformations undergone by the organic product within the plant. Lastly, a redevelopment of the surrounding green areas will be accompanied by the creation of a path intended to welcome those visiting the plant itself. "We have been working with biomethane for some time now", comments Tomaso Tommasi di Vignano, Executive Chairman of the Hera Group. "Today's inauguration, in particular, is a crowning achievement that represents years of work. Our community will now be served by a plant born out of research, studies and European tenders that allowed us to choose the best of what is currently available on the market. What's more, renewable energies must necessarily become part of industrialisation processes capable of expressing their potential on a large scale. In this sense the Sant'Agata plant is an excellent example that can be replicated elsewhere, above all in light of a regulatory framework that is finally favourable and provides fundamental added value for sector development." "The ribbon has been cut in front of a highly innovative construction project that moves towards an energy transition, pointing in the direction of a low carbon economy: biomethane presents a significant opportunity for reducing the use of fossil fuels and lessening our region's energy footprint, with an eye to a circular economy", states the alderwoman of the Emilia-Romagna Region, Paola Gazzolo. "Renewable energy is a fundamental part of the green turn supported by the Emilia-Romagna government with the policies implemented since the beginning of its mandate. This change of pace is intended to offset the effects of climate change as currently seen and reduce the use of raw materials, promoting recovery and reuse. Precisely because these products and materials are available in limited quantities, we must save them and preserve their value: the project realised by Hera in Sant'Agata is headed in exactly this direction". 20181025_Biometano_il_futuro_dellenergia_green_passa_da_SantAgata_Bolognese_final_eng.1540462958.pdf 2017-06-23 13:17:00 biomethane plant

2018-10-24 Approval arrived today for the agreements concerning a planned integration between the natural gas distribution services provided by Inrete and CMV Servizi, as well as energy sales activities of Hera Comm and CMV Energia e Impianti. Hera Spa Today, the Boards of Directors of the companies involved began a process aimed at developing a solid business project in the northern Ferrara area, bearing on CMV Servizi and CMV Energia e Impianti, both active in the energy sector. The two companies are owned by the Municipalities of Cento, Vigarano Mainarda, Bondeno, Poggio Renatico, Terre del Reno and Goro, which following the transaction will see an increase in their shareholding in the Hera Group. The agreement's implementation is subject to the customary conditions applied in similar transactions, as well as the approval of the various shareholders in their respective meetings, as is expected within the end of the year. The transaction will concern roughly 25 thousand customers (21,300 in gas and 3,500 in electricity) and approximately 30 thousand delivery points (26,500 in the Ferrara area and over 3,100 in the area surrounding Bologna) in natural gas distribution. Following the transaction, the personnel currently employed in the two branches of activity of CMV Servizi and CMV Energia e Impianti will be maintained, as will the local business units, which will converge towards other activities carried out by the Hera Group in the same area. CMV will be able to adopt many Group solutions and policies, going to the advantage of the quality and innovative nature of the service offered to its customers. GH_CMV_press_release_eng.1540394806.pdf 2018-10-24 19:05:46 CMV Servizi and CMV Energia e Impianti's energy activities part of the Hera Group as of 1 March