News

Following the press release issued on 29th November 2022, the Hera Group and the Ascopiave Group here in announce that they have signed the contract deliverables governing the acquisition of 92% of Asco TLC from Asco Holding and the Treviso-Belluno C.C.I.A.A. (Chamber of Commerce, Industry, Crafts and Agriculture). The transfer of the Asco TLC shares will take place upon the closing of the transaction, which is scheduled in the first quarter of 2023. This partnership represents a strategic step in the evolution of Ascopiave and the Hera Group's business portfolio in the IT-TLC sector, consistent with the industrial plans of the two groups. For additional information on the details of the transaction, please refer to the press release dated 29th November 2022. For further information Press release Press release dated 29th November 2022 GH-Ascopiave_870_primo_piano.jpg GH-Ascopiave_110.png

We once again rank among the companies that pay the most attention to sustainability and ESG aspects internationally. Our latest ESG Evaluation, carried out by the Sustainable Finance analysts of S&P Global Ratings, has indeed also been published. This is a cross-industry assessment of our ability to effectively manage, in the medium and long term, our exposure to environmental, social and governance risks, as well as to grasp opportunities arising from the changes required by a constantly evolving international context. This year, we obtained an overall score of 81/100, making it one of the best companies internationally as assessed by S&P Global Ratings. This comes as further important recognition for the attention that we dedicate to ESG aspects in pursuing a strategy of sustainable, long-term growth, which has characterised us since Hera was established in 2002, and which complements and goes hand in hand with our financial solidity. In particular, in the ESG Evaluation just published, we are assessed by S&P Global Ratings as being strongly prepared to implement our strategy of creating shared value, contributing to the transition towards a circular and low-emission economy. We have, in fact, shown ourselves ready to face the potential risks arising from the energy crisis, thanks to our ability to balance the need for transition with the security and availability of energy sources. For further information Press release Hera ESG rating S&P ESG Evaluation primo_piano_s-p-global-ratings-logo_870.png Among the top positions in the international ranking of Utility Networks assessed by S&P Global for our focus on sustainability and our ability to create shared value by contributing to the energy transition s-p-global-ratings-logo_110.jpg

For the third consecutive year, we are the top-ranking company in the Multi-Utility & Water sector of the Dow Jones Sustainability World Index for sustainability performance in all three Environmental, Social and Governance (ESG) areas. This recognition comes from S&P Global, which published the updated ranking defined by the prestigious international stock market index that assesses the social responsibility of listed companies. As in past editions, this year as well we have been included in both the Dow Jones Sustainability World Index and the Dow Jones Sustainability Europe Index. More specifically, we achieved an overall score of 90/100, the highest in the Multi-Utility & Water sector. The ratings obtained were 89/100 in Environment, 91/100 in Social and 91/100 in Economic & Governance, achieving a leadership position in all three areas assessed. These results provide further recognition of our commitment to all aspects of sustainability as an integral part of our 20-year growth strategy focused on creating value for its stakeholders. For further information Press release Visit Investors web area Visit Sustainability web area DJSI_870_ritaglio.jpg For the third year in a row, we have been confirmed as world leader in the Multi-Utility & Water sector DJSI_110.jpg

Financial highlights Ebitda* at 875 million euro (+2.4%) Net result* at 248 million euro (-5.6%) Net financial debt at 4,489 million euro, with net debt/Ebitda* at 3.62x Investments increase sharply to 463 million euro (+22.8%) Operating highlights Contribution to growth coming from core businesses Expansion in initiatives for the ecological transition and the circular economy Commercial margins maintained in the energy area Significant operating investments in networks, plus a significant effort in gas storage, as well as the completion of a number of M&As Solid energy customer base, approximately 3.5 million Today, the Hera Group’s Board of Directors, chaired by Tomaso Tommasi di Vignano, unanimously approved the consolidated quarterly report at 30 September 2022. Although the results achieved in the first nine months of the year are part of a complicated scenario, characterised by ongoing volatility on the energy market, which became even more pronounced over the last three months, as well as the complex current economic and geopolitical conditions and the gradual increase in inflation in the country, these figures highlight the Group’s ability to offset adversity, continuing to pursue the goals set out in its business plan, with increasing sustainable investments aimed at generating positive effects for the communities and local areas served. Moreover, the Hera Group’s resilient business model, the management policies it implements and its financial solidity have continued to enable it to seize the strategic opportunities offered by the market, to guarantee a high quality and continuity in its services while at the same time supporting and confirming the commitments made to all its stakeholders. Among the initiatives in support of stakeholders, note the flexibility shown towards the Group’s suppliers, who were able to revise their supply conditions based on inflation, and the significant gas storage initiative intended to support the customer base and the Italian gas system as a whole. As regards customers, thanks to the special attention to disadvantaged users, more favourable instalment terms than those provided for by law, an extension of the social bonus to include district heating, compliance with and maintenance of fixed-price contractual conditions, to date the performance in receipts for bills has been confirmed as essentially regular. Revenues rise to roughly 14.3 billion euro In the first nine months of 2022, revenues amounted to 14,320.1 million euro, up sharply (+122.9%) from the 6,424.3 million euro seen in the same period of the previous year. In particular, the energy segments showed significant growth mainly due to the increase in the price of energy commodities, which reached very high figures, especially in the third quarter of the year. Ebitda* increases to 874.8 million euro Ebitda* for the first nine months of the year amounted to 874.8 million euro, up 2.4% from the 854.4 million euro seen at 30 September 2021. The performance of the waste management area was particularly good, with Ebitda up 27.8 million euro, as was that of the water cycle area, up 7.3 million euro, fully offsetting the lower contributions coming from the energy area and the other services area. Financial operations essentially stable and pre-tax profit* at 347.5 million euro The result from financial operations for the first nine months of 2022 came to 89.5 million euro, basically stable compared to the 85.4 million seen during the first nine months of 2021. This change is mainly due to the increase in net financial debt generated by the trend in energy commodity prices compared to 2021. Net result and at 248.4 million euro With a tax rate of 28.5%, up from the same period in 2021 (26.2%) mainly due to the recognition of the non-recurring contribution against high utility bills (amounting to 2.3 million euro) and the recognition of lower benefits related to the tax credit on investments linked to the technological, digital and environmental transformation, the net result* and net profit* for the first nine months of 2022 amounted to 248.4 million euro. Net profit was largely stable compared to the 263 million seen at 30 September 2021. Strong growth in investments and net financial debt sensitive to the higher value of stored gas In the first nine months of 2022, the Hera Group’s operating investments, including capital grants, amounted to 463.3 million euro, up 22.8% compared to the 377.2 million euro seen in the same period of the previous year, with a major focus on resilience- and circularity-oriented projects, as set out in the business plan. The most significant interventions concerned plants, networks, and infrastructures, as well as regulatory upgrading focusing on gas distribution and the integrated water cycle, respectively involving a large-scale replacement of new-generation meters and specific interventions in the purification and sewerage areas. Income statement (mln €) Sept 22 %Inc. Sept 21 (redetermined) Inc.% Abs. change % change Revenues 14,320.1 0.0% 6,424.3 0.0% 7,895.8 122.9% Other operating revenues 345.3 2.4% 243.6 3.8% 101.7 41.8% Raw and other materials (11,642.5) (81.3)% (3,498.2) (54.5)% 8,144.3 232.8% Service costs (1,693.9) (11.8)% (1,858.6) (28.9)% (164.7) (8.9)% Other operating expenses (56.6) (0.4)% (54.4) (0.8)% 2.2 4.0% Personnel costs (449.8) (3.1)% (442.0) (6.9)% 7.8 1.8% Capitalised costs 52.2 0.4% 39.7 0.6% 12.5 31.5% Ebitda* 874.8 6.1% 854.4 13.3% 20.4 2.4% Amortization, depreciation and provisions (437.8) (3.1)% (412.5) (6.4)% 25.3 6.1% Ebit* 437.0 3.1% 441.9 6.9% (4.9) (1.1)% Financial operations (89.5) (0.6)% (85.4) (1.3)% 4.1 4.8% Pre-tax result* 347.5 2.4% 356.5 5.5% (9.0) (2.5)% Taxes (99.1) (0.7)% (93.4) (1.5)% 5.7 6.1% Net result* 248.4 1.7% 263.1 4.1% (14.7) (5.6)% Result from special items - 0.0% 56.2 0.9% (56.2) 100.0% Net profit for the period* 248.4 1.7% 319.3 5.0% (70.9) (22.2)% Invested capital and sources of financing (mln€) Sept 22 %Inc. Dec 21 (redetermined) %Inc. Abs. change % change Net non-current assets* 7,485.3 +96.3% 7,308.3 +109.4% 177.0 +2.4% Net working capital* 910.6 +11.7% 2.4 +0.0% 908.2 +37,841.7% (Provisions) (622.3) (8.0%) (633.4) (9.5%) 11.1 +1.8% Net invested capital* 7,773.6 +100.0% 6,677.3 +100.0% 1,096.3 +16.4% Equity* (3,284.4) +42.3% (3,416.0) +51.2% 131.6 +3.9% Long-term borrowings (4,680.1) +60.2% (3,633.1) +54.4% (1,047.0) (28.8)% Net current financial debt 190.9 (2.5%) 371.8 (5.6%) (180.9) (48.7%) Net debt (4,489.2) +57.7% (3,261.3) +48.8% (1,227.9) (37.7)% Total sources of financing* (7,773.6) (100.0)% (6,677.3) +100.0% (1,096.3) (16.4)% *Adjusted results For further information Press release Visit Investors web area img_banner_3Q2022_EN.png Despite the complex macro scenario, the Group’s quarterly report at 30 September 2022 shows an increase in Ebitda compared to 2021 img_110x150_3Q2022.jpeg