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Although feeling the impact of the Coronavirus emergency, the half-year report shows operating-financial indicators rising, thanks to increased efficiency achieved in the Group’s various business areas and the recently enlarged scope of operations. Financial highlights Revenues at 3,402.3 million euro (+0.9%) Ebitda at 559.7 million (+2.5%) Net profit at 174.9 million (+0.6%) Net financial position improves to 3,083.6 million Operating highlights Good contribution coming from both internal growth and the recently enlarged scope of operations, which more than offset the negative effects of the nationwide emergency Further activities introduced to support all stakeholders Solid customer base in energy sectors, with customers increasing sharply to 3.3 million thanks to the recent Ascopiave partnership Today, the Hera Group’s Board of Directors, chaired by Tomaso Tommasi di Vignano, unanimously approved the consolidated operating results for the first half of 2020. The positive trend shown by our multi-utility was confirmed, with main operating-financial indicators improving, in spite of a few inevitable negative impacts caused by the health emergency that broke out across the country. In general, the good results reached confirm once again the Group’s valid business model, which balances regulated and free-market activities, along with internal and external growth, creating value for the areas served. Relying on its own financial solidity, Hera continued to proactively introduce, in the second quarter as well, a range of measures aimed at guaranteeing service continuity even while the emergency was still fully underway. Furthermore, support and protection were ensured for all main stakeholders, first and foremost employees, suppliers and customers, through means including favourable conditions for bill payments. Among the major changes in the Group’s scope of operations compared to the first half of 2019, note the acquisition in July of the waste treatment plants belonging to Pistoia Ambiente in Tuscany and, in December, the closing of the partnership between Hera and Ascopiave. This latter transaction led, through EstEnergy, to the birth of the largest energy operator in North-Eastern Italy while at the same time redistributing the respective activities in gas distribution. In recent weeks, lastly, Hera stock was included in the FTSE4Good Index Series, a set of ethical indices conceived by FTSE Russell to bring together the best companies who, around the world, are actively committed to sustainable development. This important recognition came just over one year after Hera was listed on the FTSE MIB. Revenues rise to over 3.4 billion euro In the first half of 2020, revenues amounted to 3,402.3 million euro, up 30.7 million (+0.9%) over the 3,371.6 million seen in the same period of 2019. This growth was mainly due to the changes in the scope of operations, which offset the fall in revenues for trading, production and sales of electricity and gas, heat management and district heating. Revenues also fell in the waste management sector, owing to lower revenues in electricity generation and lower volumes of waste treated. Ebitda increases to 559.7 million euro Ebitda settled at 559.7 million euro, up 13.8 million (+2.5%) compared to the 545.9 million seen at 30 June 2019. In the first half of the year, the health emergency impacted all business areas, bringing about an overall decrease in margins coming to roughly 30 million euro, entirely due to non-recurring effects and in line with the projections communicated in late March, when the year-end report was approved. In spite of this, the changes in the scope of operations, especially the entry of the companies belonging to the EstEnergy Group following the partnership with Ascopiave, along with the numerous measures introduced to enhance efficiency, allowed Hera to offset the negative effects and keep growing, above all in the energy areas. Net profit rises to 174.9 million euro Profits at 30 June 2020 came to 174.9 million, up slightly (+0.6%) compared to the 173.9 million seen at 30 June 2019, while profits pertaining to Group shareholders amounted to 166.2 million euro, in line with the same period in the previous year. These results benefitted from a tax rate coming to 27%, a clear improvement with respect to the 28.7% recorded in the first half of 2019, thanks in particular to the Group’s efforts in sustaining significant investments supporting a technological, digital and environmental transformation, in addition to the positive effects of the measures introduced by the government in the Relaunch Decree. Over 240 million invested, improvement in financial position In the first six months of 2020, the Group’s overall investments amounted to 240.6 million euro, up 16.2% compared to the 207.0 million recorded at 30 June 2019. Operating investments mainly concerned interventions on plants, networks and infrastructures, in addition to investments involved in an intensive meter substitution and in the purification and sewerage area. Total investments also included financial investments coming to 45.5 million. The Group’s net financial position, which reached 3,083.6 million euro at 30 June 2020, showed a 190 million (5.8%) decrease compared to the 3,274.2 million seen at 31 December 2019. This was due to a positive cash generation that entirely financed investments and M&A transactions, and that would also have been able to cover the annual dividend payment, which was postponed by a few weeks simply as a precautionary measure and regularly paid on 8 July. Statement by Executive Chairman Tomaso Tommasi di Vignano “We are satisfied with our ability to protect these half-year results from the negative impact of the Coronavirus emergency. Continuing efforts will be made in pursuing growth during the second half of the year as well, in line with the targets set out in our Business plan, hoping that the external context also moves in the direction of a complete recovery. Our solid growth levers (internal growth and M&As) have allowed us to continue creating value for our shareholders, by paying more than 160 million euro in overall dividends in early July, entirely covered by the cash generation achieved over the period”. Statement by CEO Stefano Venier “Thanks to the numerous initiatives introduced and our growth strategy, we have succeeded in containing the negative financial impact of the Coronavirus emergency within the limit foreseen, at the same time confirming our profitability and financial solidity, as witnessed by the positive figures in the income statement and the decreased net financial position. In addition to meeting our commitments with shareholders and providing continuity in all main services, producing positive effects for our network of service suppliers as well, this solidity allowed us to sustain our stakeholders experiencing difficulty, including customers and suppliers, confirming our close relations with local communities”. PROFIT & LOSS (MLN €) 30/06/2020 INC. % 30/06/2019 INC. % VAR. ASS. VAR.% Sales 3,402.3 3,371.6 +30.7 +0,9% Other operating revenues 222.6 6.5% 249.0 7.4% (26.4) (10.6%) Raw material (1,605.1) (47.2%) (1,699.2) (50.4%) (94.1) (5.5%) Services costs (1,151.0) (33.8%) (1,075.1) (31.9%) +75.9 +7.1% Other operating expenses (32.5) (1.0%) (29.8) (0.9%) +2.7 +9.1% Personnel costs (290.9) (8.5%) (286.6) (8.5%) +4.3 +1.5% Capitalisations 14.3 0.4% 16.0 0.5% (1.7) (10.6%) Ebitda 559.7 16.5% 545.9 16.2% +13.8 +2.5% Depreciation and provisions (264.0) (7.8%) (257.0) (7.6%) +7.0 +2.7% Ebit 295.7 8.7% 288.9 8.6% +6.8 +2.4% Financial inc./(exp.) (56.2) (1.7%) (44.9) (1.3%) +11.3 +25.1% Pre tax profit 239.5 7.0% 244.0 7.2% (4.5) (1.8%) Tax (64.6) (1.9%) (70.1) (2.1%) (5.5) (7.9%) Net profit 174.9 5.1% 173.9 5.2% +1.0 +0.6% Attributable to: Shareholders of the Parent Company 166.2 4.9% 166.2 4.9% +0.0 +0.0% Minority shareholders 8.7 0.3% 7.7 0.2% +1.0 +13.1% BALANCE SHEET (MLN €) 30/06/2020 INC.% 31/12/2019 INC.% VAR. ASS. VAR.% Net fixed assets 6,893.2 113.3% 6,846.3 108.9% +46.9 +0.7% Working capital (172.3) (2.8%) 87.0 1.4% (259.3) (298.0%) (Provisions) (638.7) (10.5%) (649.1) (10.3%) +10.4 (1.6%) Net invested capital 6,082.2 100.0% 6,284.2 100.0% (202.0) (3.2%) Net equity 2,998.6 49.3% 3,010.0 47.9% (11.4) (0.4%) Long term net financial debt 3,370.1 55.4% 3,383.4 53.8% (13.3) (0.4%) Short term net financial debt (286.5) (4.7%) (109.2) (1.7%) (177.3) +162.4% Net financial debts 3,083.6 50.7% 3,274.2 52.1% (190.6) (5.8%) Net invested capital 6,082.2 100.0% 6,284.2 100.0% (202.0) (3.2%) 1H2020_870x320_eng.1596012193-2.jpg 1H results Read more /-/hera-bod-approves-1h-2020-results-1 Press release 1H results 2020-05-13

After many months of relentless work, we have reached another milestone of the Seawater Protection Plan, the major water work that will eliminate drains discharging into the sea. Below the new waterfront terrace, two tanks the size of 20 Olympic-size pools are in place to keep watch over the sewage system On 6 June 2011, a violent storm on Rimini severely damaged the city's sewage system. For a community that has been focused on summer tourism for decades, solving this problem and avoiding environmental impacts such as water pollution was an absolute priority. The sea, in fact, is not only a precious tool that drives the city's economy, but also and above all part of Romagna's identity. Now, residents and tourists no longer have to fear sudden downpours, because right in the centre of town, under a terrace overlooking the sea, there is a remarkable work of engineering that watches over Rimini's sewage system. It is part of the Seawater Protection Plan (PSBO – Piano di Salvaguardia della Balneazione), a kind of "gentle giant" that is the largest water reclamation project underway in Italy and one of the most important in Europe, also recognized by the UN for its role in protecting the marine environment. After that storm, we at Hera Group responded to the call for environmental protection and, thanks to an impressive effort undertaken jointly with the Municipality of Rimini, Romagna Acque and Amir, succeeded in proving that keeping the sea clean, guaranteeing its bathing conditions, was indeed a complex undertaking, but not an impossible one. The PSBO is like a great marathon divided into 14 "stages", including the elimination of 11 drains discharging into the sea. It is the culmination of an investment of €154 million, with 130 people working on the project every day, 38 companies involved, and 45 km of new sewage pipelines laid. It started in 2013 with measures that, in the following years, led, for example, to the restructuring of the sewerage system of Rimini Isola (in 2014), the doubling of the Santa Giustina treatment plant (in 2015) and the separation of the sewer networks in North Rimini, so as to close 4 of the 6 drains in that portion of the city. The most important phase of the entire project began in 2016 in Piazzale Kennedy, the heart not only of coastal social life but also of the entire PSBO, with the construction of two tanks the size of 20 Olympic-size pools, located up to 40 meters below ground level, which involved excavating 70 thousand m3 of soil. One tank, with a capacity of 14 thousand m3, collects the water from the first flush of rain while the other, with a capacity of 25 thousand m3, temporarily holds and "stores" the rainwater, which can be sent to the purification plant or into the sea in the event of heavy rainfall. When average rainfall occurs, the tanks fill in 70 minutes, or 30 for particularly heavy downpours. A forced ventilation mechanism (with abatement using activated carbon filters) has solved the problem of bad odours. Lastly, to protect our beaches, over 21 thousand m3 of top-quality sand have been collected. With a view to a circular economy, they have already been used to replenish Rimini's coastline. Now that, after months of work, this fundamental component of the PSBO is complete, the two new waterfront terraces in Piazzale Kennedy cover the complex underground structure. The architecture of the terraces was designed by Studio Mijic of Rimini. The first terrace opened to the public in July 2019 and the other one opened today. The Piazzale Kennedy project is the fruit of great workdone not only jointly with the Municipality, Romagna Acque and Amir, but also with all the tour operators in the area and the residents, who have endured months of hardship in such a central area of the city that, for over 60 years, has been the holiday postcard of millions of tourists, both Italian and foreign. To date, more than 5 thousand m2of coastline have been "freed" from swimming bans, and the construction work is now 90% complete. By 2024, all 11 drains discharging into the sea will have been eliminated. The most important phases of Rimini's Seawater Protection Plan 2013: Start of work on the PSBO (Rimini Seawater Protection Plan) 2014: Rimini Isola sewer decontamination 2015: Doubling of the Santa Giustina treatment plant 2016: Start-up of the Piazzale Kennedy construction site Other measures carried out in recent years: 1. Testing of the North backbone 2. Construction of the hospital tank 3. Reconversion of the Rimini Marecchiese treatment plant 4. Construction of the first and second portions of the South backbone 5. Burial of the Ausa canal 6. Separation of the sewerage networks in North Rimini July 2019: Completion of the first waterfront terrace in Piazzale Kennedy July 2020: Completion of the second waterfront terrace and total reopening of Piazzale Kennedy piazzale_kennedy_870.1595953446.jpg Piazzale kennedy Read more piazzale kennedy 2020-05-13

For the third consecutive year, the multiutility took the number one spot in the survey area on the integration of ESG factors into the company's finance. A pioneer in this field with the launch of the first Italian green bond and the first sustainable revolving credit line, Hera has always considered sustainability to be at the heart of its business strategies Turning sustainability into a lever for financial and business strategy is rewarding. It is indeed rewarding for the Hera Group, which for the third year running claimed the top step of the podium in the sustainable finance category of the 2020 Integrated Governance Index, an authoritative model for analysing the degree to which ESG (Environmental, Social, Governance) factors are integrated within a company's strategy. These factors, alongside the traditional business objectives the company pursues, address social and environmental and governance aspects. Once again, this award attests to the multiutility's competence and focus on sustainability as a factor that contributes to creating shared value not only for the company but above all for the communities and local areas it serves. The latter are both at the heart of the company's growth strategy and are priorities in defining its financial and investment actions. Sustainability at the heart of the multiutility's strategy The multiutility was the first company in Italy to issue a green bond, as early as 2014, followed by a second similar bond in 2019. Two years ago, furthermore, Hera launched its first sustainable revolving line of credit, introducing a bonus mechanism for reaching specific environmental, social, and governance (ESG) goals. These include, for example, further reducing the carbon footprint for energy production, attaining new energy efficiency targets, and improving separate waste collection. Moreover, the Hera Group provides public utility services to 4.4 million citizens: creating shared value and positive side-effects for the communities it serves is a duty and a priority. This is one of the reasons why, for some years now, the Group has decided to measure and publicly release, in its annual sustainability report, the portion of its EBITDA generated by businesses that meet the sustainability goals set out in the UN’s 2030 Agenda. This “shared value” EBITDArose to Euro 422.5 million in 2019, coming to 39% of its total EBITDA, and its new target is set at 42% for 2023, as defined in the Business Plan. The Integrated Governance Index The Integrated Governance Index (IGI) is the only project that quantitatively measures the degree to which ESG factors are integrated into a company’s management model (integrated governance). Developed by ETicaNews, with the scientific and legal support of associations and specialised advisors, this year marks the Index’s fifth edition. This year the businesses invited by IGI to participate included the top 100 listed companies in Italy, businesses that publish a non-financial statement, and the country’s top 50 non-listed companies, setting a record for the number of companies analysed. igi_870.1595590784-2.jpg The 2020 Integrated Governance Index: Hera once again on the podium for sustainable finance Read more Press release 20200715_IGI_2020.1595590785.pdf igi_110.1595590787-2.jpg Integrated Governance 110x 2020-05-13

The operationd, which arose out of a market opportunity, follows up on the similar transaction seen on 31 January 2020 Today, Hera acquired 4,688,231 Ascopiave shares from A2A, equivalent to 2% of the share capital, for a price set at 3.905 euro per share and a total of roughly 18.3 million euro. The shareholding acquired, which arose out of a market opportunity, follows up on the similar transaction seen on 31 January 2020. In the present case as well, it was carried out jointly with Asco Holding, in order to reinforce the previously existing partnership with EstEnergy. sede_hera_870.1592478679.jpg sede_hera_870 /-/hera-acquires-an-additional-2-of-ascopiave-share-capital-1 Press release sede_hera_110 sede_hera_110 2020-06-18