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Hera BoD approves 1H2018 results Financial highlights Revenues at € 2,996.7 million (+7.7%) Ebitda at € 523.6 million (+3.5%) Ebit at € 273.6 million (+4.3%) Net profits for Shareholders at € 158.1 million (+12.1%) Net debt at € 2,625.0 million Operating highlights Good contribution to growth coming from gas and waste management, respectively due to volumes sold and positive trends in market prices Management characterised by the results of internal growth Solid customer base in energy sectors (roughly 2.5 million), up by 110,000 over 1H2017 Sorted waste increases to anaverage of 60% across all areas served Today, the Hera Group’s Board of Directors unanimously approved the financial results for the first half-year, which confirm the ongoing positive trend and show all main indicators rising. 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 growth and external development. In addition to remarkable internal growth, partially deriving from higher efficiencies, developments in market shares and positive trends in tariffs and prices benefitted the accounts for the first half of 2018. Revenues amount to almost € 3 billion In the first half of 2018, revenues reached € 2,966.7 million, up € 212.7 million (+7.7%) over the € 2,754.0 million seen in the same period of 2017. The factors most responsible for this result include a higher amount of trading along with increased revenues from gas and electricity sales and waste management. Ebitda rises to € 523.6 million Ebitda settled at € 523.6 million, showing growth amounting to € 17.7 million (+3.5%) over June 2017. This increase is due to the good performances seen in all the Group’s main activities, and the gas area in particular thanks to higher volumes sold and income for sales and trading. Positive results also came from waste management and the integrated water cycle. Financial management among the factors responsible for an 8.4% increase in pre-tax profits Ebit rose to € 273.6 million, up 4.3% over the € 262.2 seen in the same period of 2017. Financial management also improved, settling at € 39.2 million, € 6.7 million less than the same period in 2017, a performance made possible by efficiency in rates and higher financial income for commercial activities. In light of this situation, pre-tax profits increased by 8.4%, going from € 216.3 million at 30 June 2017 to € 234.4 million at the same date in 2018. Sharp increase in net profits for Shareholders, reaching € 158.1 million (+12.1%) Profits pertaining to Group Shareholders at 30 June 2018 rose to € 158.1 million, +12.1% compared to the € 141.0 million seen in the first half of 2017. The elements underlying this result include an improvement in the tax rate, which went from 31.6% to 30.1%, thanks to the Group’s continuous commitment to grasping the tax opportunities offered by large and very large amortisations related to major investments made in introducing Utility 4.0, in addition to tax credits for research and development and the final balance on previously acquired benefits, as well as € 4.8 million in capital gains from divestments. Approximately € 184 million in investments, financial position essentially stable The Group’s operating investments for the first six months of 2018, including capital grants, amounted to € 183.8 million, up € 13.7 million (+8.1%) over June 2017. Operating investments mainly involved interventions on plants, networks and infrastructures, as well as regulatory upgrading involving gas distribution above all, with a large-scale metre substitution, and the purification and sewerage areas. Net debt came to € 2,625.0 million at 30 June 2018, with a slight increase over the € 2,523.0 million seen at 31 December 2017 but essentially stable compared to the € 2,611.7 million witnessed in the first half of 2017, in spite of the higher amount of dividends paid (9.5 cents/share, instead of the 9 cents paid one year earlier). Net debt/Ebitda, an indicator of financial solidity, improved from 2.74 in the first half of 2017 to 2.62 at 30 June 2018. Gas Ebitda for the gas area, which includes services in natural gas distribution and sales, district heating and heat management, reached € 188.4 million in the first half of 2018, up compared to the € 171.8 million seen at 30 June 2017 (+9.6%), thanks to higher volumes of gas sold, an increase in trading and higher income from distribution services. The number of gas customers, which came to roughly 1.41 million, rose by 1.9% compared to the same period in 2017; this growth was brought about by expanding market shares and the entry of Blu Ranton and Verducci Servizi within the Group’s scope of operations. The gas area accounted for 36.0% of Group Ebitda. Water cycle Ebitda for the integrated water cycle area, which includes aqueduct, purification and sewerage services, went from € 111.3 million in the first half of 2017 to € 112.8 million at 30 June 2018, up 1.3%, thanks to higher revenues from dispensing and higher recognised costs. The integrated water cycle area accounted for 21.5% of Group Ebitda. Waste management In the first half of the year, Ebitda for the waste management area, which includes waste collection, treatment and disposal services, reached € 125.9 million (+3.8%), rising over the € 121.3 million seen at 30 June 2017. Initiatives aimed at recovering materials and improving energy efficiency contributed to this positive trend, in particular the full operation of Aliplast, as well as further development of an accurately focused marketing plan intended to broaden the customer portfolio and a continuous presence in the tender market. Moreover, the positive trend seen in prices for special waste treatment continued during this half-year, with double-digit growth rate. Further increases were also witnessed in sorted waste, which went from 58% in the first half of 2017 to 60% at 30 June 2018, thanks to the numerous services offered. The waste management area accounted for 24% of Group Ebitda. Electricity Ebitda for the electricity area, which includes services in electricity production, distribution and sales, went from € 91.6 million in the first half of 2017 to € 84.0 million at 30 June 2018, owing to the temporary closure of a few plants for planned maintenance. This area recorded additional growth in total customers, which increased by 82.8 thousand (+8.9%) compared to the first half of 2017, reaching 1.01 million customers, and also saw a 22.1% rise in volumes sold on both the free and safeguarded markets. This noteworthy result owes much to the Group’s continuous reinforcement of marketing actions and a broadening of its customer base. The electricity area accounted for 16% of Group Ebitda. Statement by Executive Chairman Tomaso Tommasi di Vignano “This half-year report confirms the trend of uninterrupted growth shown by the Hera Group over the last 15 years, respecting the content of its Business plan, in spite of an often difficult macroeconomic scenario. At present, the increase in Ebitda indicates that we should reach the milestone of one billion by the end of 2018, while the profits accumulated over the last six months, corresponding to 10.8 cents per share, already entirely cover the 10 cent dividend foreseen by the Business plan for the current year. These figures and outlooks provide further confirmation of the solidity of our multi-business model and the constant attention we show towards our shareholders”. Statement by CEO Stefano Venier “The results for the first half of 2018 once again reward the accuracy of the choices and initiatives implemented regarding operations, taxes and finance. Internal growth, as defined by factors including the efficiencies achieved, has brought ROE to 10%. These results are also sustained by all quantitative performance measures, which show positive trends, with an energy customer base growing by 110,000 in only 12 months and bringing us just one step away from 2.5 million customers. Taken as a whole, these elements allow us to show further determination towards reaching all of the objectives outlined in the Business plan”. 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 half-year financial report and related materials will be made available to the public pursuant to the terms established by law at Company Headquarters, on the website www.gruppohera.it and on the authorised storage platform 1Info (www.1info.it). Unaudited extracts from the Abbreviated Consolidated Half-Year Financial Statements at 30 June 2017 are attached. PROFIT & LOSS(M€) 30/06/18 INC% 30/06/17 INC.% CH. CH. % Sales 2,966.7 2,754.0 +212.7 +7.7% Other operating revenues 209.8 7.1% 202.3 7.3% +7.5 +3.7% Raw material (1,327.6) -44.7% (1,178.4) -42.8% +149.2 +12.7% Services costs (1,031.6) -34.8% (981.7) -35.6% +49.9 +5.1% Other operating expenses (30.3) -1.0% (25.8) -0.9% +4.5 +17.5% Personnel costs (281.7) -9.5% (282.4) -10.3% (0.7) (0.2%) Capitalisations 18.3 0.6% 17.9 0.6% +0.4 +2.2% Ebitda 523.6 17.6% 505.9 18.4% +17.7 +3.5% Depreciation and provisions (250.0) -8.4% (243.7) -8.9% +6.3 +2.6% Ebit 273.6 9.2% 262.2 9.5% +11.4 +4.3% Financial inc./(exp.) (39.2) -1.3% (45.9) -1.7% (6.7) (14.6%) Pre tax profit 234.4 7.9% 216.3 7.9% +18.1 +8.4% Tax (72.0) -2.4% (68.3) -2.5% +3.7 +5.4% Net profit before special items 162.4 5.5% 148.0 5.4% +14.4 +9.7% Special items 4.8 0.2% - 0.0% +4.8 +100.0% Net profit 167.2 5.6% 148.0 5.4% +19.2 +13.0% Attributable to: Shareholders of the Parent Company 158.1 5.3% 141.0 5.1% +17.1 +12.1% Minority shareholders 9.1 0.3% 7.0 0.3% +2.2 +30.9% BALANCE SHEET (M€) 30/06/2018 INC.% 31/12/2017 INC.% CH. CH.% Net fixed assets 5,828.2 109.1% 5,780.6 110.5% +47.6 +0.8% Working capital 84.2 1.6% 23.2 0.4% +61.0 +262.9% (Provisions) (571.8) (10.7%) (574.9) (10.9%) +3.0 (0.5%) Net invested capital 5,340.6 100.0% 5,229.0 100.0% +111.6 +2.1% Net equity 2,715.6 50.8% 2,706.0 51.7% +9.6 +0.4% Long term net financial debt 2,847.4 53.4% 2,735.4 52.4% +112.0 +4.1% Short term net financial debt (222.4) (4.2%) (212.4) (4.1%) (10.0) +4.7% Net financial debts 2,625.0 49.2% 2,523.0 48.3% 102.0 +4.0% Net invested capital 5,340.6 100.0% 5,229.0 100.0% +111.6 +2.1% 1H 2018 2018-07-30 For further informations 1H 2018 The consolidated half-year report at 30 June confirms growth in operating and financial indicators, in line with the first quarter, with a positive contribution coming from business areas, gas and waste management in particular. Thanks to the efficiencies achieved, ROE reaches 10%. /-/hera-bod-approves-1h-2018-results?inheritRedirect=true /documents/1514726/4880892/GruppoHera_relazione_semestrale_consolidata_al_30_06_2018_eng.1533290641.pdf/61b32b21-49d9-70cc-d10d-6383dfc8c8a2?t=1610019108070 http://investornews.gruppohera.it/en/?n=56 Press release Financial report as at 30/06/2018 Newsletter as at 30/06/2018 centrata Il CdA Hera approva i risultati del terzo trimestre 2018

GH-Lepida_110 In case of emergency, the last thing you need is an emergency logic. This is why the Hera Group, with Acantho - Digital Company of the Group, and Lepida have decided to carry on, by signing an important strategic collaboration agreement in the field of civil protection which contributes to improving the safety of the reference territories. Following a memorandum of understanding previously signed by the Region and the multi-utility, the agreement concerns the strengthening of the Regional Radiomobile Network (ERretre), the digital cellular network based on the European TETRA standard that supports all emergency services, guaranteeing efficiency and security of communications, from which the safeguard of the territory and the security of the local communities depend. Thanks to the agreement, Hera will initially make three of its sites available to Lepida, with which additional radio equipment will be installed that can increase the ERretre network and improve its efficiency. In particular, the sites identified are three piezometric reservoirs located in San Lazzaro di Savena in Bologna, and in Alfonsine and Cervia in the Ravenna area. In turn, the multi-utility can use the ERretre network to support its emergency services, improving the flow of communications to the Civil Protection and other bodies. In this way it will be possible to increase the overall level of functional integration among all the players who are in charge of various critical situations in the area. A key role was played by Acantho, Digital Company of the Hera Group, which has worked to set the scene for the signing of the agreement and will supply the TETRA standard radio terminals necessary to use the ERretre network. The Hera Group has always been committed to collaborating with the relevant public bodies, thus confirming its historic vocation to continuously improve its work. The agreement with Lepida, more precisely, is fully inscribed within the framework of a medium and long-term planning thanks to which the multi-utility, also in the face of particularly critical situations such as the drought events of 2017 or the bad weather in the Apennines of the winter just ended, aims to guarantee quality and continuity of the services provided, in the interests of the environment and local communities. GH-Lepida_870 20180702_Hera_signs_with_Lepida_for_the_use_of_the_ERretre_mobile_radio_network.1563281077.pdf 2019-07-16 GH_Lepida_870.1563281076.png A strategic collaboration that aims to increase the resilience of the regional territory in the field of civil protection: the multi-utility, in fact, will be able to use the ERretre regional mobile radio network to support its emergency services, making three of its sites already available to Lepida for the implementation of other radio installations, to further consolidate the existing network. Among these is the piezometric tank of San Lazzaro di Savena in Bologna read more GH-Lepida_110

scolarships_110 Hera Group repeated its commitment to support the school-age children of its employees and enriched the programme once again, for 2018. In fact, in addition to the 40 scholarships provided for the second year in a row to the most deserving university students, this year ten more have been added for high school students, who will be able to participate in study experiences abroad in collaboration with the Intercultura foundation. The initiative, launched to reward scholastic achievement based onto principles of fairness and meritocracy, as well as the ability to rise to challenges right from the educational stage, reached its conclusion today as prizes were awarded during a ceremony held in Bologna, at the Spazio Hera, attended by the Executive Chairman, Tomaso Tommasi di Vignano. The forty most deserving university students were identified by an excellence ranking drawn up according to the following parameters: being on schedule with the 2016-2017 academic year exam deadlines, the number of credits obtained and the average number of exams passed during the year. The company received more than 170 applications (more than twice as many as last year). Each of the 40 winners (graduates and undergraduates in economics, engineering, humanities and medicine) was awarded an individual scholarship worth 750 euro, for a total of 30,000 euro invested by the company. Among the winners there were also students studying abroad: a way to support a more complex life choice and to stimulate value creation, determined by acquiring experience in a range of settings. For high school students, on the other hand, the selection was carried out entirely by Intercultura's experts and consisted of aptitude tests, individual and group interviews, a meeting with the family and a health check-up. The ten winners were awarded 2,000 euro grants that will support the cost of attending a one-month study period abroad in Europe (UK, Finland and Denmark are the most popular destinations), the US (Washington is the favourite location) and South America (Argentina). scolarships_870 20180621_scholarships_for_the_children_of_its_employees.1534759933.pdf 2018-08-20 Read more borsedistudio_870.1534759932.jpg In addition to the 40 scholarships of 750 euro each awarded for the second year in a row to the most deserving university students, ten 2,000 euro scholarships were also awarded to high school students to help them participate in study experiences with Intercultura. The initiative, backed by a total investment of 50,000 euro, is part of "HExtRA", the multi-utility's corporate welfare plan scolarships_110