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Half financial results as at 30 june 2016 Financial highlights Revenues at € 2,152.7 million (-2.7%) EBITDA at € 470.1 million (+2.4%)Net profits for shareholders at € 121.0 million (+12.8%) Net financial position reduced to € 2,624.4 million Operating highlights Regulated revenues affected by lower return on invested capital (WACC) M&A initiatives contribute to results Energy market expands, with total customers reaching almost 2.3 million Today, the Hera Group's Board of Directors unanimously approved the consolidated economic results for H1, whose main indicators show positive figures and growth through to net profits. Gas The gas business EBITDA, which includes services in natural gas and LPG distribution and sales, remote heating and heat management, settled in the first half of 2016 at € 162 million, down from the € 172.5 recorded at 30 June 2015, mainly due to lower margins in trading and the negative impact of the mild winter, as well as a resolution that modified the method used to calculate the rate of return on invested capital for infrastructure services in the gas sector. The results were also sustained by the recent acquisition of Julia Servizi, a company in the Abruzzo region operating in gas and electricity sales. The gas business accounts for 34.5% of Group EBITDA. Water In the first half of 2016, the water business, which includes aqueduct, purification and sewerage services, recorded a slight drop compared to the same period in 2015, with EBITDA passing from € 107.6 million in the first half of 2015 to € 106.6 million at 30 June 2016. The negative impact of the resolution on revenues and on EBITDA for the WACC effect and the redefinition of the restriction on revenue, came to € 11.1 million, almost entirely compensated by the operative efficiencies implemented over the six months in question and, in particular, a series of optimisations concerning general management costs. The integrated water cycle accounts for 22.7% of Group EBITDA. Waste management EBITDA pertaining to the waste business, which includes services in collecting, treating and disposing of waste, went from € 119.8 million in the first half of 2015 to € 116.5 million at 30 June 2016, an essentially stable result in spite of the reduced operating capacities of a few landfills, which are currently being enlarged. Activities related to treatment of special waste showed a 20.1% growth in volume and a further improvement in prices. One fundamental contribution came from the acquisitions, dating to late 2015, of Waste Recycling and the Geonova plants, which gave greater impetus to management of industrial waste and compensated for the temporary closure of landfills presently being expanded (the Ravenna landfill is due to be reopened shortly). Good results also came from sorted waste collection, which rose to 56.9% of the total, compared to the 55.4% seen in the first half of 2015, thanks to the wide range of projects implemented across all areas served. The waste business accounts for 24.8% of Group EBITDA. Electricity The electricity business, which includes services in electricity production, distribution and sales, showed an EBITDA that grew from € 49.6 million for the first six months of the previous year to € 76.3 million at 30 June 2016. The negative impact on electricity services of the resolution on revenues and EBITDA, regarding WACC alone (€ 1.4 million in the first six months), was more than compensated by the balance payments involved in 654/15/R/eel, thanks to a revision of the criteria used for the treatment of investments made in previous years, and the continuous expansion of the customer base. The electricity business accounts for 16.2% of Group EBITDA. Statement of Executive Chairman Tomaso Tommasi di Vignano "The figures that appear in the 2016 interim report are once again positive, showing the extent to which the Group has been able to offer its shareholders a solid response in terms of both economic results and financial structure, which is all the more appreciable in light of a macroeconomic context still marked by instability. This outcome was also fuelled by M&A operations, that allowed waste treatment plants to be acquired and increased our customer base". Statement of the Managing Director Stefano Venier "We are highly satisfied, in that the operations introduced have led to the good results we expected, allowing us, in only six months, to compensate for the cut in regulated revenues. A good financial and fiscal performance also made it possible for us, in a difficult year, to close the first half with growth in net profits and other main indicators as well as a reduction in debt." 1H 2016 2015-08-26 For further information 1H 2016 Interim report at 30 June 2016 shows rising profits, positive cash flows and lesser borrowing. /documents/1514726/4210755/Hera_Group_Consolidate_half_year_financial_report_as_at_30_june_2016.1470389788.pdf/c10e9d21-76b4-2589-28b3-24d6c2bbef80?t=1597910997787 /-/hera-board-of-directors-approves-results-for-1h-2016-1 /documents/1514726/4210755/Hera_Newsletter_1H2016_eng.1469701438.pdf/0583d746-cfd6-9b22-d84d-466aa0dafcbb?t=1597910996793 /documents/1514726/4210755/Dati_finanziari_operativi_di_sintesi_1H_2016_eng.1469542136.xls/3562a414-ad03-7f51-fa6e-7505d4ce5d0f?t=1597910989700 /documents/1514726/4210755/Analyst_presentation_1H2016.1469703526.pdf/cd804341-2bdb-7a71-66b9-af7b2fc2b474?t=1597910997228 /documents/1514726/4880888/audioconference+H12016+results.1470907152.mp3/dea26a04-edb1-d007-8cfc-aa7552b7f985?t=1610038453962 /group_eng/investors First Half 2016 report Press release Newsletter 1H 2016 Financial data 1H 2016 Analyst presentation 1H 2016 Conference 1H 2016 Go to IR section centrata Half financial results as at 30 june 2016

quologo 110 Use your smartphone to read your own water metre, receive prompt notifications about temporary water service interruptions for scheduled work, report leaks in the road and discover average tap water quality values, all with a simple click. Starting today, all of this is possible with the Acquologo (Water Expert), the new free app created by Hera. After the success of the Rifiutologo (Waste Expert), which helps to best separate waste and makes it possible to send geolocalised photo-reports about litter, the multiutility company is offering yet another app dedicated to residents in the communities it serves, to put a new, innovative and immediate tool in the palm of their hands, with all of the information about the local water service. The Acquologo is available for iOS, Android and Windows Phone operating systems. Water metre self-reading with one click With the Acquologo, customers that have a contract with Hera can simply and quickly read their own water metres and report their actual water consumption using a smartphone. All they need to do is select "Water metre reading", enter the contract code and then send the numbers from their metre. The self-reading function is valid for all users that receive a Hera bill for their water service. It is not available for customers that rely on other metre reading companies. The app provides advance notification of water service interruptions The Acquologo can also notify residents beforehand about water service interruptions for scheduled work (for example, pipeline upgrades or replacements). The notifications system can be activated on any smartphone by simply choosing the post code, allowing customers to always stay informed. Hera customers can also receive a notification by SMS by entering their mobile phone number in addition to the post code. The Acquologo provides information about tap water quality Hera manages the water service while guaranteeing its customers good drinking water, in line with regulatory requirements and with careful oversight along the entire purification and distribution chain. The Acquologo provides additional confirmation of this, as it allows users to use theirsmartphones to check the average values (calcium, pH, hardness, dry residue and much more) of the quality of the water provided in each municipality served by the multiutility company, and also compare them with legal limits. There is also a function that calculates the financial savings generated by consuming tap water rather than bottled water: in the "How much do you save" section, users can enter how many litres of water they drink per week and select the brand they typically buy. The Acquologo will estimate how much they can save. Water leaks can be reported to Emergency Services by sending a photo In the future, it will also be possible to use the Acquologo to send reports, for example about water leaks on public land due to pipe breakages below the road. To do this, users can simply take a photo with their own smartphone and, if necessary, attach a brief description. The report will be sent directly to Hera Emergency Services and, using geolocalisation, the system will identify the exact location where the report was sent, to notify Emergency Services technicians. This service is already active on a trial basis in Bologna. Ask the expert Lastly, the application can be used to contact the Hera experts with questions and requests about the local water service and to read the answers to the most frequently asked questions in this area. This system is synchronised with information available on the Group's website. To ensure that the Acquologo loads all content from the central database, the app should be updated periodically. Acquologo 870 2014-03-19 FOR FURTHER INFORMATION acquologo_870.1469179950.jpg Thanks to this new free application, with just a few clicks you can find out about tap water quality, receive notifications about service interruptions for scheduled work, report leaks in the road and read your own water metre quologo 110

Inrete Hextra is born... It is called Hextra, and it is the new integrated company welfare plan that has been in place since July 2016 for everyone working at the Hera Group. Also thanks to recent tax incentives introduced for welfare initiatives, every year the employees of all of the Hera Group's consolidated companies, which today number more than 8,500, can benefit from the same standardised plan. This is an important commitment which works alongside other employee welfare activities in which the Group has already invested for some time now (canteen, car parks, nurseries, summer programmes, etc.). The welfare plan encompasses a wide range of thematic areas to choose from, corresponding to just as many local sectors for the supply of goods and services: health and healthcare, insurance and social security, support for the education of children, services for individuals, welfare and income support. The investment in education for children is particularly significant and involves an additional contribution provided by the company to employees who meet specific requirements. The goal of this policy is to highlight the importance placed by the Group on culture and education, traditional values underlying the company's mission, which are confirmed in the success of Heracademy, the corporate university designed to develop and enhance worker skills. Lastly, those who choose to do so may allocate part of the value of their own welfare plan to Hera Solidale, the Group project which for years has involved workers in supporting a wide range of solidarity initiatives throughout the communities served by the multiutility company. The plan's investments are also expected to have positive impacts on the communities, thanks to the downstream business generated by the services provided. Therefore, this company welfare approach places the families of workers at the very centre while also developing positive relationships with local communities. Tommasi: "We invest in the welfare of families and the community" "We began with a long phase of listening, using questionnaires and focus groups, to understand how to put together a welfare plan that could improve our commitment to our employees" explains Tomaso Tommasi di Vignano, Chairman of the Hera Group. "We are satisfied with the solution we've developed as, aside from increasing resources, it also allows for a more streamlined use of them and, especially, it allows our workers to decide how to manage their contribution based on their own personal and family needs. If we consider the expansion and consolidation of the Group, Hextra represents a significant step forward, which enables us to create value and efficiency in the interest of everyone involved, while contributing towards protecting the wallets of families during this financially difficult time". Inrete 2014-03-19 870.1469179507.jpg A transversal plan for all Group companies from Emilia-Romagna to the Triveneto region to the Marche, aiming for flexibility to meet the needs of more than 8,500 workers and their families. Inrete

Inrete The Board of Directors of Hera S.p.A. today approved, with effect from 1 July 2016, the transfer of the gas and electricity distribution line of business to the company Inrete Distribuzione Energia, a wholly owned subsidiary of the multi-utility. This marks the completion of the "unbundling" process required by Italian legislation governing the sector (AEEGSI Resolution 296/2015) in order to separate the management of regulated business activities (gas and electricity distribution) from the management of liberalised activities (production, sale and procurement). Distributing gas and electricity in the Emilia-Romagna region, Inrete will serve more than 1.1 million gas users in 140 municipalities, with a gas network covering approximately 14,000 km, and more than 260,000 electricity users in 29 municipalities, with an electricity network of over 10,000 km. In line with the approach always followed by the Group, Inrete will continue to work with commitment in the field of safety and network control, with the aim of confirming the highest possible standards of service quality, consistently above the minimum levels demanded by the Authority. Inrete will draw on the multi-utility's innovative Remote Control Technology Centre, a structure at the cutting edge within Europe. Based in Forlì, this provides integrated management of all the gas plants and networks, as well as receiving and coordinating emergency calls. Similar services for all Inrete's electricity plants and networks will be provided by the Group's Electricity Remote Control Operations Centre in Modena. Alessandro Baroncini, former Director of Energy Networks at the parent company, has been appointed as Inrete's Chief Executive Officer. Inrete 2014-03-19 870.1467015950.jpg A wholly owned subsidiary of the multi-utility, the company will be operational from 1 July 2016 pic.1466602715.bmp