News

Hasi-WR_110 As of 1 July, Waste Recycling, a subsidiary of Herambiente, is founded through a merger with Herambiente Servizi Industriali (Hasi), which then becomes the largest Italian company dedicated to the management of industrial waste, with registered office in Bologna and three commercial locations in Ravenna, Padua and Pisa. Hasi targets one million tonnes treated per year The objective of the merger is to simplify and further rationalise the overall structure of the company and make corporate coordination activities easier in order to achieve economies of scale with a general improvement in operating efficiency. The entry to Hasi of the three Tuscan multifunctional sites of Waste Recycling (two in Castelfranco di Sotto and one in Pisa, the former Teseco) will also enable an increase in the range of customers, allowing Hasi to transfer more types of waste to the same platform. In Italy, waste from production activities accounts for 80% of all waste produced. With respect to urban waste, industrial waste requires highly professional management systems and cutting edge treatment plants. Thanks to this merger, the volumes treated by Hasi have doubled, up from 550,000 to one million tonnes per year, mainly coming from the chemical-pharmaceutical, petrochemical, iron and steel sectors, and also the manufacturing and food sectors. The same goes for customers, which rose from 1,500 to 3,000, small and medium enterprises and also 250 large customers. The number of employees in the new company Hasi rose from around 40 initially to 200, while turnover reached Euro 140 million per year, compared to Euro 50 million previously. Serving companies Hasi was created in 2014 from an offshoot of Herambiente, the Hera Group company which is a national leader in waste management, with more than 6 million tonnes per year (including urban and special, hazardous and non-hazardous, originating from urban collection and industrial and productive activities). Thanks to the availability of roughly 90 certified Herambiente plants and a network of qualified suppliers throughout the country, Hasi is the Group company that offers services to companies that range from micro collection for small commercial activities to treatment and disposal of all types of waste for SMEs and large industrial groups. With a view to reducing costs and enhancing the circular economy performance of business customers, Hasi's offer has evolved over time, augmenting waste treatment and transport with a comprehensive series of related higher value services: the so-called Global Waste Management, customised solutions to support customers at each phase of management of their waste,always with a focus on recycling and recovery, as also indicated in the EU directives. The companies supported by Hasi with Global Waste Management services actually reach recovery shares of roughly 80%, thanks to efficiency plans proposed to reduce waste produced and an improvement in plant performances. In addition, the synergy with other Hera Group companies allows business customers to access additional services based on the circular economy, such as energy and water efficiency plans, that sit alongside those implemented by Hera regarding waste treatment. Hasi-WR_870 20190628_Nasce_la_pi_grande_realt_italiana_dedicata_alla_gestione_di_rifiuti_industriali_DEF.1563435725.pdf 2019-07-18 hasi_wr_870.1561725495.1563435724.jpg As of 1 July 2019, the Tuscan company Waste Recycling, with its three multifunctional areas in the province of Pisa, joins Herambiente Servizi Industriali (Hasi). Hence, the range of solutions for industrial waste treatment will be expanded. A million tonnes of waste that will be treated annually Read more Hasi-WR_110

sede_berti_110 The Hera Group aims to continue in its role as a reference point for sustainable finance in Italy and, five years after issuing the country's first "green" bond, it is now launching its second. The bond is being announced at the end of a road show in Europe's main financial centres, aimed at illustrating the structure of the transaction to investors and analysts, in addition to the way in which the resources will be allocated, i.e. by investing in environmental sustainability projects in the waste, water and energy sectors. Considering that it also launched Italy's first ESG-linked revolving line of credit last year, Hera is carrying on with its activity in identifying and implementing innovative instruments. The latter are indeed able to valorise the company's commitment and the results it has reached hereto in this area, along with its future investment policies, thus meeting the market's growing attention towards this sort of endeavour. The characteristics of the new green bond and the projects financed The second green bond issued by the Hera Group (Moody's rating Baa2 with stable outlook and Standard & Poor's rating BBB with positive outlook) amounts to 500 million euro overall, repayable over 8 years with a 0.875% coupon and a 1.084% return. The date of payment for the newly issued bond has been set at 5 July 2019. Furthermore, the new green bond is expected to have the same rating as the Hera Group. A strong demand, coming to seven times the amount offered, and the quality of the orders received have allowed the price to be fixed at an excellent level. The transaction has seen significant participation from international investors (France, Germany, United Kingdom and Holland), most of whom follow green and sustainable criteria. The bond is expected to be listed on the Irish Stock Exchange and the Luxembourg Stock Exchange's regulated markets, and on Borsa Italiana's ExtraMOT PRO. The funds will be used to finance or refinance numerous projects, already implemented or included in the Business plan to 2022, that pursue one or more of the goals in the UN's 2030 Agenda. These projects have been subdivided into 3 areas: energy efficiency (in line with SDGs 7 and 13): from installing smart metres to developing district heating networks and projects in the area of public lighting; circular economy and sustainable waste management (responding to SDG 12): innovative projects in the waste collection systems, further use of unit pricing, creating plants and structures for recycling, recovering and reusing materials, plants for biological/chemical waste treatment and plants for transforming waste into energy, similar to the Sant'Agata Bolognese (BO) biomethane production plant; water infrastructures (meeting SDGs 6 and 14): waste water management projects, sewerage and water infrastructures furthering resilience and adaptation to climate change. In order to guarantee that the funds are correctly and transparently allocated, Hera has introduced a monitoring and reporting process. The amount actually dedicated to each intervention will be published in the Group's Sustainability Report, along with data concerning the environmental performances reached. "Green Financing Framework": Hera transparent in sustainability as well The Hera Group, furthermore, is among the first companies in Europe to have provided itself with a "Green Financing Framework" (GFF). The GFF is a particularly innovative programming document, in line with "Green Bond Principles", that covers not only aspects linked to issuing the green bond, but also sustainable loans and other ESG instruments on the market. The GFF is accompanied by a "Second Party Opinion", drafted by ISS-oekom, which ranked Hera "Prime" in terms of ESG performance (sixth in a panel of 43 worldwide companies), in particular giving an excellent opinion of Hera's contribution to the water sector. sede_berti_870 20190626_Cs_Nuovo_green_bond_Hera_final_ENG.1561565634.pdf 2019-06-26 Read more bologna_berti_pichat_870_320.1561565805.jpg Strong interest shown by international investors for the multi-utility's second "green" bond, which will finance environmental sustainability projects in 3 areas: energy efficiency, circular economy and sustainable water resource management /group_eng/investor-relations/strategy/strategy-and-business-plan /group_eng/investors /group_eng/investor-relations/debit-and-rates/green-financing-framework-e-opinion Hera Group Business Plan Investor Relations Green Financing Framework e Second Party Opinion sede_berti_110

Hera-Ascopiave_110 Today, the Boards of Directors of Hera S.p.a. and Ascopiave S.p.a. approved the signing of a binding Term Sheet intended to develop a major entity in areas of North-East Italy, which will be able to rely on over one million energy customers, while at the same time redefining their respective activities in gas distribution. The Term Sheet, which will be finalised by a framework agreement within 31 July 2019, defines the geographical areas involved, the economic terms of the agreement and related elements of governance. The agreement reached represents an important strategic transition in the evolution of the two Groups' activity portfolios and fully respects the strategic lines of development approved by the Boards of Directors of Hera S.p.a. and Ascopiave S.p.a., as communicated to investors. More specifically, as regards the gas and electricity marketing area, the agreement calls for a single operator to be created, bringing together the respective sales operations in the Veneto, Friuli Venezia Giulia and Lombardy regions, acting through EstEnergy S.p.a., a company currently jointly controlled by Ascopiave S.p.a. and Hera Comm S.r.l., the Hera Group's sales company. EstEnergy S.p.a.'s activities in the geographical areas indicated will be considerably increased, coming to include the Ascopiave Group's sales activities carried out by the subsidiaries Ascotrade S.p.a., Ascopiave Energie S.p.a. and Blue Meta S.p.a. as well as the joint ventures Asm Set S.r.l. (49%) and Etra Energia S.r.l. (51%), in addition to the liquidating Sinergie Italiane S.r.l. (30.94%) and the company Energia Base Trieste S.r.l. (92,000 contracts managed) and Hera Comm's Veneto and Friuli customers (96,000 gas contracts and 68,000 electricity contracts). A major operator rooted in the North-East will thus emerge with a portfolio totalling over 795,000 gas contracts and 265,000 electricity contracts, based on 31 December 2018 data, which considering the joint venture pro rata component amounts to over 1 million contracts. This new entity, which will take shape through EstEnergy, when fully operational, will have a consolidated Ebitda coming to roughly 69 m€, based on 2018 data, not including the contribution coming from owned companies with minority shareholdings. 52% of EstEnergy's share capital will be held by the Hera Group, and 48% by Ascopiave. The parties involved have disclosed that the overall equity value of the new EstEnergy amounts to 864.5 m€ (with a corresponding enterprise value of 797 m€), based on 31 December 2018 data, and may be subject to standard adjustments following the closing date; of this amount, 601 m€ (543 m€ enterprise value) pertains to sales activities originating from Ascopiave and 263 m€ to activities originating from HeraComm. As regards the Hera Group, through these agreements with Ascopiave it will reach its target of 3 million energy customers (3.2, according to 31 December 2018 data) set in its business plan to 2022. This represents a further step along the path of growth in this area, that has seen the Group double its energy customer base over the last 10 years, by way of internal growth and M&As. Hera-Ascopiave_870 20190617_press_release_GruppoHera_Ascopiave.1560792483.pdf 2019-06-17 GH_ASCOPIAVE_870.1560783726.jpg The business partnership, through the joint venture EstEnergy, involves over 1 million customers, with the new entity's overall value coming to 864.5 million euro and its Ebitda amounting to 69 million euro. With this transaction, the Hera Group reaches over 3 million energy customers Read more Hera-Ascopiave_110

lundquist_future_110 For a company, attention to sustainability does not incorporate only the implementation of current and future practical actions, but also the way in which these initiatives are described, for example with stories, initiatives and poignant videos. Being sustainable has always been in the Hera Group's DNA. For this reason, the multiutility is in the top eight companies in Italy in terms of on-line communication of the theme of sustainability in the ".future" research of Lundquist, the study that takes into consideration the 100 biggest Italian companies. In the Italian panorama, around twenty companies stand out for the practical and clear way in which they address the significant themes of sustainability and the attention reserved to users of digital channels. The Hera Group is among the six "Silver class" companies, alongside major names like Generali, Tim and Terna, which combine story-telling and involvement in their on-line communication. In particular, the first section of the research conducted by Lundquist, called "Substance", evaluates the sustainability strategy and the transparency of communication. Indeed in this ".future" chapter, the Hera Group distinguished itself as an "excellent example", because it presents clear and detailed information relating to the sustainability strategy and the priority company issues, relating them to the priorities of the global agenda and business opportunities". The most recent products, in terms of communication effectiveness, include the latest Sustainability Report of the Group, in which the contents focus on the creation of shared value, i.e. the multiutility's ability to meet the needs of the local area and tackle the challenges in terms of change geared towards sustainability. Furthermore, it is worth pointing out the new report of the Hera Group "Building the future together", dedicated to the initiatives in which the local community plays an active role, by creating a long-term relationship and a significant environmental impact. lundquist_future_870 2019-07-18 Read more lundquist_future_870.1560148207.1563434959.jpg The multiutility is an excellent example of the ".future" research of Lundquist, which evaluates sustainability and transparency strategy https://lundquist.it/our-thinking/future/ /group_eng/who-we-are/hera-group-strategy/shared-value Visit Lundquist.future website Find out Hera's commitment to create shared value lundquist_future_110

lundquist_future_110 Overview Exploring the transition that the cities of the near future will have to implement to counter the effects of climate change: a transformation that involves institutions, companies, associations and, more generally, citizens. It is the main theme addressed at the conference "Re-inventing the city: smartness and resilience to face new challenges", organized by the Hera Group in Bologna, in the multi-utility headquarters. The young actress Ludovica Nasti stepped in first, performing in a reading of the touching text "I have a dream" by the writer Stefano Massini. Regeneration of resources and sustainability as a business leverage were the focus of the opening speech by the Executive Chairman of the Hera Group, Tomaso Tommasi di Vignano, who then gave the floor to the moderator of the entire afternoon, the director of Rai News 24 Antonio Di Bella. The first intermezzo was dedicated to the video with the results in terms of sustainability achieved by the Group in 2018, and collected in the Sustainability Report. "The most important contribution to urbanization, to tackle climate change, is to improve social cohesion", said during his speech the guest of honor Paul Romer, Nobel Prize 2018 for Economics and professor at NYU Stern School of Business. Then, the other speakers of the conference took turns on the stage, from the architect Stefano Boeri to the Global Ambassador of the B Corp Marcello Palazzi, from the full professor to the Ecole Polytechnique Fédérale de Lausanne and to the IUAV University of Venice, Paola Viganò, to the former mayor of Bogotà, Antanas Mockus, and the current first citizen of Bologna, Virginio Merola. The concluding remarks were made by the Chief Executive Officer of the Hera Group, Stefano Venier, who in his speech also emphasized: "In addition to the technological upgrade, the city of tomorrow will have to be based on the circular and resilient economy, able to adapt to change climate to ensure continuity of essential services for everyone's life”. Finally, the attention of those present was all for the children’s choir "Mariele Ventre" of the Antoniano of Bologna, which performed a moving cover of "Sing For The Climate", the famous song about the environment born in Belgium, in 2012, at the initiative of environmental director and activist Nic Balthazar. Reinventing the city - Regenerating resources to move to a society based on the circular economy During the event the 2018 Sustainability Report has been presented Watch the video with the results achieved in 2018 for the benefit of the served areas lundquist_future_870 2019-07-18 Read more On the occasion of the presentation of its sustainability report, an event to discuss together with so many authoritative voices of how cities will have to change to face climate change and guarantee wellbeing to future generations. Among the guests, the Nobel Prize for Economics Paul Romer https://paulromer.net/about/ https://www.stefanoboeriarchitetti.net/stefano-boeri-biografia/ https://nl.linkedin.com/in/marcellopalazzi http://www.studiopaolavigano.eu/at06/at06.html https://it.wikipedia.org/wiki/Antonio_Di_Bella https://en.wikipedia.org/wiki/Virginio_Merola https://en.wikipedia.org/wiki/Antanas_Mockus https://www.antoniano.it/91-piccolo_coro/ Paul Romer Stefano Boeri Marcello Palazzi Paola Viganò Antonio Di Bella Virginio Merola Antanas Mockus Piccolo coro dell'Antoniano di Bologna lundquist_future_110

1Q_2019_110 Financial Highlights Revenues at 1,940,4 million euro (+11,4%) Ebitda at 330,8 million euro (+2,5%) Net profit at 129,7 million euro (+3,0%) Net financial position at 2,622 million euro Operating Highlights Good contribution to growth coming from all main business, above all water cycle and gas Solid customer base in energy sectors, rising to approximately 2.6 million customers Today, the Hera Group’s Board of Directors, chaired by Tomaso Tommasi di Vignano, unanimously approved the Group’s consolidated economic results for the first quarter of 2019, which improved over the same period of the previous year, showing constant growth in all main indicators. The company’s winning multi-business strategy was thus confirmed, balanced as it is between regulated and free market activities, with high attention given to sustainability and a circular economy. The Hera Group, indeed, pursues this model through both internal and external growth, always prepared to grasp the opportunities offered by the market also thanks to the financial solidity. The Group’s path of 16 years of uninterrupted growth took a step further on 18 March 2019, when it was included in Borsa Italiana’s FTSE MIB index, which brings together the 40 companies with the highest capitalisation on the Italian stock exchange. In general, the results for the first quarter of 2019 benefited from the higher tariffs on regulated services introduced by the Authority’s updates, in addition to commercial expansion and the creation of efficiencies. Among the changes in the Group’s scope of operations compared to the first quarter of 2018, mention must go to Blu Ranton and Sangroservizi in Abruzzo, Megas Net in the Marche region and, as of March 1st 2019, the integration, in the Ferrara area, of the energy sales activities carried out by CMV Energia e Impianti and the natural gas distribution activities carried out by CMV Servizi, including the subsidiary company ATR. Furthermore, 9 May saw the formal acquisition of 100% of the shares of Cosea Ambiente, a company that manages urban and similar waste services owned by 20 municipalities in the Tuscan-Emilian Apennine. This operation also involved a ten-year concession for the Cosea Consorzio landfill in Gaggio Montano, effective as of the second quarter of 2019. Revenues reach 1.94 billion euro In the first quarter of 2019, revenues amounted to 1,940.4 million euro, rising compared to the 1,741.3 million seen in the same period of 2018. Contributions to this result came above all from growth in revenues from trading activities, power generation and waste treatment business, as well as higher revenues and higher volumes in gas and electricity sales. Ebitda rises to 330.8 million euro Ebitda went from 322.7 million euro in the first quarter of 2018 to 330.8 million at 31 March 2019, showing an 8.1 million increase (+2.5%). This growth is due to the good performances in all Group’s main areas, in particular the water cycle and gas. Improvement was also seen in the results from the waste management area and in other services, while the electricity area remained essentially stable. Operating results and pre-tax profits grow Net operating results also increased, coming to 205.0 million euro at 31 March 2019, up compared to the 197.6 million seen in the same period of 2018 (+3.7%). The change in financial operations came to 3.6 million euro, amounting to 21.1 million at the end of the first quarter, owing to lower dividends received and the application of accounting standard IFRS 16 on operating leases. Pre-tax profits grew by 2.1%, going from 180.1 million in the first quarter of 2018 to 183.9 million euro in the same period in 2019. Net profits up, settling at 129.7 million (+3.0%) Net profits for the first quarter of 2019 increased to 129.7 million euro, as compared to the 125.9 million recorded one year earlier (+3.0%). Profits pertaining to Group Shareholders, instead, came to 124.2 million euro, with a 3.1% growth over the 120.5 million seen in the same period of 2018. These results, considered alongside the improved tax rate (which came to 29.5%, compared to 30.1% in the first quarter of the previous year), are due to factors including the Group’s continuous commitment towards grasping the benefits offered by current legislation, in particular through the depreciations involved in the significant investments made in the direction of Utility 4.0. Profit & Loss (m€) 31/03/2019 Inc.% 31/03/2018 Inc.% Ch. Ch. % Sales 1,940.4 1,741.3 +199.1 +11.4% Other operating revenues 121.0 6.2% 95.3 5.5% +25.7 +27.0% Raw material (1,024.6) (52.8%) (831.4) (47.7%) +193.2 +23.2% Services costs (556.7) (28.7%) (538.5) (30.9%) +18.2 +3.4% Other operating expenses (13.1) (0.7%) (12.7) (0.7%) +0.4 +3.1% Personnel costs (142.9) (7.4%) (140.0) (8.0%) +2.9 +2.1% Capitalisations 6.7 0.3% 8.7 0.5% (2.0) (23.1%) Ebitda 330.8 17.0% 322.7 18.5% +8.1 +2.5% Depreciation and provisions (125.8) (6.5%) (125.0) (7.2%) +0.8 +0.6% Ebit 205.0 10.6% 197.6 11.3% +7.4 +3.7% Financial inc./(exp.) (21.1) (1.1%) (17.5) (1.0%) +3.6 +20.6% Pre tax profit 183.9 9.5% 180.1 10.3% +3.8 +2.1% Tax (54.2) (2.8%) (54.2) (3.1%) +0.0 +0.0% Net profit 129.7 6.7% 125.9 7.2% +3.8 +3.0% Attributable to: Shareholders of the Parent Company 124.2 6.4% 120.5 6.9% +3.7 +3.1% Minority shareholders 5.5 0.3% 5.4 0.3% +0.1 +2.3% Balance Sheet(m€) 31/03/2019 Inc.% 31/12/2018 Inc.% Ch. Ch.% Net fixed assets 6,042.1 108.5% 5,905.1 108.7% +137.0 +2.3% Working capital 118.9 2.1% 115.4 2.1% +3.5 +3.0% (Provisions) (591.8) (10.6%) (588.2) (10.8%) (3.6) +0.6% Net invested capital 5,569.2 100.0% 5,432.3 100.0% +136.9 +2.5% Net equity 2,947.2 52.9% 2,846.7 52.4% +100.5 +3.5% Long term net financial debt 2,760.4 49.6% 2,558.8 47.1% +201.6 +7.9% Short term net financial debt (138.4) (2.5%) 26.8 0.5% (165.2) (616.4%) Net financial debt 2,622.0 47.1% 2,585.6 47.6% +36.4 +1.4% Net invested capital 5,569.2 100.0% 5,432.3 100.0% +136.9 +2.5% 1Q2019 results 2019-05-15 For further informations be_870x320_slide_eng_senzafascia.1557916317 (1).png Consolidated 1Q report shows growing results and a positive contribution coming from all main business areas, in particular the water cycle and gas. Focus on sustainability and circular economy confirmed /-/hera-bod-approves-1q-2019-results?inheritRedirect=true Press release Read more be_110x150.1557916320.png

GH-Cosea_110 The Hera Group has been definitively awarded the tender for purchasing 100% of the shares of Cosea Ambiente S.p.A., a company managing urban and similar waste services owned by 20 Municipalities in the Tuscan-Emilian Apennine area (15 in the province of Bologna, already Hera Group shareholders, and 5 in the province of Pistoia). The documents involved were signed today, 9 May 2019. The tender was accompanied by a ten-year concession for the Cosea Consorzio’s Ca’ dei Ladri landfill, in the Municipality of Gaggio Montano, also covering assets and resources involved in its operation. The concession, also dated today, was stipulated between Herambiente and Cosea Consorzio. The 18 Municipalities owning Cosea Consorzio are also shareholders in Cosea Ambiente, even while holding different percentages in the two companies, with the exception of two Municipalities with no shareholding. Thanks to this acquisition, the Hera Group will be able to manage its waste management services in an increasingly synergic way across the entire Province of Bologna. These services will be integrated with the others already offered in the Apennine area (mainly water and gas), guaranteeing at the same time that the personnel currently employed is maintained. As for the Municipalities previously served by Cosea Ambiente, they will benefit from the scale economies ensuing from an advanced industrial approach in service management and fully meet the goals set by the regional law on recycling and recovery. Further benefits will also come from the multi-utility’s many infrastructures, which already guarantee a high level of environmental performance in the areas served by Hera (selection, disposal and biomethane production plants, etc.). Additionally, the Hera Group will invest in currently existing infrastructures and activities over the next few months. GH-Cosea_870 Press release Cosea acquisition 2019-05-09 Read more GH_Cosea.1557416645 (1).jpg The multi-utility has consolidated its leadership in the waste management area by acquiring the entire shareholding of the company operating in waste management, owned by 20 Municipalities in the Tuscan-Emilian Apennine area http://www.coseambientespa.it/ visit Cosea Ambiente website GH-Cosea_110

BS_online_110 The Hera Group's 2018 Sustainability Report, which can be found on-line at http://bs.gruppohera.it,contains the economic, social and environmental responsibility statistics and the focus on the commitments undertaken, the results achieved and the future prospects. This year in the Report, the representation of contents focussed on the creation of shared value was reinforced: the multiutility's ability to meet the needs of the local area and tackle the challenges in terms of change geared towards sustainability, as demonstrated by the company's decision to quantity the EBITDA deriving from activities that are in keeping with the priorities established by the UN Agenda. In addition, with the objective of improving accountability even further, new pages have been introduced this year dedicated to presenting the results for each area served. The Group's sustainability reports have also been enriched: the "Building the future together" report highlights the initiatives of engagement and collaboration between Hera, citizens and players in the local communities, in observance of target 17 of the UN Agenda. A strategic approach that has been validated: the "shared value" EBITDA increases by 14% In 2018, the Group generated a "shared value" EBITDA of Euro 375 million, up by 14% compared to the previous year and accounting for 36% of the total, a percentage expected to hit 40% by 2022. A significant commitment which stems from the awareness of how economic, social and environmental changes require companies to rethink the links between CSR (corporate social responsibility) and company strategy. Albeit corporate social responsibility has, up until now, concerned the "what" and the "how" of the company, shared value places its central focus on the "why", outlining the reason why the company exists and the salient elements that differentiate it from all other companies. In fact, the Hera Group wants to be part of the companies of the future that will be able use their business to help society regenerate the ecosystem and the environment. BS_online_870 Press release 2018 Sustainability Report 2019-07-18 Read more bs_online_870.1563434417.jpg The multiutility continues to commit to creating shared value and to responding to the current environmental and socio-economic challenges. In the report, the focus is on the results achieved, the investments and the future initiatives with new sections dedicated to the local areas served BS_online_110