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Business Plan 2023-2027
Message from the executive chairman of the board
As growth accelerates, more value to shareholders
With the 2023-2027 Business Plan, Hera clearly defines the path to follow over the coming years. Even in the new, challenging scenario, Hera continues to leverage on a strategy that has been proven effective over time, with well-defined priorities in terms of value creation, sustainability and resiliency.
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Business Plan 2023-2027
Looking at the figures
The business strategy at the basis of 2027 expected ROI
Over the five-year period, Hera will concentrate more than half (about 55%) of the 4.4 billion euro investment plan in regulated businesses (Networks and Waste collection), with the aim of enhancing the existing infrastructure and seizing the opportunities of the regulatory framework, thus generating returns with high visibility and keeping the risk profile low.
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Business Plan 2023-2027
Hera on stock exchange
Higher shareholder returns from an acceleration plan
The rally that Hera’s shares have experienced since last October has only partly covered the wide appreciation room against the average target price of analysts in coverage – currently at 3.53 euro. Preliminary results for the Year 2023, above market expectations, will provide further visibility on management’s actual ability not only to hit strategic targets, but to achieve them well in advance.
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Business Plan 2023-2027
Stories
A more ambitious Business Plan? Numbers prove it
The new 2023-2027 Plan envisages a significant acceleration of growth compared to the previous Plan, whose horizon was 2026. The engine behind more dynamic development lies in higher investments planned over the five-year period. The EBITDA drivers take shape through the number of funds invested, but even through the quality of the selected projects, which offer more attractive returns, and the efficiencies Hera aims to gain in regulated businesses.
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Financial Results 9M 2023
Message from the executive chairman of the board
EBITDA over 1 billion, with high-quality growth
The first nine months of 2023 showed double-digit growth, moving from EBITDA to the P&L bottom line. A set of clear features backs up the quality of the growth achieved over the period. Indeed, this was a cross-sectional growth, which involved operational, financial, and fiscal management, as well as all businesses across the multi-utility portfolio.
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Financial Results 9M 2023
Looking at the figures
Focus on nine-month 2023 results
In the first nine months of the current fiscal year, Hera achieved an EBITDA growth of 15.1%, despite a 22.3% decrease in Total Revenues, due to falling energy commodity prices. Energy areas, which explain 112.4 m€ of the total EBITDA progress of 132.0 m€, recorded a significant increase (+43.8%), leveraging on a fast growth of the customer basis (+310 thousand) and a wide range of services provided, including those successfully addressing the Decarbonisation issue.
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Financial Results 9M 2023
Hera on stock exchange
In a less uncertain environment, Hera represents an ideal quality investment
The last three months have seen an unfavourable scenario for equity investment: interest rates rising steadily, reaching 20-year peaks; the Chinese economy afflicted by persistent weakness; and, on 7 October, the outbreak of war in the Middle East, which exacerbated geopolitical tensions. The indices thus showed a volatile trend. The performance of Hera’s shares reflected this market sentiment: multiples have therefore not yet discounted the brokers’ upward revisions to estimates after half-year results.
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Financial Results 9M 2023
Stories
Ever more, Hera at the heart of the water infrastructure development in Italy
With 1 additional billion, Hera will continue to carry out investments to ensure that Water is supplied, purified and distributed to meet the evolving demand
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Financial Results H1 2023
Message from the executive chairman of the board
EBITDA on acceleration, with debt down and risk profile under control
In the second quarter of 2023, Hera gave fresh impetus to the growth already achieved in the first quarter, with first-half EBITDA showing an overall progress of 13.8%. This result reflects the positive contribution of all business areas, while also having a significant sustainable connotation, given the continued development of the Decarbonisation activities.
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Financial Results H1 2023
Looking at the figures
Focus on H12023 results
Despite the 6.7% reduction in Revenues, reflecting the pullback of energy commodity prices from past peaks, Hera achieved significant growth in the first half of 2023, with double-digit growth rates in EBITDA and EBIT. Not only did all major P&L balances show improvement compared to H1 2022, but also all strategic business areas made a positive contribution to the 13.8% growth in consolidated EBITDA.
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Financial Results H1 2023
Hera on stock exchange
Hera posts a Total Shareholder Return of around 15% since the beginning of the year
While the major European stock markets are at their highs since the beginning of the year, Hera’s share price still has significant room for appreciation, as reflected by the large discount to the average target price of 3.4 euro of the analyst coverage.
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Financial Results H1 2023
Stories
Expanding customer base and 1 bn€ energy transition projects
Hera has a very straightforward plan to ride the long wave of demand for more efficient and sustainable energy consumption. In the coming years, Hera will continue to play a proactive role in the energy transition process, not only through responsible management of operations, but also by encouraging more sustainable consumption by its customers.
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Financial Results Q1 2023
Hera on stock exchange
Evidence on falling debt can bring new boost to the value of Hera shares
In a stock market seeking direction, due to uncertainties about when central banks will end their tightening monetary policies, a bullish movement of Hera stock started in recent weeks. Fuelling the rally, in addition to the healthy FY 2022 results, is the stock’s defensive profile, appreciated by portfolio managers in this de-risking phase, after the difficulties of several banking institutions emerged.
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Financial Results Q1 2023
Message from the executive chairman of the board
In Q1, growth goes together with a significant deleveraging
Hera opens 2023 with reassuring results from the first quarter, not just for the entity but also for the quality of the progress achieved. All typical drivers contributed to the 9.4% increase in EBITDA: organic growth, mainly supported by the expansion of the customer base in the Energy areas and the strong competitive positioning in Waste, as well as activities that promote the circular economy and M&A.
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Financial Results Q1 2023
Looking at the figures
Focus on Q12023 results
Hera starts 2023 on a growth path. All KPIs are up compared to the first quarter of 2022, while Net Financial Debt decreases by €472.2 m, thus taking the Debt-to-EBITDA ratio down to 2.84x. The Energy and Waste areas, which outperformed the Group average growth, have driven the 9.4% increase in EBITDA.
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Financial Results Q1 2023
Stories
Significant resolutions at Hera’s 2023 Shareholders Meeting
Anew BoD, full of new profiles, but in the wake of solid continuity. The AGM held on 27 April was a major event. Hera was one of the few Italian listed companies that again allowed its shareholders to be physically present at “Spazio Hera”, where the Meeting took place, even though this year, following the measures to avoid the pandemic, it was still possible to adopt a virtual format, with the vote expressed exclusively by proxy.
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Financial Results Y2022
Message from the executive chairman of the board
In a difficult 2022, sound results exceeded expectations
Foresight in tackling the new scenario and confidence in the solidity of the business model: by leveraging these two strengths, Hera faced the challenges of fiscal year 2022, making progress in all financial KPIs. The purchase of significant amounts of gas, to have adequate stocks available against the threatening energy crisis, was an intuition that has allowed the Group to keep its risk profile under control while continuing with the execution of the investment plan that underpins the continuous business growth.
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Financial Results Y2022
Looking at the figures
Focus on full-year 2022 results
Hera’s EBITDA growth path continued uninterrupted in 2022, with progress of 75.6 million euro that allowed the Group to reach a record level of 1,295 million euro, despite a much more challenging external scenario than was foreseeable at the beginning of the year.
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Financial Results Y2022
Hera on stock exchange
A stronger equity story based on 2022 results and dividend
After the presentation of the Business Plan to 2026 on 8 February 2023, with today’s release of FY22 results, Hera does provide investors with additional confirmation of the founding elements of its equity story. To some extent, analysts have already built in their valuations the features of Hera’s continued growth, achieved by carefully managing the risks of the external scenario.
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Financial Results Y2022
Stories
At the roots of Hera’s 20-year journey
Hera has achieved uninterrupted growth since inception in 2002 to date. Embracing from the very beginning an innovative multi-business and multi-stakeholder model has proved to be a winning choice. Over time, Hera has executed a clear growth strategy, based on two pillars: on one hand fuelling organic development through the deployment of significant technical investments and the expansion of market shares in liberalised businesses, and on the other hand expanding externally through targeted M&A operations, always effectively integrated.