The document summarizes Hera Group's H1 2011 results. Key points include: - Revenues, EBITDA, EBIT, and net profit all increased between 9.7-14.1% compared to H1 2010, driven by growth in all business areas. - Acquisitions included a 50% joint venture in Enomondo and purchase of Sadori Gas. - Positive free cash flow of €195.2 million allowed funding of capex, working capital increases, and acquisitions. - Financial debt remained stable at €1.971 billion compared to H1 2010 levels. - All business areas, including waste, water, gas, and electricity contributed to increased

1. Hera Group H1 results
Analyst presentation
25th August 2011
www.gruppohera.it

2. Strong results despite all
H1 ’11 growth rates Strong set of achievements in H1
contributing to bottom line.
+14.1% +14.1%
Growth underpinned by all businesses,
+9.7%
and particularly by Energy activities with
+7.9%
commercial development and procurement
position more than offsetting mild winter
effects.
Revenues Ebitda Ebit Net Profit
M&A progressed through acquisition of
Sadori Gas and 50% JV Enomondo.
H1 net profits Positive free cash flows accounting
139m€ of capex. Debt at 1.97 b€ in line
+71.4 m€
with H1 ’10 level.
+62.5 m€
Positive results in all businesses driving
+46.8 m€
+41.2 m€ Ebitda up by +30.4 m€ confirming
business plan targets.
Limited impact of additional Robin tax
(not accounted for in H1 2011).
H1 '08 H1 '09 H1 '10 H1 '11
1

3. H1 ’11 results confirm fast growth path despite crisis
Contribution from all
businesses and drivers
Enhancement of tariffs,
energy prices and
volumes sold Bad debt provisioning
reflects persisting
difficult economic
Lower interest charges
conditions
thanks to lower avg debt
exposure
Affected by additional
IRAP and not including
increased Robin tax
(impact of +3.1% on tax charges)
2

4. All value drivers and portfolio activities contributed to growth
Ebitda growth Drivers Organic Growth fuelled by gas and
+9.7% electricity supply (Ebitda from 62 to 82 m€).
+3.5 +3.0 344.0
+24.0
313.5 Increase in tariffs, customers, cross selling
and synergies.
300
New plants: WTE Rimini (started the new
power gen. turbine in March).
200
M&A relates to JV Enomondo (Sadori Gas
H1 '10 Syn & New M&A H1 '11
Org.G. Plants will be accounted for in H2).
Ebitda by strategic area Waste management increase underpinned
by new plants, M&A and regulated activities.
Networks increase partially offset by
District Heating results (-2m€ due to mild
winter).
Energy strongly increased contribution
thanks to supply activities and asset
optimisation.
All regulated and liberalised activities
confirmed positive growth.
3

5. Positive OpCF and sound financial structure confirmed
H1 Free cash flows H1 ’11 free cash generation fully funded
working capital (up by 30.4 m€), capex by
+195.2
138.8 m€ and M&A effects (consolidation of
150 50% JV Enomondo and Sadori acquisition).
100
50 +9.0
Stable financial debt over last 12 month.
(138.8) (30.4)
(27.9) +7.1
0
Oper. CF* Capex & NWC Prov. M&A and Free CF
Inv. other
Financial soundness further enhanced:
Change in net financial debt D/E: better by 15% (H1/H1)
2100 D/Ebitda: enhanced by 9% (H1/H1)
1,971 1,963 1,971
Duration: 9y (75% exceed 5y)
1,860 1,846
1600
Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11
* Operating cash flows=Group net profit + Depreciations 4

6. Waste: harvesting from new asset base
Financial highlights
+6.7% revenues mainly driven by
special waste volumes (+0.9%) and
electricity production (+22%) offsetting
slow down of Urban waste collected (-
2.9% H1 ’11 vs. +6.1% H1 ’10).
Industrial figures Urban waste tariffs up by +3.5%.
Ebitda underpinned by WTE
performance (mainly related to new WTE
in Rimini).
Financials benefit from consolidation of
Waste treatments 50% of Enomondo (+3m€).
25% 23%
18%
Recovery and recycling contributed to
14% H1 '10 reduce use of landfills.
10% H1 '11
8%
Sorted collection reached almost 50%
WTE Composting Landfill
of total urban waste collection.
5

7. Water: tackling with real estate industry slowdown
Financial highlights
Tariffs increase of +2.7% was offset by
lower new connections/works to third
parties.
Ebitda stable with positive synergies and
tariff effect offsetting higher electricity
costs and lower revenues of non
regulated activities (due to negative trend
of real estate industry).
Volumes
Referendum of 13th June confirm
original concession length (up to 2022
on avg).
Tariff increases safeguarded by Ato
agreements (effective up to 2012 end).
6

8. Gas: effective procurement offsets mild winter season effects
Financial highlights
Revenues growth mainly driven by
higher commodity prices partially
balanced by lower volumes (gas and
district heating) related to mild winter
season.
Ebitda increase mainly driven by
Volumes enhanced margins in supply activities
and optimisation in logistic/ procurement
costs.
Trading activities yield positive growth
in volumes (+36.5%) whilst European
commodity trading offered less
opportunities than a year ago.
7

9. Electricity: performance led by market expansion
Financial highlights
Revenues growth mainly driven by higher
volumes related to “salvaguardia” services
and market expansion (+30k and +40k
customers in H1 respectively and +100k on
yearly basis).
Procurement and supply portfolio benefit
from commodity price development.
Volumes Optimisation of asset management.
Enhanced performance of distribution
activities (+2m€).
Ebitda margin up by 82 bp.
8

10. Capital expenditure in line with long term sustainability
Capital Exp. & Investments
Capex further decreased in 2011 mainly
due to the completion of WTE plants.
H1 ’11 maintenance capex about 80% of
total expenditure.
Waste capex reduced due to completion
of WTE plants.
Investments mainly relates to Sadori (gas
supply in Marche region).
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11. Closing remarks
Net profit track records CAGR Strong competitiveness on energy market
71
+17.5% underpinned positive performance.
63
41
47 Developed asset base almost fully
37 contributed to results.
20 Portfolio business resilience shown by
H1 2007 H1 2008 H1 2009 H1 2010 H1 2011 last 5Y track record.
Cash generation combined with lower
Free CF track record capex underpin financial structure
enhancement (positive trend of free CF).
+17.9 +7.1
M&A strengthened Waste asset base with a
new biomass plant. Sadori Gas (signed in
H1 2009 H1 2010 H1 2011 April) will start to contribute from H2 results.
DPS of 9 €c (+12.5%) paid on the 9th June.
(123.9)
-150
10

12. Q&A session