Hera Group Consolidate Half-Year Financial Report Summary

Consolidate
half-year
financial report
as at 30 june 2017

CONSOLIDATED INTERIM FINANCIAL REPORT AT 30 JUNE 2017 – TABLE OF
CONTENTS
INTRODUCTION
Governance and control bodies 001
Corporate structure 002
Mission 004
CHAPTER 1 – DIRECTORS’ REPORT
1.01 Overview of Group management performance and definition of alternative performance
measures 005
1.01.01 Operating and financial results 008
1.01.02 Analysis of the Group’s financial structure and investments 013
1.01.03 Analysis of Net Cash (Net Debt) 016
1.02 Analysis by business area 017
1.02.01 Gas 018
1.02.02 Electricity 022
1.02.03 Integrated water cycle 025
1.02.04 Waste management 029
1.02.05 Other services 034
1.03 Significant events occurred during the half-year 037
1.04 Share performance and investor relations 039
1.05 Reference scenario and Group strategy 042
1.06 Macroeconomic context and focus on the oil, gas and electricity sector 044
1.07 Regulatory framework and regulated revenues 045
1.08 Procurement policies and trading 052
1.09 Commercial policy and customer care 054
1.10 Financial policy and ratings 055
1.11 Technological innovation and project development 060
1.12 Quality, safety and environment 063
1.13 Information systems 064
1.14 Personnel structure, industrial relations, development and staff training 065

CHAPTER 2 - ABBREVIATED CONSOLIDATED HALF-YEAR STATEMENTS
2.01 Financial statements formats 070
2.01.01 Income statement 070
2.01.02 Statement of comprehensive income 071
2.01.03 Statement of financial position 072
2.01.04 Cash flow statement 074
2.01.05 Statement of changes in net equity 075
2.02 Explanatory notes 076
2.02.01 Accounting policies and evaluation principles 076
2.02.02 Scope of consolidation 080
2.02.03 Changes in international accounting standards 085
2.02.04 Commentary notes to the financial statement formats 088
2.02.05 Reporting by operational sector 115
2.03 Net financial debt 117
2.03.01 Net financial debt 117
2.03.02 Net financial debt as per Consob communication DEM/6064293 of 2006 118
2.04 Financial statements formats - Consob 15519 / 2006 119
2.04.01 Income statement as per Consob 15519 / 2006 119
2.04.02 Statement of financial position as per Consob 15519 / 2006 120
2.04.03 Cash flow statement as per Consob 15519 / 2006 121
2.04.04 List of related parties 122
2.04.05 Commentary notes to relations with of related parties 123
2.05 Equity investments: list of consolidated companies 126
2.06 Declaration of consolidated financial statement pursuant to article
154 of decree n° 58/98 128
2.07 Report by the independent auditor 129

Hera Group Consolidate Half-Year Financial Report as at 30 June 2017
Approved by the Hera Spa BoD on 26 July 2017 1

GOVERNANCE AND CONTROL BODIES

Chairman Tomaso Tommasi di Vignano
CEO Stefano Venier
Vice-chairman Giovanni Basile
Director Francesca Fiore
Director Giorgia Gagliardi
Director Massimo Giusti
Director Sara Lorenzon
Director Aldo Luciano
Director Stefano Manara
Director Danilo Manfredi
Director Erwin P.W. Rauhe
Director Duccio Regoli
Director Federica Seganti
Director Marina Vignola
Director Giovanni Xilo
Chairman Myriam Amato
Standing Auditor Antonio Gaiani
Standing Auditor Marianna Girolomini
Chairman Giovanni Basile
Member Sara Lorenzon
Member Erwin P.W. Rauhe
Member Duccio Regoli
Chairman Giovanni Basile
Member Francesca Fiore
Member Massimo Giusti
Member Stefano Manara
Chairman Tomaso Tommasi di Vignano
Vice-chairman Giovanni Basile
Member Stefano Venier
Member Federica Seganti
Chairman Massimo Giusti
Member Mario Viviani
Member Filippo Maria Bocchi
Deloitte & Touche S.p.A.
Independent auditing firm
Board of Directors
Board of Statutory Auditors
Control and Risk Committee
Remuneration Committee
Executive Committee
Ethics Committee

Approved by t

Parent comp
Hera Spa:
effective
operations
management

Herambiente
leading the
environment
sector
Hera Comm:
2.3 million
energy
customers
the Hera Spa Bo
COR

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was
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pany
t
e:
tal
oD on 26 July 20
RPORATE
structure of
ess that beg
first created
nges and un
cipally in the
panies Hera
iservizi Spa
parent compa
rdination and
onsible for c
ambiente Sp
, was establ
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E STRUCT
the Hera Gr
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Half-Year Finan

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* In addition to the 30% held by AcegasApsAmga Spa.
** In addition to the 5% held by Herambiente. Sviluppo Ambiente Toscana Srl in turn holds 40% of Q.tHermo
Srl.
The companies partially owned by AcegasApsAmga Spa are: Black Sea Company for Compressed Gas Ltd,
Centro Idrico di Novoledo Srl, Adria Link Srl, EnergiaBase Trieste Srl, La Dolomiti Ambiente Spa, Estenergy
Spa, Sinergie Spa and Aresgas AD. During 2017, shares held in SIGAS Doo by AcegasApsAmga are expected
to be divested.
The companies partially owned by Aliplast are: Alimpet Srl, Alipackaging Srl, Cerplast Srl, Umbroplast Srl,
Variplast Srl, Aliplast France Recyclage Sarl, Aliplast Iberia SL and Aliplast Polska SPOO.

Hera Spa
Herambiente S.p.A.
AcegasApsAmga Spa
Marche Multiservizi Spa
Hera Comm Srl
Hera Trading Srl
75%
100%
49,59%
100%
100%
*HestAmbiente
Fea Srl
Herambiente Servizi Industriali Srl
Enomondo Srl
Asa Scpa
Feronia Srl
Waste Recycling Spa
70%
51%
100%
50%
51%
70%
100%
So.Sel. Spa
Gran Sasso Srl
SGR Servizi Spa
Hera Comm Marche Srl
Amga Energia & Servizi Srl
Amga Calore & Impianti Srl
26%
100%
29,61%
57,38%
100%
100%
Other companies
INRETE Distribuzione Energia Spa
**Sviluppo Ambiente Toscana
Aimag Spa
Medea Spa
Set Spa
Acantho Spa
Calenia Energia Spa
Hera Luce Srl100%
95%
25%
100%
39%
77,36%
15%
100%
Uniflotte Srl 97%
Galsi Spa 11,77%
Tamarete Energia Srl 40%
Energo Doo 34%
Hera Servizi Energia Srl 57,89%
S2A Scarl 23,81%
Ghirlandina Solare Srl 33%
Aloe Spa 10%
HERAtech Srl 100%
Aliplast Spa 40%


MISSION

“Hera aims at being the best multi‐utility in Italy for its customers, workforce and shareholders. It
intends to achieve this through further development of an original corporate model capable of
innovating and of forging strong links with the areas in which it operates by respecting the local
environment”.

“For Hera, being the best is a way of creating pride and trust for: customers, who receive,
thanks to Hera’s constant responsiveness to their needs, quality services that satisfy their
expectations; the women and men who work at Hera, whose
skills, engagement and passion are the foundation of the
company’s success; shareholders, confident that the economic
value of the company will continue to be generated in full respect
of the principles of social responsibility; the reference area,
because economic, social and environmental richness represent
the promise of a sustainable future; and suppliers, key elements in
the value chain and partners for growth”.



1.01 OVERVIEW OF GROUP MANAGEMENT PERFORMANCE AND DEFINITION
OF ALTERNATIVE PERFORMANCE MEASURES
(*) The amount of 2016 Revenues has been corrected (with no effect on results) due to the
reclassification of system charges. For details, see paragraph “1.01.01 Operating and financial
results”.

The Hera Group uses Alternative Performance Measures (APM) to more effectively
convey information about the profitability of the businesses in which it operates as well as
its equity and financial situation. In accordance with the guidelines published 5 October
2015 by the European Securities and Markets Authority (ESMA/2015/1415) and in
keeping with the provisions of Consob communication no. 92543 of 3 December 2015,
the content of and the criteria used in defining the APMs used in this financial statement
are explained below.
Ebitda is a measure of operating performance and is calculated by adding together
“Operating income” and “Depreciation, amortization and write-downs.” This measure is
used as a financial target in internal documents (business plans) and external
presentations (to analysts and investors), and is a useful measure in evaluating the
operating performance of the Group (as a whole, and at the level of each Business Unit),
also allowing for a comparison between operating profits of the reporting period with
those of previous periods. In this way it is possible to analyse trends and compare the
efficiency achieved in different periods.
Operating APMs and investments
(€/mln)
Jun 2017 Jun 2016 Abs. change % Change
Revenues (*) 2,754.0 2,502.8 +251.2 +10.0%
EBITDA 505.9 470.1 +35.8 +7.6%
EBITDA/Revenues ratio (*) 18.4% 18.8% -0.4 p.p.
Operating profit 262.2 257.4 +4.8 +1.9%
Operating profit/Revenues ratio (*) 9.5% 10.3% -0.8 p.p.
Net profit 148.0 128.2 +19.8 +15.5%
Net profit/revenues ratio (*) 5.4% 5.1% +0.3 p.p.
Net investments 151.8 152.2 -0.4 -0.3%
Financial APMs
(€/mln)
Jun 2017 Dec 2016 Abs. change % Change
Property,plant and equipment 5,652.6 5,564.5 +88.1 +1.6%
Net working capital 88.6 99.9 -11.3 -11.3%
Provisions (552.5) (543.4) -9.1 -1.7%
Net invested capital 5,188.7 5,121.0 +67.7 +1.3%
Net financial debt (2,611.7) (2,558.9) -52.8 -2.1%
Operating
APMs and
investments
Financial
APMs
Definition of
Alternative
Performance
Measures
(APM)
Operating
APMs and
investments



Ebitda on revenues, operating profit on revenues and net income on revenues is
presentations (to analysts and investors), and measures the Group’s operating
performance by representing a proportion, in terms of percentage, of Ebitda, operating
profit and net profit divided by the value of revenues.
Net investments are the sum of investments in tangible fixed assets, intangible assets
and equity investments net of capital grants. This measure is used as a financial target in
internal documents (business plans) and external presentations (to analysts and
investors), and is useful in evaluating spending capacity for the Group’s investments in
maintenance and development (as a whole and at the level of each business unit), also
allowing for a comparison with previous periods, making it possible to analyse trends.
Net fixed assets are calculated as the sum of: tangible fixed assets; intangible assets
and goodwill; equity investments; deferred tax assets and liabilities. This measure is used
as a financial target in internal documents (business plans) and external presentations (to
analysts and investors), and is a useful measure for evaluating the Group’s net assets as
a whole, also allowing for a comparison with previous periods. In this way it is possible to
analyse trends and compare the efficiency achieved in different periods.
Net working capital is made up of the sum of: inventories; trade receivables and
payables; current tax receivables and payables; other assets and other current liabilities;
the current portion of assets and liabilities for financial derivatives on commodities. This
measure is used as a financial target in internal documents (business plans) and external
presentations (to analysts and investors), and is useful in evaluating the Group’s ability to
generate cash flow through operating activities over a period of 12 months, including
comparisons with previous periods. In this way it is possible to analyse trends and
compare the efficiency achieved in different periods.
Provisions includes the sum of the items “employee severance indemnities and other
benefits” and “provisions for risks and charges”. This measure is used as a financial
target in internal documents (business plans) and external presentations (to analysts and
investors), and is a useful measure in evaluating the Group’s ability to cope with possible
future liabilities, also allowing for a comparison with previous periods. In this way it is
possible to analyse trends and compare the efficiency achieved in different periods.
Net invested capital is determined by calculating the sum of “net fixed assets”, “net
working capital” and “provisions”. This measure is used as a financial target in internal
documents (business plans) and external presentations (to analysts and investors), and
is a useful measure in evaluating all of the Group’s current and non-current operating
assets and liabilities, as specified above.
Net financial debt is a measure of the company’s financial structure determined in
accordance with Consob communication 15519/2006, adding the value of non-current
financial assets. This measure is therefore calculated by adding together the following
items: current and non-current financial assets; cash and cash equivalents; current and
non-current financial liabilities; current and non-current assets and liabilities for derivative
financial instruments on interest and exchange rates. This measure is used as a financial
Financial
APMs



investors), and is a useful measure in evaluating the Group's financial debt, also allowing
for a comparison with prior periods. In this way it is possible to analyse trends and
compare the efficiency achieved in different periods.
Sources of financing are obtained by adding “net financial debt” and “net equity”. This
measure is used as a financial target in internal documents (business plans) and external
presentations (to analysts and investors) and represents the breakdown of sources of
financing, distinguishing between the company’s own equity and that of third parties; it is
a measure of the Group’s financial autonomy and solidity.
Net debt to Ebitda ratio, expressed as a multiple of Ebitda, is used as a financial target
in internal documents (business plans) and external presentations (to analysts and
investors) and represents a measure of the operating management’s ability to pay back
its net debt.
Funds from operations is calculated as Ebitda minus doubtful accounts, interest
expenses, income taxes and use of reserves and severance pay. This measure is used
as a financial target in internal documents (business plans) and external presentations (to
analysts and investors) and represents a measure of the operating activities’ ability to
generate cash flow.
Roi, or return on net invested capital, is defined as the ratio between net operating
earnings and net invested capital, and is expressed as a percentage. This measure is
presentations (to analysts and investors) and it is intended to measure the ability to
produce wealth through operating management, thus remunerating equity and capital
pertaining to third parties.
Roe, return on equity, is defined as the ratio between net profits and net equity, and is
expressed as a percentage. This measure is used as a financial target in internal
documents (business plans) and external presentations (to analysts and investors) and is
intended to measure the profitability obtained by investors, recompensing risk.
Cash flow is defined as operating cash flow, net of dividends paid. Operating cash flow is
calculated as Ebitda plus changes in net working capital, net of increases in doubtful
accounts, the use of reserves and severance pay, operating and financial investments,
financial income and expenses and income taxes. This measure is used as a financial
investors) and is intended to measure a company’s capacity to generate cash flow and
therefore its ability to finance itself.
Operating-
financial APMs



1.01.01 OPERATING AND FINANCIAL RESULTS
All of the Hera Group’s indicators for the first half of 2017 showed growth. In particular,
Ebitda rose by 7.6%, operating profits by 1.9% and net profits by 15.5%.
These significant results, achieved thanks to the Group’s consolidated multi-business
strategy, are to be considered within an increasingly challenging context defined by
regulatory and competitive factors, within which Hera proved its balance and agility,
combining the two strategic levers of internal and external growth.
The main corporate and business operations having an effect on the first half of 2017 are
described below.
 In September 2016 Hera Comm Srl was awarded the Friuli Venezia-Giulia and
Emilia Romagna portion of the last resort gas supply service (FUI) for the period
between 1 October 2016 and 30 September 2018, along with 5 portions of the
default service in gas distribution between 1 October 2016 and 30 September
2018.
 As of 1 November 2016 the company Gran Sasso Srl, which is involved in free
market electricity and gas sales in the L’Aquila, Pescara and Chieti areas,
became part of the Group’s consolidated scope.
 In November 2016, in the national tender held by the Single Purchaser for 2017-
18 safeguarded services, Hera Comm Srl was awarded six portions in eleven
regions of Italy.
 On 1 February 2017 Waste Recycling Spa acquired the “plants” corporate branch
of the Pisa company Teseco Srl, a leading figure in industrial waste treatment
and recovery.
 In January 2017 Herambiente Spa signed a binding deal with Aligroup Srl for the
acquisition of the Aliplast Group, a leading operator in the segment of plastic
waste collection and recycling with subsequent regeneration, using an integrated
process that transforms all waste into products ready to be reused. The operation
came to a conclusion on 3 April 2017 following the fulfilment of the condition
precedent, i.e. the approval of the Italian antitrust authority. As of the 2017 half-
year report, each company of the Aliplast Group is entirely consolidated and
contributes to the results of the Hera Group with effects involving operations and
equity backdated to 1 January 2017.
In order to respect sector regulations concerning unbundling, with effective date 1 July
2016 Hera Spa conferred its corporate branch dealing with electricity and gas distribution
to Inrete Distribuzione Energia Spa.
On 1 January 2017 Heratech Srl, a company that manages works requested by
customers (new connections, technical opinions, urbanisation, etc.), became operational
for all network services managed by the Group. It furthermore deals with planning and
implementing plants and networks and other highly specialised technical activities, for
both the Group and third parties. The company is 100% controlled by Hera Spa
Constant
growth in all
indicators



This consolidated income statement reflects the application of accounting principle
Ifric12 “Service concession arrangements”. The effect of applying this principle, which
leaves the results unchanged, is that investments made in goods granted under
concession, only including network services, are acknowledged in the income statement.
It should also be noted that as of this half-year report dated 30 June 2017 the Group has
recorded system charges incurred for the period in question concerning electricity and
gas services in the income statement among “service costs” when involving charges
received from third-party distributors, and among “revenues” when involving the
corresponding amounts included in bills for end customers, for an amount of € 347.7
million. Previously, these tariff components had been recorded in debt and credit
receivables among the other “current assets/liabilities”. This being said, the Group has
reformulated the income statement for the first six months of 2016, as well as the balance
sheet at 31 December 2016, with the same criterion described above, in order for the two
periods to be correctly compared. In particular, as regards the income statement for the
first six months of 2016, this re-statement led to an increase of € 350.1 million in
“revenues” and “service costs”. In this regard, see also paragraph 2.02.01 of the
explanatory notes.
The following table shows the operating results for the first six months of 2016 and 2017:
Income statement (€/mln) Jun 2017 %Inc.
Jun 2016
as adjusted
%Inc. Abs. change %Change
Revenue 2,754.0 2,502.8 +251.2 +10.0%
Other operating revenue 202.3 7.3% 162.0 6.5% +40.3 +24.9%
Raw materials (1,178.4) -42.8% (998.0) -39.9% +180.4 +18.1%
Service costs (981.7) -35.6% (920.4) -36.8% +61.3 +6.7%
Other operating costs (25.8) -0.9% (20.8) -0.8% +5.0 +24.1%
Personnel costs (282.5) -10.3% (266.7) -10.7% +15.8 +5.9%
Capitalised costs 17.9 0.6% 11.2 0.4% +6.7 +59.7%
EBITDA 505.9 18.4% 470.1 18.8% +35.8 +7.6%
Amort. & Prov. (243.7) -8.9% (212.7) -8.5% +31.0 +14.6%
EBIT 262.2 9.5% 257.4 10.3% +4.8 +1.9%
Financial operations (45.9) -1.7% (58.0) -2.3% -12.1 -20.9%
Pre-tax profit 216.3 7.9% 199.4 8.0% +16.9 +8.5%
Taxes (68.3) -2.5% (71.2) -2.8% -2.9 -4.1%
Net profit of the period 148.0 5.4% 128.2 5.1% +19.8 +15.5%
Attributable to:
Shareholders of the Parent Company 141.0 5.1% 121.0 4.8% +20.0 +16.5%
Non-controlling interests 7.0 0.3% 7.2 0.3% -0.2 -2.6%
Constant and
increasing
growth

Approved by t

€ 2.8 billion
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the Hera Spa Bo
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e first half of
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017
f 2017, reven
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in the same
enefited from
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roughly € 54
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ding these c
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ue to greater
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e lower reven
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g to € 17 mil
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24.9%. This
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ontribution fo
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nd Gran Sas
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rose by € 15
on at the sa
een by the na
involve the w
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set by a lowe
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p € 251.2
r the
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m the
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, growth
8
r activity
hly € 128 mi
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y € 14 million
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ues for envir
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rew compar
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fficiency cert
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or sorted was
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sso Srl, amo
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including the
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on must also
tion of work
umes treated
5.8 million o
ame date in
ational labou
waste area
Srl, coming
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oming to € 4
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in scope of o
ounting to rou
ronmental ce
crease in the
cost per unit
e change in
mounting to r
gher costs fo
go to the ro
ks for third p
d and for the
or 5.9%, goin
n 2017. This
ur contract an
with the ent
g to € 8.4 m
resence.
(*) The 2016
Half-Year Finan

revenues for
of gas sold f
hly € 20 millio
sold and tran
41 million, re
ghly € 24 mill
nd energy ef
m revenues
ame period
o the aforem
ounting to rou
r Ifric12 rev
ates amounti
illion or 18.1
operations du
ughly € 29.3
ertificates for
e price of ra
of energy ef
scope due
roughly € 16
or services an
oughly € 17.0
parties, highe
developmen
ng from € 26
s increase is
nd to change
rance of the
illion overall
data reflects the r
charges describ
ncial Report as a

r the price of
for € 28 millio
on, offsetting
nsported out
efers to the
lion (with an
fficiency cer
to other re
of the previ
mentioned res
ughly € 17.0
venues comi
ing to € 10.0
% compared
ue to the ent
3 million, and
r roughly € 2
aw material i
fficiency cert
e to the entr
6.4 million, in
nd € 4.7 mill
0 in higher I
er costs of d
nt of new pr
66.7 million in
s mainly du
es in scope,
e Aliplast Gr
l. These incr
reclassification of
bed above
at 30 June 2017
               10
f raw
on and
g the
tside the
effect of the
equal effect
rtificates that
evenues and
ous year by
statement of
million from
ng to € 12.0
0 million and,
d to 30 June
trance of the
d the change
24 million, is
in electricity,
tificates.
rance of the
ncreased by
ion in higher
fric12 costs,
disposal and
ojects in the
n June 2016
ue to higher
of which the
oup and the
reases were
f system
7
e
t
t
d
y
f
m
0
,
e
e
e
s
,
e
y
r
,
d
e
6
r
e
e
e

Approved by t

Ebitda at € 5
million (+7.6
Ebit at € 262
million (+1.9
the Hera Spa Bo
Capi
€ 6.7
belo
birth
Ebitd
show
millio
This
ascr
show
but
than
sales
porti
defa
were
For f
Amo
millio
due
com
rose
safeg
Ebit
2017
€ 25
perio
The
the e
€ 45
millio
perio
rates
oper
inde
Pre-t
the €
505.9
6%)
.2
%)
oD on 26 July 20
italised costs
7 million or 5
nging to Gro
of Inrete Dis
da settled a
wing an in
on or 7.6%
growth in
ibed to the
wn by all ar
the energy
ks to highe
s business
ons of the
ult markets
e seen in the
further detail
ortisation and
on in June 20
to new inve
panies of the
, in particula
guarded cus
reached €
7, up € 4.8 m
7.4 million
od in 2016.
results of fin
end of the firs
.9 million,
on or 20.9%
od in 2016. T
s obtained a
rations set
mnities from
tax profits gr
€ 216.3 recor
017
s at June 201
59.7%, for g
oup compani
stribuzione E
at € 505.9
ncrease of
over June
n Ebitda c
good perfo
reas of the
areas in pa
er earnings
due to th
safeguarde
s. Positive
integrated w
s, see the an
d provisions
016 to € 243
estments in
e Aliplast Gr
r in the sales
stomers.
262.2 millio
million or 1.9%
seen in t
nancial mana
st half of 201
improving
compared to
The good pe
among othe
in place du
safeguarded
rew by € 16.9
rded in the fi
Hera Grou

17 rose com
greater works
es, including
Energia Spa a
million,
€ 35.8
e 2016.
can be
rmance
Group,
articular
in the
he new
ed and
results
water cycle a
nalyses of ea
rose overall
3.7 million at
regulated bu
roup and the
s company H
n in June
% over the
the same
agement at
17 came to
by € 12.1
o the same
rformances w
r things tha
uring 2016.
d customers
9 million, goi
rst half of 20
up Consolidate H

pared to the
s on plants a
g the differen
and Heratec
and the waste
ach single bu
l by € 31.0 m
the same da
usinesses an
e sales comp
Hera Comm S
were due to
anks to the
Higher earn
also had a p
ing from the
017.
Half-Year Finan

same period
and projects
nt corporate
h Srl.
e area as we
usiness area
million or 14.
ate in 2017.
nd the chan
panies. Prov
Srl, owing to
lower averag
effects of th
nings involv
positive impa
€ 199.4 milli
ncial Report as a

d in the prev
s implemente
breakdown f
ell.
a.
.6%, going f
Amortisation
nge in scope
visions for do
o the tenders
ge debt and
he liability m
ing recovery
act on the res
ion seen in J
at 30 June 2017
               11
vious year by
ed on goods
following the
from € 212.7
ns increased
e due to the
oubtful debts
awarded for
efficiency in
management
y of default
sults.
June 2016 to
7
y
s
e
7
d
e
s
r
n
t
t
o

Approved by t

Earnings po
minorities at
€ 141.0 millio
(+16.5%)
the Hera Spa Bo
Inco
rate
of th
rate,
com
cons
obta
deve
Net
first
Grou
millio
incre
st
t
on
oD on 26 July 20
me taxes pe
of 31.6%, w
he previous y
that went fro
ing to € 4.5
solidated fisc
ining all ben
elopment, the
profits rose
half of 2016
up net profit
on, with
ease over Ju
017
rtaining to th
ith a clear im
year. The re
om 27.5% in
million that
cal scope of
nefits recogn
e increase in
by 15.5%, e
to € 148.0 m
ts reached €
a € 20.0
ne 2016.
Hera Grou

he first half o
mprovement
easons for th
n previous ye
ensued from
operations.
nised by law
n deductions
equivalent to
million in the s
€ 141.0
million
up Consolidate H

of 2017 amou
compared to
his decrease
ears to 24% a
m the oppor
Note further
w, in particu
for amortisa
€ 19.8 millio
same period
Half-Year Finan

unted to € 68
o the 35.7%
e are mainly
as of 2017, i
rtunities gras
rmore the co
ular the tax
tions and the
on, going fro
in 2017.
ncial Report as a

8.3 million, d
seen in the
tied to a fa
n addition to
sped throug
ontinuous co
credit for re
e patent box
om € 128.2 m
at 30 June 2017
               12
efining a tax
same period
ll in the Ires
o lower taxes
h a broader
mmitment to
esearch and
.
million in the
7
x
d
s
s
r
o
d
e

N
c
€
N
t
m
h
G
m
i

Approved by t

Net invested
capital comes
€ 5.2 billion
Net investmen
otalling € 151
million in the
half-year
Group’s
magnitude
ncreases
the Hera Spa Bo
1.01
INV

The
finan
At 3
capit
2016
is en
the
Grou
Spa.
work
whic
millio
In t
inves
millio
in c
millio
(FoN
meth
serv
Grou
€ 17
com
inves
Net i
2017
Inves
finan
Net n
Net w
(Prov
Net in
Equit
Net d
Long
Net
Total
s to
nts
1.8
first
oD on 26 July 20
1.02 ANAL
ESTMENTS
table below
ncing for the
30 June 2
tal increased
6 by € 67.7 m
ntirely due t
shareholdin
up by the com
. Efficiency
king capital w
ch fell by a
on.
the first ha
stments am
on, benefiting
capital gran
on for the N
NI), as provi
hod for th
ice. Includin
up’s overall
0.6 million,
pared to Ju
stments esse
investments,
7, with a redu
sted capital and
cing (€/mln)
non-current asse
working capital
visions)
nvested capital
ty
debt
g-term borrowings
cash/short term b
sources of fina
017
LYSIS OF
S
w shows cha
period ended
2017, net i
d over 31 De
million. This
o the acquis
ng in the
mpany Hera
in manag
was also con
n additional
alf of 2017
mounted to
g from € 18
nts, of whic
ew investme
ded for by
e integrate
g capital gr
investments
up € 13.4
ne 2016 ag
entially in line
, in fact, wen
uction of € 0.
d sources of
ets
s
borrowings
ancing
Hera Grou

THE GR
anges in the
d 30 June 20
nvested
ecember
change
sition of
Aliplast
mbiente
ing net
nfirmed,
l € 11.3
7, Group
€ 151.8
.8 million
ch € 2.6
ents fund
the tariff
ed water
rants, the
came to
4 million
ainst net
e with the pr
nt from € 152
.4 million.
30 Jun 17
5,652.6
88.6
(552.5)
5,188.7
(2,577.0)
(2,611.7)
(2,723.3)
111.6
(5,188.7)
up Consolidate H

ROUP’S F
e Group’s n
017.
revious year,
2.2 million in
% Inc. 31
108.9% 5
1.7%
-10.6% (
100.0% 5
49.7% (2
50.3% (2
52.5% (2
-2.2%
-100.0% (5
5.2
Dec 15
N
Half-Year Finan

INANCIAL
net invested
as an effect
June 2016 t
Dec 16 %
5,564.5 108
99.9 2.
(543.4) -10
5,121.0 100
2,562.1) 50
2,558.9) 50
2,757.5) 53
198.6 -3
5,121.0) 100
5.1
Jun 16
Net invested
ncial Report as a

STRUCT
capital and
t of higher ca
to € 151.8 m
Inc. Abs. cha
8.7% +88.1
.0% (11.3
0.6% (9.1)
0.0% +67.7
0.0% (14.9
0.0% (52.8
3.8% +34.2
3.9% (87.0)
0.0% (67.7
5.1
Dec 16
capital (€/bln
at 30 June 2017
               13
URE AND
d sources of
apital grants.
illion in June
ange % Change
1 +1.6%
3) (11.3%)
) (1.7%)
7 +1.3%
9) (0.6%)
8) (2.1%)
2 +1.2%
) (43.8%)
7) +1.3%
5.2
Jun 17
n)
7
f
.
e
e



The following table shows a subdivision by sector, with separate mention of capital
grants:
Operating investments came to € 170.1 million, growing by 8.2% over the first half of
2016, and it mainly involved interventions on plants, networks and infrastructures, in
addition to regulatory upgrading involving above all gas distribution, with a large-scale
substitution of metres, and the depuration and sewerage areas.
Remarks on investments in each single area are included in the analysis by business
area.

At Group headquarters, investments concerned interventions on corporate buildings, IT
systems and the vehicle fleet, as well as laboratories and remote-control structures.
Overall, investments in structures increased by € 1.0 million compared to the previous
year, mainly in IT systems.

In 2017, provisions amounted to € 552.5 million, up over December 2016 thanks to period
provisions that were higher than outflows for usage.
Equity increased by € 14,9 million, going from € 2,562.1 million at 31 December 2016 to
€ 2,577.0 million at 30 June 2017, first and foremost owing to the contribution coming
from period results of € 148.0 million, which entirely financed dividend payments totalling
€ 140.4 million.
Total investments
(€/mln)
Gas area 39.2 40.3 -1.1 -2.7%
Electricity area 10.5 11.2 -0.7 -6.2%
Water cycle area 68.2 61.1 +7.1 +11.6%
Waste management area 20.9 17.5 +3.4 +19.4%
Other services area 8.7 5.5 +3.2 +58.2%
Headquarters 22.6 21.6 +1.0 +4.6%
Total operating investments 170.1 157.2 +12.9 +8.2%
Total financial investments 0.5 0.0 +0.5 +100.0%
Total gross investments 170.6 157.2 +13.4 +8.5%
Capital contributions 18.8 5.0 +13.8 +276.0%
of which FoNI (New Investment Fund) 2.7 3.0 -0.3 -10.0%
Total net investments 151.8 152.2 -0.4 -0.3%
Provisions
come to € 552.5
million
Equity at € 2.6
billion
At Group
headquarters,
investments in
corporate
buildings, IT
systems and the
vehicle fleet
Strong
commitment
continues in
operating
investments in
plants and
infrastructures



RECONCILIATION BETWEEN SEPARATE AND CONSOLIDATED FINANCIAL
STATEMENTS
Net profit Equity
Balances as per Parent's Company's separate financial statements 165.9 2,301.3
Excess of equity over the carrying amounts of Investments in
consolidated companies
(17.7) (9.7)
Consolidation adjustments :
- Measurement with the equity method of investments reported at cost
in the separate financial
statement
(2.8) 43.0
- Difference between purchase price and book value of corresponding po (4.9) 122.1
- Elimination of intercompany transactions 0.5 (23.2)
Total 141.0 2,433.5
Restoration of third-party assets 7.0 143.5
Balances as per consolidated financial statements 148.0 2,577.0
Reconciliation between separate and consolidated financial statements



1.01.03 ANALYSIS OF NET CASH (NET DEBT)
Borrowings show an average term to maturity of 8 years, with 68% maturing after over 5
years.
The amount of current financial debt, € 247.5 million, is mainly made up roughly € 55.8
million in bank loans reaching maturity, roughly € 49.6 million in accrued interest, roughly
€ 58.2 million in the use of current credit lines, and financial debt for the acquisition of
Aliplast Spa coming to roughly € 53.1 million. The amount concerning non-current bank
debt and bonds is largely made up of bonds issued on the European market and listed on
the Luxembourg Stock Exchange (77% of the total), with repayment at maturity.
Net financial debt increased by
€ 52.8 million, going from € 2,558.9
million at 31 December 2016 to
€ 2,611.7 million at 30 June 2017.
Cash flows generated by
management in the first half-year,
totalling € 188.8 million, amply
contributed to financing the
acquisition of the Aliplast Group
(roughly € 100 million) in addition to
dividend payments amounting to
over € 140 million.
(€/mln) 30 Jun 17 31 Dec 16
a Cash and cash equivalents 324.0 351.5
b Other current financial receivables 35.1 29.4
Current bank debt (107.9) (72.1)
Current portion of bank debt (57.5) (71.7)
Other current financial liabilities (80.1) (36.2)
Finance lease payments maturing within 12 months (2.0) (2.3)
c Current financial debt (247.5) (182.3)
d=a+b+c Net current financial debt 111.6 198.6
Non-current bank debt and other sources of financing (2,828.1) (2,847.8)
Other non-current financial liabilities (4.3) (5.0)
Finance lease payments maturing after 12 months (14.9) (14.9)
e Non-current financial debt (2,847.3) (2,867.7)
f=d+e Net debt - Consob communication n° 15519 of 28/07/2006 (2,735.7) (2,669.1)
g Non-current financial receivables 124.0 110.2
h=f+g Net financial debt (2,611.7) (2,558.9)
2.7
2.6 2.6 2.6
Dec 15 Jun 16 Dec 16 Giu 2017
Net debt (€/bln)
A solid financial
position
Net debt comes
to € 2.61 billion



1.02 ANALYSIS BY BUSINESS AREA
An analysis of the results achieved by management in the various business areas in
which the Group operates is provided below, including: the gas area, which covers
services in natural gas and LPG distribution and sales, district heating and heat
management; the electricity area, which covers services in electricity production,
distribution and sales; the integrated water cycle area, which covers aqueduct,
purification and sewerage services; the waste management area, which covers services
in waste collection, treatment, recovery and disposal; the other services area, which
covers services in public lighting and telecommunications, as well as other minor
services. After the second half of 2016, the Hera Group revised the arrangement of its
own multi-business portfolio in order to improve and simplify financial reporting on its
industrial structures: the industrial cogeneration business has been transferred from the
electricity area to the gas area, bringing it together with heat management, which
furthermore respects the Group’s organizational outlook. For a correct comparison with
the current representation, the respective 2016 data has been reclassified.
The Group’s income statements include corporate headquarter costs and reflect
intercompany transactions accounted for at arm’s length.
The following analyses of the single business areas take into account all increased
revenues and costs, having no impact on Ebitda, related to the application of Ifric 12, as
shown in the Group’s consolidated income statement. The business areas affected by
Ifric 12 are: natural gas distribution services, electricity distribution services, all integrated
water cycle services and public lighting services.
The new organisational and corporate configuration ensuing from the creation of Inrete
Distribuzione Energia Spa and Heratech Srl has led to a different representation of
personnel costs and operating costs within the various business areas, while remaining
globally unchanged.
34%
18.1%
22%
24%
2.0%
EBITDA June 2017
Gas Electricity Water Waste management Other services
Contribution
coming from the
Group’s various
areas towards
overall Ebitda
shows a balanced
mix, in line with
its multi-business
strategy

1
c

Approved by t

Gas: an incre
in Ebitda
Contribution
Group Ebitda
drops
Gas area Ebi
grows by 4.0
1.4 million ga
customers
the Hera Spa Bo
1.02
The
the p
obta
defa
2018
and
unde
the c
The
(*)Not
indus
in Ebi
The
due
place
distr
The
supp
Sass
custo
from
to ro
(€/ml
Area
Group
Perce
ease
to
a
tda
0%
as
oD on 26 July 20
.01 GAS
gas area, at
previous yea
ined thanks
ult gas distri
8 and one po
30 Septemb
erlying cost o
consolidated
following tab
te that the data
trial cogeneratio
itda, or 0.6%.
number of g
to both ma
e and the
ibution and l
wider cust
ported by th
so Srl, which
omers. The
the new po
oughly 25,000
n)
EBITDA
p EBITDA
entage weight
017
t the end of t
ar as regard
to the com
bution servic
ortion of the l
ber 2018. Co
of amortisati
first-half rep
ble shows the
a pertaining to
on business. Th
gas custome
arketing act
portions of
last resort ga
tomer base
he acquisitio
h brought rou
e contributi
rtions award
0 customers.
Hera Grou

the first half
ds both Ebit
mpany Hera
ce for the pe
last resort ga
ompared to
ion related t
port.
e changes oc
June 2016 ha
he effect on the
rs rose by 3
tions set in
default gas
as awarded.
e was also
on of Gran
ughly 16,300
on coming
ded amounts
.
up Consolidate H

of 2017, sho
tda and volu
Comm Srl
riod between
as service fo
the first half
to investmen
ccurred in te
as been correct
2016 data of th
3.5% over the
Jun 2017
171.8
505.9
34.0%
Half-Year Finan

owed growth
umes sold. T
being award
n 1 October
r the period b
f of 2016, th
nts made in
rms of Ebitd
ted to account
he first reclassifi
e same perio
Jun
as adju
1
4
3
ncial Report as a

over the sam
This result w
ded five por
2016 and 30
between 1 O
he revenue c
the referenc
a:
for the reclass
ication amounts
od in 2016. T
2016
usted
Abs. cha
165.2
470.1 +
35.1% -1.1
at 30 June 2017
               18
me period of
was partially
rtions of the
0 September
October 2016
covering the
ce period for
sification of the
s to € 3.2 million
This trend is
ange %Change
+6.6 +4.0%
+35.8 +7.6%
1 p.p.
7
f
y
e
r
6
e
r
e
n
s
e
%
%

G
o

Approved by t

15.0% increa
volumes sol
Gas: growth
overall Ebitda
Gas revenue
reach € 937
million
the Hera Spa Bo
Volu
30 J
to g
whic
(10.1
volum
show
June
broa
cont
Sass
10.2
furth
amo
the t
of 20
oper
The
Note
indus
the in
million
perso
€ 34.6
Reve
show
tradi
reve
roug
price
€ 4.5
incre
the
natu
chan
cont
roug
the
acqu
Inco
(€/m
Reve
Oper
Pers
Capi
EBIT
ase in
ld
in
a
es
.9
oD on 26 July 20
mes of gas
une 2016 to
growth in tr
ch came to 2
1% of total
mes sold to
wed a 5.4%
e 2016, t
ader custome
ribution com
so Srl, amou
million
ermore tha
unt of portio
tender for de
017 to increa
rations, the in
following tab
that pro forma d
trial cogeneratio
ncome statemen
n in Ebitda, con
onnel costs. Th
6 million.
enues went f
wing € 103.2
ng busin
nues from t
hly € 49 mi
e of raw mate
5 million, w
ease in the c
TTF; the
ral gas s
nges in the
ributed with
hly € 8.5 mi
default serv
uisition of Gra
me statement
ln)
enues
rating costs
sonnel costs
italised costs
TDA
017
sold rose by
2,257.7 mill
rading volum
228.7 million
volumes).
final custom
% increase o
hanks to
er base and
ming from G
unting to rou
m3
. N
at the la
ons awarde
fault and las
ase by rough
ncrease in vo
ble summaris
data has been p
on business from
nt, as for 2017.
nsisting of € 6.4
e second recla
from € 834.7
million or 12
nesses: in
trading amou
llion and th
erials in gas
hich include
cost of natur
higher volu
sold, not
scope of op
roughly € 13
llion in new
vice awarded
an Sasso Sr
t
Jun
93
(71
(57
5
17
Hera Grou

y 294.7 millio
lion m3
at th
mes,
n m3
The
mers
over
the
d the
Gran
ughly
Note
arger
ed in
st resort gas
hly 21.1 milli
olumes came
ses operating
prepared for Jun
m the electricity
. The effect on
4 million in rev
assification incr
7 million at 3
2.4% in grow
ncreased
unting to
he higher
sales for
ed a 5%
ral gas at
umes of
including
perations,
3 million;
portions of
d; and the
rl, amounting
2017 %
7.9
4.4) -76
7.3) -6
5.6 0
1.8 18
up Consolidate H

on m3
or 15.0
e same date
services allo
ion m3
. Not
e to 2.8%.
g results for t
ne 2016 in orde
y area to the ga
the 2016 data
venues, € 2.9 m
reases revenue
30 June 2016
wth. The main
g to roughly €
% Inc.
Jun 2016
adjuste
8
6.2% (60
6.1% (6
0.6%
8.3% 1
(*) The 2016
Half-Year Finan

0%, going fro
e in 2017. Th
owed the volu
including the
the gas area
r to account for
s area, and the
a of the first rec
million in operat
s and operatin
6 to € 937.9
n reasons fo
€ 6.6 million.
6 as
ed
% In
34.7
06.1) -72.6
67.5) -8.1
4.1 0.5
65.2 19.8
6 data reflects the
ncial Report as a

om 1,963.0
his change is
umes sold in
ese changes
a:
r both the reclas
insertion of sys
classification am
ting costs and
ng costs to the
million at 30
or this lie in th
.
nc. Abs. chang
+103
% +108
% -10
% +1
% +6
e reclassifications
at 30 June 2017
               19
million m3
at
s mainly due
the first half
s in scope of
ssification of the
stem charges in
mounts to € 3.2
€ 0.4 million in
same degree,
0 June 2017,
he sales and
ge % Change
3.2 +12.4%
8.3 +17.9%
0.2 -15.1%
.5 +36.7%
6.6 +4.0%
described above
7
t
e
f
f
e
n
2
n
,
,
d
e
%
%
%
%
%

€
N
i
€

Approved by t

Gas Ebirta:
€ 171.8 millio
Net investme
n the Gas Ar
€ 39.2 million
the Hera Spa Bo
Furth
due
prev
Last
millio
The
costs
thus
volum
cost
Ebitd
4.0%
the
millio
earn
amo
scop
In th
the G
same
to a
purs
reso
mete
invol
G6),
main
Requ
first
seen
cont
econ
Inves
distr
inclu
the f
heat
conn
on
nts
rea:
oD on 26 July 20
hermore, con
to the highe
iously mentio
ly, note the h
on, and highe
increase in
s, which wen
showing a
mes sold, a
per unit of e
da increased
%, going from
first half o
on in 2017
ings in trad
unts of gas
pe of the defa
he first half o
Gas Area ca
e period in 2
ctivities in r
uant to res
lution 631/1
er substitu
lved lower-c
and le
ntenance on
uests for new
half of 2017
n in the prev
inued to
nomic situatio
stments fel
ict heating a
uding € 2.1 m
first half of 2
t manageme
nections a sli
017
ntributions fro
r value per u
oned revenu
higher reven
er revenues
revenues ha
nt from € 673
total increa
higher price
energy efficie
d by € 6.6 m
m € 165.2 m
of 2016 to
7, thanks to
ding activities
sold and th
ault service.
of 2017, inve
ame to € 39.2
2016. In gas
regulatory u
solution 554
3) for a lar
ution, whic
class devic
sser non-r
networks an
w connection
were similar
vious year a
reflect the
on.
l by € 2.8
and heat ma
million in distr
016 on the B
ent, especia
ght drop was
Hera Grou

om energy e
unit, as did re
ues covering
ues in the di
for Ifric12 w
ad a virtually
3.6 million ov
ase of € 98.
e of raw mate
ency certifica
million or
million in
€ 171.8
o higher
s, larger
he wider
estments in
2 million, sh
distribution,
pgrading
4/15 (ex-
rge-scale
ch also
es (G4-
recurring
nd plants.
ns in the
r to those
and thus
overall
million in
anagement,
rict heating m
Bologna Bar
lly in the c
s seen comp
up Consolidate H

efficiency cer
evenues from
amortisation
strict heating
works and su
y proportiona
verall at 30 J
1 million. Th
erials, a larg
tes.
owing a € 1
a € 1.6 milli
mainly due to
rca and Forlì
ompany Sin
pared to the p
(*) The 201
(*)The 2016
cogeneration
Half-Year Finan

rtificates rose
m the gas dis
n costs.
g service, am
bcontracting
al effect on o
June 2016 to
his rise was
ger amount o
.1 million de
on increase
o the higher
Campus pla
nergie Spa.
previous yea
6 data reflects the
abo
6 data reflects the
business from the
ncial Report as a

e by roughly
stribution se
mounting to r
.
operating an
o € 771.7 mil
s mainly due
of trading an
ecrease com
was seen, m
amount of w
ants, and € 0
In new dis
ar.
e reclassifications
ove
reclassification o
e electricity area t
at 30 June 2017
               20
€ 10 million,
rvice, for the
roughly € 2.4
nd personnel
lion in 2017,
e to greater
d the higher
pared to the
mainly owing
work done in
0.7 million in
trict heating
s described
f the industrial
to the gas area.
7
,
e
4
l
,
r
r
e
g
n
n
g



Details of operating investments in the Gas Area are as follows:
The 2016 data has been corrected to reflect the reclassification of the industrial cogeneration business from the
electricity area to the gas area, for a total of € 0.5 million.
Gas
(€/mln)
Jun 2017
Jun 2016 as
adjusted
Abs. change % Change
Networks and plants 31.5 29.9 +1.6 +5.4%
RH/Heat management 7.6 10.4 -2.8 -26.9%
Total Gas Gross 39.2 40.3 -1.1 -2.7%
Total Gas Net 39.2 40.3 -1.1 -2.7%

Ele
inc
Co
Gr
+2
Ebit
Elec
grow
931
elec
cus

Approved by t

ectricity:
crease in Ebi
ontribution to
roup Ebitda:
2.5%
tda in the
ctricity area
ws by 25.2%
thousand
ctricity
stomers
the Hera Spa Bo
1.02
Ebitd
as a
Sale
tend
acro
prod
The
(*)Not
indus
in Ebi
The
due
came
seen
reinf
broa
2016
com
cont
custo
(€/m
Area
Grou
Perc
tda
o
oD on 26 July 20
.02 ELECTR
da pertaining
contribution
es activities w
ers by the S
ss eleven of
uction activit
following tab
te that the data
trial cogeneratio
itda, or 0.6%.
number of e
to growth on
e to 15.9%
n in recen
forcement o
adened cust
6 with the
pany Gran
ributed with
omers.
mln)
a EBITDA
up EBITDA
centage weigh
017
RICITY
g to the elect
to overall G
widened the
Single Purcha
f Italy’s regio
ties showed
ble shows the
a pertaining to
on business. Th
electricity cu
n the free ma
, confirming
t years ow
of marketing
tomer base
e acquisitio
n Sasso S
roughly 3.5
ht
Hera Grou

tricity area g
roup Ebitda.
customer b
aser for 201
ons, with a
a good perfo
e changes oc
June 2016 ha
he effect on the
ustomers sho
arket, which
g the trend
wing to a
g and the
gained in
on of the
Srl, which
5 thousand
Jun
5
1
up Consolidate H

grew over the
base and He
7-18 safegu
different mix
ormance onc
ccurred in te
as been correct
2016 data of th
owed an 8.8
2017
J
as a
91.6
505.9
8.1%

Half-Year Finan

e first half of
ra Comm S
arded servic
x than in the
ce again in as
rms of Ebitd
ted to account
he first reclassifi
% increase
un 2016
adjusted
Ab
73.1
470.1
15.6%
ncial Report as a

f 2016, both
rl was award
ces, winning
e previous p
sset manage
a:
for the reclass
ication amounts
(75.2 thousa
bs. change
+18.5
+35.8
+2.5 p.p.
at 30 June 2017
               22
in itself and
ded national
six portions
eriod; lastly,
ement.
sification of the
s to € 3.2 million
and), mainly
%Change
+25.2
+7.6%
7
d
l
s
,
e
n
y
e
%
%

Vo
lin
pr
El
gr
R
e
€

Approved by t

olumes sold
ne with the
revious year
lectricity: Ebi
rows by 25.2%
Revenues from
lectricity:
1,147.6 millio
the Hera Spa Bo
Volu
GWh
decr
on th
conta
volum
custo
diffe
who
ener
custo
The

Note
indus
effect
reven
increa
Reve
€ 1,1
reas
rise
natio
prev
reve
in sa
roug
prod
Reve
com
those
by €
serv
Inco
(€/m
Reve
Ope
Pers
Cap
EBIT
in
itda
%
m
on
oD on 26 July 20
mes of elec
h in 2017, s
rease of 0.8
he free mark
aining the
mes sold
omers, mai
rent mix of p
proved to
rgy than
omers.
following tab
that pro forma d
trial cogeneratio
t on the 2016 da
nues, € 2.9 mill
ases revenues a
enues rose
147.6 million
ons for this
in the pric
onwide price
ious year, w
nues amoun
ales, € 79 m
hly € 14
uction in th
enues for
ing to rough
e for extra-
€ 9 million.
ices dropped
ome statemen
mln)
enues
rating costs
sonnel costs
italised costs
TDA
017
ctricity sold w
howing an o
%. Volumes
ket grew by
drop see
to safegu
nly owing
portions awa
o consume
the pre
ble summaris
data has been p
on business and
ata of the first re
lion in operatin
and operating co
by 14.0%,
n in 2017. T
s growth inc
ce of energ
e), up 33%
which led to
nting to € 70
million in trad
million in
hermoelectric
volumes s
hly € 3.5 mi
-network tra
Revenues fo
d, owing to lo
nt
Ju
1,
(1,
(
Hera Grou

went from 4
overall
s sold
5.2%,
en in
arded
to a
arded,
less
evious
ses operating
prepared for Jun
d the insertion o
eclassification a
ng costs and €
osts to the sam
going from
The main
clude: a
gy (Pun,
over the
o higher
0 million
ding and
energy
c plants.
sold fell,
llion, as did
ansportation,
or regulated
ower revenue
un 2017 %
,147.6
,039.0) -90
(22.5) -2
5.5 0
91.6 8
up Consolidate H

,843.6 GWh
g results for t
ne 2016 in orde
of system charg
mounts to € 3.2
0.4 million in p
me degree, € 315
€ 1,006.8
d
,
d
es covering a
Inc.
Jun 201
adju
1,0
0.5% (91
.0% (2
0.5%
8.0%
(*) The 20
Half-Year Finan

in the first
the area:
r to account for
ges in the incom
2 million in Ebitd
personnel costs
5.5 million.
million in th
amortisation
6 as
usted
% Inc.
006.8
11.2) -90.5%
26.4) -2.6%
3.9 0.4%
73.1 7.3%
016 data reflects t
ab
ncial Report as a

half of 2016
r both the reclas
me statement, a
da, consisting of
s. The second
he first half
costs.
Abs. change
+140.
+127.
-3.
+1.
+18.
the reclassification
bove
at 30 June 2017
               23
6 to 4,805.9
ssification of the
s for 2017. The
f € 6.4 million in
reclassification
of 2016 to
e % Change
8 +14.0%
8 +14.0%
9 -14.8%
6 +40.9%
5 +25.2%
ns described
7
9
e
e
n
n
o
e
%
%
%
%
%

E
a
N
in
A
m

Approved by t

Electricity Eb
at € 91.6 milli
Net investmen
n the Electric
Area: € 10.5
million
the Hera Spa Bo
The
pers
millio
to an
At th
Ebitd
25.2
June
same
highe
mark
custo
earn

In th
€ 0.7
Inter
recu
distr
Imola
Com
prev
main
the
exte
the I
of 20
As re
this
to th
Deta
The 2
electr
Eletr
(€/m
Netw
Tota
Cap
Tota
bitda
ion
nts
city
oD on 26 July 20
increase in
onnel costs,
on in 2017, t
n increase in
he end of th
da rose by
%, going fro
e 2016 to €
e period in
er earnings
ket and
omers, as
ings in elect
he Electricity
7 million com
rventions ma
rring mainte
ibution netw
a, Trieste an
mpared to the
ious yea
ntenance fell
most part
nsive interve
mola Cogen
016.
egards reque
area, a sligh
e first half of
ails of operat
2016 data has b
ricity are to the g
ricity
mln)
works and pla
al Electricty G
ital contributio
al Electricity N
017
revenues w
, which went
thus showing
the cost of m
he first half
y € 18.5 m
om 73.1 milli
€ 91.6 millio
n 2017, th
in sales on
to safe
well as
ricity product
Area, invest
mpared to the
ainly concern
nance on pla
works in the
nd Gorizia are
e same perio
ar, non-r
by € 0.7 m
due to th
entions carrie
n plant in the
ests for new
ht rise was s
f the previous
ing investme
been corrected t
gas are, for an o
ants
Gross
ons
Net
Hera Grou

was reflecte
t from € 937
g a total grow
materials.
of 2017,
million or
ion at 30
n in the
hanks to
the free
eguarded
higher
tion.
tments in th
e € 11.2 seen
ned non-
ants and
Modena,
eas.
od in the
recurring
illion, for
he more
ed out on
first half
connections
seen compar
s year.
ents in the El
to reflect the rec
overall amount o
up Consolidate H

d to an equ
7.6 million ov
wth of € 123
e first half o
n in the previ
s in
red
ectricity Area
classification of
of € 0.5 million.
Jun 2017
10.5
10.5
0.0
10.5
(*) The 2
(*) Th
industria
Half-Year Finan

ual degree
verall at 30
.9 million. Th
f 2017 came
ous year.
a are as follo
f the industrial c
Jun 2016
11.2
11.2
0.0
11.2
2016 data reflects
a
he 2016 data refle
al cogeneration bu
to th
ncial Report as a

by rising op
June 2016
his change is
e to € 10.5 m
ows:
cogeneration bu
Abs. change
-0.7
-0.7
+0.0
-0.7
s the reclassificatio
above
ects the reclassific
usiness from the e
he gas area
at 30 June 2017
               24
perating and
to € 1,061.5
s mainly due
million, down
usiness from the
e % Change
-6.2%
-6.2%
+0.0%
-6.2%
ons described
cation of the
electricity area
7
d
5
e
n
e
e

W
Eb
4.
Co
Eb
W
m

Approved by t

Integrated W
Cycle: Ebitd
in absolute t
Water Cycle Ar
bitda rises by
4%
ontribution to
bitda: -0.7%
Water Cycle: 1
million custom
the Hera Spa Bo
1.02
In the
Ebitda
the tar
for 20
2016 t
in the
basis.
standa
standa
this re
The f
The
settle
thou
of 20
inter
area
parti
area
(€/ml
Area
Grou
Perce
Water
a up
terms
rea
y
o
.5
mers
oD on 26 July 20
.03 INTEGR
first half of 2
a, up 4.4%. A
riff method d
016-2019 (re
the revenue
period cove
Furthermor
ards of cont
ards such as
esolution, me
following tab
number of
ed at 1.5 m
sand or +0.3
016. This is
rnal growth
as served
cular in th
a managed by
Water
Cycle
Area;
+22%
Wat
ln)
a EBITDA
p EBITDA
entage weight
017
RATED WAT
2017, the int
As regards cu
defined by th
solution 664
covering the
ered by the
re, with res
tractual qual
s further req
echanisms fo
ble shows th
f water cus
million, rising
3% over the f
s part of a t
seen acro
by the Gro
e Emilia-Ro
y Hera Spa.
ter EBITDA J
Hera Grou

TER CYCLE
tegrated wat
urrent regula
he Authority
4/2015) was
e underlying
consolidate
solution 655
ity have bee
quirements fo
or recognising
he changes o
stomers
by 5.0
first half
trend of
oss the
oup, in
omagna
Jun 2017
Jun 2
11
50
22
up Consolidate H

E
ter cycle are
ations, note t
for electricity
applied, an
cost of amor
d half-year
5/15, in forc
en defined,
or help desk
g commercia
ccurred in te
2017 Ju
11.3
05.9
2.0%
Half-Year Finan

a recorded €
hat 2017 is t
y and gas (h
d that comp
rtisation relat
report, is re
ce as of Ju
including bo
s, invoicing
al quality hav
erms of Ebitd
n 2016 Abs
106.6
470.1
22.7%
ncial Report as a

€ 4.7 million
the second y
hereinafter th
pared to the
ted to invest
ecognized on
uly 2016, th
oth general
and estimat
ve been intro
da:
s. change
+4.7
(25.9)
+2.4 p.p.
at 30 June 2017
               25
of growth in
year in which
he Authority)
e first half of
ments made
n an accrual
he minimum
and specific
tes. Through
duced.
% Change
+4.4%
(5.5%)
7
n
h
)
f
e
l
m
c
h

14
m
aq
Inte
cyc
Eb
R
t
W
c
m

Approved by t

46.7 million m
managed in th
queduct
egrated wate
cle: increase
itda
Revenues fro
he Integrated
Water Cycle
come to € 406
million
the Hera Spa Bo
The
The
grow
acro
com
man
The
activ
to re
distr
The

Reve
millio
are v
reve
roug
the t
for th
(Mti-
the
and
qual
appl
Incom
Reve
Oper
Pers
Capi
EBIT
m
3
e
er
in
m
d
6.8
oD on 26 July 20
main quantit
volumes dis
wth over the f
ss all areas
pared to the
aged in sew
volumes dis
vities of the a
egulations tha
ibuted.
table below
enues showe
on in the first
various reas
nues from d
hly € 20.4 m
tariffs provide
he three-yea
-2); higher
underlying c
the recogn
ity; higher
ication of a
me statement
enues
rating costs
onnel costs
talised costs
DA
017
tative indicat
spensed thro
figures seen
s served and
same period
werage (roug
pensed, follo
areas in whic
at call for reg
synthesises
ed an 8.7%
t half of 2017
sons for this
ispensing co
million, as a r
ed for by the
ar period 201
revenues c
cost of amo
ition of com
revenues
accounting p
(€/mln) Jun
40
(20
(9
2
11
Hera Grou

tors of the ar
ough the aq
in June 201
d the higher
d in 2017. F
ghly 3.1%) a
owing Aeegs
ch the Group
gulated reve
the income s
increase, go
7. There
: higher
oming to
result of
e Aeegsi
16-2019
covering
rtisation
mmercial
for the
principle
n 2017 % In
06.8 -
08.2) -51.2
90.0) -22.1
2.6 0.6
11.3 27.4
up Consolidate H

rea are as fol
ueduct show
6: this can b
r amount of
urthermore,
and purificati
si resolution
p operates an
nues to be r
statement fo
oing from € 3
nc. Jun 20
374.1
2% (193.3
1% (75.2
% 1.1
4% 106.6
Half-Year Finan

llows:
wed a 3.7 m
be traced to b
rain seen i
growth was
on (roughly
no. 664/2015
nd are subje
ecognised in
r the water a
374.1 million
16 % Inc.
1 -
3) -51.7%
) -20.1%
0.3%
6 28.5%
ncial Report as a

million m3
(ro
both higher c
in the first h
also seen in
3.6%) over
5, are an ind
ect to equalis
ndependently
area:
in June 201
Abs. change
+32.7
+14.9
+14.8
+1.5
+4.7
at 30 June 2017
               26
oughly 2.6%)
consumption
half of 2016
n the amount
June 2016.
dicator of the
sation thanks
y of volumes
6 to € 406.8
e % Change
+8.7%
+7.7%
+19.7%
+139.2%
+4.4%
7
)
n
6
t
.
e
s
s
8

Eb
m
Ne
in
W
€ 4

Approved by t

bitda at € 111
illion
et investment
the Integrate
Water Cycle Ar
49.5 million
the Hera Spa Bo
Ifric1
subc
Ope
due
purc
Ebitd
millio
millio
millio
com
millio
dispe
equa
cost
Net i
€ 6.6
by €
capit
area
€ 7.1
year
The
exte
netw
addit
invol
sewe
Inves
sewe
Amo
inter
abdu
sewe
addit
highe
work
Aceg
Requ
perio
Capi
com
com
.3
ts
ed
rea:
oD on 26 July 20
12, amounti
contracted wo
rating and p
to a higher
hased, highe
da showed
on or 4.4%,
on in June
on in 2017,
bination of
on in high
ensing, € 6.
alisable cos
of personne
investments
6 million com
€ 13.8 millio
tal grants, i
a came to €
1 increase
r.
intervention
nsions, re
work and pl
tion to reg
lving above
erage.
stments we
erage and €
ong the mo
rconnections
uction condu
erage, conti
tion to redev
er investmen
k done in
gasApsAmga
uests for ne
od of the prev
ital grants a
ponent prov
pared to the
017
ng to rough
orks coming
personnel co
price of elec
er costs for c
a growth o
going from
e 2016 to
resulting fr
f roughly
er revenue
0 million in
ts and the
el.
in the Integr
mpared to the
on. Not in
nvestments
68.2 million,
over the p
ns mainly in
eclamations
lant upgrad
gulatory up
all purificatio
re made to
23.2 million
re significan
in the Mo
uct in the Fer
nued progre
velopment o
nts compare
upgrading
a Spa.
ew water an
vious year.
mounting to
ided for by t
first half of 2
Hera Grou

hly € 7.0 m
to roughly €
osts rose by
ctricity for pl
commissions
of € 4.7
€ 106.6
€ 111.3
rom the
€ 20.4
es from
n higher
higher
rated Water
e previous ye
cluding
in this
, with a
revious
nvolved
and
ing, in
pgrades
on and
otalling € 27
in purificatio
nt works, n
odena area
rrara area a
ess in work
of the sewer
ed to the pre
the Servola
nd sewerage
o € 18.8 milli
tariff method
2016 by € 13
up Consolidate H

million; highe
€ 7.0 million.
€ 29.7 millio
lant function
s and subcon
Cycle Area a
ear owing to
7.8 million i
n.
ote in parti
water syste
nd anti-earth
s for the R
rage network
evious year d
a purificatio
e connection
on included
for the New
3.8 million.
Half-Year Finan

er revenues
on or 11.1%
ing, higher v
ntracted work
amounted to
higher capita
n the aque
cular: in th
em, a signi
hquake upgra
Rimini Seawa
k in other ar
depended a
on plant, in
ns dropped
€ 2.6 million
w Investment
ncial Report as a

s for comm
overall; this
volumes or
ks as well as
o € 49.5 millio
tal grants, wh
educt, € 17.
he aqueduct
ificant upgra
rading of wat
ater Protect
reas; in pur
bove all on
n the area
compared t
n pertaining
ts Fund (FoN
at 30 June 2017
               27
issions and
s increase is
raw material
for Ifric12.
on, falling by
hich were up
3 million in
t, upgrading
ading of an
ter plants; in
ion Plan, in
ification, the
the ongoing
served by
to the same
to the tariff
NI) and rose
7
d
s
l
y
p
n
g
n
n
n
e
g
y
e
f
e



Details of operating investments in the Integrated Water Cycle Area are as follows:
Water Cycle Area
(€/mln)
Aqueduct 27.8 30.4 -2.6 -8.6%
Purification 23.2 13.1 +10.1 +77.1%
Sewage 17.3 17.6 -0.3 -1.7%
Total Water Cycle Gross 68.2 61.1 +7.1 +11.6%
of which FoNI (New Investment Fund) 2.7 3.0 -0.3 -10.0%
Total Water Cycle Net 49.5 56.1 -6.6 -11.8%
A higher amount of
capital grants,
coming to € 13.8
million, caused a
€ 6.6 million
decrease in net
investments

W
M
E
C
w

Approved by t

Waste
Management:
bitda rises
Commercial
waste: +6.5%
the Hera Spa Bo
1.02
At 30
its ow
wast
the A
of th
Thes
its ow
The
Volu
An a
due
at pla
in tot
Alipla
Urba
than
over
(€/m
Area
Grou
Perc
Quan
Urban
Comm
Wast
Plant
Wast
oD on 26 July 20
.04 WASTE
0 June 2017
wn Ebitda ris
te managem
Aliplast Grou
he Pisa com
se significant
wn range of
e following ta
umes market
analysis of th
to a rise in c
ant saturatio
tal plants du
ast Group.
an waste sh
ks to a high
rall and offse
mln)
a EBITDA
up EBITDA
centage weigh
ntitative data (th
n waste
mercial waste
te marketed
t by-products
te treated by typ
017
E MANAGEM
the waste m
sing by 4.1%
ent area rein
p, a national
mpany Tesec
t operations
plants.
ble shows th
ted and treat
he volumes
commercial w
on, intermedia
e to the acqu
owed an inc
her amount
t the lesser a
ht
housand of tonn
pe
Hera Grou

MENT
management
% over the firs
nforced its o
l leader in pl
co Srl, a lea
allowed the
he changes o
ted by the G
treated show
waste coming
ation channe
uisition of the
crease comp
of sorted w
amount of un
es) Ju
1
1
2
1
3
up Consolidate H

t area accou
st six months
organisationa
astic recyclin
der in indus
Group to fu
occurred in te
roup in 2016
ws an 3.8%
g to 6.5%, th
el and new m
e “plants” co
pared to the
waste and sh
nsorted wast
Jun 2017
121.3
505.9
24.0%
un 2017 J
1,013.4
1,254.5
2,267.9
1,303.0
3,570.8
Half-Year Finan

nted for 24.0
s of 2016. Ov
al structure th
ng, and the “
strial waste t
rther widen
erms of Ebitd
6 are as follow
increase in
hanks to com
market develo
rporate bran
e same perio
hore cleanin
e, which fell
7 Jun 2016 A
3 116.5
9 470.1
% 24.8%
Jun 2016 Ab
1,007.6
1,178.1
2,185.8
1,276.3
3,462.1
ncial Report as a

0% of Group
ver the first h
hrough the a
“plants” corpo
treatment an
its commerc
da:
ws:
waste mark
mmercial initia
opment, and
ch of Teseco
od in the pre
ng, which ro
by 0.6%.
Abs. change
+4.8
+35.8
-0.8 p.p.
bs. change %
+5.8
+76.4
+82.1
+26.7
+108.7
at 30 June 2017
               29
Ebitda, with
half-year, the
acquisition of
orate branch
nd recovery.
cial offer and
eted, mainly
atives aimed
an increase
o Srl and the
evious year,
ose by 1.6%
%Change
+4.1%
+7.6%
% Change
+0.6%
+6.5%
+3.8%
+2.1%
+3.1%
7
h
e
f
h
.
d
y
d
e
e
,
%

Ris
dis
+
w

Approved by t

se in waste
sposed of
0.7% in sorte
waste collectio
the Hera Spa Bo
The
due
Colle
show
from
the f
mon
by H
incre
Marc
and
settle
The
spec
impo
selec
chem
Alipla
plant
Was
incre
the a
Quan
Land
Was
Sele
Com
Stab
Othe
Was
ed
on
oD on 26 July 20
increase in
to the acquis
ection of s
wed further
56.9% in Ju
first half of 2
ths of 2017,
Hera Spa, so
eased by 0.5
che Multiser
in the Tri
ed at 0.9%.
Hera Group
cial waste t
ortant of thes
cting plants.
mical-physica
ast Group c
ts.
ste treatmen
ease is due t
authorisation
ntitative data (t
dfills
te-to-energy p
cting plant and
posting and st
bilisation and c
er plants
te treated by p
017
by-products
sition of the “
sorted urba
r progress,
une 2016 to
017. Over th
, in the area
orted waste
%, in those s
rvizi it rose
veneto area
p operates in
reatment an
se include: 1
The entry o
al plants, one
contributed w
t grew by 3
to the greate
ns obtained.
thousand of ton
lants
d other
tabilisation pla
hemical-physi
plant
Hera Grou

is mainly du
“plants” corp
an waste
passing
57.6% in
he first six
as served
collection
served by
by 1.7%
a growth
n the entire
nd disposal
10 waste to
of the corpor
e inertisation
with six sele
3.1% over t
er availability
Concerning
nnes)
ants
cal plants
up Consolidate H

ue to the inc
orate branch
waste cycle
and plastic
energy plan
rate branch
n plant and a
ecting plants
he first half
y of the Rav
waste to en
Jun 2017
414.3
653.5
218.9
192.8
613.6
1,477.6
3,570.8

Half-Year Finan

crease in the
h of Teseco S
, with 94 pla
c material r
nts, 11 comp
of Teseco S
a storage pla
s and three
f of 2016. A
venna and Tr
nergy plants
Jun 2016
370.5
687.4
258.8
211.3
721.4
1,212.7
3,462.1
ncial Report as a

e total numb
Srl.
ants used fo
regeneration
posters/diges
Srl contribute
ant, while the
material tra
As regards
remonti plan
s, the reduct
Abs. change
+43.8
-33.9
-39.9
-18.5
-107.8
+264.9
+108.7
at 30 June 2017
               30
ber of plants,
or urban and
. The most
sters and 15
ed with three
e entry of the
ansformation
landfills, the
nts, following
ion in waste
e % Change
+11.8%
-4.9%
-15.4%
-8.8%
-14.9%
+21.8%
+3.1%
7
,
d
t
5
e
e
n
e
g
e
e

W
ris

Approved by t

Waste: Ebitda
ses
Waste
managemen
revenues:
€ 546.4 mill
the Hera Spa Bo
treat
of a
susp
ascr
The
to a
chain
repre
the A
The
Reve
2017
millio
June
same
the c
due
Grou
€ 54
gree
roug
costs
over
deve
show
com
parti
the l
for a
offse
Ope
€ 28
of o
millio
millio
prev
the i
for d
Inco
(€/m
Reve
Oper
Pers
Capi
EBIT
nt
ion
oD on 26 July 20
ted compare
few plants
pensions and
ibed to a ch
quantitative
change in th
n of “Other
esentation (m
Aliplast Grou
table below
enues for th
7 rose by
on, going fro
e 2016 to €
e period of
changes in s
to the en
up, which
.5 million, a
en certificat
hly € 24 m
s), the waste
r the previou
elopment of
wed a positiv
ing to rough
cular those
ower revenu
a few plants a
et by the incr
rating costs
8.4 million in
perations ow
on, and the p
on, the wast
ious year. Th
ncrease in c
eveloping ne
me statement
ln)
enues
rating costs
onnel costs
italised costs
TDA
017
d to the sam
s, included w
d planned m
ange in the
decrease in
he classificat
plants” ben
mentioned ab
p and the “p
summarises
he first seme
11.2%, or
om € 491.4 m
546.4 million
2017. Not in
scope of ope
try of the
contributed
and lower sa
tes amount
million (pass
e manageme
us year. Thi
market activ
ve trend in th
hly € 5 millio
following the
ues from elec
and for the le
rease in ener
for the first
n June 2016
wing to the
previously m
e managem
his change is
osts tied to m
ew projects i
t
Jun
54
(32
(10
2
12
Hera Grou

me period in 2
within “Othe
maintenance.
classificatio
the chain of
tion of a few
nefited from
bove) of a fe
plants” corpor
s the operatin
ester of
€ 55.0
million in
n in the
ncluding
erations
Aliplast
d with
ales for
ting to
sing to
ent area sho
is change is
vities, chang
he first half o
n due to the
e developme
ctricity produ
esser produc
rgy prices (in
t half of 201
to € 325.5 m
entry of the
mentioned eff
ent area saw
s due to the
maintenance
n the area of
2017 %
6.4
5.5) -59
2.5) -18
.9 0
1.3 22
up Consolidate H

2016 is due t
er plants”, a
. The lower
n of a few p
f inertisation
plants in the
a greater d
ew plants in
rate branch o
ng results of
owed a rough
s due to hig
ges in the m
of 2017, and
e tariffary ad
ent of sorted
uction mainly
ction of energ
nvolving ince
7 rose by 1
million in 201
e Aliplast Gr
fect of green
w costs risin
higher costs
e works on a
f sorted wast
Inc. Jun 2
49
9.6% (28
8.8% (8
0.5%
2.2% 11
Half-Year Finan

to both a cha
and a differe
quantity of
plants in the
and chemic
e “Other plan
egree of int
this category
of Teseco Sr
the area:
hly € 25 milli
gher volume
market price
d higher reve
djustments re
d waste serv
due to the l
gy in some W
ntives and th
2.9%, or €
7. Not includ
roup, which
n certificates,
ng by roughly
s caused by t
few disposa
te.
2016 % Inc
91.4
88.4) -58.7%
88.0) -17.9%
1.5 0.3%
16.5 23.7%
ncial Report as a

ange in the c
ent schedul
selection pl
“Other plant
cal-physical p
nts” category
termediation
y and the ac
rl.
on increase
es treated th
of special w
enues for ur
esolved by t
vices. Furthe
oss of energ
WTE plants, o
he market).
37.1 million,
ding the chan
contributed
, coming to
y € 22.0 mill
the rise in wa
al plants and
c. Abs. chang
+55
% +37
% +14
% +1
% +4
at 30 June 2017
               31
classification
ing of plant
ants can be
ts” category.
plants is due
y. Lastly, the
, a different
cquisitions of
in revenues
hanks to the
waste, which
ban hygiene
he ATOs, in
ermore, note
gy incentives
only partially
, going from
nge in scope
with € 39.3
roughly € 24
ion over the
aste treated,
higher costs
e % Change
.0 +11.2%
.1 +12.9%
.5 +16.5%
.4 +95.7%
.8 +4.1%
7
n
t
e
.
e
e
t
f
s
e
h
e
n
e
s
y
m
e
3
4
e
,
s
%
%
%
%
%

N
in
m
€

Approved by t

Waste
managemen
Ebitda at
€ 121.3 mill
Net investmen
n waste
management:
€ 20.9 million
the Hera Spa Bo
Ebitd
June
same
a gro
term
to th
withi
Hera
highe
dispo
for s
effec
in en

Net
man
main
amo
millio
The
show
com
inter
com
biom
The
by th
landf
ener
Galli
In th
main
and
Inves
year
drop
Herg
of th
colle
The
due
Recy
gath
invol
them
nt
ion
nts
oD on 26 July 20
da went from
e 2016 to €
e period of
owth of € 4.8
s, or 4.1%.
he entry of
n the scope
a Group, w
er volumes
osal busines
special was
cts allowed th
nergy manag
investmen
agement a
ntenance a
unted to € 2
on comp
chain of
wed an inc
ing to € 1.9
rventions o
poster for
methane proje
decrease in
he works car
fill, not offse
rgy recovery
era and Cord
he chain of W
nly due to wo
lesser maint
stments in t
r. The chain
pped by € 0.9
go Ambiente
he Hera Gro
ecting equipm
€ 5.3 million
to the acq
ycling, which
er and elabo
lved in the p
m into relati
017
m € 116.5 m
121.3 million
2017, thus s
8 million in a
This change
the Aliplast
of operation
with € 7.6
marketed
ss and highe
ste. These
he drop in re
gement to be
nts in th
rea concer
and upgrad
20.9 million,
pared to
composters
rease in in
million, mai
on the S
activities tie
ect.
investments
rried out in th
et by the act
system) an
denons plan
WTE plants,
orks including
enance inter
the Special W
of ecologic
9 million, ow
, the innovat
oup's Enviro
ment in the a
n increase se
uisition of t
h is impleme
orate informa
performance
on with pro
Hera Grou

million in
n in the
showing
absolute
e is due
t Group
ns of the
million,
in the
er prices
positive
evenues
e offset.
he waste
ned plant
ding and
, up € 3.4
2016.
s/digesters
nvestments
inly due to
Sant’Agata
ed to the
s in landfills,
he first half o
tivities initiate
d Loria land
ts.
a € 1.2 mil
g the modific
rventions for
Waste Plant
cal islands a
wing to the im
tive informati
onmental Se
rea served b
een in the ch
the Aliplast
enting the p
ation from va
of the vario
oduction act
up Consolidate H

which came
of 2016 in cr
ed on the T
dfills, in addit
lion increase
cation of the
the other W
t chain were
and collectio
mplementatio
ion system th
ervices activ
by Marche M
hain of Sele
Group, in a
roject I-Was
arious types
ous devices
tivities, in o
Half-Year Finan

e to € 3.7 mil
reating the 9
re Monti (tan
tion to repro
e over the p
steam gene
TE plants.
e basically in
on equipmen
on in 2016 in
hat manages
vities, and t
ultiservizi.
ction and Re
addition to
ste, a manag
of sensors t
and of the t
order to enh
ncial Report as a

llion, is main
9th
sector of t
nk reclamati
ogramming w
previous yea
erator in the
n line with t
nt saw inves
n the Trivene
s in an integr
to lower inv
ecovery Plan
the activitie
gement platf
that collect a
treatment pla
hance the e
at 30 June 2017
               32
nly explained
the Ravenna
ion and new
works on the
ar was seen,
Pozzilli plant
the previous
stments that
eto region of
rated way all
vestments in
nts is mainly
es of Waste
form able to
analytic data
ants, putting
efficiency of
7
d
a
w
e
,
t
s
t
f
l
n
y
e
o
a
g
f



management, technical and energy processes, introducing IoT extensively into the
company.
Details of operating investments in the waste management area are as follows:
Waste Management
(€/mln)
Composting/Digestors 3.3 1.4 +1.9 +135.7%
Landfills 4.2 7.9 -3.7 -46.8%
WTE 3.5 2.3 +1.2 +52.2%
RS Plants 0.7 0.8 -0.1 -12.5%
Ecological areas and gathering equipment 2.1 3.0 -0.9 -30.0%
Transshipment, selection and other plants 7.2 1.9 +5.3 +278.9%
Total Waste Management Gross 20.9 17.5 +3.4 +19.4%
Total Waste Management Net 20.9 17.5 +3.4 +19.4%

Approved by t

Other
services:
Ebitda rises
Increased
contribution
Group Ebitd
Other
Services Are
Ebitda
increases
509.6
thousand
lighting poin
the Hera Spa Bo
1.02
The
inclu
In th
prev
millio
The
The
An a
point
mon
The
prov
point
thou
the
(€/m
Area
Grou
Perc
Qua
Publ
Ligh
Muni
s
n to
a
ea
nts
oD on 26 July 20
.05 OTHER
other servic
uding public l
e first half of
ious year: Eb
on in the sam
changes occ
following tab
analysis of th
ts and an a
ths of 2017,
most signific
inces of Bre
ts; in Lazio r
sand lighting
year only p
mln)
a EBITDA
up EBITDA
centage weigh
ntative data
lic lighting
ting points (th
icipalities serv
017
SERVICES
ces area br
ighting, telec
f 2017, the re
bitda in fact w
me period of
curred in Ebi
ble shows th
he data rega
additional 14
, acquired ro
cant of these
escia, Berga
oughly 4 tho
g points mai
partially offse
ht
ousands)
ved
Hera Grou

S
rings togethe
communicati
esults of the
went from €
2017.
tda are as fo
he area’s ma
arding public
4 municipalit
oughly 34 th
e were: in Lo
mo and Cre
ousand lightin
inly in the pr
et the loss
Jun 20
50
2.
Jun 201
509.6
162.0
up Consolidate H

er all minor
ons and cem
other service
8.7 million in
ollows:
ain indicators
c lighting sh
ies served.
ousand light
mbardy, roug
emona; in Ab
ng points; an
rovince of P
of roughly
017 Jun 2
9.9
05.9 4
.0%
7 Jun 2
519
148
Half-Year Finan

r services m
metery servic
es area incre
n the first six
s as regards
ows a fall o
The Hera G
ting points in
ghly 4 thousa
bruzzo rough
nd in the Triv
ordenone. T
44 thousand
2016 Abs. c
8.7
470.1
1.8% +
2016 Abs
9.7 (
8.0
ncial Report as a

managed by
ces.
eased by 14.
x months of 2
s public lighti
of 10.1 thous
Group, over
n 21 new m
and lighting
hly 13 thous
veneto region
The increase
d lighting p
change %
+1.2
+35.8
0.2 p.p.
. change
(10.1)
+14.0
at 30 June 2017
               34
the Group,
.0% over the
2016 to € 9.9
ing services:
sand lighting
the first six
unicipalities.
points in the
sand lighting
n, roughly 13
es seen over
oints and 7
%Change
+14.0%
+7.6%
% Change
(1.9%)
+9.5%
7
,
e
9
:
g
x
.
e
g
3
r
7

Ne
€ 8

Approved by t

Other Servic
revenues rise
Revenues fo
Other Servic
reach € 63.3
Ebitda grow
€ 1.2 million
et investment
8.7 million
the Hera Spa Bo
mun
roug
The
Rev
June
from
in Ju
half-
cont
busin
reve
publ
millio
perfo
the r
from
ceme
Aceg
Ebitd
com
owin
lighti
perfo
highe
serv

Inves
Area
millio
2016

Inco
(€/m
Reve
Oper
Pers
Capi
EBIT
es:
e
r
es
ws by
n
ts:
oD on 26 July 20
icipalities m
hly 29 thous
operating re
venues in the
e 2016 by €
€ 59.3 milli
une 2017. Th
year is du
ribution com
nesses that
nues from
ic lighting gr
on, thanks
ormance of H
remainder of
telecom
etery serv
gasApsAmga
da showed a
pared to th
ng to highe
ing, broug
ormance of
er earnings
ices.
stments in
a came to €
on compare
6.

me statement
ln)
enues
rating costs
sonnel costs
italised costs
TDA
017
anaged, of
sand lighting
sults of the a
e area were
€ 4.0 million
on to € 63.3
his growth in
ue to a
ming from
make up th
the busin
rew by rough
s to the
Hera Luce S
f the increas
mmunications
vices mana
a Spa.
a € 1.2 millio
he first half
er earnings
ght by th
Hera Luce
in telecomm
the Other
€ 8.7 million,
d to the fir
t
Jun
63
(44
(10
1
9
Hera Grou

which the m
points in the
area are as f
up over
n, going
3 million
the first
positive
all the
he area:
ness of
hly € 1.1
good
Srl, while
se came
s and
aged by
on growth
of 2016,
in public
he good
e Srl, and
unications
Services
, up € 3.2
rst half of
2017 %
3.3
4.4) -70
0.2) -16
.2 1
9.9 15
up Consolidate H

most signific
e municipality
follows:
% Inc. Jun 2
0.2% (4
6.1%
1.9%
5.6%
Half-Year Finan

cant decreas
y of Rimini.
2016 % In
59.3
41.6) -70.2
(9.7) -16.3
0.7 1.2
8.7 14.6
ncial Report as a

se concerns
nc. Abs. chang
+4
% +2
% +0
% +0
% +1
at 30 June 2017
               35
the loss of
ge % Change
4.0 +6.7%
2.8 +6.7%
0.5 +5.2%
0.5 +73.2%
1.2 +14.0%
7
f
e
%
%
%
%
%



In telecommunications, € 5.0 million of investments were made in networks and TLC and
IDC (Internet Data Center) services, with a € 0.5 million increase over 2016.
In the public lighting service, investments went to maintaining, enhancing and
modernising lampposts, and amounted to € 3.7 million, increasing by € 2.7 million
compared to the first half of the previous year. This increase concerned the areas served
by both Hera Luce Srl and AcegasApsAmga Spa.
Details of operating investments in the other services area are as follows:
Other Services
(€/mln)
TLC 5.0 4.5 +0.5 +11.1%
Public Lighting and Street Lights 3.7 1.0 +2.7 +270.0%
Total Other Services Gross 8.7 5.5 +3.2 +58.2%
Total Other Services Net 8.7 5.5 +3.2 +58.2%



1.03 SIGNIFICANT EVENTS OCCURRED DURING THE HALF-YEAR
January
Herambiente Spa-Aligroup Srl
On 11 January 2017 Herambiente Spa and Aligroup Srl, a company belonging to the
Aligroup Group and a leader in the sector of regenerated polymer, flexible PE film and
rigid PET film production, signed a framework agreement concerning the acquisition of
the entire share capital of Aliplast Spa, a company involved in managing the integrated
plastic cycle.
The first tranche of the operation, subject to the approval granted by the Italian Antitrust
authority (Autorità garante della concorrenza e del mercato, Agcm), was completed on 3
April 2017, when Herambiente Spa acquired 40% of Aliplast Spa’s share capital.
Herambiente Spa is also expected to acquire, within March 2018 and June 2022, two
further tranches of the share capital coming, respectively, to 40% and 20%, subsequent
to which it will become the single shareholder of Aliplast Spa.
Waste Recycling Spa-Teseco Srl
On 30 January 2017, Waste Recycling Spa acquired from Teseco Srl the corporate
branch Business Unit Impianti, operating in the sector of waste treatment via the Pisa
multifunctional platform.
February
Biogas 2015 Srl
Effective as of 1 February 2017, the merger by incorporation of Biogas 2015 Srl, a
company operating in the waste treatment sector, into Herambiente Spa, which already
held the entire share capital, was completed.
March
Adriatica Acque Srl
On 29 March 2017, Hera Comm Srl transferred its holding in Adriatica Acque Srl, a
company operating in the sector of office drinking water, including sales of
coolers/dispensers, corresponding to 22.32% of the share capital.
April
Tri-Generazione Scarl
Effective as of 5 April 2017, the company Tri-Generazione Scarl, which operates in the
sector of trigeneration plant management and maintenance and is 70% controlled by
Sinergie Spa, in turn entirely held by AcegasApsAmga Spa, changed its legal status from
Srl to Scarl.
May
Gran Sasso Srl
Effective as of 1 May 2017, the share capital of Gran Sasso Srl, a company operating in
the sector of gas and electricity purchasing and sales, was increased from € 148,000 to
€ 162,810, by way of a conferral by Enerpeligna of its own corporate branch involving
gas. As of the same date, Enerpeligna transferred its holding pertaining to the
abovementioned share capital increase to Hera Comm Srl, with the latter maintaining the
entire holding of the company.



Liquidation of Esil Scarl
23 May 2017 saw the liquidation of the holding in Esil Scarl, a company operating in
public lighting and traffic light management services, corresponding to 100% of the share
capital.
June
Alipackaging Srl – Cerplast Srl – Umbroplast Srl – Variplast Srl
On 27 June 2017, Aliplast Spa, already a shareholder in Alipackaging Srl, Cerplast Srl,
Umbroplast Srl and Variplast Srl, holding 80%, 60%, 90% and 80% of the respective
share capital, purchased the shares held by the remaining minority shareholders, thus
becoming sole shareholder of the abovementioned companies.
Significant events following the reporting period
July
Aresgas EAD
On 3 July 2017, AcegasApsAmga Spa, which already owned 99.98% of the company
Aresgas AD, involved in natural gas distribution and sales in Bulgaria, purchased the
remaining 0.02% of the share capital, thus becoming the company’s sole shareholder.
Verducci Servizi Srl
On 6 July 2017 the acquisition of 100% of the share capital of Verducci Servizi Srl, a
company operating in the gas sales sector with roughly circa 3,500 customers served in
the areas of Pescara, L’Aquila and Rieti, by Hera Comm Marche Srl, came to a
conclusion.



1.04 SHARE PERFORMANCE AND INVESTOR RELATIONS
Financial markets showed generally increasing quotations in the first half of 2017,
bolstered by a gradual improvement in prospects for economic growth and a fall in
political risk in Europe following the defeat of populist movements in the Dutch and
French elections. European markets furthermore benefited from the ECB’s decision to
extend its bond purchasing program (quantitative easing) until December 2017, albeit at a
slower pace, corresponding to € 60 billion per month as of April. Just like other European
stock exchanges, Borsa Italiana recorded a positive performance in the period in
question, with an overall increase of +8.6%. Small and medium sized companies led the
upturn at Piazza Affari (+20.6% for the Ftse Mid Cap and +22.7% for the Ftse Small Cap)
thanks to a significant inflow of capital coming from PIRs (Individual Savings Plans), a
type of investment introduced by the most recent national budget, which allows for tax
relief when some resources are delivered to companies not included in the stock
exchange’s main index.
In this context, Hera shares amply outperformed the Italian stock exchange index and the
Group’s own sector, closing the half-year at an official price of € 2.689 per share, up
+22.9%, and reaching a capitalisation of € 4.0 billion. This trend was sustained among
other things by the new business plan to 2020, published in mid-January, and the
growing annual and first-quarter financial results, published in late March and mid-May
respectively.
* excluding Hera from the category of local utilities
Hera; +22.9%
FTSE All Share;
+8.6%
Local Utilities*,
+15.7%
-5.0%
+0.0%
+5.0%
+10.0%
+15.0%
+20.0%
+25.0%
+30.0%
+35.0%
+40.0%
30/12/2016
06/01/2017
13/01/2017
20/01/2017
27/01/2017
03/02/2017
10/02/2017
17/02/2017
24/02/2017
03/03/2017
10/03/2017
17/03/2017
24/03/2017
31/03/2017
07/04/2017
14/04/2017
21/04/2017
28/04/2017
05/05/2017
12/05/2017
19/05/2017
26/05/2017
02/06/2017
09/06/2017
16/06/2017
23/06/2017
30/06/2017
Price of Hera
stock at the end
of 1H 2017:
€ 2.689.
Hera
outperforms
the market and
its own sector
Growth in
financial
markets over
the first half of
2017

Hera Group Consolidate Half-Year Financial Report Summary

Hera Group Consolidate Half-Year Financial Report Summary

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