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Hera over five years

It has been five years since Hera was established and listed on the Stock Exchange. During that time the Group has witnessed a level of growth and development in line with the promises made to the shareholders at the initial public offering. After 5 years, we can take stock of the situation and evaluate the results of our business model and strategies, and attempt to understand what strong points we can capitalise on for the future.

Hera was established in 2002 as the first major merger in the Italian utility sector, with the merger of 11 municipal companies in the Emilia Romagna region to form the Group. This merger preceded the consolidation process that started in the sector by a couple of years, a process that is still ongoing. It created one of the biggest local multi-utility companies in Italy and features some unique and innovative elements with respect to other companies of this type.

The broad, highly diversified shareholder base was a strong contributing factor to the Group's success over the past 5 years. This model was then copied in other mergers. This was one of the distinguishing features of Hera and was due to the willingness of the founding shareholders to cede control of the local companies to a bigger Group, and to divide the governance with numerous other shareholders.

Local operating company

* S.O.T.: Local operating company

This merger led to the creation of a domestic leader in waste management, the second biggest operator in integrated water cycle management, and the third biggest operator in the gas business, with a portfolio that is well balanced between regulated and deregulated services. It has one of the most complete portfolios in the sector and also carries out activities to its electrical energy activities such as district heating and public lighting.

These distinctive elements form the basis of the industrial model chosen by Hera for more efficient management of public utility services. The management of this highly innovative process ensured a steady increase in earnings since 2002.

Economic figures (ml€)200720062005200420032002Cagr.% 2002-2007
Net profit96.290.1101.481.049.533.2+23.7%


Indices200720062005200420032002Cagr.% 2002-2007
EPS (€)0.0950.0890.1000.0960.0620.042+17.7%
D/E (%)92.6%77.4%65.4%52.8%49.7%29.3%+25.9%
ROE (%)7.1%6.6%7.3%8.1%5.9%4.2%+11.1%
ROI (%)7.4%8.6%8.8%10.9%8.4%6.9%+1.4%


The business volume has doubled, net profits have almost tripled.

EBITDA rose from Euro 192 million in 2002 to Euro 453 million in 2007, increasing almost 2.5-fold in five years. 56% of this EBITDA increase (Euro 147 million) is due to the growth in internal lines, and the remaining 44% increase is due to development policies implemented for external lines (Euro 114 million).

Hera over five years