Slide 1: ODDO Securities Conference, Paris, 21 June 2006
ODDO Securities Conference Paris, 21 June 2006 Investor Relations Jens Klint Hansen +39-051-28.77.37 jens.hansen@gruppohera.it 1
Slide 2: Hera Group positioning in the Italian marketplace
Hera Group positioning in the Italian marketplace Hera is a leading and fast mover in an Hera growth in the utility sector evolving market High Incumbent Enel Sales > Italian utility sector: mostly small local ENI Local Energy Multi-utility players publicly-owned multi-utilites which have only Ediso
Slide 3: Hera balanced business portfolio of primary utility services
Hera balanced business portfolio of primary utility services Hera delivers primary utility services to Business portfolio & Market positioning over 2.3 million people Leader WASTE WASTE > Hera is the Italian leader in waste 2nd best 2nd best management (collection, transport and WATER Synergy potent
Slide 4: Hera portfolio low risk profile
Hera portfolio low risk profile Hera have different regulated activities Weight of regulated activities on Ebitda > Hera urban waste management (collection, transport and treatment) and Water integrated service are run under long term concessions (2012 and 2022 respectively). Free Mkt 45% Regulated
Slide 5: Economics highlight an outstanding growth
Economics highlight an outstanding growth In the last 3 years, Hera has been the Ml € 2002* 2003* 2004 2005** Cagr. fastest growing company in its sector Revenues 1099 1,241 1.529 2,148 25.1% Ebitda 192 242 292 386 26.3% EBIT 78 113 177 216 40.5% > Hera records sector highest growth rates Net profit
Slide 6: Enhanced visibility of sustainability approach in last 3 years
Enhanced visibility of sustainability approach in last 3 years Concrete sustainable actions Gross Value Added for stakeholders > Hera has reported increasing results with a r % cag multi-stakeholder approach replacing the +27 763 “Environmental report” with the “Sustainability report” 552 412 > Cert
Slide 7: Our Mission, Ethics & Strategy are focused on Sustainability
Our Mission, Ethics & Strategy are focused on Sustainability Hera sustainable nature Group Strategy focus on Sustainability > Hera main shareholders are public entities which promoted since beginning a CREATION CREATION OF OF SUSTAINABLE SUSTAINABLE VALUE VALUE FOR FOR STAKEHOLDERS STAKEHOLDERS sust
Slide 8: Citizenship
Citizenship > Hera acts as an relevant economic and social 3Y positive trend of all main KPI entity with the responsibility of managing significant environmental and social sources 2003 2004 2005 Economic responsibility of its reference territory. Value added (ml €) 412.0 552.4 762.9 > Hera is commi
Slide 9: Hera Governance reflects an integrated multi-stakeholder approach
Hera Governance reflects an integrated multi-stakeholder approach Shareholding Organizational structure M. Bologna; 15,0% Board of Directors Free float; 40,9% M. Modena; 11,2% Remuneration Internal Audit Committee Committee CON.AMI; 5,3% M. Ravenna; 4,8% Chairman C.E.O. Vice President M. Rimini; 2,4
Slide 10: Personnel
Personnel Hera’s most relevant stakeholder Personnel Breakdown > A continuous internal communications system is having success (meetings, House 2003 2004 2005 organ, intra-net site, television screens) Senior Manager 67 84 93 Manager 150 192 245 > At Hera all relevant matters are shared with Clerks
Slide 11: Personnel (2)
Personnel (2) Hera actions and commitments on Commitments 2005-2008 social responsibility 2005 E2008 Increase > Hera commitments to improve its social N. employees 5,904 5,560 (5.8%) responsibility are stated in the business plan Avg Personnel cost (K€) 42 45 +2.3% 2005-E2008 Training (h. per capita
Slide 12: Customer
Customer Customers represent Hera focus 2005-2008 Commitments to better > Customer satisfaction survey in 2005 > Develop web-site potentials to favour highlighted a significant degree of satisfaction customers (67 points achieved on a max of 100) > Reduce response time on claims > Loyalty of custome
Slide 13: Suppliers
Suppliers Suppliers considered partners Suppliers data 2005 > Hera deals with 15.8k suppliers Materials 9,143 > 65% in reference territory Services 9,387 > A qualification system introduced ISO 9001 Workes 1,080 (61% qualified), SOA (33% qualified) Total suppliers 15,815 > Ethical Code etico in cont
Slide 14: Environment
Environment > Hera waste management, water services and Electricity Production energy production activities have an intense GWh 2003 2004 2005 use of environmental sources. WTE 125.7 158.4 260.5 Cogeneration 119.9 124.6 102.2 > The commitments regarding low Biogas (landfill) 14.2 20.4 22.6 environme
Slide 15: Environment (2)
Environment (2) > Hera is committed to enhance the Electricity Production outstanding position in WTE (building 4 new 2005 E2008 Increase plants). Energy from renewable (TWh) > Waste management will focus on recycling in Cogeneration 0.324 0.808 +149% order to reduce landfill treatments. WTE 0.261 0
Slide 16: Closing remarks
Closing remarks 16 HERA
Slide 17: Outstanding economic perspectives in line with track record
Outstanding economic perspectives in line with track record > Value of production +6.9% Cagr P&L 2005* E2008 Cagr % Revenues 2,148 100% 2,625 100% +6.9% Mainly related to Dual Fuel commercial Oper. c. (1,636) 76% (1,861) 71% +4.4% proposal, tariff increase (Water and Waste) Person. c. (270) 13% (276
Slide 18: Key 2005-E2008 Commitment with Stakeholders
Key 2005-E2008 Commitment with Stakeholders Continuing sustainable growth Main Commitments 2005 E2008 Increase > Hera sustainable approach is expected to Environment yield higher performances together with an Sorting Waste 30.9% 35.0% +410 bp Waste sent to Landfill 34.9% 15.0% +1,910 bp outstanding
Slide 19: Q&A Session
Q&A Session ==HERA
Slide 20: 2005-E2008 growth based on efficiency use of sources and development of environmental friendly plants
2005-E2008 growth based on efficiency use of sources and development of environmental friendly plants > 2005-2008 expected Ebitda growth from change in perimeter is due to Enel 2005 – E2008 Ebitda Build up electricity network acquisition in Modena Ml€ 83 province (signed preliminary agreement). 57 1
Slide 21: Hera Sustainable approach contribute to the expected growth
Hera “Sustainable” approach contribute to the expected growth > Hera WTE plants contribute significantly to P&L 2005 E2008 Incr. GREEN CERTIFICATES Group Ebitda thanks to Green Certificates. WTE elect. (GWh) - 527 - Currently G.C. are traded at ~180 €/GWh Green Cert (€/Gwh) ~180 140 - (G.C. value pl