Hera S.p.a. MIL:HER

Hera S p A : Analyst presentation FY2025

Published

Source: MarketScreener

‌Financial Results

FY 2025



‌P&L: Y2025 at a glance 2



NET PROFIT (m€)

447

464

348

'23*

'24*

'25

* Reported Net profit after non-recurring income related to sector consolidation (special item related to exercise of the put option on Estenergy by Ascopiave)

GROWTH +4%



NET DEBT / EBITDA (x)

2.56x 2.50x 2.57x







'23 '24 '25

BALANCE SHEET

HEADROOM CONFIRMED

SOUND AND RELIABLE PERFORMANCE

‌Ebitda growth drivers and mix 3



EBITDA GROWTH BY BUSINESS (m€)

Ebitda mix in 2024 & 2025 (%)

+43

+29

+8

+4

1,537

1,474

(114)

(17)

STRUCTURAL GROWTH +3%



1,588



Networks From 32% to 38%

Energy From 42% to 35%

2024 Temp.

Opp. '24

2024 Adj. One offs

'25

Energy Networks Waste Other 2025

Waste From 23% to 24%

PORTFOLIO MIX OF BP TO '29 ALMOST ALREADY ACHIEVED

Financial mgmt (m€)

205

142

92

'23

'24

'25

FAST REDUCTION



‌P&L: From Ebitda to Net profit 4

Provisions (m€)

234

195

143

'23

'24

'25

NORMALIZED

P&L (m€)

1,537

803

464

Ebitda

D&A

Tax

Minorities Net profit

Y'24

(562)

(200)

(41)

(142)

(195)

Financial mgmt

Ebit

Provisions

(44)

(203)

(92)

(143)

(592)

447

830

1,588





STRUCTURAL GROWTH, PROVISION & FINANCIAL EXPENSES OPTIMIZATION OFFSET TEMPORARY OPPORTUNITIES IMPACT

3Y Cumulated TSR (%)

77%

'23

'24

'25

Stock appreciation

DPS Yield



DPS Yield* (%)

5.5%

5.0%

4.7%

'23

'24

'25



‌Create Value: 3 Years mandate achievements 5



STOCK APPRECIATION (%)

17.7%

15.1%

17.3%

'23

'24

'25



SOUND PERFORMANCE WITH LOW-RISK EXPOSURE

* Considering the share price as at 31 December of the year preceding the reference year and the dividend accrued for the reference year

‌Be Sustainable 6



Ebitda Creating Shared Value (m€)

916

776

857

571

670

300

330

375

392

455

'16

'17

'18

'19

'20

'21

'22

'23

'24

'25

% of

Ebitda

33%

33% 36% 36% 41% 47% 52% 52% 54% 60%

CSV CAGR +13%



Taxonomy capex (m€)

2024 2025

Taxonomy capex 477 662

Share of aligned capex

relative to eligible capex

90% 94%

55% 63%

Share of taxonomy capex relative to total capex

BUILT 10 YEARS OF STRONG ESG TRACK RECORD

‌3rd player in Italy



Ebitda growth (m€)

‌Energy growth targets 8









672

Energy customers (mln)



Gas 1.9

Gas

2.0

4.6 4.4

+2

540

(114)

+15

(25)

(10)

Electricity 2.6

Electricity 2.5



'24

Temporary

STG

Margin

Energy

Other

'25

Opport.

customers

normalization

services &

(Consip)

VAS

'24 '25

RESULTS DRIVEN BY OUTCOME OF TENDERS ON LAST RESORT MKT

‌Italian leader Waste treatment

‌Waste growth targets 10

Ebitda growth (m€)

Waste volumes (mln tons)

366

+16

+5

+4

374

+10

+3

(29)



5.6 5.6







(0.1) +0.1





3.3 3.4

2.3 2.2

'24 Elect. WTE Collection Recycling Treatment Soil

remediation

M&A '25

'24 Urban Special '25

ALL ACTIVITIES CONTRIBUTED TO GROWTH

‌11

Among best in class



‌Networks growth targets 12



Ebitda growth (m€)

Regulated Asset Base (b€)



+43

+19

+5

+6

(0)

591

519



Electricity

3.7

+0.2

3.9

1.3

0.4

Gas

1.4

0.5

1.8

1.9

Water

'24 One off* Water Gas dist. Elect.

dist.

District Heating

'25

'24 Growth '25

INFLATION RECOGNITION AND CAPEX UNDERPIN STRONG GROWTH

* 24 m€ resolution 87/2025 for redefinition of values to cover operational costs for the years 2020-25 in gas distribution, 16 m€ past inflation recognition in water, 2 m€ past inflation recognition in electricity distribution, 1 m€ past

inflation recognition in gas distribution

‌13

Financials



‌Financials 14



Group Cash flows (m€)

Net Debt / Ebitda (x)

(59)

761

(592)

(279)

(27)

19



1,332



+79



2.56x 2.50x 2.57x

(436)









Op. CF

NWC*

Provisions

Maint.

FCF

Dividend Dev. Capex*

M&A

Debt

'23

'24

'25

Capex

+ Min.

Change

STRONG CASH GENERATION CONFIRMS FINANCIAL FLEXIBILITY

* Including grants and contributions for 81 m€

‌Financials 15



Ratings

RATINGS IMPROVED

Baa1 Stable Outlook

BBB+ / A-2

Stable Outlook



Interest rates (%)

Fixed

93%

Variable

7%

TYPE OF DEBT FIXED



Cost of debt (x)

2.9% 2.8% 2.8%

'23 '24 '25

COST OF DEBT STABLE

RATINGS BASED ON SOLID FUNDAMENTALS

‌16



‌Closing remarks 17

High double digit TSR in '25

~22%



Dividend increased

16 c€



Outperform on Financial flexibility to further grow

2.57x



Sostelia and SEA M&A deals done

✓





CONFIRMED A DOUBLE-DIGIT VALUE CREATION TARGET

‌18







‌Annex: P&L 19

Y '24

Y '25

REVENUES

13,044.4

12,968.8

(0.6%)

EBITDA

1,587.6

1,537.2

(3.2%)

Ebitda margin

12.2%

11.9%

Depreciation and provisions

(757.7)

(734.3)

EBIT

829.9

802.9

(3.3%)

Financial costs

(153.8)

(108.6)

Income from Associates & J.V.

12.3

16.5

PRETAX PROFIT

688.4

710.8

+3.3%

Tax

(200.3)

(202.5)

Tax rate

29.1%

28.5%

Minorities

(41.4)

(44.0)

NET PROFIT POST MIN. (recurrent)

446.7

464.3

+3.9%

Special items

47.8

-

NET PROFIT POST MIN. REPORTED

494.5

464.3

‌Annex: Networks, Energy and Waste 20



Networks (m€)



Energy (m€)



Ebitda (m€)

Y 2024

Y 2025

Ch.

Energy

671.6

540.2

(131.4)

Gas supply

377.4

342.7

(34.7)

Electricity supply

237.3

146.1

(91.2)

Power generation

0.4

3.0

+2.6

Energy efficiency + VAS

41.6

23.2

(18.4)

Public Lighting

14.8

25.0

+10.2

Ebitda (m€)

Y 2024

Y 2025

Ch.

Waste

366.2

374.0

+7.8

Treatment

305.8

310.3

+4.5

Collection

60.4

63.7

+3.3

Volumes (kton)

Y 2024

Y 2025

Ch.

Urban W. Volumes

2,254.8

2,187.5

(67.3)

Special W. Volumes

3,311.0

3,372.3

+61.3

Waste from third parties

5,565.9

5,559.9

(6.0)

Internal W. Volumes

1,965.4

2,022.5

+57.1

Total Volumes Treated

7,531.2

7,582.4

+51.1

Volumes Y 2024

Y 2025

Ch.

Water (mm3) 285.0

285.8

+0.8

Gas Distribution (mm3) 2,254.7

2,278.2

+23.6

Electricity Distribution (GWh) 2,736.1

2,747.8

+11.8

District Heating (GWht) 440.2

461.5

+21.3

Customers ('000) Y 2024

Y 2025

Ch.

Gas customers 2,026.0

1,844.8

(181.2)

Electricity customers 2,597.4

2,507.7

(89.7)

Energy customers 4,623.4

4,352.5

(270.9)

Waste (m€)

Ebitda (m€)

Y 2024

Y 2025

Ch.

Networks

519.0

591.4

+72.5

District Heating

10.8

10.4

(0.5)

Gas distribution

149.6

179.6

+30.0

Electricity distribution

61.5

69.8

+8.3

Water

297.1

331.7

+34.6



Water (m€)



Waste (m€)



‌Annex: Waste and Water 21

(m€) Y 2024

Y 2025

Ch.

Revenues 1,769.3

1,856.4

+87.1

Ebitda 366.2

374.0

+7.8

(m€) Y 2024

Y 2025

Ch.

Revenues 1,162.8

1,313.4

+150.6

Ebitda 297.0

331.7

+34.7

Volumes (kton) Y 2024

Y 2025

Ch.

Urban W. Volumes 2,254.8

Special W. Volumes 3,311.0

2,187.5

3,372.3

(67.3)

+61.3

Waste from third parties 5,565.9

5,559.9

(6.0)

Internal W. Volumes 1,965.4

2,022.5

+57.1

Total Volumes Treated 7,531.2

7,582.4

+51.1

Data Y 2024

Y 2025

Ch.

Aqueduct (mm3) 285.0

285.8

+0.8

Sewerage (mm3) 238.4

238.3

(0.1)

Purification (mm3) 236.8

236.9

+0.1

Electricity (m€)



Gas (m€)



‌Annex: Gas and Electricity 22

(m€) Y 2024

Y 2025

Ch.

Revenues 5,809.0

5,683.2

(125.8)

Ebitda 571.4

544.6

(26.8)

(m€) Y 2024

Y 2025

Ch.

Revenues 4,939.3

4,574.2

(365.0)

Ebitda 322.0

255.3

(66.7)

Data

Y 2024

Y 2025

Ch.

Volumes distrib. (mm3)

2,254.7

2,278.2

+23.6

Volumes sold (mm3)

11,305.8

12,523.0

+1,217.3

of which trading (mm3)

8,388.7

9,919.3

+1,530.6

District Heating (GWht)

440.2

461.5

+21.3

Clients ('000 unit)

2,026.0

1,844.8

(181.2)

Data Y 2024

Y 2025

Ch.

Volumes sold (GWh) 16,249.2

16,345.1

+95.9

Volumes distrib. (GWh) 2,736.1

2,747.8

+11.8

Clients ('000 unit) 2,597.4

2,507.7

(89.7)



* Gas includes contribution of the following businesses: gas distribution, gas supply, district heating and energy efficiency.

Electricity includes contribution of the following businesses: electricity distribution, electricity supply, power generation and public lighting.