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HERA BUSINESS PLAN TO 2016

Business plan includes perspectives of AcegasAps aggregation

After 10 year of uninterrupted growth… Revenues(billion Euro)

EBITDA(million Euro)

Net profit for shareholders(million Euro)

Dividends per share(Euro cents)

Among the 30 largest market cap in Italy

National leader or co-leader in all core activities

Soundest financial ratios of the multi-utility sector

…and looking at current scenarios…

Issues Opportunities

? ? ?

Macro economic scenario/earth quake

GAS tariffs regulatory change

Regulatory changes in Urban waste collection services

Gas tenders Changes on return on investments in water and waste regulated servicesservices

M&A

…with a straight forward strategy and a capex plan of 1.9 billion Euro 2012-2016…

Value extraction from activities

Redefinition of Up-stream position

Technological development of networks

Strengthening and optimisation of asset base

Focus on final customersBusiness portfolio

consolidation

Further development of renewables Pursue M&A growth

opportunities

from 3,3 bcm Gas sold

from 254 million m3 water distributed

from 10,0 TWh Electricity sold

from 1,8 million ton Urban water collectedfrom 3,4 milion ton waste treated

from 499 GWhtt Heat sold

… to 663 GWht Heat sold

... to 4,5 bcm Gas sold

... to 10,6 TWh Electricity sold

... to 327 million m3 water distributed

... to 2,4 million ton Urban waste collected

... to 4,8 million ton waste treated

Year 2011

Hera aims at growing further …

GAS

ELECTRICITY

WATER

WASTE

DISTRIC HEATING

+ 30%

+ 6%

+ 29%

+ 33%+ 41%

+ 33%

Breakdown of contracts …

AVG Contracts per year(million)

Electricity11.6%Waste

26.2%

Water31.8%

Hera excluding AcegasAps

Gas29.3%

Other1.2%

3.7

… expected evolution in 2016

…also in term of number of clients…

AVG Contracts per year(million)

4.3

Electricity18.1%

Waste23.6%

Water28.9%

Gas28.3%

Other1.1%

Business plan estimates growth in all main economics… Revenues(billion Euro)

EBITDA(million Euro)

Net Profit(million Euro)

Revenues grow by +40% in 5 years

EBITDA reaches almost 1 billion Euro (+9% CAGR)

Net profit enhancement

Track records

Targeting nancial strength in line with “A” rating from S&P’s and Moody’s

Next 5 years

…and to strengthen nancial soundness

Debt/EBITDA

Track records

Good Visibility thanks to a dividend policy aiming at guaranteeing a oor at 9 Euro cent DPS (up to 2016)

Next 5 years

…and soddisfy shareholders

Dividend per share(Euro cents)