INVESTOR NEWS - Gruppo Hera -

Value creation hinges on a solid strategy

Message from the Executive Chairman of the Board

The 2024-2028 Business Plan reaffirms significant features of the previous one, especially in its strategic design. Hera intends to remain consistent with a business model and management approach proven to ensure continuity of growth while maintaining a low risk profile, even under very challenging external scenarios.

The targeted ROI of 9.5% in 2028 derives from a significant 4.6 billion investment plan, mostly aimed at making sustainability goals a reality. About half of the development investments are dedicated to the strengthening of the Networks’ infrastructure.

Cristian Fabbri

Looking at the figures

Focus on the targets of the 2024-2028 Business Plan

The new Business Plan, which drives Hera’s roadmap to 2028, has all the features of a high visibility and low-risk growth plan.
As much as 2.4 billion of the 4.6 billion in investments cumulatively planned over the five-year period are development investments – out of which 2.1 billion as operating capex and about 300 million for M&A. In addition, there are 500-million-euro investments funded through non-repayable grants.
Hera will dedicate around 60% of those development investments to Networks and Waste collection, thus providing high visibility to the 9.5% ROI target in 2028, compared to the 8.7% adjusted figure for 2023.

Jens Klint Hansen

Hera on stock exchange

Both preliminary 2024 results and the new Plan strengthen Hera stock’s prospects

Hera continues to show robust performance against benchmark indices, even though the prospects for M&A in the banking sector have fueled a conspicuous recovery of the FTSE MIB in recent weeks. Moreover, the outperformance of the stock compared to the Italian utility sector index remains very strong.
In the meantime, today the picture is enriched by new features, which will encourage a reconsideration on the valuation of Hera stock. Preliminary 2024 figures indicate that the Group exceeded consensus expectations, achieving, in the first year, a very convincing execution of the 2023-2027 Plan that the new management had presented in January 2024.

Jens Klint Hansen

Stories

Hera consolidates 100% of AIMAG

On the same day in which the Board of Directors approves the new Business Plan, Hera announces to the market the signing of the acquisition of an additional stake in the capital of AIMAG, multiutility based in the province of Modena. In return for a swap for water assets held in that same area, Hera can increase its share from 25% to 41%, appoint half of BoD members, including the CEO, and therefore consolidate AIMAG in full.
Following the agreement to raise the holdings in AIMAG, therefore, more than 75% of the EBITDA that the new Plan estimates can be sourced from M&A for the 2024-2028 period already has a clear identity.