INDEX PAG. 08 PAG. 03 PAG. 10 PAG. 01 CLOSING REMARKS GROWTH DRIVERS EQUITY STORY PAG. 7 PAG. 7. FINANCIAL Soundness PAG. 02 PAG. 04 PAG.

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2 INDEX PAG. 01 PAG. 03 PAG. 08 PAG. 10 EQUITY STORY GROWTH DRIVERS Sustainability CLOSING REMARKS PAG. 7 TRACK RECORD PAG. 7 Industrial DEVELOP- MENT FINANCIAL Soundness PAG. 02 PAG. 04 PAG. 09

3 TOMASO TOMMASI DI VIGNANO Executive Chairman MORE in everything

4 The pillars of our Equity story GROWTH DRIVERS Sustainability CLOSING REMARKS TRACK RECORD PAG. 7 Industrial DEVELOP- MENT FINANCIAL Soundness Hera compass 01

5 All drivers at work to maintain our un-interrupted growth EBITDA growth at +7.3% CAGR Net profit growth at +14.7% CAGR '11 '12 '13 '14 '15 '16 '11 '12 '13 '14 '15 '16 M&A track record: 13 deals since 11 DEBT/EBITDA enhanced (x) Multi-utility / Reg. Energy sales Waste treatm. Acegas Aps ( 13) Sadori ( 11) Energonut ( 12) Est Reti Elettriche ( 13) Alento Gas ( 15) Geo Nova ( 15) 3.08x 3.35x 3.17x 3.04x 3.00x 2.79x Isontina Reti Gas ( 14) Julia Servizi ( 16) Waste Recycling ( 15) Amga ( 14) Gran Sasso ( 16) Aliplast + Teseco ( 17) '11 '12 '13 '14 '15 '16 Sizeably outperforming expectations on 16Y 02

6 2016 EBITDA growth drivers Ebitda growth +9.1% +3.7% (48.0) A'15 Org. Growth Acquisitions A'16 Adj Wacc & Inc. A'16 More in everything 03

7 STEFANO VENIER C.E.O. MORE with less Track record

8 WASTE: A further expansion of our leading platform Ebitda growth by business Waste volumes from third parties (kton) (16.7) Q1 Q2 Q3 Q4 A' Acquisitions Urban Waste treatments (%) 35% 9% 100% Aliplast 56% Teseco A'15 Organic G. Acquisition One off A'16 Recycled Treated Landfills Total Progressive repositioning and geographical expansion 04

9 NETWORKS: Cost savings offset most part of Wacc cut Ebitda growth drivers WACC impact on Nets (12.7) (8.9) (2.9) (24.5) Organic Growth (24.5) Water Gas distr. EE distr. WACC cut Water quality premium achievement (%, M Ebitda) 98.4% ~ 2 m A'15 Water Gas distr. EE distr. D.H. Acquisit. Wacc cut A'16 Water quality standard achieved in 2016 Water quality premium accounted in 6 months Cleared the way to the end of the regulatory period 05

10 ENERGY: Exploited all opportunities Ebitda growth drivers Customers growth (million unit) Cagr +7.2% '11 '12 '13 '14 '15 '16 Digital customers growth (%) Cagr +17.2% 15.9% 17.5% 7.9% A'15 Organic. G. Acquisition One Offs A'16 '11 '12 '13 '14 '15 '16 More visibility on future growth trends 06 Industrial Development Development Waste Development Networks Development Energy

11 Improving financial and tax profile Cost of Debt (%) Tax rate (%) 2016 EPS growth (%) 4.4% 4.6% 4.2% 4.0% 3.8% 3.7% 42.7% 38.2% 44.8% 40.2% 36.8% 35.1% +14.8% A'11 A'12 A'13 A'14 A'15 A'16 A'11 A'12 A'13 A'14 A'15 A'16 A'16 Achieving 8.6% ROE in 2016 Industrial Development Development Waste Development Networks Development Energy 07

12 Global agenda goals concretely addressed by Hera actions Global agenda goals Hera impact areas and achievements^ 94.4% Waste Circular recovered economy 64% packaging recycled Water resources 10.3 cm/km/day Water leakage 300m 1/3 rd of Group Ebitda Green house Gas emission -10% carbon footprint Renewable energy 69% energy produced Energy efficiency -2.6% Energy consumption Employment competence 243k training hours Economic develop. & social inclusion ~800 people facing hardship engaged Protect air & soil PLANET Emissions at 14% of law limit Innovation 6 projects underway ^See also Sustainability Report 2016 More with less 08

13 LUCA MORONI CFO MORE than sound

14 Cash flows Free cash flows Y FCF growth & Debt/Ebitda ratio (% cumulated incr. FCF, Debt/Ebitda ratio) +50% cagr (35.1) 3.35x (364.3) x 3.17x 3.04x 3.00x 2.79x 0 Op. CF NWC Provisions Capex Free CF A'11 A'12 A'13 A'14 A'15 A'16 FCF More than sound 09

15 TOMASO TOMMASI DI VIGNANO Executive Chairman MORE in everything

16 Closing remarks 3 years cumulated results (Board mandate) 2016, first year of 5Y business plan to 2020, shows effectiveness of business model and reliability of growth perspectives. Cumulated DIVIDENDS paid NET PROFIT* +84m (+69%) *excluding extraordinary EBITDA per EMPLOYEE Proposed dividend confirmed at 9 euro cent per share; the base for planned steps up starting from 17. Overcoming more and more referendum effect in m EBITDA +107m (+13%) DEBT/EBITDA From 3.1x to 2.8x RETURN on EQUITY +10% since 13 CLIENT INCREASE +216k energy clients +260bp 10

17 Annex Investor Relations contacts: Mail: Head of IR Jens Klint Hansen 0 IR investor

18 Waste business Economics Acquisitions A 15 A 16 EBITDA Aliplast Geo Nova Volumes (Kton) A 15 A 16 Urban waste 2,041 2,048 Special waste 2,002 2,341 Waste from third parties 4,043 4,388 Internal Waste production 2,183 2,479 Total volumes treated 6,226 6,868 Teseco Waste Recycling 11

19 Water business Economics RAB A 15 A 16 EBITDA Volumes sold (Mmc) A'15 A'16 A'15 A'16 Water 12

20 Gas business Economics Economics RAB M 2014 Adj. E2019 Cagr A 15 A 16 Ebitda % EBITDA Ebit % Volumes (Kton) A 15 A 16 Volume sold 3,383 3,914 Of which trading 1,242 1,714 Of which to final clients 2,141 2,199 Clients (kunit) 1,327 1,381 A'15 Gas Distribution A'16 13

21 Electricity business Economics RAB A 15 A 16 EBITDA Volumes (Kton) A 15 A 16 Volume sold 9,626 9,578 Volume distributed 3,055 2,994 Clients (kunit) A'15 A'16 EE Distribution 14