Hera S p A : Financial report as at 30 June 2021

| Introduction

| Directors' report

| Hera Group consolidated financial statements

TABLE OF CONTENTS

INTRODUCTION

DIRECTORS' REPORT

HERA GROUP CONSOLIDATED FINANCIAL STATEMENTS

MISSION AND STRATEGY

GOVERNANCE SYSTEM

1.01	TRENDS AND CONTEXTS	7
1.01.01	Macroeconomy and finance	7
1.01.02 Business, environment, regulations, human capital and technology	9
1.02	MAIN EVENTS OCCURRED	15
1.03	OVERVIEW OF OPERATING AND FINANCIAL TRENDS AND DEFINITION OF APMs	17
1.03.01	Operating results and investments	21
1.03.02	Financial structure and adjusted net debt	27
1.04	SHARE PERFORMANCE AND INVESTOR RELATIONS	30
1.05	ANALYSIS BY BUSINESS AREA	32
1.05.01	Gas	33
1.05.02	Electricity	38
1.05.03	Integrated water cycle	42
1.05.04	Waste management	46
1.05.05	Other services	51
2.01	FINANCIAL STATEMENT FORMATS	55
2.01.01	Income statement	55
2.01.02	Statement of comprehensive income	56
2.01.03	Statement of financial position	57
2.01.04	Cash flow statement	59
2.01.05	Statement of changes in net equity	60
2.02	EXPLANATORY NOTES	61
2.02.01	Accounting policies and evaluation criteria	61
2.02.02	Scope of consolidation	64
2.02.03	Changes to international accounting standards	67
2.02.04	Commentary notes to the financial statement formats	70
2.02.05	Reporting by operations	104
2.03	NET DEBT	106
2.03.01	Net debt	106
2.03.02	Net debt according to Consob notice Dem/6064293 of 2006	107
2.04	FINANCIAL STATEMENT FORMATS AS PER CONSOB RESOLUTION 15519/2006	108
2.04.01	Income statement as per Consob resolution 15519/2006	109
2.04.02	Statement of financial position as per Consob resolution 15519/2006	110
2.04.03	Cash flow statement as per Consob resolution 15519/2006	112
2.04.04	List of related parties	113
2.04.05	Explanatory notes to the relations with related parties	115
2.05	LIST OF CONSOLIDATED COMPANIES	118
2.06	DECLARATION ON THE CONSOLIDATED FINANCIAL STATEMENT PURSUANT TO ART. 154-BIS	120
	OF LEGISLATIVE DECREE 58/98
2.07	REPORT BY THE INDEPENDENT AUDITOR	121

| Hera Group - Consolidated half-year report at 30 June 2021

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