Hera S p A : Consolidated Financial Statements 2020

INTRODUCTION

DIRECTORS' REPORT

LETTER FROM THE CHAIRMAN TO SHAREHOLDERS	6
HERA IN A NUTSHELL	8
1.01	TRENDS AND CONTEXT, STRATEGIC APPROACH AND GROUP MANAGEMENT POLICIES	17

1.01.01 Trends and contexts Macroeconomy and finance Businesses and regulations Climate and the environment Technology and human capital

1.01.02 Strategic approach and management policies: areas Macroeconomy and finance

Business areas and industrial strategy

Climate and the environment: sustainable development

Technology and human capital: innovation

1.02	RISK FACTORS: ACTORS, METHODOLOGY AND AREAS OF MANAGEMENT	37
1.02.01	Risk governance
1.02.02	Management methodology
1.02.03	Risk areas: identification and management of risk factors
1.03	MAIN EVENTS OCCURRED	50
1.04	OVERVIEW OF OPERATING AND FINANCIAL TRENDS AND DEFINITION OF APMs	54
1.04.01	Operating results and investments
1.04.02	Financial structure and adjusted net debt
1.04.03	Parent company management report
1.05	SHARE PERFORMANCE AND INVESTOR RELATIONS	70
1.06	SUSTAINABILITY RESULTS	73
1.07	ANALYSIS BY BUSINESS AREA	79
1.07.01	Gas
1.07.02	Electricity
1.07.03	Integrated water cycle
1.07.04	Waste management
1.07.05	Other services
1.08	COVID-19 EMERGENCY MANAGEMENT	103
1.09	SHAREHOLDERS MEETING RESOLUTIONS	108
1.10	NOTICE CONVENING THE SHAREHOLDERS MEETING	109

HERA GROUP CONSOLIDATED FINANCIAL STATEMENTS

2.01	FINANCIAL STATEMENT FORMATS	113
2.01.01	Income statement
2.01.02	Statement of comprehensive income
2.01.03	Statement of financial position
2.01.04	Cash flow statement
2.01.05	Statement of changes in net equity
2.02	EXPLANATORY NOTES	120
2.02.01	Accounting policies
2.02.02	Scope of consolidation
2.02.03	Accounting policies and consolidation principles
2.02.04	Changes to international accounting standards
2.02.05	Commentary notes to the financial statement formats
2.02.06	Reporting by operational sector
2.03	NET FINANCIAL INDEBTEDNESS	193
2.03.01	Net financial indebtedness
2.03.02	Net financial indebtedness according to Consob notice Dem/6064293 of 2006
2.04	FINANCIAL STATEMENT FORMATS AS PER CONSOB RESOLUTION 15519/2006	195
2.04.01	Income statement as per Consob resolution 15519/2006
2.04.02	Statement of financial position as per Consob resolution 15519/2006
2.04.03	Financial statement as per Consob resolution 15519/2006
2.04.04	List of related parts
2.04.05	Commentary notes to the relations with related parts
2.05	EQUITY INVESTMENTS	204
2.05.01	List of consolidated companies
2.05.02	Key figures in the financial statements of subsidiaries and associated companies
2.06	INFORMATION REQUIRED BY LAW 124 OF 4 AUGUST 2017 ART.1 PARAGRAPHS 125-129 AND	211
	FOLLOWING AMENDMENTS
2.07	OUTLINE OF ARTICLE 149-DUODECIES OF THE CONSOB ISSUER'S REGULATION	213
2.08	DECLARATION ON THE CONSOLIDATED FINANCIAL STATEMENT PURSUANT TO ART. 154-BIS	214
	OF LEGISLATIVE DECREE 58/98
2.09	REPORT BY THE INDEPENDENT AUDITOR	215