2005 - 2006 - Pinsent Masons Water Yearbook 2012

ITALY PART 3 (ii): COMPANY ANALYSIS: LOCAL/REGIONAL PLAYERS
Hera SPA
Hera Spa operates in a number of municipalities in northern Italy, providing water and wastewater
services to 797,000 customers and 679,000 customers respectively in Bologna, Ravenna-Lugo, Forli-
Cesena, Rimini, Savignino, Imola-Faenza and Ferrara. The company was founded through the
consolidation of 12 municipal entities in 2001. 2.2 million people in 141 municipalities are served by
the company for water, sewerage, power, gas and waste management, rising to 3million in the
summer. Hera aims to acquire local utilities in order to increase its size and improve operating
efficiency over the next four years. 44% of Hera’s equity was sold in June 2003, with the commune of
Bologna holding 19.8% of the company via Seabo Spa.
Hera SpA, profit and loss account
€ million 2001 2002 2003 2004
Sales 1,041.6 1,133.3 1,331.3 1,639.0
Operating profits 83.0 77.6 112.8 144.3
Net profits 36.8 33.2 49.4 56.7
Earnings per share (€) 0.045 0.042 0.063 0.069
The principal water concessions are secured until at least 2012. In 2004, a ten year extension to 2022
was granted, worth a total of €5 billion in revenues. Tariff increases of 3.65% per annum, will take
place between 2005 and 2007.
2002 2003 2004
Municipalities served – Water 127 128 143
Municipalities served – Sewerage 88 90 111
Municipalities served – Wastewater 123 125 141
Customers served – Water 616,000 639,000 797,000
Customers served – Sewerage 470,000 488,000 626,000
Customers served – Wastewater 530,000 545,000 679,000
Residential population (million) 1.9 2.0 2.2
Water sold (million m 3 ) 176.3 180.2 206.0
Water sold € million 241 248 305
Acquisition of Agea
In August 2004, Hera acquired a further 51% of Agea having bought 49% of the company for €65
million in 2003. Agea provides multi utility services in Ferrara province. Acosea owns the water assets
through Acosea Reti and operates them through Acosea Spa. Acosea Impianti, a new company is to
take over Acosea Reti and sell these assets to the Ferrara municipalities in 2005, while Acosea Spa
will be integrated into Hera. Acosea generated water sales of €31 million in 2004, selling 20.8 million
m 3 of water in 2003
Acquisition of Meta Modena
In June 2005, Hera and Meta agreed to a merger, firstly by Hera acquiring 29% of Meta in November
2005 and subsequently through a full acquisition. The combined entity will be Italy’s largest regional
municipal utility.
Contact Details
Name: Hera SpA
Address: Viale Carlo Berti Pichat 2/2, 40127
Bologna, Italy
Tel: +39 051 287 111
Fax: +39 051 281 4036
Web: www.gruppohera.it
Tomaso Tommasi di Vignano (Chairman) Roberto Barilli (General Manager)
Maurizio Chiarini (CEO)
313 Pinsent Masons Water Yearbook 2005 – 2006