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Economic and Financial Results

Performance of the Hera Group in 2009
millions €31-Dec-2008% Inc. 31-Dec-2009% Inc.% Change 
Revenues3.716,3 4.204,2 +13,1%
EBIT 280,77,6%291,36,9%+3,8%
Net Profit110,33,0%85,02,0%-22,9%


Financial and Economic Results

Year 2009 was marked by the repercussions of the global economic downturn that has led to a significant slowdown in economic activity.

Regarding the impact on the Group's business, in addition to a general drop in consumption, is also reported the reduction in special waste production and treatment and the substantial decline in demand for new connections and customer work.

Year 2009 benefited from the change to the tariff system of gas distribution. The resolution 159/08 of the AEEG (Italian Authority for Electricity and Natural Gas), in fact, has revamped the tariff structure, in particular:

  • on the thermal-year duration, making it coincide with the calendar year, whereas previously it was set from 1 October to 30 September of the following year;
  • on the creation of an adjustment fund to offset any differences compared to the standard volume distribution, making weather conditions all but irrelevant.

Results proposed in the following pages take into account the two non-recurring operations described below:

  1. the termination of the branch lease contract with companies Area Asset and Con.Ami, in the context of the share capital increase through conferment of the gas and district heating networks already operated by the Group; operation that has generated a non-recurring positive effect of Euro 16.8 million, while the savings generated by the contract termination, amounted to Euro 3.9 million in 2009 and to 5 million, on an annual basis, also for the coming years.
  2. the recovery by the Inland Revenue of the so-called "state aid" related to "tax moratorium". In fact, year 2009 shows a negative result for a total amount of Euro 27.6 million, of which Euro 15.3 million are related to the recovery of taxes, classified as "other non-operating costs", and Euro 12.3 million for interest expenses. It is only fit to mention that some of these charges are not tax deductible, therefore, producing an additional negative effect of around Euro 5.3 million, in terms of higher taxes.

Regarding the corporate structure, we should underline the reorganization of the territorial supervision, which has seen the spin-off of the Territorial Operating Companies benefiting from the parent Hera S.p.A. and its subsidiary Hera Comm, the latter for customer management tasks.

The operation, which had no impact on the results of the Group, shall have positive consequences in the coming years, as it shall simplify the administrative relations among the components of the Group while placing the focusing on the Group business. The only effect on the financial statements of 2009 is derived from the different accounting treatment of work carried out by the territorial operating companies, which is not entered into the income statement, thus allowing a reduction of capitalized costs, with no effect on margins.

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