Hera Group - Financial Results 2009

The most substantial changes compared to the previous year are described below.

The decrease of the special landfill levy, equal to Euro 2,952 thousand, is mainly due to a combined effect of higher levy (Euro 612 thousand), following the management of two new landfills in the areas of Pesaro and Urbino and a lower levy (Euro 3,038 thousand), mainly due to the closure of a landfill in the province of Modena.

The decrease in state rentals is attributable to the following:

• Euro 1,543 thousand to a different classification of the rentals regarding the contract signed for the rainwater collection and removal service in the municipalities of Bologna and province, accounted for, in 2009, under the item services;
• Euro 5,808 thousand to rentals charged by Acantho Apa to Group companies. Following the line-by-line consolidation of Acantho Spa, these rentals were eliminated in 2009.

Item capital loss on the sale of assets was generated due to:

• sale of the Gasometer Area, at the headquarters of Viale Berti Pichat, totalling Euro 525 thousand;
• disposal of electricity meters, totalling Euro 539 thousand;
• damages incurred by some corporate assets, compensated by insurance companies, Euro 817 thousand (reference is made to Note 5 "Other operating revenues - insurance reimbursements);
• disposal of the energy recovery plant at the incinerator of Ravenna, Euro 40 thousand;
• disposal of assets damaged by fire occurred at the incinerator of Modena, amounting to Euro 198 thousand;
• damages to the hydraulic plant at the incinerator of Ferrara, Euro 385 thousand.

Other minor charges, down by Euro 99 thousand, is mainly due to the consolidation of Acantho Spa and the subsequent elimination of infragroup relations. The item is mainly composed of subsidies to economically disadvantaged clients.