Hera Group - Financial Results 2009

Trade receivables as at 31 December 2009 total Euro 1,137,076 thousand (Euro 1,161,295 thousand as at 31 December 2008) and include estimated consumption, for the portion pertaining to the period, relating to bills and invoices to be issued after 31 December 2009. Receivables are stated net of a provision for doubtful receivables of Euro 66,623 thousand (Euro 52,010 thousand as at 31 December 2008) deemed fair and prudent in relation to the estimated realisable value of said receivables.

The following gives the movements of the provisions for doubtful receivables during the year.

The recording of the provision is made on the basis of analytical valuations in relation to specific receivables, supplemented by measurements made based on historic analyses of the receivables regarding the general body of the customers (in relation to the aging of the receivables, the type of recovery action undertaken and the status of the debtor), as described in the following paragraph "credit risk".

The Euro 218 thousand changes in the scope of consolidation included:

• Euro 75 thousand, Acantho Spa;
• Euro 143 thousand, Satcom Spa.

The item "receivables from associated companies" fell by Euro 25,763 thousand compared to 31 December 2008.
The most significant changes relate to companies Acantho Spa, Satcom Spa and Prigeas Spa, amounting to Euro 28,188 thousand and Set Spa for Euro 3,627 thousand. At the same time, Sgr Servizi Spa shows an increase of Euro 6,085 thousand.

Credit risk
The book value of trade receivables shown in the financial statements is maximum theoretical exposure to credit risk for the Group as at 31 December 2009. Even if not standardised, a customer credit management procedure exists that provides for individual evaluations to be made. This modus operandi makes it possible to reduce the concentration and exposure to credit risk posed by both business and private customers.
Analyses are periodically made of the credit standings still open so as to single out any critical issues. If the single positions are fully or partially non-recoverable, they will be written down. With regard to the receivables that do not undergo individual writedowns, allocations are made on the basis of historic analysis for the receivables regarding the general body of the customers (in relation to the aging of the receivables, the type of recovery action undertaken and the status of the creditor).

With regard to customers as at 31 December 2009, trade receivables can be broken down into the following classes:

With regard to customers as at 31 December 2008, trade receivables can be broken down into the following classes: