Hera (HER) Investor Update summary

2025 Financial Outlook and Guidance

• 2025 EBITDA is forecasted above €1.53 billion and net profit above €460 million, up 4% year-on-year, with net debt/EBITDA below 2.6x.

• Dividend per share is expected to rise from €0.17 to €0.19 by the end of the plan, with a 7% increase in 2025 and a 27% increase by 2029.

• Total shareholder return is targeted to remain in double digits, supported by structural EPS growth of 6% and an average dividend yield above 4%.

• Net debt/EBITDA is expected to remain below 2.6x through 2029, supporting financial flexibility.

• Financial flexibility is maintained, supporting increased capex and future growth opportunities.

Strategic Priorities and Business Model

• Multi-business model leverages synergies, innovation transfer, economies of scale, and cash flow reallocation across sectors.

• Focus on value creation, profitability, and risk mitigation through hedging, diversification, and balanced portfolio management.

• Sustainability, decarbonization, and circular economy are core, with over €2 billion allocated to these initiatives and a net zero target by 2050.

• ESG compliance is already achieved, with ongoing investments in climate change adaptation and innovation.

• 77% of the five-year investment plan is dedicated to shared value operating investments.

Capital Allocation and Investment Plan

• €5.5 billion investment plan for 2025–2029, 39–40% higher than previous, with significant investments in networks, waste, and energy.

• 48% of investments target infrastructure resilience, 35% resource regeneration, 24% carbon neutrality, and 26% digitalisation and innovation.

• 2.9 billion euros in investments are aligned with the EU Taxonomy for sustainable projects, representing 95% of eligible investments.

• Free cash flow of €3.5bn over the plan, with €1.4bn for dividends and €2.5bn for development CapEx and M&A.

• Nearly €500 million in funding comes from national and European recovery and resilience programs.