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"concept": "ifrs-full:DividendsPaid", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "fact-408": { "value": "74300000", "decimals": 1, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "heraspa:ReservesMember", "unit": "iso4217:EUR" } }, "fact-409": { "value": "-74300000", "decimals": 1, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "heraspa:PortionOfRetainedEarningsRelatingToRelevantPeriodOrPeriodLeadingUpToRelevantDateMember", "unit": "iso4217:EUR" } }, "fact-410": { "value": "0", "decimals": 1, "dimensions": { "concept": 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"iso4217:EUR" } }, "fact-417": { "value": "6900000", "decimals": 1, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:8156009414FD99443B48", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:EUR" } }, "fact-418": { "value": "441400000", "decimals": 1, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:8156009414FD99443B48", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "heraspa:PortionOfRetainedEarningsRelatingToRelevantPeriodOrPeriodLeadingUpToRelevantDateMember", "unit": "iso4217:EUR" } }, "fact-419": { "value": "3438200000", "decimals": 1, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:8156009414FD99443B48", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "fact-420": { "value": "313400000", "decimals": 1, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:8156009414FD99443B48", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "fact-421": { "value": "3751600000", "decimals": 1, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:8156009414FD99443B48", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "fact-524": { "value": " Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 125| EXPLANATORY NOTES Introduction Hera S.p.A. is a joint-stock company established in Italy, listed on the Milan Stock Exchange and with registered office in Bologna, Viale Berti Pichat 2/4. Hera Spa and its subsidiaries (the Hera Group) operate mainly in Italy in the waste management (waste management and treatment), water (aqueduct, sewerage and purification) and energy (distribution and sale of electricity, gas and energy services) sectors; it also offers services for public lighting and telecommunications. The consolidated financial statement at 31 December 2023 was prepared in compliance with Regulation (EC) No. 1606/2002 of 19 July 2002, observing the International Accounting Financial Reporting Standards (IFRSs) issued by the International Accounting Standard Board (IASB) and endorsed by the European Commission, as well as the provisions enacted in implementing Article 9 of Italian Legislative Decree no. 38/2005. IFRSs also include the International Accounting Standards (IAS) currently in force, the interpretative documents issued by the International Financial Reporting Standards Interpretation Committee (IFRSIC) and the previous Standing Interpretation Committee (SIC). The directors considered the applicability of the assumed going concern in drafting the consolidated financial statement, and decided that such assumption is appropriate in that there are no doubts about the going concern. This assessment took into account the current context created by the conflicts between Russia and Ukraine and between Israel and Palestine. Sufficient obligatory information to present a true and fair view of the Group\u2019s capital-financial conditions as well as its economic performance. Information on the Group\u2019s activities and on significant events after year end is provided in the Directors\u2019 report, in paragraph 1.03 \u201cMain significant events\u201d. The general principle adopted in preparing these consolidated financial statements is the cost principle, except for the financial assets and liabilities (including the derivative instruments), which were measured at fair value. In drawing up the consolidated financial statements, management was required to use estimates; the major areas characterised by valuations and assumptions of particular significance together with those having notable effects on the situations accounted for here are provided in the paragraph \u201cSignificant estimates and valuations\u201d at the end of this section. These consolidated financial statements at 31 December 2023 were drawn up by the Board of Directors and approved by the same at the meeting held on 26 March 2024. These financial statements were audited by Deloitte & Touche Spa. Financial statement content and format These consolidated financial statements comprise: \u25aa primary reporting formats; they are the same as those used for the consolidated financial statements for the year ended 31 December 2022 and have the following features: \u2013 the income statement includes individual items analysed by type. We believe that this type of presentation, which is also used by our major competitors and is in line with international practice, best represents company results; \u2013 the statement of comprehensive income is presented in a separate document and distinguishing items that may and may not be reclassified subsequently to profit and loss. \u2013 the statement of changes in net equity reports separately the other items of the comprehensive income statement; \u2013 the statement of financial position makes the distinction between current and non-current assets and liabilities. \u2013 the cash-flow statement has been prepared using the indirect method; \u25aa explanatory notes. In the financial statements, any non-recurring costs and revenues are indicated separately. Moreover, with reference to Consob resolution 15519 of 27 July 2006 on financial statements, specific supplementary formats of income statement, statement of financial position and cash flow statement 2.02 2.02.01
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 126|
have been included, highlighting the most significant balances with related parties, in order to avoid
altering the overall clarity of the financial statements.
The financial statement formats and the information included in the explanatory notes are expressed in
millions of euro with one decimal point, unless otherwise indicated.
Scope of consolidation
The consolidated financial statements at 31 December 2023 include the financial statements of the
Parent Company Hera S.p.A. and those of its subsidiaries. Control is obtained when the Parent Company
has the power to determine the financial and operational policies of a company, by way of currently valid
rights, in such a way as to obtain benefits from the company\u2019s activity. Joint operations, in the form of
corporate vehicles, are recognised in proportion to the Group\u2019s interest. Equity investments in joint
ventures in which the Hera Group exercises joint control with other companies as well as the companies
over which the Group exercises significant control are consolidated with the equity method.
Small-scale subsidiaries and associated companies are excluded from overall consolidation and valued
at fair value. These companies are reported in note 26, item \u201cOther shareholdings\u201d.
Changes in the scope of consolidation
The table below shows changes in the scope of consolidation introduced during the 2023 financial year
as compared to the consolidated financial statements at 31 December 2022:
Acquisition of control
Company/business unit
Valuation
A.C.R. di Reggiani Albertino
Spa (A.C.R. Spa)
Entire
Asco TLC Spa*
Entire
F.lli Franchini Srl
Entire
\u201cPagnanini\u201d business unit
Entire
Entry within the scope of consolidation
Hea Spa
Joint operation
Horowatt Srl
Entire
Tiepolo Srl
Entire
* Company merged by incorporation into Acantho Spa.
For an overview of the control acquisition transactions carried out during the period, see Section 1.03
\u201cMain Events Occurred\u201d of the Directors\u2019 Report and the \u201cBusiness Combinations (supplementary
information)\u201d section of Section 2.2.10 \u201cOther Information\u201d for accounting considerations and the
valuation details of assets and liabilities acquired.
As of 1 January 2023, due to the launch of the design phase carried out prior to constructing the plants,
the Group\u2019s consolidated financial statements include the portion of jointly owned assets and liabilities,
revenues from jointly controlled activities and jointly incurred costs relating to the joint operation Hea
Spa, previously valued at cost.
On 11 May 2023, Hera Spa and Orogel Societ\u00e0 cooperativa agricola established the company Horowatt
Srl, with an equal interest in the share capital. This NewCo, which will produce renewable energy
following the construction of an agrivoltaic plant, was consolidated as of the date of its establishment due
to the shareholders\u2019 agreements granting control to the Hera Group.
On 6 July 2023, Hera Spa acquired the entire shareholding of Tiepolo Srl. At the time of its acquisition,
this company, which is entirely consolidated, had a single relevant asset, i.e. a project for the construction
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 127|
of a photovoltaic solar park in Bondeno (FE), which it will build and manage in the upcoming years. This
transaction was recorded as an investment in tangible assets, not a business combination.
Change in equity investments
On 21 December 2023, Hera Servizi Energia Spa acquired a 15% holding in the share capital of Tri-
Generazione Scarl from a minority shareholder. The shareholding in this company increased from 70%
to 85%, while the Group\u2019s overall interest rose from 59.15% to 71.83%.
The difference between the adjustment of these minority shareholdings and the fair value of the
equivalent amount paid was reported directly in net equity and attributed to the parent company\u2019s
shareholders.
Other corporate operations
With effect from 1 January 2023, Vallortigara Angelo Srl and Hydro Mud Srl merged into the holding
company Vallortigara Servizi Ambientali Spa.
With effect from 1 January 2023, Hera Servizi Energia Srl, 67.61% owned, was merged by incorporation
into the holding company AcegasApsAmga Servizi Energetici Spa (ASE Spa). As a consequence of this
merger, the incorporating company changed its name to Hera Servizi Energia Spa. In addition, as a
result of the exchange ratio, AcegasApsAmga Spa\u2019s equity investment in Hera Servizi Energia Spa went
from 100% to 84.5%.
With effect from March 2023, and with accounting effects backdated to 1 January 2023, Alibardi Fiorenzo
Srl was merged by incorporation into the holding company Aliplast Spa.
On 23 May 2023, Hera Comm Spa, following the exercise of the put option it held, correlated to a
corresponding put option held by minority shareholders, acquired the residual stake in Eco Gas Srl,
equivalent to 10% of the share capital, thus becoming the sole shareholder.
With effect from October 2023 and accounting effects backdated to 1 January 2023, Eco Gas Srl and
Con Energia Spa were merged by incorporation into the holding company Hera Comm Spa.
With effect from 1 October 2023 and accounting effects backdated to 1 January 2023, Asco TLC Spa
was merged by incorporation into Acantho Spa. For the purposes of these consolidated financial
statements, the effects of the acquisition of control of Asco TLC Spa by the Group, which came about at
the same time as the merger transaction, take effect as of 1 October 2023. For further details, see
paragraph 1.03 \u201cMain events occurred\u201d the Directors\u2019 report and the section \u201cBusiness Combinations
(supplementary information)\u201d in paragraph 2.02.10 \u201cOther information\u201d.
On 24 October 2023, Hera Servizi Industriali Srl, following the exercise of the put option it possessed,
correlated to a corresponding put option held by the minority shareholders, acquired the residual stake
in Recycla Spa, equivalent to 30% of the share capital, thus becoming the sole shareholder.
On 10 November 2023, Ascopiave Spa transferred to Hera Comm Spa, following the partial exercise of
the put option it possessed, a stake in EstEnergy Spa equivalent to 15% of the share capital. Following
this transaction, Hera Comm Spa increased its shareholding in EstEnergy Spa from 60% to 75%.
The aforementioned transactions involving the exercise of put options by the Group as well as put options
by minority shareholders had no impact on minority interests, since the Group\u2019s policy is not to represent
minority interests when there is a put option, given that the financial debt related to their acquisition is
already recognised in the financial statements.
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 128|
Accounting policies and consolidation principles
The financial statements used for the preparation of the consolidated statement of financial position and
income statement were those which the companies included within the scope of consolidation
reclassified and adjusted (on the basis of specific instructions issued by the Parent Company) for the
purposes of consistency with the accounting standards and principles of the Group. In processing the
values referring to companies valued at net equity, adjustments to their respective financial statements
were considered in order to adapt them to IFRS standards, in case these companies do not adopt them.
When drawing up the consolidated statement of financial position and income statement, the assets and
liabilities as well as the income and expenses of the companies included in the scope of consolidation
are included on a line-by-line basis. However, the receivables and payables, income and expenses,
gains and losses resulting from operations carried out between companies included in the scope of
consolidation have been eliminated. The book value of the equity investments is cancelled by the
corresponding portion of investees\u2019 equity.
On first-time consolidation, the positive difference between the book value of the equity investments and
the fair value of the assets and liabilities acquired, was allocated to the asset and liability items and on a
residual basis to goodwill. The negative difference was immediately recorded in the income statement,
as illustrated in the following section \u201cBusiness combinations\u201d.
The total of capital and reserves of subsidiaries pertaining to non-controlling interests is recorded within
equity in the item \u201cNon-controlling interests\u201d. The portion of the consolidated result relating to non-
controlling interests is recorded in the account \u201cMinority shareholders\u201d.
The valuation of the financial statement items has been carried out on the basis of the general criteria of
prudence and on an accrual basis, with a view of the business as a going concern. For the purposes of
the accounting entries, priority is given to the economic substance of the transactions rather than their
legal form.
In preparing these consolidated financial statements, the accounting policies and principles were the
same as those adopted in the previous year, considering the new accounting standards reported in the
section \u201cChanges to accounting standards\u201d of section 2.02.10 \u201cOther information\u201d. As far as the income
statement is concerned, the costs and revenues stated include those recorded at year-end, which have
a balancing entry in the statement of financial position. In this regard, income is included only if realised
by said year-end date, while account has been taken of the risks and losses even if known after said
date.
The transactions with minority shareholders are recognised as equity transactions. Therefore, for
purchases of additional shares after control is attained, the difference between the cost of acquisition
and the book value of the shares purchased from non-controlling interests is recognized in Group net
equity.
The functional and presentation currency adopted by the Group is the euro. The assets and liabilities of
foreign companies denominated in currencies other than the euro which are included in the scope of
consolidation are converted using the exchange rates prevailing on the balance sheet date. Income and
expenses are converted at the average exchange rate for the year. Exchange rate differences are
included in a reserve until the respective foreign operation is sold.
The main exchange rates used to convert the value of the investees outside the Eurozone are as follows:
2023
31 Dec 23
2022
31 Dec 22
Average
Specific
Average
Specific
Bulgarian Lev
1.9558
1.9558
1.9558
1.9558
Polish Zloty
4.5420
4.3395
4.6861
4.6808
The criteria and principles adopted are outlined here below.
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 129|
Tangible assets \u2013 Tangible assets are recorded at cost or production cost, including accessory costs,
or at the value based on expert appraisals, if relating to purchased companies, net of the related
accumulated depreciation and any impairment. The production cost includes the portion of direct and
indirect costs reasonably attributable to the asset (e.g. personnel costs, transport, customs duty, costs
for the preparation of the installation location, final test & inspection costs, notary fees, land registry
expenses). The cost includes any professional fees and, for certain assets, capitalised financial charges
up to the moment the asset enters into service. The cost includes any costs for dismantling, restoration
and reclamation of the site on which the tangible asset is located. Ordinary maintenance costs are
charged in full to the income statement. Improvement, upgrading and transformation costs that increase
the value of the assets are recorded as assets.
Depreciation starts to be applied when the assets enter the production cycle. Tangible assets are
classified as in progress when the process of economic use has not yet begun. Property, plants and
equipment are systematically depreciated in each accounting period using the depreciation rates
considered representative of the remaining useful lives of the assets. The rates of the amortisation for
tangible assets are outlined here below:
Category
rates
Buildings
1.8% - 2.8%
Distribution plants
1.4% - 5.9%
Production plants
2.5% - 25.0%
Other plants
3.9% - 7.5%
Equipment
5.0% - 20.0%
Electronic machines
16.7% - 20.0%
Vehicles
10.0% - 20.0%
Land is not depreciated, with the exception of land in which landfills are located, which is depreciated
based on the quantity of waste disposed of with respect to the total conferrable capacity.
Investment property \u2013 Investment property has been recognized at cost. As such, these assets are
reported at purchasing cost minus depreciation and any impairment.
Rights of use \u2013 The right of use of a good or service is initially valued by the Group at cost.
Service components that may be included in the contract are excluded from projections of future lease
payments and accounted for separately under operating expenses on a straight-line basis.
After the initial recognition, the value of the right of use is reduced by accrued depreciation and
impairment and is adjusted for any restatements of the lease liability.
Intangible assets and goodwill \u2013 Intangible assets are stated at cost and, if they have a definite useful
life, they are amortised systematically over the period of the estimated useful life. The depreciation begins
when the asset is available for use or in any case begins to generate economic benefit for the Group.
Work in progress includes costs relating to intangible assets for which the process of economic use has
not yet commenced. If the Intangible assets have an indefinite useful life, they are not amortised but
rather subjected to an annual impairment test, even in the absence of indicators signalling losses in
value.
Concessions mainly comprise the rights associated with networks, plants and other facilities related to
gas and integrated water cycle services managed by the Group and are instrumental to the management
of these services. These concessions were listed as intangible assets even before the IFRIC 12 -
Agreements for concession services - interpretation was first applied.
Depreciation of the concessions is calculated on the basis of the provisions of the respective conventions,
and namely: i) according to a constant rate for the shorter of the following two periods: the useful life of
the assets granted in concession and the duration of that same concession, provided that, when this
concession expires, the outgoing operator is not granted any compensation value (Residual industrial
value, or RIV); ii) according to the useful life of the individual assets if, at the moment the concessions
expire, the assets in question are expected to pass into the hands of the operator.
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 130|
Public services under concession include the rights over networks, plants and other facilities related to
gas, the integrated water cycle and electricity (with the sole exception of the assets related to the Modena
area, which are classified among the assets owned by virtue of the associated acquisition) and public
lighting services (for the latter, except for what is highlighted in the following note describing the
accounting principles applied to the \u201cPayables and financing\u201d item) linked to services managed by the
Group. These arrangements are accounted for by applying the intangible asset model provided for the
IFRIC 12 interpretation, since it was considered that the underlying concession arrangements do not
guarantee the existence of an unconditional right in favour of the concessionaire to receive cash or other
financial assets. Construction and improvement services carried out on behalf of the grantor are
accounted for as contract work in progress. Considering that most works are contracted out externally
and that on construction activities carried out internally the job margin cannot be identified individually
from the benefits included in the remuneration for the service, these infrastructures are reported on the
basis of costs actually incurred, net of any contributions paid by the entities and/or private customers.
This category also includes improvements made and infrastructure constructed on the goods
instrumental to the management of these services, which are the property of the Holding Companies (so
called Asset Companies, pursuant to Article 113 of Italian Legislative Decree no. 267/00), yet managed
by the Group by virtue of business branch leasing contracts. These contracts, in addition to establishing
the fees due, also include clauses governing the restitution of assets, normally maintained, upon payment
of a balance corresponding to the net book value or the Residual industrial value (also taking into account
the recovery funds) of these assets.
The depreciation of these rights is carried out based on the useful life of the individual assets, also in
view of the relevant legislation which, in the event of a change in service provider, calls for compensation
to be paid to the outgoing operator in the amount of the Residual Industrial value (RIV) for assets
constructed under their ownership, or at Net book value (NBV), for assets manufactured under a
business unit leasing contract.
The intangible assets acquired following a business combination are recorded separately from goodwill
if their fair value can be reliably determined and are depreciated over the useful life estimated during the
purchase.
The depreciation rates of intangible assets are outlined here below:
Category
rates
IT applications
20.0%
Patents and trademarks
10.0%
Buildings under concession
1.8% - 3.5%
Distribution plants under concession
1.8% - 10.0%
Other plants under concession
2.5% - 12.5%
Equipment under concession
12.5%
Cost of acquiring new contracts \u2013 Incremental costs, represented by commissions paid to agents for
the acquisition of new contracts, are recognized as intangible assets and are amortised according to the
average useful life of the acquired customers (churn rate). For this purpose, only the types of
commissions related to new customers not present in the Group\u2019s customer base are recognized.
Business combinations \u2013 Any positive difference between the cost of the transaction and the fair value
at the date the assets and liabilities are acquired is attributed to goodwill. If the process of allocating the
purchase price shows a negative difference, such difference is immediately charged to the income
statement among non-operating revenues at the date of acquisition. For the purpose of determining the
goodwill or the negative differential, the fair value assessment of put options granted to minority
shareholders on their own shares is also considered within the cost of the transaction.
Any consideration subject to conditions, including those related to future results (earn-out), as set forth
in the business combination contract is measured at fair value on the acquisition date and considered in
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 131|
the value of the consideration paid for the business combination, for the purposes of calculating the
goodwill.
Non-controlling interests on the acquisition date are measured at fair value or according to the pro rata
amount of the net assets of the acquired company. The valuation method selected is stated for each
transaction.
Losses in value (impairment) \u2013 In order to assess any losses in value, the Group takes into
consideration the book value of property, plant and equipment, rights of use and intangible assets,
comparing it with the recoverable amount of these assets to define the value of any write-downs. The
recoverable value is calculated as a right of use. Where it is not possible to estimate the recoverable
value of an asset individually, the Group estimates the recoverable value of the unit generating the cash
flows to which said assets belong. Future cash flows are discounted to present value at a rate (net of
taxation) that reflects the current market value and takes into account the risks associated with the
specific business activities.
Investments valued at shareholders\u2019 equity method \u2013 Investments entered in this item refer to long-
term investments in associated companies and joint ventures. The excess price over the Group\u2019s share
of the fair value of an associated company\u2019s identifiable assets, liabilities and contingent liabilities at the
date of acquisition is recognised as goodwill.
Other investments \u2013 This category includes investments that are not included in the scope of
consolidation, including investments in negligible size subsidiaries, associates and joint ventures. For
these investments, upon initial recognition, it is irrevocably determined whether subsequent changes in
fair value are recognised in other comprehensive income; otherwise, changes in fair value are
periodically recognised in profit or loss. The risk deriving from any losses exceeding the book value of
the investment is recorded in a specific reserve to the extent that the holder is obliged to fulfil legal or
implicit obligations vis-\u00e0-vis the investee company or in any event cover its losses.
Financial assets \u2013 The Group classifies financial assets through the business model adopted for
managing them and on the basis of the features of contractual cashflows. In relation to the previous
conditions, financial assets are subsequently valued as follows:
\u25aa depreciated cost;
\u25aa fair value of the other comprehensive income components;
\u25aa fair value of the profit (loss) for the fiscal period.
Management determines their classification when they are first recorded.
Receivables and loans \u2013 This category includes assets not represented by derivative instruments and
not listed on an active market, from which fixed or determinable payments are expected. Since the
business model generally adopted by the Group provides for the holding of these financial instruments
solely for the purpose of collecting the contractual cash flows, these assets are valued at depreciated
cost on the basis of the effective interest rate method. The value of the assets is reduced on the basis of
the expected losses, using information that is available without unreasonable charges or efforts, including
historical, current and prospective data. Losses determined by an impairment test are recognized in the
income statement, as are any subsequent reversals of impairment losses. These assets are classified
as current assets, except for the portions accruing after 12 months, which are included amongst the non-
current assets.
This category includes, as provided by the interpretation IFRIC 12, the financial assets associated to
those public service under concession for which the Group has the unconditional contractual right to
receive liquidity from the issuer for the construction services rendered. The Group uses the financial
asset model for the contracts of public lighting service provision, in view of their characteristics, in which
increasingly frequently the issuer guarantees the area provider a specific amount, or at any rate an
amount which can be reliably determined, not depending on the use of the infrastructure by the final
customer. Under that model, the financial asset reported in the balance sheet in relation to the issuer for
an amount equal to the fair value of the construction services rendered.
Financial assets at fair value recorded in the comprehensive income statement components \u2013 This
category includes assets, other than derivatives, held by the Group for the purpose of receiving contractual
cash flows (represented by equity and interest payments) or for monetisation through sale. These assets are
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 132|
valued at fair value, the latter determined by referring to the market prices at the balance sheet date or using
financial measurement techniques and models. Classification as a current or non-current asset depends on
management\u2019s plans and on the real tradability of the security. Those whose sale is expected during the next
12 months are recorded as current assets .
Assets valued at fair value recorded as profit (loss) for the fiscal period \u2013 This category includes
the financial assets acquired for short-term trading purposes, in addition to the derivatives, which are
described in the specific paragraph below. The fair value of these instruments is determined by referring
to the market value on the date the registration period ends. Classification under current and non-current
reflects management `s expectations regarding their trading: current assets include those whose trading
is expected within 12 months or those identified as held for trading.
Cash and cash equivalents \u2013 The item regarding cash holdings and cash equivalents includes cash
and bank accounts and deposits repayable on demand and other short-term financial investments with
high liquidity that are readily convertible into cash and are subject to an insignificant risk regarding their
change in value.
Trade receivables \u2013 These refer to financial assets arising from the provision of goods and services and
are valued at amortised cost, adjusted for any impairment. These assets are derecognized in the event
of sale which transfers all risks and benefits associated with their management to third parties.
Other current assets \u2013 These are stated at par value, and possibly adjusted for any losses in value
corresponding to the amortised cost.
Environmental certificates \u2013 The Group complies with the various regulations issued in relation to the
environment that require compliance with restrictions established through the use of certificates or bonds.
Therefore, the Group is obliged to meet a need in terms of grey certificates (emission trading) and white
certificates (energy efficiency instruments). The development of markets in which these
bonds/certificates are traded has also made it possible to initiate a trading activity. These bonds are
valued according to the intended use.
The bonds held to meet the company\u2019s requirement are recorded as assets at cost. If the bonds in the
portfolio prove to be insufficient to meet the need, a liability is recorded to guarantee adequate coverage
when the certificates are delivered to the operator. Bonds held for trading are recognised as assets and
are measured at fair value through profit or loss.
Contract work in progress \u2013 Where the outcome of a construction contract can be estimated reliably,
contract work in progress is measured on the basis of revenues accrued with reasonable certainty,
according to the percentage of completion method of accounting, so as to apportion revenues and costs
to the relevant financial years in proportion to the stage of completion of the work in question. Contract
revenues, in addition to the contractual payments, include the variations, the price review and the
recognition of the incentives to the extent it is probable that they represent effective revenues which can
be determined reliably.
When the result of a contract cannot be reliably estimated, the revenues referable to the related contract
are recorded solely within the limits of the contract costs incurred which will probably be recovered. The
contract costs are recorded as expenses during the accounting period in which they are incurred. When
it is probable that the total contract costs will be greater than the contractual revenues, the expected loss
is immediately stated at cost.
Inventories \u2013 Inventories are recorded at cost, including directly attributable costs, or net estimated
realizable value, whichever is the lower. The cost configurations used for the valuation of stocks are the
average cost measured on a continuous basis (used for raw materials and consumables) and the specific
cost of other inventories.
Inventories of work in progress are valued at weighted average manufacturing cost for the period, which
comprises the raw materials, the consumables and the direct and indirect production costs excluding
general expenses.
Share capital \u2013 Share capital is recorded at par value, reduced, if necessary, by costs directly
attributable to transactions involving the issuing or repurchase of equity instruments.
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 133|
Treasury shares \u2013 Treasury shares are recognised as a reduction in shareholders\u2019 equity, and any
differences generated by future purchase or sale transactions are recorded directly as changes in
shareholders\u2019 equity.
Earnings per share \u2013 Earnings per share are represented by the net profit for the year attributable to
the shareholders holding ordinary shares, taking into account the weighted average of the ordinary
shares outstanding during the year. The diluted earnings per share are obtained by means of the
adjustment of the weighted average of the shares outstanding, taking into account all the potential
ordinary shares with dilution effect.
Financial liabilities \u2013 This item is initially stated at cost, corresponding to the fair value of the liability
net of the transaction costs which are directly attributable to the issue of said liability. Following their
initial recognition, financial liabilities, with the exception of derivatives, are valued on the basis of
amortised cost, using the original effective interest rate method. If the estimates of payments are revised,
the adjustment of the liability is stated as income or expense in the income statement, except for lease
liabilities.
Lease liabilities \u2013 As at the effective date of the contract, lease liabilities are calculated as the present
value of payments due, discounted using the marginal lending rate.
This rate refers to the average rate at which the Group borrows, broken down by contractual maturity. It
is determined annually in the budget on the basis of the final figures for previous financial year and is
applied to contracts signed from 1 January of each subsequent financial year. It is updated during the
period in the event of significant changes to the Group\u2019s average borrowing rate. For contracts with a life
of more than four years, the Group uses the medium/long-term borrowing rate, while for contracts with a
life of four years or less, the equivalent short-term rate is adopted.
Post-employment and other benefits \u2013 Liabilities related to defined-benefit plans (such as the
employee severance accrued before 1 January 2007) are reported net of any plan assets on the basis
of actuarial assumptions and on an accrual basis, in keeping with the service necessary to obtain
benefits. The liability is valued by independent actuaries. Independent actuaries assess financial
liabilities. The liability is valued by independent actuaries. Actuarial gains and losses are reported as
other comprehensive income/losses. Following Law 296 of 27 December 2006, for companies with more
than 50 employees, the severance amounts accruing after 1 January 2017 qualify as a defined-benefit
plan.
Provisions for risks and charges \u2013 Provisions are set aside on the basis of the best estimate of the
costs required to meet the obligation, as of the balance sheet date, and are discounted to present value
when the effect is significant and the necessary information is available. In such event, the provisions
are determined by discounting to present value the future cash flows at a pre-tax discount rate that
reflects the current market valuation and takes into account the risk associated with the business
activities.
When the discounting to present value is carried out, the increase in the provision due to the passing of
time is recorded amongst the financial charges. If the liability relates to property, plant and equipment
(e.g. restoration of sites), the contra-entry to the provision made is an increase of the asset to which the
liability refers; on the other hand, the financial charges are expensed out through the depreciation
process of the item of property, plant and equipment to which the charge refers.
Trade payables \u2013 These refer to payables derived from commercial supply transactions and are
recorded at amortised cost.
Other current liabilities \u2013 These concern sundry transactions and are stated at nominal value,
corresponding to the amortised cost.
Derivative instruments \u2013 The Group holds derivative instruments for the purpose of hedging its
exposure to the risk of interest rate and exchange rate fluctuations and the risk of changes in methane
gas and electricity prices. In relation to said activities, the Group must handle the risks associated with
the misalignment between the index-linking formulas relating to the purchase of gas and electricity and
the index-linking formulas linked to the sale of said commodities. The instruments the Group uses for
handling price risk, both with regards to the price of the goods and the related Euro/Dollar exchange rate,
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 134|
are aimed at pre-establishing the effects on the sales margins irrespective of the changes in the
aforementioned market conditions.
In relation to commodity derivatives, operations are managed through OTCs \u2013 over the counter financial
instruments (index swaps), currency derivatives (forward purchases in dollars), derivative instruments
traded on the regulated platforms, as well as through brokerage contracts that provide for the physical
delivery of the underlying (so-called physical contracts). In particular, the accounting method used for
physical contracts varies according to their purpose: contracts related to procurement activities are
subject to the own-use exemption and the related economic effects are recognised on an accrual basis
only at the time of actual delivery, while contracts signed with reference to price or volume risk
management activities are considered derivative financial instruments and measured at fair value from
the time they are signed. Given the nature of physical contracts, in order to give a more consistent
representation of the actual transactions carried out, at the time they become operational, regardless of
their purpose, the settlement is recorded in the income statement either in the item \u201cRevenues\u201d or in the
item \u201cRaw and other materials\u201d depending on whether the sale or procurement of commodities was
involved.
From an operational point of view, a commercial portfolio has been identified, which includes physical
and financial contracts signed for the management of procurement, and a trading portfolio, which
includes physical and financial contracts signed for speculation, based on pure position taking logics
whenever there is a market opportunity, always within the risk limits defined by the Board of Directors of
the parent company.
The fair-value changes pertaining transactions that, in observance of the risk management policies, meet
the requirements for hedge accounting treatment are recorded as part of the other components of
comprehensive income, while those that despite being entered into for hedging purposes, do not meet
the requirements are recognised in profit or loss in the period in which they occur. Operations identified
from their outset as speculative are recognised in profit or loss in the reporting period. Fair value is
established with adequate valuation models for each type of instrument, according to the reference
market value as more fully described below.
For accounting purposes, the hedging transactions are classified as fair value hedges if they cover the
risk of fluctuations in the market value of the underlying asset or liability; or as cash flow hedges if they
cover the risk of changes in cash flows deriving both from an existing asset or liability, or from a future
transaction, including transactions on commodities.
As far as derivative instruments classified as fair value hedges are concerned, which observe the
conditions for the accounting treatment as hedging transactions, the gains and losses deriving from the
determination of their market value are recognized through profit or loss. The gains and losses deriving
from the adjustment to fair value of the element underlying the hedge are also recognized through profit
or loss.
For instruments classified as cash flow hedges and that qualify as such, the fair value changes are
recorded, only as far as the effective amount is concerned, in a reserve called \u201cCash flow hedge reserve\u201d
through the statement of comprehensive income. This reserve is recorded to income as soon as the
underlying hedged instrument is realised. The change in fair value referring to the ineffective portion is
immediately recorded in the income statement of the period. If the underlying transaction should no
longer be considered highly probable, or the hedging relationship can no longer be demonstrated, the
corresponding portion of the \u201cReserve of derivatives valued at fair value\u201d is immediately reversed to
income.
If, on the other hand, the derivative instrument is sold and therefore the hedging of the risk for which the
transaction was created no longer qualifies as effective, the amount of \u201cReserve of derivatives valued at
fair value\u201d relating to it is kept until the economic effects of the underlying contract arise.
Whenever applicable, the Group adopts the fair value option.
Assets and liabilities held for sale \u2013 Assets and liabilities are classified under this category the moment
the sale operation is considered highly likely and the assets and liabilities are immediately available for
sale in their current condition.
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 135|
Revenue and cost recognition \u2013 Revenues and income are recognized net of returned items, discounts
and rebates, and net of taxes directly related to the sales of products and services rendered. These are
broken down into revenues deriving from operating activities and financial income which accrues
between the sale date and the payment date.
Specifically:
\u25aa revenues from energy, gas and water sales are recognised and recorded at the moment of the
provision of the service and include the services provided but not yet invoiced (estimated on the basis
of historical analyses determined according to previous consumption levels);
\u25aa revenues from the distribution are recognized on the basis of the tariffs paid by the Authority and are
subject to equalization at year end to reflect in accordance with the competence criterion the
compensation recognised by the Authority in relation to the investments made;
\u25aa revenues are booked at the time (or as) the obligation is fulfilled, transferring the promised good or
service to the customer. The transfer occurs when (or as) the customer gains control over the good
or service. The revenue recorded corresponds to the price attributed to the obligation to be recorded.
Revenue is recorded only if the consideration for the goods or services transferred to the customer
is likely to be received;
\u25aa costs are accounted for in accordance with the accruals principle.
Grants \u2013 Capital grants are recognized in the income statement over the period necessary for correlating
them to the related costs. They are represented in the statement of financial position by recording the
grant as deferred revenue. Operating grants, including those received from users for connection
purposes, are considered to be revenues for services rendered during the fiscal period and are therefore
recorded on an accruals basis.
Lease payments \u2013 Lease payments relating to lease contracts for low-value assets and leases with a
contract duration of 12 months or less (short-term leases) are recorded in the income statement as
charges for the period. The Group has set a threshold of 10 thousand euro for deeming the individual
underlying asset to be of modest value.
Financial income and expense \u2013 Financial income and expense are recognised on an accrual basis.
Dividends from \u201cOther shareholdings\u201d are recorded in the income statement, at the time the right to
receive payment is established, the economic benefits arising from the dividends are likely to be received
by the Group and their value can be assessed reliably.
Taxes \u2013 Taxes are the sum of current, deferred and possible substitute taxes. Current taxes are
calculated on the taxable income for the financial period. \u201cCurrent tax liabilities\u201d are calculated on the
basis of the tax rates applicable on the balance sheet date.
In determining tax rates for the period, the Group took into due consideration the effects of the IAS tax
reform introduced by Law 244 of 24 December 2007 and in particular the reinforced derivation principle
established by Article 83 of the TUIR. 83 of the TUIR. This regulation calls for entities that use IFRSs to
apply, including in a departure from the provisions of the TUIR, the criteria for the determination,
recognition and classification in the financial statements provided for by said accounting standards.
Deferred taxes are calculated having regard to timing differences in taxation, and are recorded under
item \u201cDeferred tax liabilities\u201d. \u201cDeferred tax assets\u201d are recognised to the extent that the existence of a
taxable income at least equal to the amount of the differences to be offset is considered probable when
the timing differences will reverse. Deferred taxes are determined on the basis of the tax rates foreseen
to be in force during the financial year in which the tax asset will be conferred or the tax liability will be
extinguished, on the basis of tax rates established by provisions in force or substantively in force at the
date of the financial statements. These changes are recognised in profit or loss or in equity, depending
on how the difference in question was originally recorded.
Finally, substitute taxes may be recorded when legal provisions exist that allow the Group to take
advantage of special tax regimes. These are, by nature, non-recurring taxes, which may be attributed to
the Group\u2019s desire to opt or not for the related tax regime.
In the event that the substitute tax is paid pursuant to a tax regulation that allows the balance sheet value
of a utility to be aligned, in whole or in part, with the corresponding tax value of the utility, the Group
proceeds to recognize the total value of future tax benefits (tax assets) and, at the same time, the entire
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substitute tax in the financial year in which management makes the decision to take advantage of this
opportunity.
Conversion of foreign currency balances \u2013 Foreign currency transactions are initially recorded using
the exchange rate in force as of the transaction date. Foreign currency assets and liabilities, with the
exception of fixed assets, are recorded using the exchange rate in force as at the period end date and
the related exchange gains and losses are recognized through profit or loss. Any net gain that might
arise is set aside in a specific restricted reserve until the date of realization.
Transactions with related parties \u2013 Transactions with related parties take place on an arms\u2019-length
basis, in observance of efficiency and cost-effectiveness criteria. Some specific transactions are
remunerated on the basis of rates established by ARERA resolutions.
Risk management
Credit risk
The credit risk faced by the Group originates from the broad structure of the client portfolios in the main
business areas in which it operates; for the same reason, this risk is spread out over a large number of
clients. In order to manage the credit risk, the Group established procedures for selecting, monitoring
and evaluating its customer portfolio. The Italian market is the benchmark market.
The Group\u2019s credit management model makes it possible to analytically determine the different risks
associated with the collectability of trade receivables as soon as they arise and progressively according
to their increasing seniority. This approach allows the company to reduce the concentration and exposure
to credit risk posed by both business and household customers. With regard to receivables from small-
sized customers, write-downs are carried out on the basis of future-oriented analysis regarding the
amount of probable future income, taking into consideration the seniority of the receivables, the type of
recovery action undertaken and the status of the creditor. From time to time, analyses are conducted on
the individual credit positions yet to be resolved, identifying any criticality, and if the amounts outstanding
are uncollectible, in whole or in part, the related receivables are written down.
Liquidity risk
Liquidity risk concerns the inability to meet the financial obligations taken on due to a lack of internal
resources or an inability to find external resources at acceptable costs. Liquidity risk is mitigated by
adopting policies and procedures that maximise the efficiency of management of financial resources. For
the most part, this is accomplished through the centralised management of cash inflows and outflows
(centralised treasury service); in the prospective assessment of the liquidity conditions; in obtaining
adequate lines of credit; and preserving an adequate amount of liquidity.
The financial planning of requirements, focused on medium-term borrowings, and the availability of
abundant funds in credit facilities, allow effective management of liquidity risk.
Interest rate risk and currency risk on financing operations
The cost of financing is affected by interest rate fluctuations. In the same way, the fair value of financial
liabilities is also subject to interest rate and exchange rate fluctuations.
The Group regularly assesses its exposure to such risks and manages them by means of derivative
financial instruments, in accordance with its risk management guidelines. To mitigate interest rate
volatility risk and simultaneously ensure a correct balance between fixed rate debt and variable rate debt,
the Group has stipulated interest rate derivatives in relation to a portion of its financial liabilities. At the
same time, to mitigate exchange rate volatility risk, the Group has signed foreign exchange derivatives
to fully hedge loans in foreign currencies.
Under these guidelines, derivative financial instruments may only be used to manage its exposure to
interest and exchange rate fluctuations related to cash flows and balance sheet assets and liabilities.
These policies do not enable speculative activities to be carried out.
Market risk and currency risk on commercial operations
Concerning the wholesale business carried on by Hera Trading Srl, the Group manages risks related to
the misalignment between indexation formulas related to the purchase of gas and electric energy and
the indexation formulas related to the sales of the same commodities (including contracts entered into at
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fixed prices) as well as exchange rate risks in case the trading contracts for the commodities are
denominated in currencies other than the euro (U.S. dollar).
In relation to these risks, the Group has set up a number of instruments, including different types of
commodity derivatives (which may also include physical delivery) aimed at pre-establishing the effects
on sales margins irrespective of changes in market conditions. The organisational model adopted and
the supporting management systems make it possible to identify the nature of the operation (hedging vs.
trading) and produce the information required for a formal identification of the purpose of these
instruments. Specifically, from an operational standpoint, the Group identified a commercial portfolio,
including contracts signed to manage the Group\u2019s procurement activities, and a trading portfolio,
including instruments whose purpose cannot be strictly related to the underlying procurement activities.
For an exhaustive discussion of how the Group analyses, measures, monitors and manages exposure
to these risks, please refer to paragraph 1.02.03 \u201cRisk areas: identification and management of risk
factors\u201d in the management report.
Significant estimates and valuations
Preparation of the consolidated financial statements and related notes requires the use of estimates and
valuations by the directors, with effects on the balance sheet figures, based on historical data and on the
forecasts of specific events that are reasonably likely to occur on the basis of currently available
information. These estimates, by definition, are an approximation of the final figures. Hence the main
areas characterised by valuations and assumptions that could give rise to variations in the values of
assets and liabilities by the next accounting period are set forth below.
Recognition of revenues
Revenues for the sale of electricity, gas and water are recognised and accounted for at supply only if the
consideration is expected to be collected. They include the allocation for services rendered between the
date of the last reading and the end of the financial year, but not yet billed. This allocation is based on
estimated of the customer\u2019s daily consumption, based on the historic profile, adjusted to reflect the
weather conditions or other factors which might affect consumption under evaluation.
Provisions for risks
These provisions were made by adopting the same procedures as in previous years, with reference to
reports by the legal advisors and consultants that are following the cases, and on the basis of
developments in the relevant legal proceedings as well as of the updates of the hypotheses concerning
future expenses for post-mortem costs of the landfills, following the revision of the estimated costs
identified by external consultants.
Depreciation
Depreciation is calculated on the basis of the useful life of an asset. The useful life is determined by
Management at the time the asset is recognized in the balance sheet; valuations of the duration of useful
life are based on historical experience, market conditions and the expectation of future events that could
affect the useful life itself, including technological changes. Therefore, the actual useful life might differ
from the estimated useful life.
Impairment test
The Group carries out an analysis of the recoverable value of assets (including goodwill) as well as of its
investment (not majority investment) in companies holding assets for generating thermoelectric energy,
through impairment tests, at least once a year. This test is based on the calculation of its value in use,
which requires the use of estimates as specified in note 25 and 27 of the comments to the financial
statement formats.
Deferred tax assets
Accounting for deferred tax assets takes place on the basis of expectations of taxable income in future
years. The evaluation of the taxable income expected for the purposes of accounting for deferred tax
assets depends on factors that may vary over time and significantly affect the recoverability of deferred
tax assets.
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Fair value assessment and evaluation process
The fair value of financial instruments, both on interest rates and foreign exchange rates, derives from
market prices. In the absence of prices quoted in active markets, the method of discounting back future
cash flows is used, taking the parameters observed on the market as reference. The fair value of
contracts on commodities are determined using directly observable market inputs, where available. The
methodology for calculating the fair value of these instruments includes the assessment of the non-
performance risk, where relevant. All derivative contracts entered into by the Group are with leading
institutional counterparties.
Fair Value Hierarchy
The financial instruments measured at fair value are classified through a three-level hierarchy based on
the way the fair value was determined, i.e., with reference to the factors used in determining the value:
\u25aa level 1, financial instruments the fair value of which is determined on the basis of quoted prices in
active markets;
\u25aa level 2, financial instruments the fair value of which is determined using valuation techniques that
employ parameters that are directly or indirectly observable on the market. Instruments valued on
the basis of the market forward curve and short term differential contracts are classified in this
category;
\u25aa level 3, financial instruments the fair value of which is determined using valuation techniques that
employ parameters that cannot be observed on the market, using internal estimates exclusively.
Operational and financial performance
Note that paragraphs 1.04 and 1.07 of the Directors\u2019 report provide an analysis of the business
management performance for the financial period, also by business area; please refer to these for a
specific analysis of the changes in the main categories of operating expenses and revenues, as well as
the Group\u2019s overall financial management.
The financial results for the year by comparison with the previous year are outlined below.
notes
2023
2022
Revenues
1
14,897.3
20,082.0
Other operating revenues
2
667.8
548.2
Raw and other materials
3
(9,672.2)
(16,730.0)
Service costs
4
(3,655.9)
(2,105.8)
Personnel costs
5
(641.1)
(601.1)
Other operating expenses
6
(90.3)
(74.9)
Capitalised costs
7
82.1
82.5
Ebitda
1,587.7
1,200.9
Amortisation, provisions and depreciation
8
(753.7)
(667.1)
Operating profit
834.0
533.8
Share of profits (losses) pertaining to joint ventures and
associated companies
9
10.3
10.0
Financial income
10
157.1
82.2
Financial expenses
11
(345.0)
(217.2)
Financial operations
(177.6)
(125.0)
Earnings before taxes
656.4
408.8
A breakdown of the most significant operating items by business sector is provided in the section
\u201cReporting by operational sector\u201d under 2.02.10 \u201cOther Information.\u201d
Operating revenues and costs decreased significantly during the year, mainly due to the fall in energy
commodity prices compared to the amounts reached during the previous year and the lower volumes of
gas sold to end customers. The Group\u2019s Ebitda is an alternative performance measure whose definition
2.02.02
| Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 139| can be found in Section 1.04 \u201cOverview of operating and financial trends and definition of alternative performance measures\u201d. The gross operating result, positive and amounting to 1,587.7 million euro, with a strong increase over the previous year, benefited from improvement in all main businesses managed by the Group. Note in particular the performance of the electricity sales business, mainly due to the lower impact of modulation and higher volumes sold, related to increases in the customer base both in traditional markets and in safeguarded markets due to the new scope of operations managed. A positive impact also came from intermediation on wholesale gas markets, which benefited from less volatility, while margins on gas sales decreased due to lower volumes sold, as well as the downward trend in reference prices. In addition, although to a lesser extent compared to the previously mentioned factors, there was a continually upward trend, in line with the previous year, in the Ebitda obtained by the energy services and the waste treatment business, partially due to the acquisitions made during the year. \u201cAmortization, provisions and depreciation\u201d increased both as a result of investments entering into depreciation and amortization during the year, and as a result of higher allocations to the provision for bad debts and the provisions for risks and charges. The significant change in financial operations was related to the performance of the energy and financial markets last year. In fact, in the second half of the previous year, the Group underwrote short-medium term loans and short-term credit lines to meet cash requirements, particularly for the storage of methane gas needed to supply its customers for the 2022-2023 thermal year, which took place in a scenario of high prices, coinciding with the rise in the level of reference interest rates. During the 2023 financial year, the Group, once the macroeconomic tensions on the commodity market had subsided, was able to effectively manage the trend of net working capital, thus being able to repay a considerable portion of these loans, although it suffered the effects of the higher financial exposure in a high interest rate scenario on the economic result. 1 Revenues 2023 2022 Change Revenues from sales and services 14,976.8 19,871.3 (4,894.5) Changes in work in progress and semi-finished products (79.5) 210.7 (290.2) Total 14,897.3 20,082.0 (5,184.7) The decrease in \u201cRevenues from sales and services\u201d was mainly due to the drop in energy commodity prices and the decrease in gas volumes sold, partially offset by the higher volumes sold in the electricity sales, energy services and waste treatment businesses. Energy prices, after the sudden rise in the previous year, steadily decreased in 2023, returning to values that were still high but more in line with the years prior to 2022. The change in gas volumes was influenced by the trend of milder weather and, to a lesser degree, by the fact that customers opted for lower consumption, partially as a result of widespread energy saving measures. Due to the particular types of activities that the Group oversees, \u201cRevenues from sales and services\u201d include substantial allocations for services provided to end customers and not yet invoiced as of the financial statement date. Below are the values of invoices to be issued pertaining to the reference period in relation to the three commodities most significantly impacted by the estimated year-end accruals. 2023 2022 Change Gas sales 405.2 730.2 (325.0) Electricity sales 305.5 371.3 (65.8) Water 174.7 159.8 14.9 Total 885.4 1,261.3 (375.9)
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 140|
A breakdown of revenues from sales and services by geographical area is shown below.
2023
2022
Change
Italy
11,500.2
14,102.2
(2,602.0)
European Union
1,923.8
2,874.3
(950.5)
Outside European Union
1,552.8
2,894.8
(1,342.0)
Total
14,976.8
19,871.3
(4,894.5)
The revenues generated outside Italy mainly refer to natural gas trading and electric energy activities,
whose value amounted to 3,383.3 million euro at 31 December 2023 (5,617.8 million at 31 December
2022). Also note that, of the total value of revenues, 2,079.5 million refer to counterparties operating in
the Dutch TTF market (4,064.6 million at 31 December 2022).
\u201cChanges in work in progress and semi-finished products\u201d, includes the economic effect for the year of
changes in contract work, determined on the basis of the percentage of work in progress. It is mainly
attributable to energy efficiency works carried out for end customers, typically condominiums. The
change compared to the previous year reflects the conclusion in 2023 of the activities related to the 110%
super-bonus and insulation subsidies, in progress at 31 December 2022, an effect partially offset by the
orders still in progress at the end of the period that will be completed in the first months of 2024.
Revenues from related parties are presented in Note 2.03.01, \u201cIncome statement as per Consob
resolution 15519/ 2006\u201d.
2 Other operating revenues
2023
2022
Change
Long-term contracts
433.8
397.6
36.2
Operating grants
86.2
52.9
33.3
White certificates
47.1
14.5
32.6
Grants related to plants
13.3
12.8
0.5
Gains from asset disposals
1.8
0.9
0.9
Other revenues
85.6
69.5
16.1
Total
667.8
548.2
119.6
\u201cLong-term contracts\u201d include revenues generated from the construction or improvement of
infrastructures held in concession as per the application of the accounting model for intangible assets for
public services held under concession.
\u201cOperating grants\u201d mainly involve:
\u25aa grants related to gas and electricity costs amounting to 43.3 million euro (38 million euro at 31
December 2022), recognised, in the form of tax credits, by the government\u2019s aid decrees introduced
since the 2022 financial year to address the energy price emergency. These grants were fully offset
already in 2023 with taxes and contributions to be paid by the Group;
\u25aa grants amounting to 35.7 million euro recompensing the costs incurred for the management of the
flood emergency that hit Emilia-Romagna and some neighbouring regions in May 2023, affecting part
of the areas in which the Group manages public utilities.
\u201cWhite certificates\u201d represent the revenues calculated on the basis of energy efficiency objectives as
established by the GSE and regulated in relation to the Cassa per i Servizi Energetici e Ambientali,
amounting to 47.1 million euro (14.5 million euro at 31 December 2022). The change compared to the
previous year was mainly due to the higher number of certificates defined for the 2023 obligation, with
essentially the same tariff contribution recognised for distribution companies, as well as the different
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 141|
modality for fulfilment of 2022 obligations compared to what was included in the financial statements at
31 December 2022.
\u201cGrants related to plants\u201d represent the proceeds for the period associated with the depreciation rate of
the assets subject to grants.
\u201cOther revenues\u201d mainly consist of insurance reimbursements and recovery of fees. In particular, note
that in the year in question the Group has received insurance reimbursements for the flood emergency
described above, amounting to 10 million euro for the costs incurred linked to the reconstruction of plant
and network equipment.
3 Raw and other materials
2023
2022
Change
Raw materials earmarked for sale
9,330.9
16,725.0
(7,394.1)
Environmental certificates
117.7
35.1
82.6
Materials for industrial use
57.7
41.4
16.3
Plastic materials
57.1
93.6
(36.5)
Charges and revenues from derivatives
(188.7)
(371.4)
182.7
Maintenance and other materials
297.5
206.3
91.2
Total
9,672.2
16,730.0
7,057.8
\u201cRaw materials earmarked for sale\u201d, net of changes in stocks and the write-downs introduced, include
supplies of natural gas, electricity and water. The natural gas brokerage business on the Dutch TTF
market generated costs of 1,927 million euro (4,364.9 million euro at 31 December 2022). The decrease
seen during the period, similarly to what was described in Note 1, \u201cRevenues\u201d, was due to the reduction
in energy commodity procurement prices and lower volumes of gas sold, which were partially offset by
the increase in volumes sold to electricity end customers.
\u201dEnvironmental certificates\u201d include the purchase cost of white certificates, which are supplied in
accordance with the obligations assigned to the distribution companies. This item also includes the
environmental certificates in stock, mainly made up of grey certificates as well as the valorisation of
commitments for purchasing electricity from renewable sources in relation to contracts signed with end
customers and greenhouse gas emission allowance trading contracts. The increase seen during the
period involved the higher number of trading portfolio grey certificate transactions, higher obligations for
white certificates pertaining to 2023, and higher charges for purchase commitments for certificates of
origin of electricity from renewable sources, the latter matched by increased unit prices.
\u201cMaterials for industrial use\u201d mainly include the procurement of methane gas and electricity to power the
Group\u2019s production plants, as well as the purchase of fuels and lubricants for fleet management.
\u201cPlastic materials\u201d, net of changes in stocks, include the cost of purchasing plastic raw materials destined
for subsequent processing and transformation as part of Aliplast\u2019s activities. The change in costs was
consistent with the decrease in sales revenue as a result of the trend seen in the plastics market which,
after a considerable price increase during the previous year, showed a downward trend, settling back to
the prices of previous years.
\u201cMaintenance and other materials\u201d, net of changes in stocks, mainly include consumables used in the
management of the Group\u2019s operating activities and, marginally, products purchased to be resold to end
customers. The significant increase seen during the period was mainly due to increased activities for
network services, energy services related to energy efficiency, in particular in apartment buildings, and
the effect of the acquisition of control transactions that took place in 2023.
As regards \u201cCharges and revenues from derivatives\u201d, see Note 29, \u201cDerivative instruments\u201d, for an
analysis of the nature and performance of these items.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 142|
4 Service costs
2023
2022
Change
Work and maintenance expenses
1,252.0
872,2
379.8
Transport and storage
1,221.2
269.3
951.9
Waste transportation, disposal and collection
560.4
467.6
92.8
Technical services
161.9
119.6
42.3
IT and data processing services
83.3
65.5
17.8
Fees paid to local authorities
64.3
61.7
2.6
Professional services
56.6
43.5
13.1
Other service costs
256.2
206.4
49.8
Total
3,655.9
2,105.8
1,550.1
\u201cWork and maintenance expenses\u201d refer to the costs for the construction or improvement of
infrastructures under concession pursuant to the application of the accounting model for intangible assets
for public services held under concession, the costs of implementing energy efficiency measures, and
the costs for maintaining the plants managed by the Group. The change with respect to the previous
year is mainly due to activities related to increasing the energy efficiency of apartment buildings. Also
note that this item was influenced at 31 December 2023 by costs related to the emergency that struck
Emilia-Romagna and neighbouring regions in May 2023, affecting part of the areas in which the Group
manages public utilities.
\u201cTransport and storage\u201d include the costs of transporting and storing gas as well as the costs of
distributing gas and electricity distribution, including system charges. The latter, in particular, represent
cost components charged to end customers and therefore not substantially affecting the Group\u2019s results.
The change compared to the previous year is mainly attributable to:
\u25aa higher system charges related to the electricity business, following the conclusion of the effects of
the regulatory measures that, starting from the last quarter of 2021 and until the first quarter of 2023,
called first for a reduction and later the annulment of general system charges in the electricity sector
for a very wide range of users, in order to lower the high bills caused by sharp rises in energy
commodity prices;
\u25aa higher natural gas storage and transportation costs due to the greater volumes managed directly by
the Group on Remi substations, without turning to procurement contracts;
\u25aa higher electricity commodity distribution costs mainly due to the increase in volumes sold.
\u201cWaste transportation, disposal and collection\u201d mainly include the operating costs of urban hygiene and
waste disposal activities. The change from the previous year was due to:
\u25aa the effect of the acquisition transactions carried out in 2023, relating in particular to the company
A.C.R. Spa, which operates in the waste treatment business;
\u25aa the atmospheric emergency that struck Emilia-Romagna and neighbouring regions in May 2023,
affecting part of the areas in which the Group manages public utilities;
\u25aa higher waste transport and treatment costs due to an increase in trading, which led to a rise in the
volumes treated on the utility market and for the management of by-products.
\u201cTechnical services\u201d mainly include costs incurred in carrying out the administrational activities related
to increasing the energy efficiency of apartment buildings and installing photovoltaic systems for the
Group\u2019s end customers.
\u201cIT and data processing services\u201d include costs for maintaining and managing the Group\u2019s IT and
telecommunications infrastructure, as well as corporate applications and cybersecurity systems.
The item \u201cFees paid to local authorities\u201d includes the charges incurred for the use of public owned
networks, fees paid to companies that own these assets for the rent of gas, water and electricity cycle
assets. It also includes, marginally, the fees paid for the use of telecommunications and district heating
networks.
| Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 143| \u201cProfessional services\u201d include charges for commercial, legal, notary, administrative and tax services. This item includes fees paid for auditing financial statements and issuing certifications. The change compared to the previous year was due to the increase in costs for both managing documents for receivables, arising from the application of the discount included in invoices for improving the energy efficiency of apartment buildings, and managing receivables in litigation and credit recovery. \u201cOther service costs\u201d include all other costs for services not specified in the above categories. This item also includes commissions and other costs to agents totalling 39.2 million euro (21.4 million euro at of 31 December 2022) and bank commissions in the amount of 22.3 million euro (15.2 million euro at 31 December 2022). Note that the item \u201cOther service costs\u201d also includes instalments relating to short-term leases and low-value leases, the amount of which is not significant for 2023. 5 Personnel costs 2023 2022 Change Salaries and wages 455.0 423.0 32.0 Social security costs 147.7 136.7 11.0 Other costs 38.4 41.4 (3.0) Total 641.1 601.1 40.0 The increase as compared to the previous year is mainly linked to: \u25aa an increase in the number of employees in force, especially as a result of the acquisitions made in 2023; \u25aa changes in salaries provided for by the national collective labour agreements. These effects were partially offset by lower charges incurred for termination of employment compared to the previous year. The average and specific number of employees for the period in question, analysed by category, is as follows: Average Specific 2023 2022 Change 2023 2022 Change Managers 159 154 5 158 153 5 Middle managers 591 580 11 593 593 \u2010 Clerks 5,616 5,276 340 5,604 5,251 353 Blue-collar workers 3,644 3,441 203 3,610 3,418 192 Total 10,009 9,451 558 9,965 9,415 550 The average cost of labour per capita for 2023, in line with 2022, is as follows: thousand euro 2023 2022 Change Average cost of labour per capita 64.0 64.0 \u2010
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 144|
6 Other operating costs
2023
2022
Change
Taxation other than income taxes
25.0
23.3
1.7
Losses on the sale and disposal of assets
16.6
9.2
7.4
Fees paid to Institutional Authorities
15.5
13.3
2.2
Minor charges
33.2
29.1
4.1
Total
90.3
74.9
15.4
\u201cTaxation other than income taxes\u201d mainly relate to taxes on buildings, stamp duties and registration
fees, public area occupation fee, fees related to the landfills managed and excise duties.
\u201cLosses on the sale and disposal of assets\u201d were mainly due to the disposals carried out during the year
of plants and equipment related to network-managed businesses, district heating and waste
management. This amount includes the effects of the May 2023 flooding that affected some areas
managed by the Group.
\u201cFees paid to Institutional authorities\u201d paid to the regions, land reclamation consortia, sector agencies
and mountain-area communities, mainly regarding the withdrawal and use of water, as well as
maintenance and management costs for hydraulic works. The item also includes fees for the
safeguarding of hydrogeological protection areas in mountain municipalities (as provided for by Regional
government decree. 933/2012) and fees paid for the operation of Atersir.
\u201cMinor charges\u201d comprise other residual items including membership fees, indemnities, sanctions and
fines.
7 Capitalised costs
2023
2022
Change
Increase of self-constructed assets
82.1
82.5
(0.4)
This item, in line with the previous year, mainly includes labour costs and other charges (such as storage
materials and costs for use of equipment) directly attributable to the Group\u2019s self-constructed assets.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 145|
8 Amortisation, provisions and depreciation
2023
2022
Change
Amortisation, depreciation and write-down
526.2
478.6
47.6
Net provisions
227.5
188.5
39.0
Total
753.7
667.1
86.6
Details of the item Amortisation, depreciation and write-down are as follows:
notes
2023
2022
Change
Amortisation and depreciation
21, 22, 23
519.3
477.1
42.2
Write-down
21, 22, 23
6.9
1.5
5.4
Total
526.2
478.6
47.6
Amortisation and depreciation refer to tangible assets, rights of use and intangible assets.
Write-down mainly refers to waste treatment assets, amounting to 3.7 million euro.
Details of the item Net provisions are as follows:
notes
2023
2022
Change
Provisions to the bad debts fund
33
158.0
133.9
24.1
Provisions to risks and charge funds
31
85.7
66.6
19.1
De-provisioning
31,33
(16.2)
(12.0)
(4.2)
Total
227.5
188.5
39.0
Provisions include value adjustments to the bad debts fund and provisions for risks and charges.
De-provisioning includes the re-verification of funds in view of the fact that the underlying risks no longer
exist.
9 Share of profits (losses) pertaining to joint ventures and associated
companies
2023
2022
Change
Joint venture share of net profits
2.2
3.1
(0.9)
Associated companies share of net profits
8.1
6.9
1.2
Total
10.3
10.0
0.3
The share of profits and losses of joint ventures and associated companies includes the effects
generated by the valuation of the companies included in the scope of consolidation carried out using the
equity method. For further details see Note 26, \u201cShareholdings\u201d.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 146|
10 Financial income
2023
2022
Change
Customers
47.8
24.2
23.6
Income from valuation at fair value of financial assets and
liabilities
46.9
11.2
35.7
Bank interest
27.4
1.1
26.3
Income from derivatives
5.1
18.3
(13.2)
Income from the disposal of tax credits
0.1
16.0
(15.9)
Other financial income
29.8
11.4
18.4
Total
157.1
82.2
74.9
\u201cCustomers\u201d mainly include interest on arrears in the gas and electricity sales business and interest
applied to customers for energy efficiency enhancement measures linked to the 110% super-bonus.
The item \u201cIncome from valuation at fair value of financial assets and liabilities\u201d includes the following:
notes
2023
2022
Change
Put options and contingent consideration
19
31.3
12.6
18.7
Bonds
29
15.6
\u2010
15.6
Other reserves
\u2010
(1.4)
1.4
Total
46.9
11.2
35.7
\u25aa Put options and contingent consideration represent the positive effects of updating the estimates of
liabilities recognized in previous years in connection with one-time acquisition transactions. The
amount at 31 December 2023 mainly includes the effects of:
\u2013 the updated valuation, amounting to 26.9 million euro, of the liability for the put option held by
Ascopiave Spa on the minority interest in EstEnergy Spa, taking into account the partial exercise
of a 15% share that occurred;
\u2013 the excess, amounting to 4.1 million euro, of the value of the put option on the minority interest in
Recycla Spa, following the exercise thereof, which resulted in the Group obtaining all of the
shares.
\u25aa Bonds represent valuation adjustments, in application of the fair value hedge, of a bond loan in
currency.
\u201cBank interest\u201d includes income from the short-term use of available liquidity. The significant change
compared to the previous year is due to an increase in average balances bearing interest rates that rose
during the year.
\u201cIncome from derivatives\u201d includes the effects of both valuation and realization of interest and foreign
exchange derivatives, as detailed in Note 29 \u201cDerivative Instruments\u201d.
\u201cIncome from the disposal of tax credits\u201d represents the financial income realized following the transfers
to banking institutions of tax credits resulting from the application of the discount on invoices for energy
efficiency work carried out on behalf of customers who have taken advantage of the 110% super-bonus
rebate. The near-annulment of this item is due to both the increasingly restrictive measures issued by
the government beginning in late 2022 deadline concerning the reference legislation, and the increase
in the cost of money, which led to an increase in the discount rate requested by financial institutions to
the point of creating transfer prices lower than the nominal value of the original receivable. The effect of
this was the recording, in relation to these transactions, of transfer charges, as explained in Note 11,
\u201cFinancial expenses\u201d.
| Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 147| The item \u201cOther financial income\u201d includes the following: notes 2023 2022 Change Discounting of energy efficiency receivables 7.8 \u2010 7.8 Dividends 6.4 4.1 2.3 Discounting of non-current financial receivables 18 6.3 4.7 1.6 Write-backs of value 25, 27 3.5 \u2010 3.5 Loans 18 2.1 2.0 0.1 Other 3.7 0.6 3.1 Total 29.8 11.4 18.4 \u25aa Discounting of energy efficiency receivables represents the valuation at amortised cost of tax credits deriving from the application of the discount included in invoices for apartment building redevelopment, intended compensation within the Group thanks to the use of its tax capacity; \u25aa Dividends represent the portions of profit paid by companies classified as \u201cOther equity investments\u201d, specifically referring to the equity investment in Ascopiave Spa and Veneta Sanitaria Spa, which increased due to the payment of a non-recurring dividend by the latter during 2023; \u25aa Discounting of non-current financial receivables mainly includes the effect of valuation at the amortised cost the receivables for construction and improvements of assets recorded as part of applying the financial activity model for public services under concession; \u25aa Write-backs of value mainly refer to the portion of financial receivables previously written down concerning the associated companies Tamarete Energia Srl and H.E.P.T. Co. Ltd., which were collected during the year; \u25aa The item Loans, in line with the previous year, represents interest income on loans granted to companies valued at net equity and minor investees. 11 Financial expenses 2023 2022 Change Expenses from bonds and loans 133.9 82.2 51.7 Factoring charges and disposals of tax credits 58.8 47.3 11.5 Expenses from valuation at fair value of financial assets and liabilities 56.5 (6.3) 62.8 Valuation at ammortized cost of financial liabilities 33.5 30.0 3.5 Expenses from derivatives 23.8 21.4 2.4 Discounting of options and consideration on equity investments 17.6 20.7 (3.1) Discounting of provisions 7.9 12.5 (4.6) Other financial expenses 13.0 9.4 3.6 Total 345.0 217.2 127.8 \u201cExpenses from bonds and loans\u201d include interest for the period relating to bond instruments issued by the parent company Hera Spa and interest relating to loans provided by the banking system and other financing institutions. The financial collection operations carried out during the second half of 2022 in order to meet the cash requirements caused by the macroeconomic context, strongly influenced by the rise in commodity prices and the significant amount of gas storage in a context of rising interest rates, led to a significant increase in the Group\u2019s short-medium term debt expenses for 2023.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 148|
\u201cFactoring charges and disposals of tax credits\u201d includes the following:
notes
2023
2022
Change
Disposals of trade receivables and other
operating receivables
44.8
14.0
30.8
Disposals of tax credits
35
14.0
33.3
(19.3)
Total
58.8
47.3
11.5
\u25aa Disposals of trade receivables and other operating receivables increased as a result of the higher
discount rates applied in the year in question by financial institutions, despite a reduction in the
volume of receivables transferred, and a change in the mix of receivables concerned by transfers,
since assets characterised by longer and, therefore, more costly collection times became prevalent.
\u25aa Disposals of tax credits includes expenses caused by the transfer of receivables recognised as a
result of the application of the discount included in invoices to customers for energy efficiency
measures. The decrease in these charges compared to the previous year, despite an increase in the
nominal value of the transfers carried out and the respective discount rates, is essentially due to the
different mix of receivables transferred. In 2023, in fact, only credits for the 110% super-bonus were
transferred, while in the previous year the transfers also referred to other types of tax credits, which
were more costly since they were to be paid over a longer period of time. Furthermore, as explained
in Note 10 \u201cFinancial income\u201d with reference to the 110% super-bonus credits, the increase in interest
rates and the regulatory tightening resulted in financial expenses being recognised in 2023 against
financial income recognised in the previous year.
The item \u201cExpenses from valuation at fair value of financial assets and liabilities\u201d includes the following:
notes
2023
2022
Change
Energy efficiency credits
35
56.4
(12.6)
69.0
Minority shareholders\u2019 put option
19
0.1
5.7
(5.6)
Bonds
29
\u2010
0.6
(0.6)
Total
56.5
(6.3)
62.8
\u25aa Energy efficiency credits involved the valuation at market value of receivables related to the
application of the discount included in invoices to end customers for energy efficiency measures. The
accounting policy adopted by the Group foresees that in the event of a subsequent transfer, the final
charge correlated to the transaction is recognised under the item \u201cFactoring and tax credit transfer
charges\u201d, while at the same time closing the valuation position opened in the previous year,
generating a substantially offsetting effect, while in the event of compensation within the Group, the
valuation is made at amortised cost, recording a corresponding financial income by way of the cash
savings generated. The significant increase in valuation expenses compared to the previous year is
attributable to both the greater volume of receivables in the portfolio at 31 December 2023, as a result
of the energy efficiency works falling under the 110% super-bonus regulations and the lower market
value used for the valuation compared to 2022;
\u25aa Put options and contingent consideration represent the negative effects of updating the estimates of
liabilities recognized in previous years in connection with one-time commercial acquisition
transactions.
\u201cValuation at ammortized cost of financial liabilities\u201d include imputed charges necessary to bring the face
cost of debt in line with that calculated using the effective interest rate method. The item also includes
figurative charges of 3.2 million euro, in line with the previous year, relating to the put option held by
Ascopiave Spa on the minority shareholding in Hera Comm, accounted for as a loan (with a nominal
value of 54 million euro), as reported in Note 19, \u201cFinancial liabilities.\u201d The increase seen during the year
was mainly due to the green bond issued in May 2022 and the sustainability-linked bond issued in April
2023.
\u201cExpenses from derivatives\u201d includes the effects of both valuation and realization of interest and foreign
exchange derivatives, as detailed in Note 29 \u201cDerivative Instruments.\u201d
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 149|
\u201cDiscounting of options and consideration on equity investments\u201d mainly includes notional discounting
charges related to the fair value valuation of put options granted to minority shareholders, as reported in
Note 19 \u201cFinancial liabilities\u201d.
\u201cDiscounting of provisions\u201d is broken down as follows:
notes
2023
2022
Change
Restoration of third-party assets
31
4.4
4.1
0.3
Post-employment and other employee benefits
30
3.0
0.3
2.7
Post-closure landfills
31
0.3
8.0
(7.7)
Plant dismantling
31
0.2
0.1
0.1
Total
7.9
12.5
(4.6)
See the notes to the respective balance sheet items for an analysis of the change in charges for funds
updating from the comparison year, where significant.
The item \u201cOther financial expenses\u201d, residual in nature, includes the following:
notes
2023
2022
Change
Write-downs
27
5.9
\u2010
5.9
Leases
22
2.8
2.6
0.2
Other expenses
4.3
6.8
(2.5)
Total
13.0
9.4
3.6
Write-downs include the valuations made during impairment tests on shareholdings and refer entirely to
the investment in the associated company Set Spa, a vehicle through which the Group holds production
quotas for a power generation plant. For further details, see Note 27 \u201cImpairment tests on equity
investments\u201d.
Other expenses mainly include interest for financial intermediation and interest related to payment
deferrals.
Taxation
2023
2022
Change
Earnings before taxes
656.4
408.8
247.6
Taxes
(173.2)
(103.5)
(69.7)
Net profit for the period
483.2
305.3
177.9
Tax rate
26.4%
25.3%
The increase in the tax rate was mainly due to the dilution of the positive effects on the tax burden of
incentives such as maxi and hyper amortisation, as well as ACE (which also decreased in absolute
terms), on account of the higher pre-tax profit for the year in question, in addition to the lesser benefits
recorded in 2023 relating to exemption transactions and the impact of taxes dating to previous years.
The tax rate, lower than the nominal IRES and IRAP rates, was positively impacted by:
\u25aa the non-recurring incentives, in the form of tax credits, introduced for the purchase of electricity and
gas, which represented untaxed income components coming to 43.3 million euro (as against 38
million euro at 31 December 2022);
\u25aa the positive effects on the result of the fair value valuation of put options to minority shareholders that
are not relevant for tax purposes, amounting to roughly 31 million euro (12.6 million euro as of 31
December 2022);
2.02.03
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 150|
\u25aa the benefits arising from the exemption of the higher values originating from the acquisition of
controlling interests, coming to 2.8 million euro (4.2 million euro at 31 December 2022).
12 Taxes
This item is made up as follows:
2023
2022
Change
Current
Pre-paid
Deferred
Total
Current
Pre-paid
Deferred
Total
IRES
178.9
(63.9)
10.6
125.6
81.0
(13.0)
0.7
68.7
56.9
IRAP
47.2
(4.1)
0.7
43.8
26.7
(0.7)
1.1
27.1
16.7
Substitute tax
3.8
\u2010
\u2010
3.8
5.4
\u2010
\u2010
5.4
(1.6)
Nonrecurring
subsidies
\u2010
\u2010
\u2010
\u2010
2.3
\u2010
\u2010
2.3
(2.3)
Total
229.9
(68.0)
11.3
173.2
115.4
(13.7)
1.8
103.5
69.7
A higher current tax burden was seen in 2023 compared to the previous year, mainly due to the sharp
increase in the pre-tax result.
Pre-paid taxes include the effect of temporary changes in income components not deductible from tax
income for the year, mainly relating to the fair value adjustment of trade receivables arising from the
application of the discount included in invoices and provisions for risks and charges. It also includes the
benefit on IRES and IRAP taxes deriving from the exemption carried out pursuant to Decree Law No.
185/2008 (converted into Law No. 2/2009) involving the higher values arising following the acquisition of
Con Energia Spa, amounting to 6.5 million euro, against the payment of a substitute tax of set at 3.7
million euro. Note that during the previous year this item included tax benefits resulting from exemptions
totalling 9.5 million euro against the payment of substitute taxes coming to 5.3 million euro.
Note that during the previous year, non-recurring grants consisted of the nonrecurring solidarity-oriented
levy contribution established for 2022 by Decree-Law No. 21/2022, in order to contain the effects of the
increase in prices and tariffs in the energy sector for businesses and consumers.
As regards this nonrecurring contribution and its possible application to an additional company with
respect to the amount recognised as a tax expense in the previous year, the Group, while believing that
there was no objective probability of having to pay said contribution (supported in this conclusion by the
opinion of its tax advisors), even in a context of uncertainty related to the interpretation of this legislation,
in order to avoid the application of penalties, believed it was appropriate to proceed with the payment of
an additional 9.6 million euro, subsequently proceeding to file a refund application. Lastly, the subsequent
Law 197/2022, the so-called Budget Law 2023, changed the scope of this nonrecurring contribution, and
the amount of 13 million euro already paid by Hera Spa was no longer due. The same Budget Law 2023
also established a nonrecurring solidarity contribution, in the form of a temporary levy, to be paid during
2023. The levy, unlike ordinary taxes, did not apply to the profit produced in 2022, but on the surplus
profits arising from a comparison with previous periods. In consideration of the criteria for determining
the tax base under the aforementioned law, the levy was not payable by any Group company.
The Group has adopted the temporary exception provided for by IAS 12 to the recording of deferred tax
assets and liabilities related to the application of the Pillar 2 provisions, which were introduced into Italian
law with effect from 1 January 2024 by Legislative Decree No. 209 of 28 December 2023. Based on this
decree, Hera Spa qualifies as an Ultimate Parent Entity (UPE) since it fully consolidates the assets,
liabilities, revenues, costs and cash flows of the Group companies in which it holds an interest (directly
and indirectly).
Based on the results of the preliminary calculation of the Transitional CbCR Safe harbour (TSH) test
relating to the 2022 tax period carried out by UPE, the Group (understood as all the companies
consolidated for accounting purposes by the UPE) benefits from the TSH in all jurisdictions except
Bulgaria. The impact of profits generated in Bulgaria with respect to the overall profits of the Hera Group
is not significant, and therefore, if this preliminary assessment were to be confirmed for the 2024 financial
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 151|
year as well, the possible exposure of the Group to the supplementary taxes deriving from Pillar 2 would
not be significant.
For further analysis of trends in the tax rate, see paragraph 1.04.01 \u201cOperating results and investments\u201d
in the Directors\u2019 Report, where both the pre-tax result and the tax burden have been adjusted on a
managerial basis, in order to define a fully comparable adjusted tax rate.
The statutory tax rate determined on the basis of the configuration of taxable income for the purposes of
IRES is equal to 24%. The reconciliation with the effective rate is shown below.
2023
2022
Nominal effective
Percentage effect
Nominal effective
Percentage effect
Earnings before taxes
656.4
408.8
IRES
Standard rate
(157.5)
(24.0)%
(98.1)
(24.0)%
IRAP deduction
1.1
0.2%
0.9
0.2%
Ace
4.3
0,7%
4.9
1.2%
Maxi and hyper depreciation
7.1
1.1%
8.0
1.9%
IRES previous years
(1.5)
(0.2)%
0.8
0.2%
Other changes
15.3
2.4%
4.6
1.1%
IRAP and other current taxes
IRAP
(43.8)
(6.7)%
(27.1)
(6.6)%
Exemption
1.8
0.3%
2.6
0.6%
Taxes
(173.2)
(26.4)%
(103.5)
(25.3)%
This reconciliation is performed only in connection with the IRES, given that, as a result of the rules
governing the IRAP, reconciliation between the statutory tax rate derived from financial statement
information and the effective tax rate is not very meaningful.
The item \u201cMaxi and hyper depreciation\u201d decreased in absolute terms due to the end of the period of tax
benefits for the portion of investments in new instrumental goods made by the Group in past years. Note
that starting from 2020, this benefit was replaced by a tax credit recognition mechanism.
The item \u201cOther changes\u201d increased compared to the previous year, mainly due to the effect of
components of the pre-tax result not relevant for tax purposes relating to the fair value valuation of put
options for minority shareholders and to the higher non-recurring incentives recognised in the form of tax
credits to some Group companies for the purchase of electricity and natural gas. In addition, this item
was negatively affected by the solidarity contribution mentioned above, which was not present in the year
in question.
The item \u201cExemption\u201d includes the net benefit only on IRES taxes resulting from the exemption for the
higher values mentioned above, recognised with the acquisition of Con Energia Spa and amounting to
1.8 million euro (the 1 million euro IRAP benefit is classified under \u201cIRAP\u201d in the same table).
Tax rate / Ires
reconciliation
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 152|
13 Current tax assets and liabilities
31 Dec 23
31 Dec 22
Change
Income tax receivables
10.3
44.8
(34.5)
IRES refund receivables.
1.1
1.2
(0.1)
Total current tax assets
11.4
46.0
(34.6)
Income tax payables
110.2
17.1
93.1
Total current tax liabilities
110.2
17.1
93.1
\u201cIncome tax receivables\u201d refer to the excess of advances paid for direct IRES and IRAP taxes with
respect to the current tax burden for the year.
\u201cIncome tax payables\u201d, mainly include provisions for IRES and IRAP taxes on income produced during
the year, net of advances paid and any prior balances not yet compensated.
The sharp decrease in \u201cIncome tax receivables\u201d and the considerable increase in \u201cIncome tax payables\u201d
compared to the previous year reflect, for certain significant companies, a positive change in pre-tax
profit with respect to 2022, which, due to the mechanism under which direct taxes are paid through
deposits on a historical basis, resulted in a debit for net exposure at 31 December 2023.
14 Deferred tax assets and liabilities
31 Dec 23
31 Dec 22
Change
Pre-paid tax assets
448.2
429.8
18.4
Offsetting of deferred tax liabilities
(146.1)
(189.6)
43.5
Substitute tax credit
0.2
0.2
\u2010
Total net deferred tax assets
302.3
240.4
61.9
Deferred tax liabilities
303.0
405.3
(102.3)
Offsetting of deferred tax liabilities
(146.1)
(189.6)
43.5
Total net deferred tax liabilities
156.9
215.7
(58.8)
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets with the corresponding current tax liabilities.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 153|
The prepaid and deferred taxes relating to 2023 refer to the following temporary difference between the
value attributed to assets and liabilities according to statutory criteria and the corresponding values for
tax purposes.
Deferred tax assets
2023
2022
Temporary
changes
Tax effect
(IRES+IRAP)
Changes in
equity
Temporary
changes
Tax effect
(IRES+IRAP)
Changes in
equity
Pre-paid taxes with effect on the income statement and the statement of comprehensive income
Depreciation
698.2
181.1
686.0
178.5
Provisions for bad debts
321.6
76.2
241.9
57.6
Provisions for risks and charges
244.5
67.8
209.4
56.6
Shareholdings
148.4
41.9
182.3
51.5
Cash flow hedge
60.6
17.4
202.3
58.3
Other
258.6
63.8
117.6
27.4
Total tax effect
1,731.9
448.2
(9.3)
1,639.5
429.8
0.7
Credited (or debited) amount to
the statement of comprehensive
income
(40.3)
(42.9)
Credited (or debited) amount to
the income statement
68.0
13.7
Deferred tax liabilities
2023
2022
Temporary
changes
Tax effect
(IRES+IRAP)
Changes in
equity
Temporary
changes
Tax effect
(IRES+IRAP)
Changes in
equity
Deferred taxes with effect on the income statement and statement of comprehensive income
Depreciation
739.7
150.3
696.6
147.0
Cash flow hedge
133.4
38.1
563.6
161.9
Discounted financial liabilities
60.1
14.4
105.4
18.8
Provisions for risks and charges
32.5
8.8
34.3
9.9
Other
355.1
91.4
263.1
67.6
Total tax effect
1,320.8
303.0
10.3
1,663.0
405.3
13.3
Credited (or debited) amount to
the statement of comprehensive
income
123.9
(28.9)
Credited (or debited) amount to
the income statement
(11.3)
(1.8)
\u201cChanges in equity\u201d do not affect the income statement and statement of comprehensive income for the
year, as they include the balances of deferred tax assets and liabilities arising from business
combinations carried out in 2023 (for which, see paragraph 2.02.10 \u201cOther Information\u201d) and
reclassifications arising between deferred tax assets and liabilities.
\u201cDeferred tax assets\u201d arise from temporary differences between the value attributed to assets and
liabilities according to statutory criteria and the corresponding values for tax purposes. The increase for
the period is due to the following effects:
\u25aa the change in the fair value of commodity derivatives classified as cash flow hedge, resulting in an
asset decrease with a balancing entry in the statement of comprehensive income in the amount of
40.9 million euro.
\u25aa non-deductible components for the year in question, relating to credits for discounts included in
invoices for energy efficiency activities in apartment buildings, resulting in an increase in tax assets
amounting to 23.4 million euro;
\u25aa net allocations to the provision for bad debts of the Parent company and the main sales companies,
resulting in an increase in tax assets amounting to 18.6 million euro overall.
\u25aa net allocations to the provision for risks and expenses, resulting in an increase in tax assets coming
to 11.2 million euro.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 154|
As regards the assets recorded in 2021 for the realignment of goodwill defined by specific legal
provisions, for which tax regulations provide for annual utilisation on a straight-line basis over a period
of 50 years from the date of recognition, the Group\u2019s management confirms its assessment of full
recoverability, considering the temporal extension of predictability for regulated distribution businesses,
the particularly limited impact of the taxable income required to recover these deferred tax assets on the
overall taxable income generated by the distribution assets with a residual useful life of several decades,
as well as the tax consolidation regime under which the Group operates, which makes it possible to offset
any tax losses across all businesses.
\u201cDeferred tax liabilities\u201d arise from timing differences between reported profit and taxable profit. The item
also includes the significant tax effects of recognising or adjusting assets and liabilities in the
consolidated financial statements.
The substantial decrease compared to 31 December 2022 is due to the following effects:
\u25aa change for the period in the fair value of commodity derivatives classified as cash flow hedge,
resulting in a decrease in liabilities coming to 123.8 million euro with a balancing entry in the
statement of comprehensive income;
\u25aa recognition of deferred taxes on customer lists and other intangible assets recognised as a result of
acquisitions of control in 2023, totalling 19.6 million euro, as illustrated in the section \u201cBusiness
combinations (additional information)\u201d in paragraph 2.02.10 \u201cOther information\u201d.
Reporting on tax litigations
IRES, IRAP and VAT
Company
Tax
Description
of litigation
Status
of litigation
Disputed amount*
Amounts paid
(including
provisionally)**
Provisions
booked in the
financial statement
Ascotrade Spa
IRES, IRAP and VAT
Notice of assessment for the years
between 2013 and 2017, and for the
year 2019 concerning the deductibility
of a number of components of the
purchase cost of raw material and the
irregular VAT deduction. Notice of
assessment for the year 2018
concerning VAT alone.
For the years 2013 and 2014, the Second Degree Tax
Court rejected the appeal brought by the Revenue
Agency and ordered it to pay the costs. The
proceedings for the year 2015 saw first instance
rulings in favour of the company, but the Revenue
Agency appealed and the proceedings are pending
before the Second Degree Tax Court. For the years
2016 to 2018, the First Degree Tax Court annulled the
assessments, but the Tax Agency appealed the ruling.
For the year 2019, the company notified an appeal.
11.8
0.7
-
Hera Trading Srl
IRES and \u201cRobin Tax\u201d
surtax
Notices of assessment for the years
between 2011 and 2013 (only the latter
for the Robin tax) concerning the
deduction of valuation charges, net of
related income, from commodity
derivatives and environmental
certificates.
In 2023, the company settled the claims contained in
the notices of assessment for all the years from 2011
to 2013 by paying the amount due and requesting the
extinction of the judgement. Believing that it has in any
case behaved in compliance with the reference
regulations, a request for reimbursement is currently
being prepared.
3.4
3.4
-
Herambiente Spa
IRAP
Notices of assessment for the years
from 2009 to 2013, focused on eligibility
for the IRAP \u201ctax wedge\u201d relief in favour
of the company.
In relation to the tax years for which notices were
received, proceedings are pending before the Court of
Cassation following the appeals lodged by the losing
party (the rulings are both favourable and
unfavourable to the company).
4.1
4.1
-
Herambiente Spa
Witholdings on dividends
Notices of assessment towards non-
application of withholding tax on
dividends paid to Ambiente Arancione
U.A. and European Waste Holding Ltd
in the years 2016 and 2017.
Appeals have been lodged with the appropriate Tax
Court in relation to the proceedings for both years. The
hearing was held and the first degree judgement is
pending.
5.1
Marche
Multiservizi Spa
IRES and IRAP
Notices of assessment for the years
2009 and 2016 with objection to the
deduction of the provision to the landfill
post management allowance.
Proceedings for the years 2009 to 2014, following
appeals filed by the losing party against unfavourable
rulings (there are rulings both favourable and
unfavourable to the company), are pending before the
Regional Tax Commission. The proceeding for the
year 2015 witnessed a ruling favourable to the
Company, but the Inland Revenue has lodged an
appeal and the Company appeared before the
second-degree Tax Court of the Marche Region.
Regarding the year 2016, the company has appealed
the assessment, with the first hearing held at the end
2.5
1.3
0.5
| Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 155| of 2023, with the issuance of an order remanding the case for further proceedings. Inrete Distribuzione Spa IRES and IRAP IRES and IRAP notices of assessment for the years 2016 and 2017 concerning the undue deduction of discounting charges, the erroneous determination of the maxi-amortisation and hyper- amortisation relief (the latter contested for 2017) concerning the ancillary charges for the installation of smart meters, or the undue deduction of employee-related costs for IRAP purposes (2016 only). With regard to the IRAP claim, the Company settled the dispute with the Inland Revenue Office and paid the tax due (of a modest amount). With regard to the two IRES assessments, against which an appeal was lodged, in 2022 the Tax Court ruled in the first degree in favour of the company. Consequently, the Revenue Agency filed an appeal. The proceedings are currently pending in the second degree. Amounts paid on an interim basis were refunded following the favourable first instance ruling. With reference to the 2017 notice of assessment, an appeal has been filed and a hearing is awaited. Pending the hearing, the company has provisionally paid 1/3 of the tax and interest due. 1.3 0.2 - Hera Luce Srl IRES and IRAP Notice of assessment for the year 2013 concerning the deductibility of routine maintenance costs. An appeal was lodged with the Second Degree Tax Court against the first degree ruling, which cancelled the penalties but confirmed the higher taxes claimed. The Company settled the case by resorting to the definition of tax disputes pursuant to Article 1, paragraphs 197 ff of Law no. 197 of 29/12/2022 (Budget Law 2023). 0.6 0.3 - Hera Servizi Energia Spa IRES, IRAP and VAT Assessment with adhesion for the 2018 tax year. As a result of the adversarial process established with the Revenue Agency, the deeds of adhesion were signed in 2024, which led to the closure of the dispute. 2.4 2.4 * \u201cdisputed amount\u201d indicates the original amount of the claim with no interest, unless it was redetermined as a result of judicial conciliation, assessment with adhesion, partial annulment in judicial proceedings or on self-defence. ** the amounts paid include interest, where due. Other taxes Company Tax Description of litigation Status of litigation Disputed amount* Amounts paid (including provisionally)** Provisions booked in the financial statement Herambiente Spa Eco-tax Dispute documents related to the Sommacampagna landfill for the periods 2014-2017. For the 2014, 2016 and 2017 tax periods, a hearing was held and the publication of the ruling is pending. For the 2015 period, instead, an unfavourable ruling was given to the company with a redetermination of the penalties against which the company filed an appeal with the competent Second Degree Tax Court. 7 - 1.5 Herambiente Spa ICI/IMU Notices of assessment for the years 2008 to 2018 following the re- classification in the real estate registry of the Ferrara waste-to-energy plant. The proceedings were concluded for the 2008-2013 notices with a ruling favourable to the Company, while they are still pending before the first-instance Tax Court for the remaining years. 2.1 - 3.2 Herambiente Spa ICI/IMU Notices of assessment for the years between 2011 and 2020 concerning the classification in the real estate registry of land, facilities and buildable areas located in Ravenna. For the years 2011-2020, partially favourable and partially unfavourable rulings were given. For the purpose of payment of the amount due, the outcome of the real estate registry disputes is awaited. 2 - 2.7 Herambiente Spa ICI/IMU Notices of assessment for the years between 2013 and 2019 concerning the waste to energy plant and the recycling plant located in the municipality of Coriano. For the years 2013-2019, the Company, with a settlement agreement pursuant to Article 48 of Legislative Decree 546/1992, defined with the Municipality of Coriano the amounts due, paying the amounts requested. 0.7 0.7 - AcegasApsAmga Spa Excise on self-consumption Technical-administrative audit of the Padua and Trieste waste-to-energy plants carried out by the Customs Agency for the years 2012 to 2015 in relation to the installation of measuring instruments for detecting electricity With reference to the Padua waste-to-energy plant, the Court of Cassation upheld the appeal and sent the case back to the Second Instance Tax Court. At present, a date for the hearing is pending. With reference to the Trieste waste-to-energy plant, following the sentence of the Tax Court that had 2.1 1 -
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 156|
produced and used for self-
consumption and associated payment
of the excise.
granted the entitlement to the reduced excise tax, the
Revenue Agency appealed to the Court of Cassation.
A date for the hearing is pending.
EstEnergy Spa
Windfall contributions
Request for reimbursement of the non-
recurring contribution against high utility
bills \u2013 Revenue Agency.
The Company filed an application with the competent
office of the Revenue Agency for reimbursement of the
amounts paid as advance and balance for the year
2022. The Company has filed an appeal against the
tacit refusal given by the office and is currently waiting
for the date of the hearing to be set.
-
9.6
-
Hera Spa
Windfall contributions
Application for reimbursement in
relation to the payment of the \u201cnon-
recurring contribution against the high
cost of utility bills\u201d introduced for the
year 2022 only by Law No 51/2022,
since it is no longer due as a result of
the change in the scope of the matter
introduced by the subsequent Law No
197/2022.
The company filed an appeal against the silent
rejection of the refund request in the second half of
2023.
A date for the hearing is pending.
-
13
-
Notices of assessment for the tax
periods from 2013 to 2017, notified by
the Municipality of Riccione for the
permanent occupation of public land
with waste bins.
The Tosap proceedings for the years from 2013 to
2016 are pending at the Emilia-Romagna Second
Degree Tax Court, and the Cosap 2018 procedure is
pending before the Bologna Court of Appeals. The
first-degree ruling is partially favourable to the
Company.
1.2
1.2
1.8
Hera Spa
COSAP/TOSAP
COSAP notice of objection for the tax
periods from 2018 and 2019, notified
by the Municipality of Riccione for the
permanent occupation of public land
with waste bins.
The proceedings concerning 2018 are pending
before the Civil Court.
With reference to 2019, the judgment of first instance
was partially unfavourable. An appeal was filed
against the same before the Court of Appeal of
Bologna.
1.3
0.2
TOSAP notices of assessment for the
tax years 2014-2018, notified by the
Municipality of Coriano for the
permanent occupation of public land
with waste bins.
The 2014 and 2015 proceedings are currently pending
at the Emilia-Romagna Second Degree Tax Court.
Both first instance rulings were unfavourable to the
company. Concerning the notices for 2016, 2017 and
2018, the first instance rulings were both unfavourable
and therefore the Company has filed an appeal. The
case is pending before the Court of Emilia-Romagna.
0.9
0.1
* \u201cdisputed amount\u201d indicates the original amount of the claim with no interest, unless it was redetermined as a result of judicial conciliation, assessment with
adhesion, partial annulment in judicial proceedings or on self-defence.
** the amounts paid include interest, where due.
As regards the disputes in question, having consulted its lawyers, the Group has decided to allocate the
provisions indicated. In cases in which no provision has been allocated, the alleged violations have been
deemed groundless.
Equity and financial structure
31 Dec 23
31 Dec 22
Change
Net equity
3,751.6
3,644.7
106.9
Net financial debt
3,827.7
4,249.8
(422.1)
Net financial debt / net equity
1.02
1.17
Compared to 31 December 2022, net equity increased, mainly due to the combination of the following:
\u25aa net income for the year amounting to 483.2 million euro, up from 305.3 million at 31 December 2022;
\u25aa dividend payments amounting to 216.7 million euro;
\u25aa a negative change in the other comprehensive income components totalling 196.6 million euro, driven
mainly by changes in cash flow hedge reserves related to gas and electricity commodity transaction
hedges;
2.02.04
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 157|
\u25aa the recognition of minority interests due to acquisitions carried out during the year totalling 56.8 million
euro;
\u25aa a negative change resulting from operations carried out on treasury shares totalling 19.7 million euro.
Net financial debt is an alternative performance indicator, as reported in Section 1.04 \u201cOverview of
operating and financial trends and definition of alternative performance indicators\u201d. The amount recorded
at 31 December 2023 decreased significantly compared to the previous year. This is due in particular to
the generation of cashflow from operations for the year, which, as reported in the cashflow statement in
paragraph 2.01.04, showed a sharp increase coming to 1,537 million euro compared to the previous year
(going from 35.7 million euro to 1,572.7 million euro), due to both improvement in the Group\u2019s operating
results and a better performance of net working capital. The latter, in particular, was positively impacted
by the drop in commodity prices (including with reference to the natural gas storage business), which
naturally led to a levelling of the exposure that had been seen at 31 December 2022. The excellent
generation of operating cashflow made it possible to support both investments and the early repayment
of part of the short- and medium-term financing contracts signed in the second half of 2022 to meet the
needs of net working capital management. For more details, see Section 1.04.02 \u201cFinancial structure
and adjusted net debt\u201d and Note 19 \u201cFinancial Liabilities\u201d.
Net equity
15 Group net equity
31 Dec 23
31 Dec 22
Change
Share capital (nominal value)
1,489.5
1,489.5
\u2010
Treasury share reserve
(45.8)
(38.5)
(7.3)
Share capital increase costs
(0.7)
(0.7)
\u2010
Share capital
1,443.0
1,450.3
(7.3)
Legal reserve
133.9
120.3
13.6
Other reserves
1,471.4
1,409.1
62.3
Components of comprehensive income (OCI)
4.5
207.1
(202.6)
Reserve for treasury share transactions
(56.0)
(43.6)
(12.4)
Reserves
1,553.8
1,692.9
(139.1)
Profit (loss) for the period
441.4
255.2
186.2
Total
3,438.2
3,398.4
39.8
The share capital at 31 December 2023 amounted to 1,489,538,745 ordinary shares with a nominal value
of 1 euro each and is fully paid-up. The number of treasury shares held by the Group at 31 December
2023 was 45,830,208 (38,541,380 at 31 December 2022).
Other reserves consist of the profits generated in previous years and reserves established on capital
contributions or equity investments.
The reserve for treasury share operations reflects transactions on treasury shares at 31 December 2023.
Note that in 2023 only transactions involving purchases were carried out.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 158|
16 Non-controlling interests
31 Dec 23
31 Dec 22
Change
Share capital and reserves
266.8
197.4
69.4
Components of other comprehensive income (OCI)
4.8
(1.2)
6.0
Profit (loss) for the period
41.8
50.1
(8.3)
Total
313.4
246.3
67.1
This item mainly comprises the minority equity interests of the Herambiente Group, the Marche
Multiservizi Spa Group and Acantho Spa. The change is mainly due to the non-total acquisitions of A.C.R.
Spa, amounting to 32.7 million euro, and Asco TLC Spa (through merger by incorporation into Acantho
Spa), amounting to 24.1 million euro. For further details, see the section \u201cBusiness combinations
(additional information)\u201d in paragraph 2.02.10 \u201cOther information\u201d.
As regards the acquisition of non-total controlling interests achieved in previous years through business
combinations, various contractual agreements entered into by the Group provided for granting
irrevocable put options to minority shareholders, to be exercised within specific timeframes. The
existence of these rights owned by minority shareholders has led to the need to classify the options on
the shares/quotas of the acquired companies held by minority shareholders as financial liabilities in the
consolidated financial statements, thus considering the related shareholdings as fully owned. For further
details on the calculation of the fair value of the put option debt, see Note 19 \u201cFinancial liabilities\u201d.
Net profit attributable to non-controlling interests decreased compared to the previous year, mainly due
to the lower results seen in the energy services and plastics processing businesses, only partially offset
by the effect of the acquisitions made in 2023.
Reconciliation statement
The following is a reconciliation between the Parent Company\u2019s separate financial statements and the
consolidated financial statement.
Net result
Net equity
Balances as per parent company\u2019s financial statements
244.8
2,584.8
Excess of shareholders\u2019 equity (including the result of the period) over the carrying
amounts of investments in consolidated companies
197.2
728.0
Consolidation adjustments
net equity valuation of companies recognised in the separate financial
statements at cost
(0.6)
43.9
difference between purchase price and corresponding net book equity
2.1
94.5
elimination of intra-group transaction effects
(2.1)
(13.0)
Total
441.4
3,438.2
Allocation of third-party holdings
41.8
313.4
Balances as per consolidated financial statement
483.2
3,751.6
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 159|
17 Earnings per share
2023
2022
Profit or loss for the period attributable to holders of ordinary shares of the parent
company (A)
441.4
255.2
Weighted average number of shares outstanding for the purposes of calculation of
earnings (loss) per share
basic (B)
1,446,069,736
1,454,636,032
diluted (C)
1,446,069,736
1,454,636,032
Earnings (loss) per share (in euro)
basic (A/B)
0.305
0.175
diluted (A/C)
0.305
0.175
Basic earnings per share are calculated on the operating result attributable to holders of ordinary shares
of the parent company. Diluted earnings per share are equal to basic, as there are no classes of shares
other than ordinary shares and there are no instruments that can be converted into shares.
When this consolidated financial statement was prepared, the share capital of the parent company Hera
Spa consisted of 1,489,538,745 ordinary shares, unchanged from 31 December 2022, which were used
in determining basic and diluted earnings per share.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 160|
Net financial debt
What follows is the financial debt prepared in accordance with Guideline no. 39, issued on 4 March 2021
by ESMA, as implemented by Consob in its communication 5/2021 of 29 April 2021. The Group also
monitors its financial performance through the Net financial debt indicator, which adds non-current
financial receivables to the regulatory statement.
notes
31 Dec 23
31 Dec 22
A
Cash
18
1,332.8
1,942.4
B
Cash equivalents
18
\u2010
\u2010
C
Other current financial assets
18
90.9
77.7
D
Liquidity (A+B+C)
1,423.7
2,020.1
E
Current financial debt
19
(411.9)
(563.0)
F
Current portion of non-current financial debt
19, 22
(524.1)
(108.4)
G
Current financial indebtedness (E+F)
(936.0)
(671.4)
H
Net current financial indebtedness (G+D)
487.7
1,348.7
I
Non-current financial debt
19, 22, 29
(1,087.0)
(2,553.0)
J
Debt instruments
19
(3,391.2)
(3,197.3)
K
Non-current trade and other payables
\u2010
\u2010
L
Non-current financial indebtedness (I+J+K)
(4,478.2)
(5,750.3)
M
Total financial indebtedness (H+L)
ESMA guidelines 32 - 382 - 1138
(3,990.5)
(4,401.6)
Non-current financial receivables
18
162.8
151.8
Net financial debt
(3,827.7)
(4,249.8)
To better understand the financial events that took place during the course of 2023, see the financial
statements and the comments shown in the Directors\u2019 report in paragraph 1.04.02 \u201cFinancial structure
and adjusted net debt\u201d.
For the statement of financial debt with related parties, see paragraph 2.03.04.
The following is an analysis of the balance sheet items included in the determination of net financial debt,
with the exception of financial assets and liabilities related to interest rate derivative financial instruments,
which are detailed in Note 29 \u201cDerivative Instruments\u201d, and lease liabilities, which are shown in Note 22
\u201cRights of Use and Leasing Liabilities\u201d.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 161|
18 Financial assets, cash holdings and cash equivalents
31 Dec 23
31 Dec 22
Change
Loan receivables
19.6
27.0
(7.4)
Receivables for construction services
100.3
80.4
19.9
Portfolio securities
2.0
2.0
\u2010
Other financial receivables
40.9
42.4
(1.5)
Total non-current financial assets
162.8
151.8
11.0
Loan receivables
6.3
7.2
(0.9)
Portfolio securities
1.6
\u2010
1.6
Other financial receivables
83.0
70.5
12.5
Total current financial assets
90.9
77.7
13.2
Total cash holdings
1,332.8
1,942.4
(609.6)
Total financial assets and cash holdings
1,586.5
2,171.9
(585.4)
\u201cLoan receivables\u201d comprises the loans, regulated at market rate, made to the following companies:
Fatto fi31 Dec 23
31 Dec 22
Non-current
portion
Current
portion
Total
Non-current
portion
Current
portion
Total
Aloe SpA
4.6
0.8
5.4
5.4
0.8
6.2
Calenia Energia Spa
\u2010
\u2010
\u2010
3.3
\u2010
3.3
Set Spa
8.9
5.2
14.1
12.2
3.2
15.4
Other minor companies
6.1
0.3
6.4
6.1
3.2
9.3
Total
19.6
6.3
25.9
27.0
7.2
34.2
Loans to companies that are vehicles through which the Group owns production quotas for electricity
generation plants (Set Spa and Tamarete Energia Srl) were tested for impairment, the result of which
did not lead to changes in the carrying values during the 2023 financial year, as explained in Note 27
\u201cImpairment tests on equity investments\u201d. As regards receivables from the associated companies
Tamarete Energia Srl and H.E.P.T. Co. Ltd, which were already fully written down at 31 December 2022,
the Group received collections during the year totalling 2.6 million euro and recorded the consequent
revaluation under financial income.
\u201cReceivables for construction services\u201d from municipalities for the construction of public lighting systems
identified in keeping with the financial asset model provided by the IFRIC 12 interpretation, as shown in
greater detail in the section describing the evaluation criteria for the item \u201cLoans and receivables\u201d in
section 2.02.01 \u201cIntroduction\u201d.
\u201cPortfolio securities\u201d, in its non-current and current portions, mainly include bonds, funds and insurance
policies guaranteeing post-mortem management of the landfill held by subsidiary Asa Scpa, amounting
to 3.4 million euro, whose book value was essentially aligned with the fair value at year-end. These
securities are measured at fair value through other comprehensive income components.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 162|
\u201cOther financial receivables\u201d include the following counterparties:
31 Dec 23
31 Dec 22
Non-current
portion
Current portion
Total
Non-current
portion
Current portion
Total
Collinare Consortium
13.3
\u2010
13.3
13.0
\u2010
13.0
Acosea Impianti
12.7
\u2010
12.7
12.7
\u2010
12.7
Municipality of Padua
10.6
1.5
12.1
12.1
1.5
13.6
Market data exchange
\u2010
10.8
10.8
\u2010
\u2010
\u2010
Cato and Veneto Region
\u2010
6.1
6.1
\u2010
7.0
7.0
ex-CMV municipalities
3.9
\u2010
3.9
3.9
\u2010
3.9
Other financial receivables
0.4
64.6
65.0
0.7
62.0
62.7
Total
40.9
83.0
123.9
42.4
70.5
112.9
\u25aa The item Collinare Consortium represents the compensation owed to the outgoing provider when the
gas distribution services contract comes to an end;
\u25aa Acosea Impianti refers to a security deposit left with the parent company Hera Spa;
\u25aa The Municipality of Padua is mainly related to the construction of photovoltaic systems. The
repayment of this credit, which is regulated at a market rate, is scheduled at the end of 2030;
\u25aa Market data exchange includes advances related to electricity and gas exchange contracts entered
into on the EEX and ICE platforms, which call for the daily settlement of outstanding fair value
differentials. The change compared to the previous year, in which this item was a 145.1 million euro
payable, is due to the trend in energy commodity prices, which decreased significantly in 2023
compared to the peak values reached in 2022;
\u25aa Cato and Veneto Region reflects government grants that will be collected after the balance sheet
date;
\u25aa Ex-CMV municipalities concerns the compensation due to the outgoing operator at the end of the
concession of the management of gas distribution service in the municipalities of Vigarano, Goro and
Castello d\u2019Argile;
\u25aa Other financial receivables include transactions for the assignment of energy efficiency tax credits
concluded at the end of fiscal year 2022, formally validated and accepted by the bank counterparties,
the collection of which took place in January 2023, amounting to 43.6 million euro (46.3 million euro
at 31 December 2002).
\u201cCash and cash equivalents\u201d consisted solely of bank and postal deposits amounting to 1,332.8 million
euro at 31 December 2023 (1,941.8 million euro at 31 December 2022). To better understand the change
in the amount of cash and cash equivalents, see the cash flow statement.
| Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 163| 19 Financial liabilities 31 Dec 23 31 Dec 22 Change Bonds and loans 4,072.2 5,171.5 (1,099.3) Minority shareholder\u2019 put option 327.8 499.5 (171.7) Payables to acquire controlling shareholdings and potential consideration 20.1 17.4 2.7 Other financial liabilities 1.6 1.5 0.1 Total non-current financial liabilities 4,421.7 5,689.9 (1,268.2) Bonds and loans 479.2 87.1 392.1 Overdrafts and interest liabilities 92.6 316.6 (224.0) Payables to acquire controlling shareholdings and potential consideration 13.8 13.3 0.5 Minority shareholders\u2019 put option \u2010 1.7 (1.7) Other financial liabilities 305.2 231.4 73.8 Total current financial liabilities 890.8 650.1 240.7 Total financial liabilities 5,312.5 6,340.0 (1,027.5) The non-current portion of \u201cBonds and loans\u201d changed mainly due to the overall effect of the following: \u25aa issue of the Hera Group\u2019s second Sustainability-linked bond, part of its strategy aimed at reducing greenhouse gas emissions and increasing the amount of recycled plastic. The new bond, listed on the regulated markets of the Irish, Luxembourg and Italian stock exchanges, has a nominal value of 600 million euro, a ten-year term and a nominal coupon of 4.25%, with a possible step-up starting from 2032 should the company fail to achieve the sustainability targets called for by the bond. For further details regarding the new issuance, reference should be made to chapter 1.03 \u201cMain events occurred\u201d in the Directors\u2019 report; \u25aa early repayment of the medium/long-term credit line, in the form of a Term loan bullet, granted in 2022 by a pool of major banks operating with the Group, amounting to 450 million euro and secured by a guarantee issued by Sace Spa (based on Article 15 of Legislative Decree No. 50 of 17 May 2022, subsequently converted into law); \u25aa early repayment of debts underwritten with leading financial institutions in 2022 totalling 300 million euro. \u25aa classification in the current portion and subsequent early repayment of the 500 million euro bridge loan that a pool of banks granted in October 2022 in anticipation of the aforementioned issuance of the new Sustainability-linked bond; \u25aa classification in the current portion of two bonds with a total residual nominal value of 438.1 million euro, both maturing in August 2024. The item also includes the value of the put option, amounting to 55.3 million euro, related to Ascopiave Spa\u2019s 3% minority shareholding in Hera Comm Spa which, as a result of the contractual provisions, is classified as a loan and valued according to the depreciated cost method. This debt, with a nominal value of 54 million euro, increased due to the financial evaluation component and decreased due to dividends paid out: Opening value Financial expenses Flows paid out Terminal value 2022 financial year 55.0 3.2 (3.4) 54.8 2023 financial year 54.8 3.2 (2.7) 55.3 Total 54.8 3.2 (2.7) 55.3 The current portion of \u201cBonds and loans\u201d includes the amounts of medium- and long-term debt due within the next financial year, in addition to the bonds mentioned above maturing in August 2024. | Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 164| The main conditions of the bonds outstanding at 31 December 2023 are as follows: Bonds Duration (years) Maturity Nominal value (mn) Coupon Annual rate Sustainability linked bond 12.5 25 Apr 2034 500 EUR Fixed, annual 1.00% Sustainability linked bond 10 20 Apr 2033 600 EUR Fixed, annual 4.25% Green bond 10 04 Jul 2024 288.3 EUR Fixed, annual 2.375% Bond* 15 05 Aug 2024 20,000 JPY Fixed, six-monthly 2.93% Bond 12 22 May 2025 15 EUR Fixed, annual 3.5% Green bond 7 25-mag-2029 500 EUR Fixed, annual 2.5% Bond 10 14 Oct 2026 325.44 EUR Fixed, annual 0.875% Bond 10 03 Dec 2030 500 EUR Fixed, annual 0.25% Bond* 15/20 14 May 2027/2032 102.5 EUR Fixed, annual 5.25% Green bond 8 05 Jul 2027 357.2 EUR Fixed, annual 0.875% Bond 15 29 Jan 2028 599.02 EUR Fixed, annual 5.20% * Unlisted instrument At 31 December 2023, the outstanding bonds, totalling a face value of 3,937.2 million euro (3,359.2 at 31 December 2022) and recorded at discounted cost of 3,804.5 million euro, have a fair value of 3,737.7 million euro (2,986.8 at 31 December 2022) determined by market quotations where available. There are covenants on some loans that require compliance with the corporate rating limit, which must be rated, even only by a single rating agency, no lower than investment grade (BBB-). As of the balance sheet date this covenant has been complied with. \u201dMinority shareholders\u2019 put option\u201d includes the fair value assessment of the put options granted, with specific contractual arrangements, to minority shareholders on their own shares. The most significant amount refers to the put option on the non-controlling shares in EstEnergy Spa, equal to 25% of the share capital, held by Ascopiave Spa. The Group\u2019s policy is not to represent the holdings of minority shareholders in the component of results for the period, and therefore the value of debts for the options (to be paid at the date of exercising the option according to the contractual mechanism agreed between the parties) is increased by the dividends expected to be paid by the subsidiary companies along the hypothetical life of the options themselves. The fair value recognised as a liability in the balance sheet is therefore not only the present value of the expected price of the put option at the date of it is exercised, but also contains the discounted estimate of future dividends paid as part of the variable consideration due to the counterparty. Given the structure of the operation, during the period in which the option is exercised, the profit generated by subsidiary companies will be distributed according to their respective nominal shareholdings. This mechanism means that the portion of the fair value of the put option that will be settled through the distribution of future dividends is actually self-liquidating, since the necessary financial resources (i.e. dividends of non- controlling shareholdings) will be directly generated by the subsidiary companies, without thus determining during that period a real additional financial need for the Group. Put options Bonds
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 165|
The following are the changes for the year, compared with the previous period:
Put options
Opening
value
Acquisitions
Financial
expenses
Changes in
assumptions
Flows paid out
Terminal
balance
31 Dec 22
Equity value
442.9
6.9
15.4
35.0
(79.0)
421.2
Future dividends
142.3
2.2
5.1
(47.6)
(21.9)
80.0
Total
585.2
9.0
20.5
(12.6)
(100.9)
501.2
31 Dec 23
Equity value
421.2
7.6
14.4
(11.9)
(149.5)
281.9
Future dividends
80.0
3.1
2.8
(19.3)
(20.7)
45.9
Total
501.2
10.7
17.2
(31.1)
(170.2)
327.8
Regarding the changes occurring during the year:
\u25aa acquisitions refer to the extraordinary acquisition of F.lli Franchini Srl;
\u25aa financial expenses include the notional effects of discounting the liability recognised at the previous
balance sheet date;
\u25aa changes in assumptions represent the effects of updating the variables underlying the determination
of the fair value of the options themselves. More specifically, the fair value of these options is
calculated by referring to the future exercise scenario deemed most probable by Group management,
taking into account the partial exercises carried out, consistently with the updated planning
assumptions, adopting criteria according to the conditions agreed between the parties and
discounting the corresponding future cash flows, using the average cost of the Group\u2019s long-term
debt at the date of the transaction as the discount rate. In 2023, the revision of the estimates resulted
in the recognition of income amounting to 31.3 million euro and expenses totalling 0.2 million euro.
the income mainly refers to options on minority interests in EstEnergy Spa amounting to 26.9 million
euro and Recycla Spa totalling 4.1 million euro;
\u25aa the flows paid out include the amounts paid to minority shareholders both for exercising the options
themselves (equity value) and for the payment of dividends belonging to them. During 2023, note the
following movements in relation to the equity value component:
\u2013 the partial exercise by Ascopiave Spa of the put option in its possession, resulting in the sale to
Hera Comm Spa of 15% of the shares of EstEnergy Spa for an amount of 137.5 million euro;
\u2013 the total exercise by Herambiente Servizi Industriali Srl of the put option in its possession,
correlated with a corresponding put option held by minority shareholders, equal to 30% of the
shares of Recycla Spa for an amount of 10.3 million euro.
In \u201cOverdrafts and interest liabilities\u201d, the significant change compared with the previous financial period
is due to the underwriting of short-term monetary loans in the form of hot money in the last quarter of
2022, totalling 230 million euro. These loans were paid up in the initial months of 2023 and, at the same
time, the Group did not take out any further short-term loans with these characteristics, given its
satisfactory cash position.
\u201cPayables to acquire controlling shareholdings and potential consideration\u201d include the amounts still to
be paid to transferor shareholders as part of the business combination transactions concluded in the
period or in previous periods, as well as the estimate of the potential payments (earn-out) foreseen by
the agreements signed at the time of the acquisition.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 166|
The following is a breakdown of this item at 31 December 2023 by individual acquisition, compared with
the previous period:
31 Dec 23
31 Dec 22
Non-current
portion
Current
portion
Total
Non-current
portion
Current
portion
Total
Aliplast Spa
17.4
\u2010
17.4
17.4
\u2010
17.4
Macero Maceratese Srl
\u2010
\u2010
\u2010
\u2010
1.1
1.1
Payables to acquire controlling
shareholdings
17.4
\u2010
17.4
17.4
1.1
18.5
Pistoia Ambiente Srl
\u2010
11.9
11.9
\u2010
11.5
11.5
A.C.R Spa
2.5
1.0
3.5
\u2010
\u2010
\u2010
Aliplast Spa
\u2010
0.5
0.5
\u2010
0.5
0.5
F.lli Franchini Srl
0.2
0.3
0.5
\u2010
\u2010
\u2010
Recycla Spa
\u2010
\u2010
\u2010
\u2010
0.2
0.2
Other minor companies
\u2010
0.1
0.1
\u2010
\u2010
\u2010
Potential consideration
2.7
13.8
16.5
\u2010
12.2
12.2
Total
20.1
13.8
33.9
17.4
13.3
30.7
\u201cOther financial payables\u201d mainly refer to:
31 Dec 23
31 Dec 22
Non-current
portion
Current
portion
Total
Non-current
portion
Current
portion
Total
Settlements
\u2010
154.1
154.1
\u2010
\u2010
\u2010
Factoring
\u2010
117.7
117.7
\u2010
61.0
61.0
Fund for energy and waste
management services (CSEA)
\u2010
21.3
21.3
\u2010
20.4
20.4
Municipal Pension Fund of the
Municipality of Trieste
1.2
0.3
1.5
1.5
0.3
1.8
Market data exchange
\u2010
\u2010
\u2010
\u2010
145.1
145.1
Other minor items
0.4
11.8
12.2
\u2010
4.6
4.6
Total
1.6
305.2
306.8
1.5
231.4
232.9
\u25aa Settlements includes the amounts collected as of the reporting date in relation to the provisional
balancing service adjustment session for the gas sector in 2019-2022 (pursuant to the mechanism
set out by ARERA in resolution 72/2018/R/gas) that took place during 2023. Following a verification
of the volumes provided to end customers, the Group believes that it will have to reimburse these
amounts in future sessions involving annual adjustments, during which the allocations will be
redefined, until the definitive determination of the fifth consecutive year. These assessments were
carried out also on the basis of the data communicated by distributors and taking into account
noteworthy critical issues relating to the allocation and equalisation of methane gas orders in the
Italian market;
\u25aa Factoring mainly includes collections yet to be transferred to financial institutions at the end of the
year, in relation to receivables subject to non-recourse assignments for which the Group has
maintained collection activities on behalf of factor companies. The increase during the year is related
to the higher amount of revolving transfers made compared to the previous year;
\u25aa Fund for energy and waste management services includes revenues to be retroceded since they
have already been advanced by CSEA mainly in relation to the reports made by the Group for the
activities carried out in the gas and electricity sales markets subject to tenders, as detailed in Note
36 \u201cOther current liabilities\u201d which can be consulted for more details;
\u25aa Market data exchange includes advances related to electricity and gas exchange contracts concluded
on the EEX and ICE platforms, which provide for the daily settlement of outstanding fair value
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 167|
differentials. This item is a credit in the current year, as illustrated in Note 18 \u201cFinancial assets, cash
and cash equivalents\u201d;
\u25aa Other minor items mainly include payables to the Tax authorities in relation to the collection of the
RAI fee charged to customers in their electricity bills by the Group\u2019s sales companies, amounting to
6.4 million euro (3.6 million euro at 31 December 2022).
The following table shows financial liabilities broken down by nature at 31 December 2023, with an
indication of their maturity:
Type
Residual amount
31 Dec 23
Portion due
within the period
Portion due within
2nd year
Portion due within
5th year
Portion due beyond
5th year
Bonds
3.804.5
414.1
14.6
1,260.5
2,115.3
Loans
746.9
65.2
433.5
202.9
45.3
Minority shareholders\u2019 put option
327.8
\u2010
10.4
317.4
\u2010
Payables to acquire controlling
shareholdings and potential
consideration
33.9
13.7
18.5
1.7
\u2010
Other financial liabilities
306.8
305.2
1.4
0.1
0.1
Overdrafts and interest liabilities
92.6
92.6
\u2010
\u2010
\u2010
Total
5,312.5
890.8
478.4
1,782.6
2,160.7
The table below shows the worst-case scenario, in which assets (cash, financial and trade receivables)
are not taken into account, unlike financial liabilities for bonds, financing and overdrafts, shown in the
capital and interest portion, trade payables and interest rate derivatives. Financial lines were assumed
to be revoked on demand, while loans were assumed to be repaid at the earliest date provided for in the
contractual terms.
Worst case scenario
31 Dec 23
31 Dec 22
(mn\u20ac)
from 1 to 3
months
more than 3
months to 1
year
from 1 to 2
years
from 1 to 3
months
more than 3
months to 1
year
from 1 to 2
years
Bonds
33.2
536.2
102.3
33.0
99.0
511.0
Financial payables and other
liabilities
98.0
81.9
444.9
329.6
732.0
91.0
Payables to suppliers
2,637.2
\u2010
\u2010
3,093.1
\u2010
\u2010
Total
2,768.4
618.1
547.2
3,455.8
831.0
602.0
Current cash and lines of credit, in addition to the resources generated by the operating and financing
activities, are deemed sufficient to meet future financial needs. The following is a summary of the credit
lines available at 31 December 2023, compared with the previous year:
31 Dec 23
31 Dec 22
Committed credit lines
1,565.0
1,230.0
Uncommitted credit lines
752.0
517.0
Total
2,317.0
1,747.0
The credit lines are distributed among the leading Italian and international banks and allow for adequate
diversification of counterparty risk and competitive conditions. In 2023, in particular, the following were
signed:
\u25aa a sustainability-linked revolving credit facility with a pool of leading banks totalling 450 million euro,
with a five-year term;
\u25aa a credit line with the European Investment Bank amounting to 460 million euro, usable within the next
three years and repayable in sixteen annual instalments starting four years after being drawn.
Debt
analysis by
maturity
Scenario
analysis
Credit line s
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 168|
Sureties and guarantees
31 Dec 23
31 Dec 22
Bank sureties and guarantees
2,951.4
2,780.0
Insurance sureties and guarantees
987.5
851.5
Total
3,938.9
3,631.5
For \u201cBank sureties and guarantees\u201d, the value at 31 December 2023, compared with the previous period,
comprises the following:
31 Dec 23
31 Dec 22
Bank sureties
1,075.8
1,244.4
Letters of patronage
1,875.6
1,535.6
Total
2,951.4
2,780.0
More specifically:
\u25aa bank sureties are related to sureties made to public institutions (the Ministry of the Environment and
Energy Security, the regions, provinces and municipalities) and private entities to guarantee the
suitable management of plants for treating and disposing of waste, for the suitable provision of waste
disposal and intermediation services, for reclamation work and for the proper fulfilment of contractual
commitments on wholesale energy commodity markets;
\u25aa letters of patronage are issued mainly to guarantee the timely payment of raw material supplies.
The increase compared to the previous year is due to the higher guarantees provided for operations on
the wholesale procurement markets and sales to end customers of gas and electricity commodities.
\u201cInsurance sureties and guarantees\u201d refers to sureties issued to public entities (provinces, municipalities
and the Ministry of the Environment and Energy Security) and third parties to guarantee the suitable
management of public utility and waste disposal services, the proper execution of the work to lay
company pipelines across land owned by private individuals, reclamation work, managing waste
treatment and disposal systems.
Note, lastly, that at 31 December 2023, the Hera Group provided the guarantees for certain bank loans,
in the amount of 11.8 million euro.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 169|
20 Cash flows related to financing activities
Changes in financial liabilities
The following is a breakdown of information on changes in financial liabilities during the 2023 financial
year, differentiating between cash flows and non-cash flows.
Type
31 Dec 23
31 Dec 22
Change
(a)
Non-cash flows
Cash flows
(f)=(a)-
[(b)+(c)+(d)+
(e)]
Acquisitions
divestitures
(b)
Economic
valuation
components
(c)
Changes in fair
value
(d)
Other
changes
(e)
Non-current
financial liabilities
4,421.7
5,689.9
(1,268.2)
15.3
47.5
(27.1)
(1,031.3)
(272.6)
Current financial
liabilities
890.8
650.1
240.7
14.0
3.6
(19.7)
1,013.8
(771.0)
Cash flows related
to financial
liabilities
5,312.5
6,340.0
(1,027.5)
(29.3)
51.1
(46.8)
(17.5)
(1,043.6)
of which
New issue of long-term bonds
614.9
Repayments of non-current financial liabilities
(750.0)
Repayments and other net changes in financial liabilities
(908.5)
Lease liabilities
81.3
76.4
4.9
7.0
\u2010
\u2010
20.3
(22.4)
Financial liabilities
generated by
financing
activities
5,393.8
6,416.4
(1,022.6)
36.3
51.1
(46.8)
2.8
(1,066.0)
\u201cAcquisitions and Divestitures\u201d include the effects arising from the control acquisition transactions carried
out in the 2023 financial year, as explained in the section \u201cBusiness combination (supplementary
information)\u201d in Section 2.02.10 \u201cOther information\u201d.
\u201cEconomic valuation components\u201d include:
\u25aa charges from the amortised cost valuation of bonds and loans in the amount of 33.5 million euro, as
reported in Note 11 \u201cFinancial expenses\u201d;
\u25aa discounting charges related to the put options of non-controlling shareholdings and earn-outs
contracted as part of the acquisition of control over companies and business units, amounting to 17.6
million euros, as reported in Note 11 \u201cFinancial expenses\u201d,
\u201cChanges in fair value\u201d mainly include:
\u25aa the adjustment to fair value of the carrying amount of the put option recorded against the minority
shareholder of EstEnergy Spa, which resulted in the recognition of income in the amount of 26.9
million euro, as reported in Note 19 \u201cFinancial liabilities\u201d;
\u25aa the adjustment to fair value of the carrying amount of the put option recognised to the minority
shareholders of Recycla Spa, following the Group\u2019s exercise of the related put option on all remaining
shares, which resulted in the recognition of income coming to 4.1 million, as reported in Note 19
\u201cFinancial Liabilities\u201d;
\u25aa the adjustment made to the carrying value of a foreign currency bond due to the fair value hedge
relationship that resulted in the recognition of charges amounting to 15.6 million euro, as reported in
Note 29 \u201cDerivative Instruments\u201d.
\u201cOther changes\u201d include effects mainly due to:
\u25aa payment of dividends to minority shareholders with whom the Group contracted put options at the
time of acquiring control, amounting to 20.7 million euro. In the cash flow statement, the related cash
flow is represented in dividends paid out, although it is accounted for as a change in the financial
liability already recorded (this mechanism is explained in Note 19 \u201cFinancial liabilities\u201d);
| Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 170| \u25aa recognition, in application of amortised cost, of the initial adjustment of the nominal value of the bond issued during the year totalling 7.1 million euro, in order to represent the costs related to this issuance as separate cash flows; \u25aa the recognition of liabilities related to leases entered into during the year and the remeasurement of outstanding lease liabilities generated by an update of the underlying assumptions about renewal, purchase, or early termination options, as reported in Note 22, \u201cRights of Use and Lease Liabilities\u201d. Acquisition of interests in consolidated companies This amount mainly refers to the outlay related to the purchase of non-controlling shares in Tri- Generazione Scarl, as described in paragraph 2.02.01 \u201cIntroduction\u201d, while the amount for the previous year refers to the acquisition of shares in Hera Comm Marche Srl. Minority share capital increase This amount mainly refers to the share capital increase subscribed and paid up by the minority shareholders of A.C.R. Spa, which took place after the acquisition of control by the Hera Group. Dividends paid out to Hera shareholders and non-controlling interests The value refers to dividends paid out during 2023 to: \u25aa parent company\u2019s shareholders in the amount of 182.6 million euro; \u25aa minority shareholders in the amount of 56.5 million euro, of which 20.7 million euro were paid to minority shareholders to whom the Group had recognized payables for put options in previous years, as mentioned above. Lastly, note that non-monetary flows due to exchange rate differences were absent in 2023. Investment activities Assets increased compared to the previous year mainly as a result of new investments made for works on plants, networks and infrastructures, as well as investments made for regulatory adjustments, which mainly concerned gas distribution (for the large-scale replacement of meters) and the purification and sewage area. Also note the recognition of customer lists amounting to 67.2 million euro and goodwill amounting to 60.6 million euro in connection with business combinations carried out during the year. The following notes comment on the composition of and main changes within each asset category; note that additional information concerning investments made during the period can be found in paragraph 1.07 \u201cAnalysis by Strategic Business Area\u201d of the Directors\u2019 Report. The value of all tangible and intangible assets, including goodwill, was subjected to impairment testing, the results of which can be found in Note 25 \u201cImpairment tests on assets\u201d. 21 Tangible assets 31 Dec 23 31 Dec 22 Change Land and buildings 635.7 620.4 15.3 Plants and machinery 1,067.9 1,089.5 (21.6) Other movable assets 107.7 89.5 18.2 Assets under construction 246.1 183.0 63.1 Total operating assets 2,057.4 1,982.4 75.0 Investment property 1.9 2.0 (0.1) Total 2,059.3 1,984.4 74.9 2.02.05
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 171|
Property, plant and equipment are disclosed net of accumulated depreciation. Their composition and
changes in the period are as follows:
Net opening
balance
Investments
Disinvestments
Depreciation and
amortisation
Changes in the
scope of
consolidation
Other changes
Net terminal value
of which gross
terminal value
of which amortis
-
ation provision
31 Dec 22
Land and buildings
585.3
24.0
(1.9)
(19.5)
3.7
28.8
620.4
908.7
(288.3)
Plants and machinery
1,107.8
61.8
(3.7)
(112.5)
9.0
27.1
1,089.5
3,060.2
(1,970.7)
Other movable assets
123.7
13.7
(0.3)
(21.0)
0.6
(27.2)
89.5
433.1
(343.6)
Assets under
construction
122.1
126.1
(0.5)
\u2010
\u2010
(64.7)
183.0
183.0
\u2010
Total
1,938.9
225.6
(6.4)
(153.0)
13.3
(36.0)
1,982.4
4,585.0
(2,602.6)
31 Dec 23
Land and buildings
620.4
21.0
(0.5)
(23.7)
8.4
10.1
635.7
955.0
(319.3)
Plants and machinery
1,089.5
57.1
(7.8)
(123.4)
5.5
47.0
1,067.9
3,152.4
(2,084.5)
Other movable assets
89.5
22.0
(0.4)
(24.2)
7.7
13.1
107.7
480.1
(372.4)
Assets under
construction
183.0
142.6
(0.8)
(0.9)
0.4
(78.2)
246.1
246.1
\u2010
Total
1,982.4
242.7
(9.5)
(172.2)
22.0
(8.0)
2,057.4
4,833.6
(2,776.2)
\u201cLand and buildings\u201d consists of 127.2 million euro in land and 508.5 million euro in buildings. These are
mainly company-owned properties on which the majority of the sites and production plants stand.
\u201cPlants and machinery\u201d is made up mainly of distribution networks and plants relating to business not
falling within the scope of the concession system such as district heating, electricity in the Modena area,
waste disposal and waste treatment as well as plastic production plants. The main investments for the
year were in waste treatment activities amounting to 28.8 million euro and electricity distribution
amounting to 21.3 million euro. Disinvestments concern demolitions and divestitures of obsolete plants.
\u201cOther movable assets\u201d mainly include, regarding business areas that have not yet gone out to tender
for service concessions, waste collection equipment and bins amounting to 67 million euro and motor
vehicles amounting to 40.7 million euro.
\u201cAssets under construction\u201d mainly consist of investments in progress for waste treatment plants
amounting to 59 million euro and for the electricity distribution network amounting to 25.7 million euro,
as well as investments for developing the district heating network amounting to 23.7 million euro.
\u201cOther changes\u201d covers the in-progress reclassification of fixed assets to the specific categories for
assets brought into operation during the financial year, as well as the reclassification from tangible assets
to intangible assets, especially when goods used in activities under concession are involved.
For the column \u201cChange in the scope of consolidation,\u201d please refer to the section \u201cBusiness
combinations (supplementary information)\u201d contained in paragraph 2.02.10 \u201cOther information\u201d.
For additional details on guarantees granted in favour of third parties and in relation to tangible assets
held by the Group, see Note 19 \u201cFinancial liabilities\u201d.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 172|
22 Rights of use and lease liabilities
The following tables show the breakdown of rights of use (reported net of the associated amortisation
provision) and lease liabilities at the transition date and the related movements. Contracts taken over as
part of business combinations are separately reported in movements and classified as \u201cChanges in the
scope of consolidation\u201d.
31 Dec 23
31 Dec 22
Change
Rights of use land and buildings
59.1
50.7
8.4
Rights of use plants and machinery
6.4
7.1
(0.7)
Rights of use other movable assets
25.1
26.4
(1.3)
Total
90.6
84.2
6.4
Net opening
balance
New contracts and
contractual changes
Depreciation and
amortisation
Changes in the
scope of
consolidation
Other changes
Net terminal value
of which gross
terminal value
of which amortis
-
ation provision
31 Dec 22
Rights of use land and
buildings
65.7
12.5
(7.6)
0.4
(20.3)
50.7
94.1
(43.4)
Rights of use plants and
machinery
7.8
0.6
(1.2)
0.8
(0.9)
7.1
12.4
(5.3)
Rights of use other
movable assets
28.1
8.2
(10.1)
0.8
(0.6)
26.4
49.4
(23.0)
Total
101.6
21.3
(18.9)
2.0
(21.8)
84.2
155.9
(71.7)
31 Dec 23
Rights of use land and
buildings
50.7
10.1
(8.6)
6.9
\u2010
59.1
104.1
(45.0)
Rights of use plants and
machinery
7.1
0.8
(1.3)
\u2010
(0.2)
6.4
12.5
(6.1)
Rights of use other
movable assets
26.4
9.6
(10.6)
0.1
(0.4)
25.1
48.5
(23.4)
Total
84.2
20.5
(20.5)
7.0
(0.6)
90.6
165.1
(74.5)
\u201cRights of use land and buildings\u201d consists of 51 million euro in rights of use related to buildings and 8.1
million euro in rights of use related to land. The rights of use for buildings refers mainly to contracts
concerning the real estate structures used for headquarters, offices and customer service desk.
\u201cRights of use plants and machinery\u201d refers mainly to contracts regarding purification and composting
plants.
\u201cRights of use other movable assets\u201d refers mainly to contracts underwritten for the use of IT
infrastructures (especially data centres), operational vehicles and cars.
The column \u201cNew contracts and contractual changes\u201d shows the leases signed during the year, as well
as the change in the assumptions regarding the duration, renewal or termination options of the existing
contracts.
The column \u201cOther changes\u201d includes the residual value of leased assets redeemed during the period
and reclassified under tangible assets due to their nature.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 173|
Financial liabilities show the following composition and change, compared with the previous year:
Net opening balance
New contracts and
contractual changes
Decreases
Financial expen
ses
Changes in the scope
of consolidation
Other changes
Net terminal value
31 Dec 22
Lease liabilities
96.6
21.2
(46.0)
2.7
1.9
\u2010
76.4
of which
non-current liabilities
53.2
55.1
current liabilities
43.4
21.3
31 Dec 23
Lease liabilities
76.4
20.3
(25.2)
2.8
7.0
\u2010
81.3
of which
non-current liabilities
55.1
56.8
current liabilities
21.3
24.5
The column \u201cNew contracts and contractual changes\u201d includes the new contracts signed in the period
and the re-assessment of the debt of some of the existing contracts, generated by the update of the
assumptions underlying the contracts themselves concerning options of renewal, purchase or early
termination.
\u201cDecreases\u201d are generated by the reimbursement of contractual fees scheduled during the course of the
financial period and exemption options exercised. With reference to the previous year, note that buildings
where some of the Group\u2019s major production facilities are located were redeemed, which represented
the leases with the highest value.
In accordance with its procurement policies, the Group subscribed contracts in line with market standards
for all types of underlying assets. In the case of offices, customer service desks, cars and IT
infrastructure, the contracts do not contain any binding clauses or special fees in the event of annulment,
as these assets are perfectly interchangeable and are offered by a large number of counterparties. The
liability reported in the financial statements therefore represents the most likely total sum of
disbursements that the Group will have to make in future periods. For the same reasons, moreover, the
renewal clauses, when they exist, are not currently expected to be exercised, possibly assessing their
cost-effectiveness in the future or the option of signing new contracts with different counterparties.
The table below shows the lease liabilities broken down by category according to their expiration date
range:
Type
Total
Portion due within
the period
Portion due within
2nd year
Portion due within
5th year
Portion due beyond
5th year
2022 financial year
76.4
21.3
17.4
25.1
12.6
2023 financial year
81.3
24.5
14.2
25.3
17.3
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 174|
23 Intangible assets
31 Dec 23
31 Dec 22
Change
IT applications
105.3
82.5
22.8
Concessions and other rights
100.7
110.8
(10.1)
Public services under concession
3,315.7
3,184.5
131.2
Customer lists
605.6
581.1
24.5
Other intangible assets
119.4
92.9
26.5
Intangible assets ongoing, public services under concession
380.3
273.9
106.4
Intangible assets ongoing
92.6
91.7
0.9
Total
4,719.6
4,417.4
302.2
Intangible assets are stated net of their accumulated amortisation and are broken down below with details
of the changes during the year:
Net opening balance
Investments
Disinvestments
Depreciation and
amortisation
Changes in the
scope of
consolidation
Other changes
Net terminal value
of which gross
terminal value
of which amortis
-
ation provision
31 Dec 22
IT applications
84.6
4.5
\u2010
(42.9)
0.1
36.2
82.5
565.7
(483.2)
Concessions and other
rights
113.8
0.5
\u2010
(15.8)
12.0
0.3
110.8
483.8
(373.0)
Public services under
concession
2,963.4
208.3
(4.7)
(174.9)
\u2010
192.4
3,184.5
5,595.3
(2,410.8)
Customer lists
576.2
\u2010
\u2010
(39.4)
44.3
\u2010
581.1
741.8
(160.7)
Other intangible assets
79.4
43.4
0.0
(33.5)
0.1
3.5
92.9
269.7
(176.8)
Intangible assets
ongoing, public services
under concession
237.4
166.8
(0.4)
\u2010
\u2010
(129.9)
273.9
273.9
\u2010
Intangible assets
ongoing
71.9
60.4
\u2010
(0.3)
\u2010
(40.3)
91.7
91.7
\u2010
Total
4,126.7
483.9
(5.1)
(306.8)
56.5
62.2
4,417.4
8,021.9
(3,604.5)
31 Dec 23
IT applications
82.5
8.6
\u2010
(45.8)
0.1
59.9
105.3
637.1
(531.8)
Concessions and other
rights
110.8
0.6
\u2010
(14.1)
1.5
1.9
100.7
487.2
(386.5)
Public services under
concession
3,184.5
209.4
(7.3)
(183.8)
\u2010
112.9
3,315.7
5.902.5
(2,586.8)
Customer lists
581.1
\u2010
\u2010
(42.6)
67.1
\u2010
605.6
808.9
(203.3)
Other intangible assets
92.9
79.5
\u2010
(46.7)
1.8
(8.1)
119.4
328.7
(209.3)
Intangible assets
ongoing, public services
under concession
273.9
212.2
(0.2)
\u2010
\u2010
(105.6)
380.3
380.3
\u2010
Intangible assets
ongoing
91.7
62.8
\u2010
(0.4)
\u2010
(61.5)
92.6
92.6
\u2010
Total
4,417.4
573.1
(7.5)
(333.4)
70.5
(0.5)
4,719.6
8,637.3
(3,917.7)
\u201cIT applications\u201d refers to costs incurred in purchasing licenses and implementing corporate information
systems.
\u201cConcessions and other rights\u201d mainly includes:
\u25aa concessions, for 32.3 million euro, primarily involving the rights relating to the activities of gas
distribution and integrated water cycle, classified as intangible assets even before the IFRIC 12
interpretation \u201cService concession arrangements\u201d was first applied;
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 175|
\u25aa the authorisation to operate the Serravalle Pistoiese landfill, for 49.7 million euro, an asset recorded
as part of a business combination operation carried out in previous periods and amortised on the
basis of the number of tons consigned.
\u201cPublic services under concession\u201d includes assets relating to gas distribution, electricity distribution
(Imola area), the integrated water cycle and public lighting activities (except for the latter, as specified in
Note 18 \u201cCurrent financial assets, cash holdings and cash equivalents\u201d) provided through contracts
awarded by the respective public bodies. These concession relationships and associated assets involved
in carrying out the activities for which the Group holds the use rights, are accounted for by applying the
intangible asset model as set forth by IFRIC 12 interpretation. Investments for the year related mainly to
the water networks, in the amount of 133.8 million euro, and gas distribution networks, in the amount of
70.5 million euro.
\u201cIntangible assets ongoing and public services under concession\u201d includes investments related to
concessions that are still to be completed at the end of the period and mainly refers to the water networks,
in the amount of 244.2 million euro, and gas distribution networks, in the amount of 76.8 million euro and
municipal waste collection in the amount of 35.5 million euro.
\u201cIntangible assets ongoing\u201d essentially comprises IT projects that have not yet been completed.
\u201cCustomer lists\u201d are recorded as a result of business combination transactions and the consequent
valuation of the assets acquired. The amortisation period of these customer lists is correlated to the churn
rate identified for each individual transaction.
The item \u201cOther intangible assets\u201d refers mainly to the rights of use for networks and infrastructures for
the passage and laying down of telecommunication networks and the incremental costs incurred for
obtaining new sale contracts. In particular, the incremental costs for obtaining new contracts, represented
exclusively by commissions, increased sharply as a result of the sales development strategy
implemented, amounting to 78.3 million euro (as against 36 million euro in 2022), and the significant
increase in amortisation for the period is due to them.
\u201cOther changes\u201d include reclassifications of tangible assets ongoing to their respective categories,
specific to assets that became operational during the year and reclassifications from/to tangible fixed
assets, especially in the presence of assets under concession.
\u201cChange in scope of consolidation\u201d reflects the control acquisitions made during the year, for details of
which please refer to the section \u201cBusiness combinations (supplementary information)\u201d contained in
Section 2.02.10 \u201cOther information\u201d.
24 Goodwill
31 Dec 23
31 Dec 22
Change
Goodwill
908.7
848.1
60.6
The value of goodwill at 31 December 2023 mainly reflects the following operations of acquisition of
control during previous years of:
\u25aa \u201cAscopiave business activities,\u201d i.e. the companies EstEnergy Spa, Ascotrade Spa, Ascopiave
Energie Spa, Blue Meta Spa, Etra Energia Srl and Amgas Blu Srl, which took place in 2019 for a total
of 431.2 million euro;
\u25aa the integration that resulted in the creation of Hera Spa, totalling 81.3 million euro (2002);
\u25aa merger of Agea Spa, amounting to 41.7 million euro (2004):
\u25aa merger of Gruppo Meta, as a result of the merger of Meta Spa into Hera Spa, totalling 117.7 million
euro (2005);
\u25aa merger of Sat Spa, amounting to 54.9 million euro (2008);
\u25aa Gruppo Aliplast, amounting to 25 million euro (2017);
\u25aa Marche Multiservizi Spa Group, amounting to 20.8 million euro.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 176|
During the 2023 fiscal year, business combinations took place resulting in an increase in goodwill. More
specifically, note the following:
\u25aa A.C.R Spa, amounting to 27.1 million euro;
\u25aa Asco TLC Spa through merger by incorporation into Acantho Spa, amounting to 18.1 million euro;
\u25aa F.lli Franchini Srl, amounting to 15.4 million euro.
For further details on business combination operations, see the section \u201cBusiness combinations
(supplementary information)\u201d of paragraph 2.02.10 \u201cOther information\u201d.
Below is the value of goodwill broken down by operating segment:
31 Dec 23
31 Dec 22
Change
Gas
493.5
493.5
\u2010
Waste management
260.6
233.5
27.1
Electricity
88.9
73.5
15.4
Water cycle
42.7
42.7
\u2010
Other services
23.0
4.9
18.1
Total
908.7
848.1
60.6
25 Impairment tests on assets
Cash-generating and goodwill units
Assets and goodwill have been subjected to impairment tests by determining the value in use, which is
the current value of operating cash flows (duly discounted according to the dcf - discounted cash flow
method) resulting from the 2023 - 2027 business plan approved by the Board of Directors of the parent
company at its meeting 24 January 2024.
The impairment test was applied to the following CGUs (Cash generating units): gas, electricity,
integrated water management, environmental and other services (Public lighting and
telecommunications) that are consistent with the business areas used for internal periodic reporting and
with the information contained in the annual financial report in paragraph 2.02.10 \u201cOther Information\u201d.
In relation to this, it should be noted that the Group has implemented a structured process for preparing
and reviewing the business plan, which involves formulating the Plan on an annual basis according to
an external context scenario that takes into account the market trends and rules for regulated businesses,
with the support of all the business units and following a bottom-up logic. Specifically, assumptions were
implemented in developing the 2023-2027 Business Plan consistent with those used in previous plans
and, on the basis of the final reported values, forecasts were developed that refer to the most
authoritative and updated external sources available wherever necessary.
Revenues for regulated business areas were developed on the basis of the evolution of the rates deriving
from national regulations and/or agreements with the Area Authority. In particular, revenues from energy
distribution were projected according to the principles of ARERA resolutions 737/22 (RTDG) for gas and
616/23 (TIT), 163/23 (TIROSS) and 497/23 (version of ROSS-base regulation) for electricity distribution.
Account was also taken of the respective rates of return on capital (WACC) approved by ARERA, up to
the year 2024, as set forth in the integrated reference text (TIWACC 2022-2027, resolution 614/21 as
amended). For subsequent years, the WACCs were updated in accordance with the methodology
indicated by the same resolution and according to the forecasts of the financial and fiscal parameters
included in the approved business plan.
Revenues from energy sales under the protected system and with reference to last resort services were
instead estimated on the basis of the respective reference regulatory texts, i.e. the TIV (resolutions
208/22 and 491/20, as amended and supplemented) for electricity and the TIVG (approved by resolution
ARG/GAS/64/09, as amended and supplemented) for gas. Revenues from the awarded Gradual
protection services for electricity customers were estimated on the basis of resolution 362/23, while the
elimination of protected gas services was regulated by resolution 100/2023.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 177|
For the integrated water cycle, revenues were forecast in the event of inertia in the volumes distributed,
based on the tariffs deriving from the agreements signed with Atersir, as well as from the application of
the new Water tariff method (MTI-4) updated by ARERA resolution 639/23, taking into account, among
other factors, the parameters underlying the coverage of financial and tax charges. For urban sanitation,
the hypothesis formalized involved achieving full rate coverage over all the areas served within the
duration of the plan, consistent with the provisions of rules currently in effect.
Price trends for electricity and gas bought and sold in the open market were worked out on the basis of
business considerations consistent with the planned energy scenario, considering the forecasts provided
by a panel of institutional observers.
The development of plants for waste treatment and recycling is consistent with the forecasts of the
provincial plans for the provinces in which the Hera Group operates. The investment schedule and the
subsequent start of new plants is the result of the best estimate of the managers in charge.
The inertial evolution of the Group\u2019s costs during the period covered by the plan was developed by
formulating hypotheses based on the information available. In relation to employees and labour costs,
instead, the indications included in the various types of employment contracts were considered. The first
year of the plan represents the base reference for identifying economic, financial and management
objectives that converge in the annual budget, the guiding operational element for achieving the Group\u2019s
growth objectives.
The cash flows generated were therefore determined using the data for the 2024 - 2027 period as a
base. In particular, the net profit margin was used, from which taxes were deducted, depreciation and
provision were added and the maintenance investments planned for each year of the plan were
deducted.
Following the last year of the plan, normalised free cash flows were considered equal to the amount of
Ebit for the last year of the plan, following the assumption that the value of depreciation and provisions
remains at the level of investments. In the event that the plan does not take into account the prediction
of future events that significantly influence estimated cash flows as a result of its medium-term timeframe,
adjustments were applied in order to incorporate the effects of such events. The cashflows are calculated
by applying the growth rate (g) to the normalised free cash flows with the medium/long-term timeframe
for the sector in question (2% on average) for the 2028-2043 period (20 years total). For regulated
services, these flows are brought into line with the expected continuation of market shares following the
completion of the expected calls for tenders.
These flows are supplemented by the current value of perpetuity and calculated as follows:
\u25aa for free-market activities, the cashflow resulting from the application of the perpetuity criterion for the
last year (2043) was considered, assuming a 2% average growth factor;
\u25aa for services under contract, the terminal value was established by considering the cash flow resulting
from the application of the perpetuity criterion weighted by the percentage of competitive bidding
processes that the Group is expected to win at the end of the contract periods (100% for network
services, 80% for urban sanitation services) and the redemption value of assets weighted by the
proportion of competitive bidding processes which the Group expected not to win. This value was
estimated as equal to the current value of the net book value of assets owned and leasehold
improvements, less the recovery values, in order to properly represent the non-renewal of the
contract and the subsequent sale of the assets to the new operator with a value equal to the remaining
book value.
To discount unlevered cash flows, the rate used was the weighted average cost of capital (WACC), which
represents the yield expected by the funders and shareholders of the company for the use of equity
capital, adjusted for the risk of the specific country in which the asset being valued. The value of the
specific country risk to be included in the discount rate is defined on the basis of information provided by
external providers. Since the Group has a diversified business portfolio, with balance between regulated
and free-market activities that make it less exposed to cyclical trends in the economy, a methodological
approach has historically been used, which involves observing the nine months of the last financial year
with reference to the main variables underlying the WACC calculation. A sensitivity scenario was then
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 178|
prepared with the aim of grasping possible short-term developments in the Group\u2019s economic context
and financial structure.
More specifically, the rates used for the purposes of the final assessments are as follows:
2023
2022
WACC Gas \u2013 Electricity \u2013 Water cycle \u2013 Other services
5,38%
4,58%
WACC Waste management
6,24%
5,36%
The results of the test were positive for all cash generating units, with a usage value appearing that was
higher than the book value.
Bearing this in mind, two sensitivity scenarios were imagined:
\u25aa an initial analysis focused on the margins of the individual businesses, assuming a 5% decrease,
with an ensuing reduction in the cashflows produced in the years covered by the plan and the
following years;
\u25aa a second analysis involved discounting all cash flows using WACC increased by 25 bps.
In this context, the values obtained were much higher than those recorded in the balance sheets, and
this analysis therefore additionally confirmed the carrying values.
Assessments concerning climate change scenarios and consequent sensitivity
The electrification of energy consumption is one of the most significant risks/opportunities related to
climate change. Achieving climate change mitigation, as defined through emission reduction targets at
the European level and translated on a national basis with related implementation plans, requires
initiatives to change both the technologies adopted to meet energy needs and measures to make them
more efficient.
The Hera Group has therefore begun conducting specific analyses aimed at identifying the possible
impacts of the scenario of transition on the evolution of end customers\u2019 energy consumption, with
reference to the business areas it has selected within a timeframe that extends up to 2050.
The analyses took into account exogenous drivers, such as national and European policies on the topic
and consumer preferences, drivers of change, and related enabling technologies. The results have
allowed the company to gauge the impact that the transitional scenario could have on the evolution of
gas and electricity consumption as a function of key determinants such as energy efficiency, technology
mix, mobility, and self-consumption. These analyses confirmed, in particular, the widespread expectation
that the future will witness a growth in electricity consumption and a simultaneous reduction in gas
consumption.
With reference to the businesses operated by the Group, the assessments conducted necessarily took
into account the differing nature of the regulated distribution business and the free-market sales
business.
Regarding the gas distribution business, it should first be mentioned that ordinary and extraordinary
maintenance activities, for which tariff remuneration is provided, are correlated to the physicality of the
assets and not to the volumes of gas distributed. Indeed, renovation work is mainly carried out to resolve
critical issues through event-driven interventions, resulting, for example, from a network or plant leakage
or breakdown, or through scheduled operations to comply with the dictates of technical and regulatory
standards.
The transitional risk related to climate change thus appears to depend on purely regulatory decisions
and future systemic developments in the gas distribution network. One prospect considered likely by the
Group is that the drivers generating gas network development needs might change from the need to
meet consumption demands to the need to meet input requirements for biomethane and green gas in
general that can enable the running of energy production systems using renewable sources.
In this respect, ARERA has also shown interest in exploring issues related to possible transition costs
that may emerge when there is a decline in consumption and thus a decline in the use of this energy
vector. The 2022-25 Strategic Framework reveals an awareness of the need to reflect on which market
and regulatory tools might be the most suitable to facilitate the carrying out of investments that are of
real benefit to the system, in compliance with efficiency and economic sustainability criteria.
| Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 179| At present, however, the Regulatory Authority has not issued any measures, deeming that it is proceeding in full accordance with the current regulatory criteria. Therefore, on the basis of these considerations, the Group does not judge that any elements can be identified in the current framework to assume that the system will be severely disrupted without mechanisms in place to protect the financial equilibrium of companies providing gas distribution services. Electricity distribution, on the other hand, is set to have an ever increasing impact on the energy grid due to the electrification of consumption. This may in effect represent a development opportunity for the Group, especially when the current concessions are put up for tender. Relative to sales activity, a model scenario extending beyond the horizon of the plan was formulated that, taking into account transitional risks, projects customer consumption by service and type of use through to 2050. In particular, by considering the various effects of energy efficiency and transition dynamics, average volumes by customer cluster were calculated and growth/decrease rates over time were applied to these calculated volumes. To provide an estimate of overall marginality, intermediate steps were taken, estimating the evolution of the customer base in terms of supply points, to which an average volume per segment was attributed, adjusted over time to consider the impact of energy transition. Assuming that the margins hypothesized in the business plan for each service/segment remain constant over time, a significant growth in electricity margins was estimated for the period 2028-2050, associated with a lesser reduction in gas margins. In order to conduct a sensitivity analysis in relation to the impairment test, projections for natural gas sales were incorporated into the valuation models, both adjusting the annual cash flows up to 2050 (based on the assumptions made previously) by an average of 4 million euro and normalizing the cash flow used to calculate the terminal value by an analogous amount. In this hypothetical scenario as well, the results confirm the full recoverability of the asset values recorded in the balance sheet. An additional physical risk that may impact the Group is increased temperatures. Therefore, an additional medium- to long-term Cgu gas stress scenario was developed that would take into account the effects of an increase in average winter temperatures. Specifically, the projected increase in the RCP8.5 scenario is 1.5\u00b0C up to 2030 2\u00b0C up to 2050, relative to the 1981-2010 average. In relation to the climate assumptions for estimating gas sales volumes for the purposes of the Business Plan, this results in an 0.7\u00b0C increase up to 2030 and an 1.2\u00b0C increase up to 2050, respectively. Based on this scenario, a sensitivity analysis was developed to take into account a consequent reduction in Cgu gas margins (please also refer to the section of the Directors\u2019 Report 1.02.03 \u201cEnvironmental-Catastrophic Risk Management\u201d). In this case, too, the results obtained confirm the full recoverability of the values of the assets recorded in the financial statements Shareholdings During the fiscal year 2023, there were no significant transactions involving the purchase or sale of shareholdings. The changes in value from the previous year are therefore attributable to the valuated processes of investee companies. 26 Shareholdings 31 Dec 23 31 Dec 22 Change Shareholdings valued using the equity method 147.0 151.4 (4.4) Other shareholdings 48.6 38.9 9.7 Total 195.6 190.3 5.3 The changes in joint ventures and associated companies as compared to 31 December 2022 take into account the pro-quota losses and profits reported by the respective companies (including the other components of the comprehensive income statement) as well as the possible reduction of the value for any dividends that were distributed and for depreciations due to the impairment test. Changes in consolidated shareholdings using the net equity method are as follows: Associated companies and joint ventures 2.02.06 | Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 180| Opening value Investments and disinvestments Profit for the year Dividends paid out Changes in the scope of consolidation Write-downs and other changes Terminal value 31 Dec 22 Joint ventures Enomondo Srl 17.6 \u2010 3.1 (2.2) \u2010 0.3 18.8 Total joint ventures 17.6 \u2010 3.1 (2.2) \u2010 0.3 18.8 Associated companies Aimag Spa 51.7 \u2010 2.3 (2.8) \u2010 \u2010 51.2 Set Spa 28.5 \u2010 (0.6) \u2010 \u2010 \u2010 27.9 Sgr Servizi Spa 25.2 \u2010 2.4 (2.0) \u2010 (0.1) 25.5 ASM SET Srl 18.9 \u2010 1.5 (1.4) \u2010 (0.1) 18.9 SEA - Servizi Ecologici Ambientali Srl 8.7 \u2010 1.3 (1.0) \u2010 0.1 9.1 Total associated companies 133.0 \u2010 6.9 (7.2) \u2010 (0.1) 132.6 Total 150.6 \u2010 10.0 (9.4) \u2010 0.2 151.4 31 Dec 23 Joint ventures Enomondo Srl 18.8 \u2010 2.2 (2.2) \u2010 (0.2) 18.6 Total joint ventures 18.8 \u2010 2.2 (2.2) \u2010 (0.2) 18.6 Associated companies Aimag Spa 51.2 \u2010 1.4 (1.7) \u2010 \u2010 50.9 Set Spa 27.9 \u2010 0.6 \u2010 \u2010 (5.9) 22.6 Sgr Servizi Spa 25.5 \u2010 3.3 (2.1) \u2010 0.1 26.8 ASM SET Srl 18.9 \u2010 1.5 (1.3) \u2010 \u2010 19.1 SEA - Servizi Ecologici Ambientali Srl 9.1 \u2010 1.3 (1.4) \u2010 \u2010 9.0 Total associated companies 132.6 \u2010 8.1 (6.5) \u2010 (5.8) 128.4 Total 151.4 \u2010 10.3 (8.7) \u2010 (6.0) 147.0 The result for the year, essentially in line with the previous year, was positively influenced by the higher results achieved by Sgr Servizi Spa, which operates in the business of gas and electricity commodity sales to end customers, offset by the drop in the results of the companies Aimag Spa and Enomondo Srl. \u201cWrite-downs and other changes\u201d mainly include the results of the impairment test conducted on the associated company Set Spa. For more details on the assumptions and results of the impairment tests to which the carrying values of the investments in affiliates that represent vehicles through which the Group holds shares in the production of electricity generation plants (Set Spa and Tamarete Energia Srl) were subjected, see the information in Note 27 \u201cImpairment tests on shareholdings\u201d below.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 181|
Investments in companies not included in the scope of consolidation underwent the following changes:
Fair value hierarchy
Opening value
Investments and
disinvestments
Fair value
valuations
Other changes
Terminal value
31 Dec 22
Ascopiave Spa
1
39.9
\u2010
(12.3)
\u2010
27.6
Calenia Energia Spa
3
1.7
\u2010
\u2010
\u2010
1.7
Veneta Sanitaria Finanza di
Progetto Spa
3
3.6
\u2010
\u2010
\u2010
3.6
Other minor companies
3
2.7
3.2
\u2010
0.1
6.0
Total
47.9
3.2
(12.3)
0.1
38.9
31 Dec 23
Ascopiave Spa
1
27.6
\u2010
(1.7)
\u2010
25.9
Calenia Energia Spa
3
1.7
\u2010
12.7
\u2010
14.4
Veneta Sanitaria Finanza di
Progetto Spa
3
3.6
\u2010
\u2010
\u2010
3.6
Other minor companies
3
6.0
\u2010
\u2010
(1.3)
4.7
Total
38.9
\u2010
11.0
(1.3)
48.6
In the case of shareholdings with a level 1 fair value hierarchy, the value adjustment, recorded in the
components of the comprehensive income statement, makes it possible to align the book value of the
shares with the market prices at the end of the year. In the case of investments with a level 3 hierarchy,
the results obtained from the application of valuation techniques based on internal estimates, in the
absence of observable market parameters, led to the recognition among the components of the
comprehensive income statement of a positive adjustment to the carrying value of the investment in
Calenia Energia Spa.
Other
shareholdings
| Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 182| Below are presented the main aggregate values of the joint venture Enomondo Srl as well as companies with significant influence (Aimag Spa, ASM SET Srl, SEA Srl, Set Spa, Sgr Servizi Spa and Tamarete Energia Srl): Assets Joint ventures Associated companies Total Non-current assets Tangible assets 33.0 401.3 434.3 Rights of use 0.4 0.4 Intangible assets 58.6 58.6 Goodwill 101.5 101.5 Shareholdings 7.3 7.3 Financial assets 0.5 13.2 13.7 Deferred tax assets 0.5 4.0 4.5 Total non-current assets 34.0 586.3 620.3 Current assets Inventories 0.7 7.0 7.7 Trade receivables 7.3 279.7 287.0 Contract work in progress 0.4 0.4 Current tax assets 0.2 2.9 3.1 Other current assets 4.5 80.3 84.8 Derivative instruments 0.3 0.3 Cash and cash equivalents 11.6 28.9 40.5 Total current assets 24.6 399.2 423.8 Total assets 58.6 985.5 1,044.1 Investee data | Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 183| Net equity and liabilities Joint ventures Associated companies Total Share capital and reserves Share capital 14.0 88.0 102.0 Reserves 18.9 286.5 305.4 Profit (loss) for the period 4.4 27.0 31.4 Group net equity 37.3 401.5 438.8 Non-controlling interests 14.6 14.6 Total net equity 37.3 416.1 453.4 Non-current liabilities Non-current financial liabilities 7.7 202.3 210.0 Non-current lease liabilities 0.3 0.3 Post-employment and other benefits 6.2 6.2 Provisions for risks and charges 0.2 41.5 41.7 Deferred tax liabilities 0.1 0.6 0.7 Derivative financial instruments 0.1 0.1 Total non-current liabilities 8.0 251.0 259.0 Current liabilities Current financial liabilities 3.7 100.8 104.5 Current lease liabilities 0.1 0.1 Trade payables 6.3 207.4 213.7 Current tax liabilities (0.1) (0.1) Other current liabilities 3.3 10.2 13.5 Total current liabilities 13.3 318.4 331.7 Total liabilities 21.3 569.4 590.7 Total net equity and total liabilities 58.6 985.5 1,044.1 | Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 184| Income statement Joint ventures Associated companies Total Revenues 28.4 773.0 801.4 Other operating revenues 1.3 4.2 5.5 Raw and other materials (1.8) (520.2) (522.0) Service costs (16.6) (108.3) (124.9) Personnel costs (0.3) (35.4) (35.7) Amortisation, provisions and depreciation (5.0) (56.5) (61.5) Other operating expenses (0.2) (6.4) (6.6) Operating profit 5.8 50.4 56.2 Financial income 0.3 8.2 8.5 Financial expenses (0.6) (18.9) (19.5) Total financial operations (0.3) (10.7) (11.0) Other non-operating revenues (expenses) 0.3 0.3 Earnings before taxes 5.5 40.0 45.5 Taxes for the period (1.1) (12.5) (13.6) Net profit for the period 4.4 27.5 31.9 27 Impairment tests on equity investments As regards the market for electric generation, in the presence of impairment indicators and in keeping with previous financial periods, an in-depth analysis was performed to determine the recoverable amount of the Group\u2019s investments, and related financial assets, operating in the sector. In particular, the analysis was conducted by discounting the value of the cash flows expected to be generated over the remaining useful lives of the plants of Set Spa and Tamarete Energia Srl. A downwards trend in gas and electricity prices on the reference markets appeared in 2023, resulting in a negative baseload Clean Spark Spread (CSS). The short-term trend shows no signs of improvement in the baseload CSS, while in the medium to long term the outlook indicates improving values, albeit still negative. Various causes have determined the performance of the electricity market in recent years and can be traced back to cyclical factors, as regards both supply and demand. The main factors affecting current price dynamics are to be found in: \u25aa an increasing amount of renewable generation within the production mix, due to the steady increase in wind and photovoltaic plants; \u25aa moderate growth in GDP and the drive for consumption efficiency (guided by the objectives of European and national climate policies) that contributed to slight growth in energy demand; \u25aa European and national policies favouring the reduction of CO 2 emissions. Based on the scenarios developed, it is believed that the market will maintain a negative Clean spark spread baseload in the short term, with improvement in the medium to long term, due to a combination of multiple factors, including: \u25aa entry, starting in 2022, of new and highly efficient capacity (CCGT) subsidised by the Capacity Market mechanism that is gradually replacing coal plants, aimed at phasing them out by 2025; \u25aa the end-of-life of CCGT plants having lower efficiency, which, for several years now, has been creating favourable market conditions for interventions to improve efficiency and flexibility and which will be given an adequate return on investment with the margins that can be extracted from the day- ahead and dispatching markets. These investments not only increase the adequacy of the system in the medium to long term, but are also necessary to guarantee an adequate amount of margins; \u25aa consequently, low margins on the day-ahead market; \u25aa increasing role of renewable energy sources, supported by the challenging European decarbonisation targets and by the need to reduce geopolitical risk in energy sources.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 185|
That said, future cash flows determined on the basis of the medium/long-term energy scenario the Group
considered to be the most likely, formulated on the basis of independent expert assumptions consistent
with growth expectations for energy demand, installed power, the demand for combined cycle and the
system\u2019s expected reserve margin. This scenario alters the one used in the previous exercise, affecting
future Clean spark spread values. The estimated cash flows were discounted using a WACC coming to
5.93% (as against 5.21% WACC used in 2022), calculated in the same manner as illustrated for the cash
generating units in Note 25 \u201cImpairment tests on assets\u201d.
The outcome of the test resulted in a write-down of the investment in Set Spa amounting to 5.9 million
euro and confirmed a highly critical scenario for Tamarete Energia Srl, as the conditions for the recovery
of the amounts invested did not emerge.
Two sensitivity scenarios were also hypothesised:
\u25aa an initial sensitivity analysis was developed assuming a CSS reduced by 1 euro/MWh, with a
consequent reduction in the cash flows produced over the life of the plants.
\u25aa a second analysis hypothesized discounting all cash flows using a WACC increased by 25 bps.
The first scenario would result in a further write-down of the investment in Set Spa amounting to 1.4
million euro, while in the second scenario the value of the investment would be essentially equivalent to
its current book value.
At the end of the valuation process, the carrying amount of financial assets, shareholdings and
receivables attributable to Set Spa respectively came to 22.6 million euro and 14.1 million euro, while
the financial assets attributable to Tamarete Energia Srl were written down in full.
28 Cash flows related to investment activities
Investments in subsidiary companies and business units net of cash holdings
For further details on the acquisition transactions carried out during 2023, see paragraph 2.02.10, \u201cOther
Information\u201d.
The table below details the main cash disbursements and cash holdings acquired, when present,
associated with shareholdings in companies and business units.
31 Dec 23
A.C.R.
Spa
Asco TLC
Spa
F.lli Franchini
Srl
business unit
\u201cPagnanini\u201d
Total
investments
Cash outlays leading to the acquisition
of control
72.6
14.9
9.0
0.3
96.8
Cash holdings acquired
(15.3)
(2.3)
(3.0)
(20.6)
Investments in subsidiary companies
and business units net of cash
holdings
57.3
12.6
6.0
0.3
76.2
Cash outlays in non-consolidated
companies
\u2010
Investments in subsidiary
companies, business units and other
shareholdings
57.3
12.6
6.0
0.3
76.2
Increase/decrease in other investment activities
The following is a breakdown of information on changes in the other investment activities during the 2023
financial year, differentiating between cash flows and non-cash flows.
Type
31 Dec 23
31 Dec 22
Change
(a)
Non-cash flows
Cash flows
(f)=[(b)+(c)+(
d)+(e)]-(a)
Acquisitions
divestitures
(b)
Economic
valuation
components
(c)
Changes
in fair value
(d)
Other
changes
(e)
Current and non-
current financial
assets
253.7
229.5
24.2
0.1
6.5
3.5
44.2
30.1
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 186|
\u201cAcquisitions divestitures\u201d, include the effects arising from acquisitions of control during 2023, as
illustrated in paragraph 2.02.10 \u201cOther information\u201d.
\u201cEconomic valuation components\u201d mainly include income from discounting non-current financial
receivables amounting to 6.5 million, as reported in Note 10 \u201cFinancial income\u201d.
\u201cFair value changes\u201d include the economic effects related to the revaluation of financial receivables
subject to impairment, as illustrated in Note 18 \u201cFinancial assets, cash and cash equivalents\u201d.
\u201cOther changes\u201d mainly include the amount of tax credit transfers carried out at the end of 2023, the
which were collected in January 2024, amounting to 43.6 million euro. For further details, see Note 18
\u201cFinancial assets, cash holdings and cash equivalents\u201d.
Derivatives and related instruments
The derivative instruments used by the Group are divided into two types based on the underlying assets
hedged: interest and exchange rates with reference to financing transactions, and commodities with
reference to the commercial purchase and sale of gas and electricity. All commodity derivatives are
classified as current assets and liabilities by virtue of the high level of liquidity and the operational time
span that characterise these instruments.
29 Derivative instruments
At 31 December 2023, the net exposure of interest and exchange rate derivatives was negative and
more significant the previous year. The net exposure of commodity derivatives, which was significantly
lower than in the previous year, mainly reflects the sharp decline in energy commodity price volatility
compared to the peaks seen in 2022.
31 Dec 23
31 Dec 22
Change
Fair value
assets
Fair value
liabilities
Net effect
Fair value
assets
Fair value
liabilities
Net effect
Net effect
Interest/exchange rate
derivatives
Loans
0.3
\u2010
0.3
0.5
\u2010
0.5
(0.2)
Foreign currency loans
0.9
21.6
(20.7)
0.5
6.3
(5.8)
(14.9)
Total interest/exchange
rate derivatives
1.2
21.6
(20.4)
1.0
6.3
(5.4)
(15.0)
Commodity derivatives
Commercial portfolio
409.5
336.9
72.6
1,531.0
1,244.2
286.8
(214.1)
Trading portfolio
67.6
99.1
(31.5)
91.2
103.4
(12.2)
(19.3)
Total commodity
derivatives
477.1
436.0
41.1
1,622.2
1,347.6
274.6
(233.5)
Total derivatives
478.3
457.6
20.7
1,623.2
1,353.9
269.2
(248.5)
of which non-current
0.3
\u2010
1.0
6.3
of which current
478.0
457.6
1,622.2
1,347.6
The financial management policy foresees the use of hedging instruments to effectively offset changes
in the fair value, cash flows of the hedged instrument or, more specifically, changes in interest and
exchange rate fluctuations that affect the sources of funds used. At 31 December 2023, net exposure in
terms of fair value concerning current and non-current interest and exchange rate derivatives, in the form
of interest rate swaps (IRS) and cross currency swaps (CCS), was negative and the change from the
previous year was mainly due to the significant depreciation of the yen against the euro and the increase
in interest rates, only partially offset by the cashflows generated during the period.
2.02.07
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 187|
The operational management of commodities, on the other hand, is carried out through a process that
identifies objectives, strategies and responsibilities for each existing operation. Contracts, both financial
and physical in nature, are classified into the commercial or trading portfolios according to the purpose
of the contracts. The Group\u2019s internal organisational model make it possible to identify the nature of the
operation (commercial or trading) and produce the information required for a formal identification of the
purpose of derivatives. The centralised management of hedging transactions allows every possible
synergy to be introduced for covering electricity and gas requirements and is supplemented with
exchange rate transactions, as well as being realised through the exclusive use of swap contracts or
other authorised derivatives. All other derivatives or similar instruments that are not intended to hedge
the Group\u2019s requirements are classified in the trading portfolio.
In 2023, commodity derivatives showed a significantly lower net positive exposure than in the previous
year, mainly linked to the significant decrease in energy commodity prices.
Interest rate derivatives
Interest rate and foreign exchange derivative instruments held as of 31 December 2023, subscribed in
order to hedge loans, can be classed into the following categories:
31 Dec 23
31 Dec 22
Type
Fair value
hierarchy
Notional
Fair value
assets
Fair value
liabilities
Notional
Fair value
assets
Fair value
liabilities
Cash flow hedges
2
5.9 mn
0.3
\u2010
8.3 mn
0.5
\u2010
Fair value hedges
2
149.8 mn
0.9
21.6
149.8 mn
0.5
6.3
Total fair value
1.2
21.6
1.0
6.3
31 Dec 23
31 Dec 22
Type
Fair value
hierarchy
Income
Expenses
Net effect
Income
Expenses
Net effect
Cash flow hedges
2
0.2
\u2010
0.2
0.1
(0.1)
\u2010
Fair value hedges
2
4.9
(23.8)
(18.9)
18.2
(21.4)
(3.2)
Total income (expenses)
5.1
(23.8)
(18.7)
18.3
(21.5)
(3.2)
The change in the fair value of derivatives classified as cash flow hedges is mainly due to the realisation
of cash flows during the period, that is, the reduction in the notional amount of the derivative. In the
current financial year, there were no significant ineffective amounts relating to the residual financial
instruments. The effect on the statement of comprehensive income for 2023 is an expense amounting to
0.2 million euro.
Derivatives designated as hedges of interest rate and exchange rate risks and of the fair value of foreign
currency financial liabilities (fair value hedges), in the form of interest rate swaps (IRS) and cross
currency swaps (CCS), are related to a bond denominated in Japanese yen, expiring in August 2024,
with a remaining notional amount of 20 billion yen equal to 149.8 million euro (converted at the original
exchange rate being hedged). The change in fair value is due to the exchange rate, as the Japanese
yen depreciated significantly against the euro during 2023, and the increase in the interest rate curve,
only partially offset by the generation of cashflows for the period.
Cash flow
hedge
Fair value
hedge
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 188|
The table below provides a breakdown of financial income and expense associated with derivatives
designated as fair value hedges and related underlying liabilities, as adjusted for the income and losses
attributable to the hedged risk:
Fair value hedges
31 Dec 23
31 Dec 22
Income
Expenses
Net effect
Income
Expenses
Net effect
Assessment of derivatives
\u2010
(14.6)
(14.6)
13.2
(12.6)
0.6
Accrued interest
0.5
(0.7)
(0.2)
0.5
(0.6)
(0.1)
Realised cash flows
4.4
(8.5)
(4.1)
4.4
(8.1)
(3.6)
Economic effect of derivatives
Fair value hedges
4.9
(23.8)
(18.9)
18.2
(21.4)
(3.1)
Underlying amounts hedged
31 Dec 23
31 Dec 22
Income
Expenses
Net effect
Income
Expenses
Net effect
Assessment of financial liabilities
15.6
\u2010
15.6
\u2010
(0.6)
(0.6)
Sensitivity Analysis - Financial operations
Assuming an instant change of 10% in the euro/yen exchange rate, given the same interest rates, the
potential decrease in fair value of the derivative financial instruments in place at 31 December 2023
would amount to approximately 12 million euro. Likewise, assuming an instant reduction of the same
amount, the potential fair value increase would be approximately 14.7 million euro. Given that exchange
rate derivatives related to borrowing transactions are treated as fair value hedges, any change in these
fair values would not have any effect on the income statement, other than for the credit adjustment part,
as any such change would be offset by a movement in the opposite direction of the hedged liability.
The assumptions on interest rate changes would have no significant effect on the fair value of outstanding
derivative financial instruments on interest and exchange rates. Furthermore, these changes in fair value
of financial instruments accounted for as cash flow hedges would have no effect on the income statement
if it were not for their potential ineffective portion, which moreover is not significant. In the event of an
increase or decrease in fair value, there would be a non-significant increase or decrease in net equity.
As to derivatives designated as fair value hedges, any change in fair value would not have any effect on
the income statement, other than for the credit adjustment part, as any such change would be essentially
offset by a movement in the opposite direction of the hedged liability.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 189|
Commodity derivatives
Commercial portfolio
The commercial portfolio includes commodity derivative instruments, both financial and physical, entered
into to hedge mismatches between purchase and sale formulas, which are classed into the following
categories:
Operations management
Type
31 Dec 23
31 Dec 22
Fair value
hierarchy
Notional
Fair value
assets
Fair value
liabilities
Notional
Fair value
assets
Fair value
liabilities
Gas formulas
3
13,984,372
MWh
210.0
19,827,928
MWh
974.7
Electricity formulas
2
2,690,293
MWh
199.2
5,293,822
MWh
556.3
Other commodities
3
7,649
Ton
0.3
Exchange
2
935,000
USD
0.0
Gas formulas
3
13,108,766
MWh
189.2
18,691,234
MWh
901.6
Electricity formulas
2
3,186,649
MWh
147.4
3,165,429
MWh
341.1
Exchange
2
19,620,000
USD
0.3
62,353,000
USD
1.5
Total fair value
409.5
336.9
1,531.0
1,244.2
Type
31 Dec 23
31 Dec 22
Income
Expenses
Net effect
Income
Expenses
Net effect
Assessment of derivatives
0.2
\u2010
0.2
24.3
(23.0)
1.3
Realised cash flows
2,372.2
(2,036.1)
336.1
4,564.8
(4,579.5)
(14.7)
Economic effect of derivatives
2,372.4
(2,036.1)
336.3
4,589.1
(4,602.5)
(13.4)
The main objectives of these contracts are to replicate the cash flows of the formulas on sale in the
market and to cover the spread between benchmark markets (TTF and PSV). In order to assess the
impact that fluctuations in the market price of the underlying asset have on the financial derivatives
attributable to the commercial portfolio, the PaR (Profit at Risk) tool is used, that is the change in the
value of the portfolio of derivative financial instruments within pre-established probability hypotheses as
a result of a shift in market indexes.
The significant decrease in net fair value is due both to a decrease in the price of natural gas during the
year and the same trend in the PUN, the latter being closely correlated to the trend in gas prices, and to
the decrease in notional amounts outstanding at year-end.
| Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 190| The overall effect of these instruments on the statement of comprehensive income is broken down as follows: Commodity derivatives commercial portfolio 31 Dec 23 31 Dec 22 Positive components Negative components Net effect Positive components Negative components Net effect Changes to expected cash flows 47.2 \u2010 47.2 214.7 \u2010 214.7 Reserve transferred to the income statement 2,036.1 (2,372.2) (336.1) 4,579.5 (4,564.8) 14.6 Derivatives effect on statement of comprehensive income cash flow hedge 2,083.3 (2,372.2) (288.9) 4,794.2 (4,564.8) 229.3 The amount of the reserve transferred during the year to the income statement also includes the effects of derivatives for which the hedging relation had been discontinued with respect to open items that had not yet reached maturity. The components recognised in the statement of comprehensive income will be transferred back to the income statement at the maturity dates of the corresponding hedged items. The effect on the income statement of the realisation of derivative or similar contracts, whether physical or financial, can be broken down as follows: Physical contracts treated as derivatives Financial derivative contracts Overall effect Sales revenues 2,080.9 Income 291.3 2,372.2 Purchasing costs (1,928.4) Expenses (107.7) (2,036.1) Effect of realising derivative cash flow hedges 152.5 183.6 336.1 Sensitivity analysis - Commercial portfolio Assuming an instant increase of 30 euro/MWh of the TTF, with no change in the national standard price curve, the potential decrease in the fair value of derivative financial instruments held as at 31 December 2023 would amount to approximately 4.5 million euro. On the contrary, an instant fall in the same amount would bring about a potential increase in the fair value of the instruments of approximately 4.5 million euro. Assuming an instant +30 euro/MWh change in the national standard price curve, with no change in the TTF price, the potential increase in the fair value of derivative financial instruments of the commercial portfolio held at 31 December 2023 would amount to approximately 9.7 million euro. On the contrary, an instant change of -30 euro/MWh would bring about a potential decrease in the fair value of the instruments of approximately 9.7 million euro. In the organizational model described above, these changes in fair value would mainly affect derivative instruments accounted for as hedges thus the opposite variation of net equity would be recorded in the income statement. Effects on statement of comprehensive income Effects on income statement | Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 191| Trading portfolio The trading portfolio includes derivatives or similar instruments that are not intended to cover the Group\u2019s needs and are entered into for speculative purpose. These instruments can be broken down into the following types: Operations management Type 31-Dec-23 31-Dec-22 Fair value hierarchy Notional Fair value assets Fair value liabilities Notional Fair value assets Fair value liabilities Electricity formulas 2 3,311,730 MWh 67.6 663,755 MWh 82.7 Gas formulas 3 204,228 MWh 8.5 Electricity formulas 2 4,507,848 MWh 99.1 1,274,824 MWh 96.9 Gas formulas 3 67,292 MWh 5.7 Exchanges 2 3,839 Bbl 0.1 Other commodities 2 3,404 Ton 0.7 Totale fair value 67.6 99,1 91.2 103,4 Type 31 Dec 23 31 Dec 22 Income Expenses Net effect Income Expenses Net effect Assessment of derivatives 170.1 (189.4) (19.3) 163.7 (170.5) (6.8) Realised cash flows 36.0 (59.1) (23.1) 146.4 (51.3) 95.1 Economic effect of derivatives 206.1 (248.5) (42.4) 310.1 (221.8) 88.3 In order to assess the impact that fluctuations in market prices of the underlying asset have on the derivatives attributable to the trading portfolio, the VaR (Value at Risk) instrument is used, that is the negative change in the value of the portfolio of derivative instruments within pre-established probability hypotheses as a result of an unfavourable shift in market indexes. The effect on the income statement of exchanges realised on derivative or similar contracts, whether physical or financial, can be broken down as follows: Contracts treated as derivatives Financial derivative contracts Overall effect Sales revenues 13.1 Income 22.9 36.0 Purchasing costs (60.3) Expenses 1.2 (59.1) Effect of realising derivatives (47.2) 24.1 (23.1) The following table shows the economic results of trading activities at 31 December 2023, including the effects of energy commodity contracts: Trading portfolio Fair value 31 Dec 2023 Fair value 31 Dec 2022 Delta Fair value Realised 2023 Amounts entered in the income statement 31 Dec 23 Gas, crude oil and other commodity formulas \u2010 2.0 (2.0) 3.1 1.1 Electricity formulas (31.5) (14.2) (17.3) (26.2) (43.5) Total trading portfolio (31.5) (12.2) (19.3) (23.1) (42.4)
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 192|
Sensitivity analysis - Trading portfolio
Assuming an instant +30 euro/MWh change in the national standard price curve, with equal TTF price,
the potential increase in the fair value of derivative financial instruments of the trading portfolio held at
31 December 2023 would amount to approximately 7.5 million euro. On the contrary, an instant change
of -30 euro/MWh would bring about a potential decrease in the fair value of the instruments of
approximately 7.5 million euro.
Provisions and contingent liabilities
30 Post-employment and other benefits
This entry includes provisions for severance pay and other contractual benefits, net of advances paid out
and payments made to the social security institutions pursuant to current regulations. The calculation is
made using actuarial techniques and discounting future liabilities to the balance sheet date. These
liabilities comprise the employee\u2019s matured receivables at the date they will presumably leave the
company.
Opening value
Service cost
Financial expenses
Actuarial profit
(losses)
Uses
Changes in the
scope of
consolida
tion
Terminal value
31 Dec 22
Post-employment
93.7
1.4
0.2
(5.1)
(11.3)
0.5
79.4
Other benefits
11.7
\u2010
0.1
2.0
(1.2)
\u2010
12.6
Total
105.4
1.4
0.3
(3.1)
(12.5)
0.5
92.0
31 Dec 23
Post-employment
79.4
1.0
2.5
1.5
(9.7)
1.1
75.8
Other benefits
12.6
\u2010
0.5
0.5
(1.3)
\u2010
12.3
Total
92.0
1.0
3.0
2.0
(11.0)
1.1
88.1
\u201cOther benefits\u201d mainly comprises the following:
\u25aa the item gas discount, which represents annual indemnities provided to Federgasacqua employees,
hired prior to January 1980, which may be transferred to their heirs;
\u25aa Premungas, a supplementary pension fund for employee members of Federgasacqua hired prior to
January 1980. This fund, closed with effect from January 1997, undergoes changes on a quarterly
basis solely to settle payments made to eligible retirees;
\u25aa the item tariff reduction, set up to cover the charges deriving from the acknowledgement to retired
staff of the electricity business unit of tariff concessions for electricity consumption.
The item \u201cService Cost\u201d regards companies with a small number of employees for whom the employee
severance indemnity fund continues to represent a defined benefit plan.
\u201cFinancial charges\u201d are calculated by applying a specific discount rate for each company, determined on
the basis of the average financial life of the bond. The significant increase in expenses is due to the
increased interest rate used for actuarial valuations due to the changed economic scenario.
\u201cActuarial profit (losses)\u201d reflects the re-measurement of the liabilities for employee benefits arising from
changes in actuarial assumptions. These effects are recorded directly in the other items of the
comprehensive income statement.
\u201cChanges in scope of consolidation\u201d includes the post-employment provision acquired following the
business combinations carried out during the period.
2.02.08
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 193|
The table below outlines the main assumptions used in the actuarial estimate of employee benefits,
subdivided by geographical area:
Central area
North-east area
Technical actuarial yearly rate
2.95%
2.97%
Overall increase of salary yearly rate
2.00%
2.00%
Yearly frequency of exit from work for reasons other than death
1.70%
2.49%
Yearly average frequency of use of severance pay provision
2.23%
2.43%
In interpreting these assumptions, account is taken of the following:
\u25aa with regard to the inflation rate, the inflation assumption was inferred by adopting the Extended
National Consumer Price index of 2.90% for 2024 and 2% for the following years;
\u25aa for probabilities of death, ISTAT 2022 tables were consulted;
\u25aa the actuarial valuations took into account the new starting dates for pension treatments provided for
by Decree-Law No. 201 of 6 December 2011, converted, with amendments, by Law No. 214 of 22
December 2011, as well as legislation involving adjusting pension system access requirements to
increases in life expectancy pursuant to Article 12 of Decree-Law No. 78 of 31 May 2010, converted,
with amendments, by Law No. 122 of 30 July 2010;
\u25aa for the probability of leaving employment for reasons other than death, an average yearly exit rate of
1.7% was hypothesized, since the analysis differentiated by professional level and gender did not
produce statistically significant results;
\u25aa to take into account the phenomenon of an early end of employment, the incidence and amount of
average anticipated severance pay were hypothesized. The frequency of advance payments as well
as the average percentage of severance pay requested as an advance were drawn from corporate
data. The rate of severance pay requested as an advance was hypothesized at 70% of severance
pay or the maximum amount set by current regulations.
Actuarial projections were made on the basis of the Euro Composite AA yield curve at 31 December
2023.
Sensitivity Analysis - Obligations of defined-benefit plans
Assuming a 50 bps increase in the internal rate of return compared to the discount rate actually applied
to value the liabilities at 31 December 2023, all other actuarial assumptions being equal, the potential
decrease of the present value of the obligations of the existing defined-benefit plans (DBO) would amount
to approximately 1.8 million euro. Likewise, assuming a reduction of this rate of 50 bps, there would be
an increase in the present value of the liabilities of approximately 1.9 million euro.
Assuming a 50 bps increase in the in the rate of inflation compared to that actually applied to value the
liabilities at 31 December 2023, all other actuarial assumptions being equal, the potential increase of the
present value of the obligations of the existing defined-benefit plans (DBO) would amount to
approximately 1.1 million euro. Likewise, assuming a reduction of this rate of 50 bps, there would be a
decrease in the present value of the liabilities of approximately 1.1 million euro.
Changes in the remaining actuarial assumptions would not produce significant effects on the present
value of the liabilities of the defined-benefit plans reported in the financial statement.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 194|
31 Provisions for risks and charges
Opening value
Provisions
Financial expenses
Uses
Other movements
Changes in the scope
of consolidation
Terminal value
31 Dec 22
Provision for third-party asset
restoration
207.5
6.3
4.1
\u2010
\u2010
\u2010
217.9
Provision for closure and post-
closure landfill expenses
182.6
6.0
8.0
(13.5)
3.2
\u2010
186.3
Provision for personnel legal cases
and disputes
10.7
2.4
\u2010
(1.3)
(1.0)
0.1
10.9
Provisions for waste disposal
8.1
9.3
\u2010
(7.6)
(0.1)
\u2010
9.7
Provision for plants dismantling
6.0
\u2010
0.1
\u2010
\u2010
\u2010
6.1
Other provisions for risks and
charges
113.1
44.0
\u2010
(5.6)
(16.8)
\u2010
134.7
Total
528.0
68.0
12.2
(28.0)
(14.7)
0.1
565.6
31 Dec 23
Provision for third-party asset
restoration
217.9
6.4
4.4
\u2010
0.1
\u2010
228.8
Provision for closure and post-
closure landfill expenses
186.3
6.6
0.3
(12.0)
3.9
\u2010
185.1
Provision for personnel legal cases
and disputes
10.9
8.1
\u2010
(3.0)
(1.0)
\u2010
15.0
Provisions for waste disposal
9.7
8.3
\u2010
(9.4)
(0.1)
\u2010
8.5
Provision for plants dismantling
6.1
0.1
0.1
\u2010
\u2010
\u2010
6.3
Other provisions for risks and
charges
134.7
59.0
\u2010
(3.3)
(16.5)
0.2
174.1
Total
565.6
88.5
4.8
(27.7)
(13.6)
0.2
617.8
The \u201cProvision for third-party asset restoration\u201d includes provisions made in relation to legal and
contractual requirements for the Group companies as lessees of the distribution networks of the entity
that owns the assets. The allocations are made on the basis of depreciation rates held to be
representative of the remaining useful life of the assets in question in order to compensate the owner
companies for the wear and tear of the assets used for business activities. In the event that the
concession system is not yet undergoing an extension, pending the setting of tenders for the area, this
provision reflects the present value of the disbursements that will be determined in future periods
(generally at the expiry of the agreements signed with the area authorities, in the case of the water
service, and at the end of the transitional period provided for by current legislation, in the case of gas
distribution). The increases in this provision comprise the sum total of the provisions for the year,
including those discounted to present value, and the financial charges for the period associated with the
cash flows discounted to present value. Note that since most of the concessions are undergoing an
extension, the discounting process and the resulting financial charges only refer to concessions that are
still fully in force.
The \u201cProvision for closure and post-closure landfill expenses\u201d represents the amount set aside to cover
the costs which will have to be incurred for the management of the closure and post-closure period
pertaining to the landfills currently managed. The future outlays, calculated for each landfill by means of
a specific appraisal, have been discounted to present value. The increases in the provision comprise the
financial component derived from the discounting process and provisions due to changes in the
assumptions about future outlays, following the change in expert estimates on closed landfills.
Financial expenses decreased significantly compared to the previous year, mainly due to updates in the
parameters used to reflect current market conditions (in particular, the reference WACC increased by
more than 1%) and to a lesser extent due to the revised assumptions on the distribution over time of
future disbursements.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 195|
Uses are made up of actual disbursements that occurred during the year, while \u201cOther movements\u201d
mainly includes estimated closure and post-closure costs in relation to newly constructed landfills and
the changes in the estimated closure and post-closure costs of active landfills, which required the
recording of an adjustment having the same amount as the value of tangible assets (landfill asset),
totalling 3.7 million euro for 2023.
The \u201cProvision for personnel legal cases and disputes\u201d reflects the outcomes of lawsuits and disputes
brought by employees.
The \u201cProvision for waste disposal\u201d reports the estimated costs of disposal of the waste already stored at
the Group\u2019s plants. The provisions reflect the estimated costs of contributions for 2023 not yet processed
at the end of the financial period, while the uses represent the costs incurred over the period for
processing waste that was residual at 31 December 2022.
\u201cProvision for plants dismantling\u201d includes the amounts allocated for the future dismantling of the plants
for cases in which this is mandatory.
\u201cOther provisions for risks and charges\u201d comprises provisions made against sundry risks. Below, there
is a description of the main items:
Liabilities
Type
Amount
(mn\u20ac)
Risks arising from the activity of energy efficiency upgrading of buildings carried out
on behalf of end customers, particularly apartment blocks
Likely
23.8
The amount of the WTE and cogeneration plants\u2019 green certificates, calculated
according to the difference between auxiliary services resulting from total self-
consumption and services estimated on the basis of the benchmark percentage,
was not recognised;
Likely
14.0
Outstanding bonds (guarantee on financial exposure given by AcegasApsAmga
Spa) in case of abandonment of the operations run by the foreign subsidiary
AresGas (Bulgaria).
Contingent
11.3
The higher cost of the electricity used in the water service provision was not
recognised, due to the volatility of the energy market, which resulted in price values
for 2022 that were higher than the allowed maximum limit provided for by the tariff
system.
Likely
9.3
Risk of non-reimbursement by some provincial offices of the Customs Agency,
relating to surcharges on electricity reimbursed to end users following the ruling of
the Court of Cassation in line with European Directive 2008/118/EC.
Likely
9.0
Reimbursement of a portion of the sewerage and purification tariffs for the water
service
Likely
6.1
Higher expenses that may be incurred in connection with extraordinary
maintenance on the Ponte San Nicol\u00f2 (Padua) landfill
Contingent
5.0
Potential litigations arising from the risk of disputes in relation to the gas distribution
unit of the Veneto and Friuli Venezia-Giulia regions, sold at the end of 2019
Likely
3.5
The liabilities classified as contingent were recognised as part of the business combination in the year in
which it occurred.
Provisions amounted to 59 million euro, increasing from the previous year mainly for regulatory and
contractual execution risks.
Out of the amount of \u201cOther movements\u201d, coming to 16.5 million euro, 14.7 million euro is due to the
release from provisions recorded in previous years, whose valuation proved to be in excess of the actual
liability.
The \u201cChange in the scope of consolidation\u201d include the provisions of the companies acquired during
2023.
For detailed information on risk provisions for tax litigations, see Note 12 \u201cTaxes\u201d.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 196|
Operating working capital
notes
31 Dec 23
31 Dec 22
Change
Inventories
32
631.6
995.1
(363.5)
Trade receivables
33
3,586.8
3,875.0
(288.2)
Trade payables
34
(2,637.2)
(3,093.1)
455.9
Current tax assets
13
11.4
46.0
(34.6)
Current tax liabilities
13
(110.2)
(17.1)
(93.1)
Other current assets
35
509.3
642.5
(133.2)
Other current liabilities
36
(1,866.8)
(1,720.0)
(146.8)
Operating working capital
124.9
728.4
(603.5)
Operating working capital consists of the same components as net working capital, as defined by the
alternative performance indicators in Section 1.04 \u201cOverview of operating and financial trends and
definition of alternative performance measures,\u201d with the exception of current portions of assets and
liabilities for commodity derivatives.
The change that occurred 2023 compared to 2022 was mainly due to the improved energy scenario,
which led to a decrease in the prices of gas and electricity commodities and lesser use of natural gas
storage at year-end, which had a positive influence on the management of the Group\u2019s financial
resources.
32 Inventories
31 Dec 23
31 Dec 22
Change
Contract work in progress
433.1
449.4
(16.3)
Gas stocks
114.6
468.6
(354.0)
Raw materials and stocks
70.2
57.6
12.6
Materials earmarked for sale and finished products
13.7
19.5
(5.8)
Total
631.6
995.1
(363.5)
The item \u201cContract work in progress\u201d includes long-term contracts for plant construction work, mainly in
relation to the following businesses:
31 Dec 23
31 Dec 22
Change
Energy services and building upgrading
364.1
386.6
(22.5)
Treatment and disposal
23.7
4.4
19.3
Water services
22.5
27.3
(4.8)
Public lighting
21.1
23.7
(2.6)
Other minor items
1.7
7.4
(5.7)
Total
433.1
449.4
(16.3)
The item Energy services and building upgrading mainly includes activities for increasing the energy
efficiency of buildings, especially apartment blocks.
The increase in works related to the treatment and disposal sector is due to orders for the reclamation
of industrial sites, handling and civil works done by A.C.R Spa, which became part of the scope of
consolidation in 2023.
\u201cGas stocks\u201d, already shown net of the relative depreciation provision, represent the stocks of natural
gas held for sale. The change compared to the end of the previous year is mainly due to:
2.02.09
| Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 197| \u25aa the decrease in wholesale prices recorded in 2023, which led to a lower average book cost; \u25aa the lower volumes in storage at the end of the period, due to the lower storage capacity purchased for the 2023-2024 autumn-winter season. As illustrated in the Director\u2019s report, in paragraph 1.04 \u201cOverview of operating and financial performance and definition of alternative performance measures\u201d, in determining the average cost of inventories, all purchases of natural gas made during the storage injection period are taken into consideration, without distinction as to their end purpose, unlike what is done managerially, in order to monitor this business more precisely. The sharp decrease in prices and the criterion of a mass valuation of contracts led to a book value of the stock that is higher than what can be identified as its net sales value, in light of the forward sales contracts already signed by the Group at date referred to by the statements. For these reasons, the value of these inventories was reduced by a 27.4 million euro write-down. In particular, the risk management approach adopted by the Group calls for appropriate hedging transactions, such as forward sales, on the value of gas in storage. Following changes in forecasts of disbursement flows, these transactions can be redefined in order to ensure the effectiveness of the hedge itself. This redefinition was taken into account in defining the net sales value, thus taking into account the value of forward prices at the expected stages of disbursement, which occurred not only in the first quarter of 2024 but are also expected for the last quarter of the same year. \u201cRaw materials and stocks\u201d, already presented net of an associated obsolescence provision, mainly include: 31 Dec 23 31 Dec 22 Change Spare materials and equipment 61.3 49.8 11.5 Plastic materials 8.8 7.4 1.4 Other fuels 0.1 0.4 (0.3) Total 70.2 57.6 12.6 \u201cMaterials earmarked for sale and finished products\u201d, already shown net of the respective provision for depreciation, mainly consist of: 31 Dec 23 31 Dec 22 Change Plastic products 8.4 12.2 (3.8) Material for photovoltaic systems 4.9 6.7 (1.8) Telecommunications equipment 0.4 0.6 (0.2) Total 13.7 19.5 (5.8) 33 Trade receivables 31 Dec 23 31 Dec 22 Change Receivables from customers 3,066.5 2,051.1 1,015.4 Receivables from customers for bills and invoices not yet issued 1,147.0 2,375.9 (1,228.9) Provision for bad debts (626.7) (552.0) (74.7) Total 3,586.8 3,875.0 (288.2) Trade receivables comprise estimated consumption, for the portion pertaining to the period, relating to bills and invoices which will be issued after 31 December 2023, as well as receivables for revenues coming due during the period, referring to the water sector which will be billed in the following period, in accordance with the billing methods for final customers established by the respective Authority. The change in the stock of receivables managed compared to the previous year is due to various phenomena that had opposing effects: | Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 198| \u25aa the decrease in market prices of gas and electricity commodities, which led to a corresponding decrease in the value of sales to end customers and the resulting receivables still to be collected at the date of the financial statement; \u25aa a decrease in the value of trading transactions on wholesale markets carried out at the end of the year that are expected to be settled in the first few months of 2024; \u25aa a decrease in sales yet to be invoiced at year-end due to weather conditions, since late 2023 saw milder temperatures than the previous year; \u25aa an increase in invoices issued involving energy efficiency services provided to apartment buildings. At year-end, in particular, the Group proceeded to invoice the progress of the works, almost entirely completed, for the works falling under the 110% super-bonus, in order to guarantee, as required by tax regulations, the benefit consisting in a deduction of the works at the rate originally envisaged. These trade receivables, measured at fair value at the time of their initial recognition, will be recognized as tax credits once the submission of the necessary documentation to the Revenue Agency is completed in early 2024, since the mechanism that included discounts directly in invoices was used in the contractual relationship with the customer. The value of trade receivables reported in the financial statements at 31 December 2023 represents the Group\u2019s maximum exposure to credit risk. Changes in the provision for bad debts is as follows: Opening balance Provisions Changes in the scope of consolidation Uses and other movements Closing balance 2022 financial year 444.6 133.9 1.8 (28.3) 552.0 2023 financial year 552.0 158.0 1.7 (85.0) 626.7 The recording of the provision is made on the basis of analytical valuations in relation to specific receivables, supplemented by assessments made based on future-oriented analyses of the receivables regarding the general body of customers (in relation to the age of the receivables, the type of recovery action undertaken and the status of the debtor), as described in the section \u201cRisk management\u201d in paragraph 2.02.01 \u201cIntroduction\u201d. The change in the provision compared to the previous year is mainly due to the credits relating to environmental services and the energy sector. In particular, specific analyses were carried out with reference to receivables due from customers impacted by the flooding events, municipal hygiene customers and energy customers acquired in areas not previously served, which show, based on the first available final data, lower levels of reliability and payment regularity compared to those of the Group\u2019s historical customers. The higher utilisations and other movements for the period are mainly due the disposals of non- performing receivables made during the year, which led to the complete derecognition of their value through the use of the provision created in previous years. The following table shows receivables from all customer clusters on the basis of bills issued, organized by degree of past-due: 31 Dec 23 % inc. 31 Dec 22 % inc. Change Not yet due 1,231.2 40% 824.2 40% 407.0 Due 0-30 days 424.7 14% 179.5 9% 245.2 Due 31-180 days 395.1 13% 287.3 14% 107.8 Due 181-360 days 233.6 8% 151.2 7% 82.4 Due beyond 360 days 781.8 25% 608.9 30% 172.9 Total 3,066.5 2,051.1 1,015.4 Analysis of overdue receivables
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 199|
34 Trade payables
31 Dec 23
31 Dec 22
Change
Payables to suppliers
935.2
890.3
44.9
Payables to suppliers for invoices not yet received
1,702.0
2,202.8
(500.8)
Total
2,637.2
3,093.1
(455.9)
Changes in trade payables compared to the previous year mainly involve the following factors:
\u25aa a decrease in the wholesale prices of gas and electricity commodities, which led to a decrease in
costs for purchasing raw materials and an ensuing lower exposure to suppliers, particularly with
regard to the trading transactions on wholesale markets carried out at year-end;
\u25aa the increase in the volume of energy efficiency upgrading of buildings carried out on behalf of end
customers, particularly apartment buildings, which led to a subsequent increase in payables to
suppliers and professionals carrying out the works.
35 Other current assets
31 Dec 23
31 Dec 22
Change
Tax credits and benefits
97.3
79.8
17.5
Fund for energy and waste management services for
equalisation and continuity income
85.3
119.6
(34.3)
VAT, excise and additional taxes
75.7
86.6
(10.9)
Energy efficiency certificates and emissions trading
64.3
40.9
23.4
Security deposits
39.8
59.8
(20.0)
Prepaid costs
34.7
29.5
5.2
Receivables from electricity and gas sector companies
\u2010
76.1
(76.1)
Other receivables
112.2
150.2
(38.2)
Total
509.3
642.5
(133.2)
\u201cTax credits and benefits\u201d mainly include:
\u25aa tax credits arising from the application of the invoice discount to end customers, stated at their market
value, in relation to subsidised energy efficiency measures, amounting to 88.3 million euro (44.1
million euro at 31 December 2022). These measures are mainly related to building renovation
activities on apartment buildings;
\u25aa credits for investments in capital goods, including those related to Industry 4.0, totalling 9 million euro
(5.8 million euro at 31 December 2022), which will be used to offset taxes and contributions in
subsequent years on the basis of the annual limits provided for.
At 31 December 2022, this item also included receivables arising from the government\u2019s regulatory
interventions relating to electricity and gas costs, amounting to roughly 23 million euro, which were used
as compensation during 2023.
\u201cFund for energy and waste management services for equalisation and continuity income\u201d consisted of
continuity income amounting to 30.3 million euro (83.3 million euro at 31 December 2022) and
equalisation credits amounting to 55 million euro (36.3 million euro at 31 December 2022).
Continuity income decreased by 53 million euro compared to the previous year, mainly due to two factors:
\u25aa collection of 34.5 million euro related to the recognition of costs incurred for operating in the default
and last resort gas supply markets, based on ARERA\u2019s resolution 44/2022/R/Gas and subsequent
amendments and supplements;
\u25aa a decrease in receivables for system charges and gas and electricity social bonuses. This trend was
mainly due to the regulatory changes introduced by the government that reduced the concessions to
users established for previous years to deal with the rise in bills, reintroducing the distribution
components, albeit with lower amounts per unit than in years prior to 2022, and lower prices per unit
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 200|
for social bonuses. Also note the reduced time gap for collection from the Cassa per i Servizi
Energetici e Ambientali compared to the previous year.
Equalisation receivables increased by 18.7 million euro compared to the previous year, with a diversified
trend among the various regulated sectors, in particular due to the volumes distributed by the gas
business (down compared to the previous year) and the increase in regulated revenues pertaining to the
Group, factors that led to a greater use of the equalisation mechanism for 2023.
\u201cVAT, excise and additional taxes\u201d includes payables for VAT amounting to 10.6 million euro (18 million
euro at 31 December 2022), and excise and additional taxes in the amount of 65.1 million euro (68.6
million euro at 31 December 2022). With regard to excise duties and additional taxes, the procedures
governing the financial relations with the tax authorities should be taken into account: as a matter of fact,
advance payments made during the year are calculated on the basis of the quantities of gas and
electricity billed in the previous year, while the actual debt is generated on the volumes sold in the period.
These methods can generate credit or debit positions with differences that may be significant even
between one period and another.
The change compared to 31 December 2022 is due to a 7.4 million euro decrease in receivables for
value added tax and a 3.5 million euro increase in receivables for excise and additional taxes. For a
better understanding of the Group\u2019s net exposure to value added tax, see the comments to Note 36
\u201cOther current liabilities\u201d.
The reduction in credits for excise duties and surcharges was, instead, caused by two opposing effects:
\u25aa on the one hand, the account paid in 2023 for excise duties and gas surcharges was based, as
required by current legislation, on the volumes invoiced during the previous year. The corresponding
accrued liability, instead, was caused by the volumes invoiced in 2023, which were lower than in
2022, resulting in an increase in the credit for excises and additional taxes amounting to 27.6 million
euro;
\u25aa on the other, the trend in volumes of electricity sold in 2023, higher than in 2022, led to a debit in net
exposure, resulting in a 31.1 million euro decrease in the electricity excise tax receivable.
\u201cEnergy efficiency certificates and emissions trading\u201d, includes the following:
31 Dec 23
31 Dec 22
Change
White certificates
51.5
15.0
36.5
Grey certificate
7.6
20.8
(13.2)
Green certificates
5.1
5.1
\u2010
Total
64.3
40.9
23.4
\u25aa The portfolio of white certificates includes the valuation of both the certificates calculated on the basis
of the energy efficiency targets set by the GSE for gas and electricity distribution companies, net of
the disposals that took place in the period, amounting to 49.7 million euro (13.1 million euro at 31
December 2022), and the certificates originating from the energy efficiency measures implemented
by the Group, amounting to 1.8 million euro (1.9 million euro at 31 December 2022). The increase,
with essentially the same valuation of the contribution compared to the previous year, is attributable
to the different ways in which obligations were fulfilled in 2023, the lower amount of disposals realised
at the end of the period and to the higher targets assigned to the Group for the obligation year in
question;
\u25aa The portfolio of grey certificates reflects the valuation of both securities held by the Group for 6.3
million euro (10.1 million euro at 31 December 2022) and the exposure for forward contracts to buy
and sell greenhouse gas emission allowances for 1.3 million euro (10.7 million euro at 31 December
2022). The decrease compared to the previous year was mainly related to an effect involving volume
due to fewer securities in the portfolio;
\u25aa At 31 December 2023, the green certificate portfolio included securities recognised on an accrual
basis prior to 2016 in relation to the electricity production of the waste-to-energy plant in Ferrara.
These securities are the subject of a complaint by the GSE concerning the methodology for
calculating the self-consumption of auxiliary services.
\u201cSecurity deposits\u201d mainly include deposits paid to guarantee participation in foreign platforms for trading
commodity contracts and auctions in the electricity market, as well as to guarantee operations in the
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 201|
wholesale electricity and gas markets, amounting to 29.2 million euro. The decrease with respect to the
previous year is due to the lower prices and less volatility in energy commodities, to which the amount
of deposits required to operate in these markets is directly related.
\u201cPrepaid costs\u201d mainly comprise future accruals in respect of:
31 Dec 23
31 Dec 22
Change
Outsourced services and processing
14.5
14.6
(0.1)
Insurance, bank sureties and commissions
5.4
5.0
0.4
Rents payables and concession fees for network services
3.0
2.7
0.3
Other minor items
11.8
7.2
4.6
Total
34.7
29.5
5.2
\u201cReceivables from electricity and gas sector companies\u201d in the previous year included receivables from
distribution companies that arose following the credits recognised to end customers for social bonuses
and the Ug2c component, which was negative, resulting in a reversal of the typical trade balance. These
items, which at 31 December 2022 resulted from the government\u2019s interventions against the rise in bills,
were completely offset during 2023 by the significant reduction in the subsidies introduced in previous
years.
The item \u201cOther receivables\u201d includes:
31 Dec 23
31 Dec 22
Change
Nonrecurring subsidies
22.6
22.6
\u2010
Commission payments to agents
13.8
12.0
1.8
Receivables from asset companies
6.2
6.0
0.2
Incentives from renewable sources
0.7
10.6
(9.9)
Other minor items
68.9
99.0
(30.1)
Total
112.2
150.2
(38.0)
\u25aa nonrecurring subsidies include the amount certain Group companies paid, yet deemed not due,
during 2022 in respect of the \u201cNonrecurring extra-profits subsidy\u201d, established for 2022 by Article 37
of Legislative Decree no. 21/2022. These amounts were paid to the State Treasury on the due dates,
despite significant doubts as to their application, in order to avoid penalties and interest. The
subsequent 2023 Budget Law, which in paragraphs 120 and 121 of Article 1 changed the subjective
scope and the taxable base of the contribution for 2022, made it possible to exclude one Group
company from the scope of application, however failed to clear the application doubts in respect of a
second impacted company. In both cases, the Group has already initiated procedures with the tax
authorities to recover the amounts, as illustrated in paragraph 2.02.03 \u201cTaxation\u201d;
\u25aa commission payments to agents, whose increase is linked to the rise in commercial activities for
acquiring new customers in the free market energy sector;
\u25aa receivables from asset companies include receivables from companies that own the networks and
related assets used by the Group to provide utility services.
\u25aa incentives from renewable sources consist of receivables from the GSE arising from the incentive
mechanism for electricity generation, which replaced the certificate system as of 2016. Receivables
pertaining to the year in question, against the collection of the majority of the amounts open as of 31
December 2022, are practically null, since there was a reduction in the price of incentives (GRIN),
which is inversely proportional to the previous year\u2019s energy price (PUN).
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 202|
36 Other current liabilities
31 Dec 23
31 Dec 22
Change
Payables for advances to the fund for energy and waste
management services
422.8
441.8
(19.0)
Advances for works
365.1
106.7
258.4
Plant investment grants
262.5
239.5
23.0
Security deposits from customers
199.9
383.3
(183.4)
Fund for energy and waste management service components
and equalisation
119.0
99.5
19.5
VAT, excise and additional taxes
118.4
83.0
35.4
Personnel and employee withholding
89.8
82.8
7.0
Payables to social security institutions
78.9
69.4
9.5
Energy efficiency certificates and emissions trading
49.5
51.6
(2.1)
Prepaid revenues and other expenses
29,7
32,4
(2.7)
Payables to electricity and gas sector companies
\u2010
34.7
(34,7)
Other payables
131.2
95.3
35.9
Total
1,866.8
1,720.0
146.8
\u201cPayables for advances to the fund for energy and waste management services\u201d comprises non-interest-
bearing advances granted by the fund for energy and waste management services, as follows:
\u25aa 236.7 million euro (243.3 million euro at 31 December 2022) for advances in compliance with the
integration mechanism set forth by resolution 370/2012/R/Eel and 456/2013/R/Eel by ARERA, for
overdue and unpaid receivables from customers managed under the safeguarded system. The most
recent data reaches the end of the 2021 thermal year;
\u25aa 153.3 million euro (182.2 million euro at 31 December 2022) in compliance with the reintegration
mechanisms provided for by Law 239 of 23 August 2004 and ARERA\u2019s TIVG, against the charges
for arrears in last resort services in the natural gas sector (FUI, FTD and FDD), incurred up to the
2021-2022 thermal year;
\u25aa 14 million euro (12.9 million euro at 31 December 2022) in compliance with Resolution 32/2021/R/Eel
(formerly Resolution 445/2020/R/Eel), relating to the procedures for accessing the reimbursement
mechanism for general system charges not collected from end customers and already paid to
distribution companies for 2016-2022. The scope of application is limited to the sale of electricity on
the free market, the safeguarded market (disconnectable) and the gradual protection service
(disconnectable).
\u25aa 11 million euro in compliance with Resolution 44/2022/R/Gas, supplemented by the subsequent
Resolution 372/2022, which introduced a revenue equalisation, reported by the Group in January
2023, aimed at offsetting part of the unforeseeable costs incurred in supplying the default last resort
and FUI markets, especially due to the entry of a larger number of customers than expected.
\u201cAdvances for works\u201d includes advances received from municipalities and apartment buildings for works
in progress relating to public lighting and energy efficiency upgrades of buildings, respectively, which will
be completed in the following years. The significant increase is in line with the higher energy efficiency
works carried out by the Group during the year, which were invoiced on a work-progress billing basis
and were nearing completion as at 31 December.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 203|
\u201cPlant investment grants\u201d decreases in proportion to the amount of depreciation calculated on the fixed
assets in question and increases as a result of new investments subject to grants. This item includes
specifically, the following grants received by the Group:
31 Dec 23
31 Dec 22
Change
New water system investment fund
102.6
87.1
15.5
Purification and sewerage systems
40.7
32.0
8.7
Purification plant in Servola (Trieste)
30.7
33.0
(2.3)
Construction of rolling basins e underwater pipes in the area of
Rimini.
18.4
20.6
(2.2)
Other minor items
70.1
66.8
3.3
Total
262.5
239.5
23.0
\u201cSecurity deposits from customers\u201d reflect the amounts requested from customers for gas, water and
electricity provision contracts. The decrease seen during the year is due to both the repayment of part of
the security deposits for the 2022-2023 winter season and lower energy commodity prices, which led to
a reduction in the nominal value of the deposits for supplies.
\u201cFund for energy and waste management service components and equalisation\u201d, reflects the payables
towards the Cassa per i Servizi Energetici e Ambientali for certain system components of the gas,
electricity and water services, amounting to 111.3 million euro (84.1 million euro at 31 December 2022)
and for equalisation of the electricity sales service amounting to 7.7 million euro (15.4 million euro at 31
December 2022). The increase compared to the previous year in payables for system components
reflects both the gradual reduction in concessions in favour of end users introduced by the government
starting in late 2021 to deal with the rise in utility bills, thus bringing the end-of-period exposure back to
amounts closer to those seen in years prior to 2022, and the increase in the debit position for specific
components concerning the last resort markets served by the Group.
Equalisation payables decreased by 7.7 million euro compared to the previous year and refer mainly to
the electricity sales business.
\u201cVAT, excise and additional taxes\u201d includes payables for VAT in the amount of 71.7 million euro (0.9
million euro at 31 December 2022), and excise and additional taxes in the amount of 46.7 million euro
(82.1 million euro at 31 December 2022). As outlined in Note 35, \u201cOther current assets\u201d, this increase
must be understood taking into account the factors that regulate financial relations with the Inland
Revenue Office, which can generate credit/debit positions with differences that can be significant even
between one financial period and another.
With regard to value added tax, during the previous year an advance payment of 90.3 million euro was
made at the end of the period, related to Group VAT, while for 2023, based on the previous years\u2019
calculation, no advance payment was due. The significant payable balance for VAT was also affected
by high end-of-period invoicing for energy efficiency works for apartment building customers, especially
in relation to interventions benefitting from the 110% super-bonus incentive.
With regard to excise and additional taxes, the advance payment in 2022 was made, as required by the
regulations in force, on the basis of the volumes invoiced in the previous year. The advance payment,
instead, was made on the basis of the volumes invoiced in 2023. This resulted, as detailed in Note 35
\u201cOther current assets\u201d, in a credit position for the natural gas sales business and a debit position for the
electricity sales business.
\u201cPersonnel and employee withholding\u201d includes for the most part the vacation time accrued and not used,
as well as the productivity bonuses accounted for by department, plus withholding taxes to be paid to the
State treasury as tax substitute for employees.
\u201cPayables to social security institutions\u201d relate to contributions owed to these institutions for the
December salaries, performance bonuses and additional monthly payments under national collective
agreements.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 204|
\u201cEnergy efficiency certificates and emissions trading\u201d includes:
31 Dec 23
31 Dec 22
Change
White certificates
27.1
17.9
9.2
Guarantee of origin certificates
12.7
11.2
1.5
Grey certificate
9.7
22.5
(12.8)
Total
49.5
51.6
(2.1)
\u25aa White certificates include the valuation of the exposure in relation to the redelivery obligations
towards the respective Authorities for energy efficiency certificates not yet in the portfolio. The
change with respect to 31 December 2022, in a market context that showed a drop in market prices,
is mainly due to the higher number of certificates still to be annulled and referring to the years for
which the Group has not yet completely fulfilled its assigned obligation.
\u25aa Guarantee of origin (GO) certificates relate to the obligation to certify electricity generated from
renewable energy sources against sales made to customers whose contracts require this type of
procurement. The increase in the liability is mainly a consequence of the increase in reference
prices.
\u25aa Grey certificates reflect the valuation of both the obligation to redeliver certificates calculated on the
basis of current regulations, amounting to 8.7 million euro (10.7 million euro at 31 December 2022)
and the forward sales contracts for greenhouse gas emission quotas, amounting to 1 million euro
(11.8 million euro at 31 December 2022). The change compared to the previous year was mainly
due to lower volumes of forward contracts and a slight decrease in market prices.
The item \u201cAnticipated revenues and other expenses\u201d mainly comprises portions of revenues due in the
following financial period. This item includes in particular portions of tax credits for investments in new
capital goods accruing in future financial years, amounting to 10.1 million euro.
\u201cPayables to electricity and gas sector companies\u201d in the previous financial year included the payable
items recorded by the Group\u2019s distribution companies towards third party sales companies. These
positions, created at 31 December 2022 by the government\u2019s interventions to deal with the rise in utility
bills, were completely offset during 2023 due to the significant reduction of the concessions introduced
in previous years.
The item \u201cOther payables\u201d mainly comprises the following:
31 Dec 23
31 Dec 22
Change
Arrears payments for electricity gas and other sectors
27.4
9.5
17.9
Environmental damage contributions
14.1
11.3
2.8
Flood contributions
10.0
\u2010
10.0
Insurance deductibles
8.7
9.8
(1.1)
Tariff concessions to users
3.5
11.5
(8.0)
Other minor items
67.5
53.2
14.3
Total
131.2
95.3
35.9
Specifically:
\u25aa Arrears payables in the electricity, gas and other sectors mainly represent the amounts, charged to
end users who were in arrears for the last three monthly payments, prior to their transition to the Hera
Group. These amounts must be retroceded to previous suppliers. The indemnity is applied only to
certain specific categories of users, identified by ARERA Resolution no. 593/2017/R and its
subsequent amendments and additions. The rise compared to the previous year was mainly due to
the increased customer base, concerning in particular the expanded scope of operations in the
safeguarded market and the lot awarded in tenders for gradual protection services for micro-
businesses, as well as more careful monitoring by outgoing sellers in requesting the fee when due to
them;
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| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 205|
\u25aa environmental damage contributions represent the payments to be made to municipalities, on the
basis of specific agreements, as compensation for activities that impact on the environment for waste
delivered to plants in their municipal territories. The amount of these contributions is related to the
amount of waste disposed of annually;
\u25aa flood contributions represent the amounts received to cover the costs that will be incurred by the
Group in the following year concerning the restoration of the damage caused by the May 2023 flood
emergency that affected certain areas in which the Group provides public utility services;
\u25aa insurance deductibles include amounts that the Group must repay directly to damaged third parties
or insurance companies;
37 Cash flows of operating activities
Changes in net working capital
The following is a breakdown of information on changes in financial liabilities during the 2023 financial
year, differentiating between cash flows and non-cash flows.
Type
31 Dec 23
31 Dec 22
Change
(a)
Non-cash flows
Cash flows
(f)=[(b)+(c)+(
d)+(e)]-(a)
Acquisitions
divestitures
(b)
Economic
valuation
components
(c)
Changes in fair
value
(d)
Other
changes
(e)
Inventories
631.6
995.1
(363.5)
53.0
(28.1)
6.7
395.1
Trade receivables
3,586.8
3,875.0
(288.2)
37.5
(146.5)
(49.0)
(212.1)
(81.9)
Trade payables
(2,637.2)
(3,093.1)
455.9
(57.6)
(0.2)
(513.7)
Other current
assets/liabilities
(1,357.5)
(1,077.5)
(280.0)
(0.8)
(2.8)
(9.3)
162.6
429.7
Changes in
working capital
223.7
699.5
(475.8)
32.1
(177.4)
(58.3)
(43.0)
229.2
\u201cAcquisitions divestitures\u201d include the effects arising from acquisitions of control during 2023, as
illustrated in paragraph 2.02.10 \u201cOther information\u201d.
\u201cEconomic valuation components\u201d mainly includes:
\u25aa the provision for bad debts for a negative 154 million euro;
\u25aa the write-down of natural gas inventories amounting to a negative 27.4 million euro, as reported in
Note 32 \u201cInventories\u201d;
\u25aa income related to the discounting process for receivables pertaining to discounts included directly in
invoices, whose cashflows will be seen in subsequent years, amounting to a positive 7.8 million euro,
as reported in Note 10 \u201cFinancial income\u201d;
\u25aa the portions pertaining to the period of plan related grants, the total amount of which was collected in
previous years, totalling a positive amount of 13.3 million euro, as stated in Note 2 \u201cOther operating
revenues\u201d.
\u201cChanges in fair value\u201d includes:
\u25aa the fair value assessment of receivables related to the application of the discount included in invoices
linked to energy efficiency measures for end customers amounting to a negative 56.4 million euro,
as reported in Note 11 \u201cFinancial expenses\u201d;
\u25aa the valuation of environmental certificates and greenhouse gas emission obligations assigned to the
Group, as well as the valuation of forward contracts for the purchase and sale of greenhouse gas
emission allowances, for a total negative 1.9 million euro, as illustrated in Note 35 \u201cOther current
assets\u201d and 36 \u201cOther current liabilities\u201d.
\u201cOther changes\u201d mainly comprises offsets within net working capital of transactions involving the gross
recognition of assets and liabilities. Also note, as reported above in Note 28 \u201cCashflows from investing
activities\u201d, the reinstatement of the value of cashflows for tax credits amounting to 43.6 million euro,
whose transfer took place in January 2024, but was finalised in December 2023.
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| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 206|
Dividends collected
In 2023, dividends for 8.7 million euro were received from companies consolidated according to the
equity method and 6.4 million euro from shareholdings held in other companies. For further details, see
Note 10 \u201cFinancial income\u201d and 26 \u201cShareholdings\u201d.
Net interest paid
The following is a reconciliation of the balance sheet values of financial income and expenses and the
related net cash flows for the year.
Type
2023
(a)
Non-cash components
Other changes
(d)
Cash components
(e)=(a)-[(b)+(c)+(d)]
Economic valuation
components
(b)
Changes in fair value
(c)
Financial income
157.1
14.1
51.0
14.2
77.8
Financial expenses
(345.0)
(59.0)
(77.7)
(14.9)
(193.4)
Total
(187.9)
(44.9)
(26.7)
(0.7)
(115.6)
\u201cEconomic valuation components\u201d includes income and expenses arising from both the assessment at
amortised cost and the discounting of receivables and liabilities characterised by monetary outlays to be
carried out in the medium to long term, as illustrated in Note 10 \u201cFinancial income\u201d and Note 11 \u201cFinancial
expenses\u201d.
\u201cChanges in fair value\u201d include assessments at current market value of financial assets and liabilities,
mainly related to:
\u25aa receivables related to the application of the discount included in invoices linked to subsidised energy
efficiency interventions carried out on behalf of end customers amounting to a negative 56.4 million
euro, as reported in Note 11 \u201cFinancial expenses\u201d;
\u25aa a fair value assessment of put options and contingent consideration for a total net effect amounting
to a positive 31.1 million euro.
\u25aa an adjustment made to the book value of a bond issued in foreign currency as a result of the fair
value hedge, which led to the recognition of income amounting to a positive 15.6 million euro;
\u25aa hedging derivatives that resulted in the recognition of net valuation losses amounting to a negative
14.8 million euro.
\u201cOther changes\u201d include effects mainly due to:
\u25aa the adjustment of interest income and expenses recognised on an accrual basis in order to show the
actual cash flows realised in 2023, amounting to 12.9 million euro;
\u25aa dividends paid by other minor holdings, whose cashflow for the period is shown in a specific item in
the cash flow statement, amounting to 6.4 million euro.
Taxes paid
The breakdown of flows by tax type is as follows:
31 Dec 23
31 Dec 22
Income taxes
92.9
131.9
Substitute tax
3.7
9.1
Nonrecurring taxes
\u2010
24.9
Taxes paid
96.6
165.9
Income taxes include the amount paid by the Group during 2023 in relation to the 2022 IRES and IRAP
balances and the advance payments due for 2023.
For 2022, nonrecurring taxes represented the amount paid during the year in relation to the nonrecurring
extra-profits tax.
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| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 207|
At 31 December 2023, the substitute tax included the amount paid linked to the redemption of the
controlling interest in the acquisition of Con Energia Spa. At 31 December 2022, this item included the
amount paid linked to the redemption of similar transactions involving the companies Eco Gas Srl and
Vallortigara Servizi Ambientali Spa.
Other information
Business combinations (supplementary information)
Business combinations have been accounted for on the basis of assessments conducted by
management in respect of analyses of the fair value of assets and liabilities and contingent liabilities, in
line with information concerning facts and events available at the date of acquisition. The evaluation
process of all operations ended on 31 December 2023.
The table below shows the assets and liabilities acquired as part of business combinations carried out
during the year, recognised at their fair value.
A.C.R.
Spa
Asco TLC
Spa
F.lli Franchini
Srl
\u201cPagnanini\u201d
business unit
Total
business
combinations
Non-current assets
Tangible assets
11.0
10.5
0.2
0.3
22.0
Rights of use
6.4
0.3
0.3
7.0
Intangible assets
57.2
9.8
3.5
70.5
Deferred tax assets
0.2
0.2
Current assets
Inventory and work in progress
33.6
1.2
18.2
53.0
Trade receivables
31.6
1.8
4.1
37.5
Financial assets
0.1
0.1
Current tax assets
0.1
0.1
Other current assets
6.8
1.1
1.3
9.2
Cash
15.3
2.3
3.0
20.6
Non-current liabilities
Financial liabilities
(1.9)
(1.9)
Lease liabilities
(5.7)
(0.2)
(0.2)
(6.1)
Post-employment
(0.3)
(0.6)
(0.2)
(1.1)
Provisions for risks and charges
(0.1)
(0.1)
(0.2)
Deferred tax liabilities
(16.0)
(2.8)
(1.0)
(19.8)
Current liabilities
Financial liabilities
(11.8)
(0.9)
(12.7)
Lease liabilities
(0.7)
(0.1)
(0.1)
(0.9)
Trade payables
(36.1)
(0.9)
(20.6)
(57.6)
Current tax liabilities
(1.9)
(0.3)
(2.2)
Other current liabilities
(7.6)
(1.8)
(0.6)
(10.0)
Total net assets acquired
81.7
20.9
4.8
0.3
107.7
Equivalent fair value and stake held
76.1
14.9
9.5
0.3
100.8
2.02.10
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| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 208|
Non-controlling interests
32.7
24.1
56.8
Minority shareholders\u2019 put option
10.7
10.7
Total value of the combination
108.8
39.0
20.2
0.3
168.3
(Goodwill) / Profit
(27.1)
(18.1)
(15.4)
\u2010
(60.6)
The evaluation process resulted in the following adjustments to the carrying amounts recorded in the
financial statement of the acquired entity, as well as the following considerations in relation to the amount
transferred:
A.C.R.
Spa
Asco TLC
Spa
F.lli Franchini
Srl
\u201cPagnanini\u201d
business unit
Total
business
combination
Book value of net assets acquired
40.5
14.3
2.3
0.3
57.4
Adjustments for fair value valuation
Intangible assets
57.1
9.3
3.5
69.9
Deferred tax assets (liabilities)
(15.9)
(2.7)
(1.0)
(19.6)
Fair value of net assets acquired
81.7
20.9
4.8
0.3
107.7
Cash outlay
72.6
14.9
9.0
0.3
96.8
Non-controlling interests
32.7
24.1
56.8
Deferred/contingent consideration
3.5
11.2
14.7
Equivalent fair value
108.8
39.0
20.2
0.3
168.3
The managements\u2019 evaluation of the fair value of the identifiable assets acquired and liabilities incurred,
which also considered the recoverable value of the assets, led to the following amendments being
identified:
\u25aa A.C.R Spa \u2013 a customer list of 57.1 million euro was recorded, established on the basis of both the
characteristics of the reference context and using the incremental cash flow method (MEEM). The
depreciation period, set at 23 years, was determined on the basis of the churn rate established by
analysing the historical series of the turnover of the clients;
\u25aa Asco TLC \u2013 a customer list of 9.3 million euro was recorded, established on the basis of both the
characteristics of the reference context and using the incremental cash flow method (MEEM). The
depreciation period, set at ten years, was determined on the basis of the churn rate established by
analysing the historical series of the turnover of the clients;
\u25aa F.lli Franchini srl \u2013 the following were recorded:
\u2013 a trademark of 1.5 million euro, established on the basis of the characteristics of the reference
context, using the relief from royalties method. The amortisation period, set at five years, was
determined on the basis of the expected commercial use of the trademark;
\u2013 an order portfolio of 1.2 million euro, established on the basis of orders already contracted at
the date control was acquired, discounting cash flows net of taxes. The two-year amortisation
period was determined on the basis of the expected completion of the orders at the date of the
transaction;
\u2013 a customer list of 0.8 million euro, established on the basis of both the characteristics of the
reference context and using the incremental cash flow method (MEEM). The depreciation
period, set at four years, was determined on the basis of the average duration of the contracts
under assessment.
The effects reported above resulted, where applicable, in the recognition of deferred tax liabilities
determined on the basis of the applicable nominal tax rate.
Concerning the A.C.R. Spa transaction, at the date of acquisition, \u201cMinority interests\u201d, corresponding to
third-party shareholdings (40% of the share capital), were recognised under equity. The valuation of the
interests was carried out in proportion to the fair value portion of the assets and liabilities acquired in the
Adjustments
for fair value
assessment
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| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 209|
business combination. The goodwill recognised in the consolidated financial statements is thus
recognised only for the difference between the acquisition sum and the fair value of the net assets
acquired. In addition, based on the contractual agreements between the parties, a potential payment
(earn-out) to be made to the sellers upon the occurrence of certain conditions, estimated at a total of 3.5
million euro, was recognised.
The acquisition of Asco TLC Spa was a business combination achieved in several stages. In fact, on 14
March 2023, the Group acquired, through its subsidiary Acantho Spa, 36.8% of the share capital of Asco
TLC Spa. On 1 October 2023, based on pre-existing agreements, the deed of merger by incorporation
of Asco TLC Spa into Acantho Spa was signed, with legal effects as of the same date. This transaction
entailed the acquisition of control of the business by the Hera Group. The value of the equity investment
previously held by the Group was aligned with the book value recorded and consequently no effects
were recognised in the income statement for the year. Minority interests at the date of acquisition were
measured at fair value and therefore the goodwill recognised also includes the portion attributable to
minority shareholders.
Concerning the acquisition of F.lli Franchini Srl, a reciprocal option to buy and sell the minority
shareholding was negotiated with the counterparty. The existence of such rights held by the minority
shareholders led to the need to classify the options in the consolidated financial statements under
financial liabilities, as illustrated in Note 19 \u201cFinancial liabilities\u201d. In accordance with its own accounting
policies, the Group did not include the minority shares in the consolidated financial statements,
considering the shareholding to be fully owned. The valuation of the options identified at the time of
acquisition, therefore, totalled 10.7 million euro. In addition, a potential consideration (earn-out) to be
paid upon the occurrence of certain conditions, estimated at a total of 0.5 million euro, was recognised
on the basis of contractual agreements between the parties.
See note 28 \u201cCashflows from investing activities\u201d for an analysis of the cashflows associated with the
combination operations described above.
Changes to the accounting standards
Accounting standards, amendments and interpretations applicable from 1 January 2023
With reference to the areas pertaining to the Group, the following accounting standards and amendments
to accounting standards issued by the International Accounting Standards Board (IASB) and transposed
by the European Union through an EU Regulation are mandatory as of 1 January 2023:
Amendments to IAS 1 \u2013 Disclosure of financial statements and accounting policies. Document issued
by the IASB on 12 February 2021, applicable from 1 January 2023 with early application allowed. The
amendments require entities to disclose their material accounting policies rather than their significant
accounting policies and provide guidance to explain the application of the materiality process.
Amendments to IAS 8 \u2013 Accounting policies, changes in accounting estimates and errors. Document
issued by the IASB on 12 February 2021, applicable from 1 January 2023 with early application allowed.
The amendments additionally clarify that companies should distinguish between changes to accounting
policies and changes to accounting estimates.
Amendments to IAS 12 \u2013 Deferred taxes related to assets and liabilities arising from a single
transaction. Document issued by IASB on 7 May 2021, applicable from 1 January 2023 with early
application allowed. The amendments clarify how companies should account for deferred tax on
transactions such as leases and contracts with decommissioning obligations that may generate assets
and liabilities of equal amounts, for which the exemption for reporting deferred taxation does not apply
when assets and liabilities are recognised for the first time. The amendments aim at reducing the
differences in deferred tax reporting between different types of contracts.
Amendments to IAS 12 \u2013 Income taxes: International tax reform \u2013 Pillar 2 Model Rules. Document
issued by the IASB on 23 May 2023, immediate application of the temporary exception and application
of the disclosure requirements from 1 January 2023. This document introduces:
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 210|
\u25aa a temporary exception in recording deferred assets and liabilities related to the application of the
Pillar 2 indications;
\u25aa specific disclosure requirements with respect to the Group\u2019s estimated exposure to Pillar 2 taxes, if
any, as of the 2023 financial statements.
These amendments clarify, correct or remove redundant statements or formulations in the text of the
relevant standards.
With reference to the application of these amendments, there were no observable effects on the Group\u2019s
financial statements. Where required, especially with reference to Pillar 2, the disclosure was adjusted
by consistently updating the explanatory notes.
Following the introduction of the amendments to IAS 1, appropriate simplifications were made in the
presentation of the accounting principles and policies adopted by the Group.
Accounting standards, amendments and interpretations endorsed by the European Union
which are not yet applicable and have not been adopted early by the Group
With reference to the areas that are significant for the Group, the following accounting standard
amendments will be mandatory from the following financial year onwards, having also already been
endorsed by the EU:
Amendments to IAS 1 \u2013 Presentation of financial statements: reporting liabilities as current or non-
current. Document issued by IASB on 23 January 2020 and updated on 15 July 2020, applicable from 1
January 2024 with early application allowed. The amendments clarify the requirements to be considered
in determining whether payables and other liabilities with uncertain settlement date should be classified
as current or non-current in the statement of financial position (including payables that can be settled by
conversion into equity instruments).
Amendments to IFRS 16 \u2013 Lease Liabilities in a Sale and Leaseback Transaction. Document issued by
IASB on 22 September 2022, applicable from 1 January 2024 with early application allowed. The
amendments provide that in the valuation of lease liabilities in a sale and leaseback transaction, the
seller-lessee shall determine the lease payments in such a way as not to recognise any amount of gain
or loss related to the right of use retained by the lessee.
Amendments to IAS 1 \u2013 Presentation of financial statements: non-current liabilities subject to covenant.
Document issued by IASB on 31 October 2022, applicable from 1 January 2024 with early application
allowed. The amendments aim to improve the information disclosed by an entity when the right to defer
settlement of a liability is subject to compliance with covenants within 12 months after the reporting
period.
These amendments clarify, correct or remove redundant statements or formulations in the text of the
relevant standards.
The directors are currently assessing possible effects deriving from the introduction of these
amendments into the Group\u2019s consolidated financial statement.
Accounting standards, amendments and interpretations that have not yet been endorsed by the
European Union
The following standards, amendments and updates of IFRSs (already approved by IASB) and
interpretations that are relevant for the Group are currently being endorsed by the relevant bodies of the
European Union:
Amendments to IAS 7 \u2013 Statement of cashflows and IFRS 7 \u2013 Financial instruments: Financing
arrangements with suppliers and disclosures in the explanatory notes. Document issued by IASB on 25
May 2023, applicable from 1 January 2024 with early application permitted. The amendments require an
entity to provide additional disclosures on reverse factoring arrangements that enable users of financial
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 211|
statements to evaluate how financing arrangements with suppliers may affect the entity\u2019s liabilities and
cash flows and to understand the effect of those arrangements on the entity\u2019s exposure to liquidity risk.
Amendments to IAS 21 \u2013 Effects of changes in foreign exchange rates: Lack of convertibility. Document
issued by the IASB on 15 May 2023, applicable from 1 January 2025 with early application allowed. The
amendments require an entity to apply a methodology consistently over time to determine whether one
currency can be converted into another and, when this is not possible, to define the method of
determining the exchange rate to be used and the disclosures to be made in the explanatory notes.
With reference to the new amendments described above, the directors are currently evaluating what
possible effects introducing them might have on the Group\u2019s consolidated financial statements.
Classification of financial assets and liabilities pursuant to IFRS 7
The table below illustrates the composition of the Group\u2019s assets, using the current and non-current
distinction. The fair value of other investments and derivative financial instruments is discussed in Notes
26 and 29, respectively.
31 Dec 23
Hierarchy
Fair value
Fair value to
income statements
Fair value to
statement of
comprehensive
income
Depreciated cost
Total
Non-current financial assets
2
2.0
160.8
162.8
Non-current assets
\u2010
2.0
160.8
162.8
Trade receivables
3
1.2
3,585.6
3,586.8
Current financial assets
90.9
90.9
Other assets
2
9.4
12.2
499.1
520.7
Current assets
9.4
13.4
4,175.6
4,198.4
31 Dec 22
Hierarchy
Fair value
Fair value to
income statements
Fair value to
statement of
comprehensive
income
Depreciated cost
Total
Non-current financial assets
2
2.0
149.8
151.8
Non-current assets
\u2010
2.0
149.8
151.8
Trade receivables
3
168.6
3,706.4
3,875.0
Current financial assets
2
77.7
77.7
Other assets
2
22.6
8.3
657.6
688.5
Current assets
22.6
176.9
4,441.7
4,641.2
With respect to \u201cNon-current financial assets\u201d reference should be made to Note 18.
With respect to \u201cCurrent assets\u201d reference should be made to Notes 13, 18, 33 and 35.
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| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 212|
The table below illustrates the composition of the Group\u2019s liabilities, using the current and non-current
distinction. Details of the fair value of derivatives are provided instead in Note 29.
31 Dec 23
Hierarchy
Fair value
Fair value to
income statements
Hedged elements
(fair value hedge)
Depreciated cost
Total
Non-current financial liabilities
2/3
330.5
128.6
3,962.6
4,421.7
Non-current lease liabilities
56.8
56.8
Non-current liabilities
330.5
128.6
4,019.4
4,478.5
Trade payables
2,637.2
2,637.2
Current financial liabilities
3
13.7
877.1
890.8
Current lease liabilities
24.5
24.5
Other liabilities
2
22.5
1,954.5
1,977.0
Current liabilities
36.2
\u2010
5,493.3
5,529.5
31 Dec 22
Hierarchy
Fair value
Fair value to
income statements
Hedged elements
(fair value hedge)
Depreciated cost
Total
Non-current financial liabilities
2/3
499.5
144.4
5,046.0
5,689.9
Non-current lease liabilities
55.1
55.1
Non-current liabilities
499.5
144.4
5,101.1
5,745.0
Trade payables
3,093.1
3,093.1
Current financial liabilities
3
13.9
636.2
650.1
Current lease liabilities
21.3
21.3
Other liabilities
2
33.7
1,703.4
1,737.1
Current liabilities
47.6
\u2010
5,454.0
5,501.6
With regard to \u201cNon-current financial liabilities\u201d, the fair value hierarchy for hedged items is Level 2, while for items measured at fair value through profit or
loss it is Level 3.
With respect to \u201cNon-current liabilities\u201d reference is made to Notes 19 and 22.
With respect to \u201cNon-current liabilities\u201d reference is made to Notes 13, 19, 22, 34 and 36.
Reporting by operating sector
Reporting by operational sectors is based on the approach management uses to monitor the
performance of the Group by homogeneous business areas. The net costs and assets for business
support functions, in keeping with the internal control model, are entirely associated to operational
businesses.
At 31 December 2023, the Hera Group was organized into the following business lines:
\u25aa Gas: includes services in distributing and selling methane gas as well as district heating and
energy services;
\u25aa Electricity: includes generating, distributing and selling electricity;
\u25aa Water Cycle: includes aqueduct, purification and sewage services;
\u25aa Waste management: includes waste collection, treatment, recycling and disposal services;
\u25aa Other services: includes public lighting, telecommunications and other minor services.
| Introduction
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| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 213|
The following are assets and liabilities by business line for the 2022 and 2023 financial years:
31 Dec 23
Gas
Electricity
Water cycle
Waste management
Other services
Total
Current year
Assets (tangible and intangible)
2,043.2
753.0
2,466.6
1,464.7
142.1
6,869.6
Goodwill
493.5
88.9
42.7
260.6
23.0
908.7
Shareholdings
96.6
42.4
16.0
40.5
\u2010
195.5
Not attributed fixed assets
145.3
Net non-current assets
2,633.3
884.3
2,525.3
1,765.8
165.1
8,119.1
Attributed net working capital
460.9
(177.8)
(56.4)
14.7
(17.7)
223.7
Non attributed net working capital
(57.7)
Net working capital
460.9
(177.8)
(56.4)
14.7
(17.7)
166.0
Other provisions
(216.7)
(41.2)
(153.3)
(289.1)
(5.6)
(705.9)
Net invested capital
2,877.5
665.3
2,315.6
1,491.4
141.8
7,579.2
31 Dec 22
Gas
Electricity
Water cycle
Waste management
Other services
Total
Previous year
Assets (tangible and intangible)
2,038.8
655.4
2,320.2
1,348.5
123.1
6,486.0
Goodwill
493.5
73.5
42.7
233.5
4.9
848.1
Shareholdings
99.6
29.8
18.7
42.2
\u2010
190.3
Not attributed fixed assets
24.7
Net non-current assets
2,631.9
758.7
2,381.6
1,624.2
128.0
7,549.1
Attributed net working capital
804.8
80.3
(247.8)
59.3
2.9
699.5
Non attributed net working capital
303.5
Net working capital
804.8
80.3
(247.8)
59.3
2.9
1,003.0
Other provisions
(191.4)
(35.8)
(148.1)
(278.5)
(3.8)
(657.6)
Net invested capital
3,245.3
803.2
1,985.7
1,405.0
127.1
7,894.5
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 214|
The following are the main result measures by business line for the 2022 and 2023 financial years:
2023
Gas
Electricity
Water cycle
Waste
management
Other
services
Structure
Total
Current year
Direct revenues
8,421.2
4,483.3
999.2
1,555.3
139.5
(33.5)
15,565.1
Infra-cycle revenues
120.0
234.4
5.4
137.3
51.9
165.0
714.2
Total direct revenues
8,541.3
4,717.7
1,004.6
1,692.6
191.5
131.6
16,279.3
Indirect revenues
15.8
6.2
63.3
45.3
0.9
(131.6)
\u2010
Total revenues
8,557.1
4,724.0
1,067.9
1,737.9
192.4
\u2010
16,279.3
Ebitda
609.9
309.2
271.4
353.4
43.8
\u2010
1,587.7
Direct amortisations and provisions
211.3
119.1
109.4
200.2
24.2
89.4
753.7
Indirect amortisations and
provisions
10.0
4.8
41.4
32.6
0.6
(89.4)
\u2010
Total amortisations and
provisions
221.3
123.9
150.8
232.9
24.8
\u2010
753.7
Operating results
388.6
185.3
120.6
120.6
19.0
\u2010
834.0
2022
Gas
Electricity
Water cycle
Waste
management
Other
services
Structure
Total
Previous year
Direct revenues
13,282.8
4,720.7
996.5
1,433.3
145.4
51.5
20,630.2
Infra-cycle revenues
181.9
316.3
4.5
108.0
50.1
63.0
723.7
Total direct revenues
13,464.7
5,037.1
1,000.9
1,541.2
195.5
114.5
21,354.0
Indirect revenues
18.9
5.7
51.7
37.5
0.7
(114.5)
\u2010
Total revenues
13,483.6
5,042.7
1,052.6
1,578.8
196.2
\u2010
21,354.0
Ebitda
491.1
71.6
261.9
338.0
38.4
\u2010
1,200.9
Direct amortisations and provisions
205.5
87.7
125.6
149.2
22.2
76.9
667.1
Indirect amortisations and
provisions
8.8
3.1
34.5
30.1
0.5
(76.9)
\u2010
Total amortisations and
provisions
214.3
90.8
160.1
179.3
22.6
\u2010
667.1
Operating results
276.8
(19.2)
101.8
158.7
15.7
\u2010
533.8
As extensively described in the Directors\u2019 Report, Ebitda for the gas segment was adjusted for
managerial purposes to comment on its performance for the period. The value containing the adjustment
on gas inventory valuation is shown in chapter 1.07, \u201cAnalysis by Business Area,\u201d which provides a
reference for understanding business dynamics.
| Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 215| FINANCIAL STATEMENT FORMATS AS PER CONSOB RESOLUTION 15519/2006 In accordance with the relevant Group policies, the economic, equity and financial reports in effect at 31 December 2023 and the associated period of comparison with related parties are as follows. Procedure for the operations with related parties is available on the website of the Hera Group at the following link: https://www.gruppohera.it/gruppo/governance/sistema-di-governance/politiche-e-procedure Note that during the 2023 financial year, there were no transactions with related parties for which it was necessary to include in the financial statements the disclosures required by the regulation adopted on the matter by Consob Resolution No. 17221 of 12 March 2010 and subsequent amendments and supplements. 2.03
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 216
Income statement as per Consob resolution 15519/ 2006
notes
2023
of which related parties
2022
of which related parties
A
B
C
D
Total
%
A
B
C
D
Total
%
Revenues
1
14,897.3
\u2010
78.0
319.5
15.0
412.5
2.8%
20,082.0
\u2010
129.1
315.6
23.6
468.3
2.3%
Other operating revenues
2
667.8
\u2010
0.3
8.2
\u2010
8.5
1.3%
548.2
\u2010
0.3
3.2
\u2010
3.5
0.6%
Raw and other materials
3
(9,672.2)
\u2010
(54.5)
\u2010
(46.0)
(100.5)
1.0%
(16,730.0)
\u2010
(100.2)
\u2010
(45.0)
(145.2)
0.9%
Service costs
4
(3,655.9)
\u2010
(13.9)
(25.2)
(35.0)
(74.1)
2.0%
(2,105.8)
\u2010
(11.9)
(23.3)
(33.2)
(68.4)
3.2%
Personnel costs
5
(641.1)
\u2010
\u2010
\u2010
\u2010
\u2010
(601.1)
\u2010
\u2010
\u2010
\u2010
\u2010
Other operating expenses
6
(90.3)
\u2010
(0.1)
(2.4)
(0.9)
(3.4)
3.8%
(74.9)
\u2010
\u2010
(2.3)
(0.9)
(3.2)
4.3%
Capitalised costs
7
82.1
\u2010
\u2010
\u2010
\u2010
\u2010
82.5
\u2010
\u2010
\u2010
\u2010
\u2010
Amortisation, provisions and depreciation
8
(753.7)
\u2010
\u2010
\u2010
\u2010
\u2010
(667.1)
\u2010
\u2010
\u2010
\u2010
\u2010
Operating profit
834.0
\u2010
9.8
300.1
(66.9)
243.0
533.8
\u2010
17.3
293.2
(55.5)
255.0
Share of profits (losses) pertaining to joint ventures and associated
companies
9
10.3
\u2010
10.3
\u2010
\u2010
10.3
100.0%
10.0
\u2010
10.0
\u2010
\u2010
10.0
100.0%
Financial income
10
157.1
\u2010
7.8
0.5
0.4
8.7
5.5%
82.2
\u2010
1.6
0.6
0.4
2.6
3.2%
Financial expenses
11
(345.0)
\u2010
(5.9)
(0.2)
\u2010
(6.1)
1.8%
(217.2)
\u2010
\u2010
(0.3)
\u2010
(0.3)
0.1%
Financial operations
(177.6)
\u2010
12.2
0.3
0.4
12.9
(125.0)
\u2010
11.6
0.3
0.4
12.3
Earnings before taxes
656.4
\u2010
22.0
300.4
(66.5)
255.9
408.8
\u2010
28.9
293.5
(55.1)
267.3
Taxes
12
(173.2)
\u2010
\u2010
\u2010
\u2010
\u2010
(103.5)
\u2010
\u2010
\u2010
\u2010
\u2010
Net profit for the period
483.2
\u2010
22.0
300.4
(66.5)
255.9
305.3
\u2010
28.9
293.5
(55.1)
267.3
Attributable to:
Parent company shareholders
441.4
255.2
Non-controlling interests
41.8
50.1
Earnings per share
basic
17
0.305
0.175
diluted
17
0.305
0.175
Column headings related parties: A non-consolidated subsidiaries, B Associated and jointly controlled companies, C Related companies with significant influence (shareholder municipalities), D Other related parties
2.03.01
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 217
Statement of financial position as per Consob resolution 15519/ 2006
notes
31 Dec 23
of which related parties
31 Dec 22
of which related parties
A
B
C
D
Total
%
A
B
C
D
Total
%
ASSETS
Non-current assets
Tangible assets
21,25
2,059.3
\u2010
\u2010
\u2010
\u2010
\u2010
1,984.4
\u2010
\u2010
\u2010
\u2010
\u2010
Rights of use
22,25
90.6
\u2010
\u2010
\u2010
\u2010
\u2010
84.2
\u2010
\u2010
\u2010
\u2010
\u2010
Intangible assets
23,25
4,719.6
\u2010
\u2010
\u2010
\u2010
\u2010
4,417.4
\u2010
\u2010
\u2010
\u2010
\u2010
Goodwill
24,25
908.7
\u2010
\u2010
\u2010
\u2010
\u2010
848.1
\u2010
\u2010
\u2010
\u2010
\u2010
Shareholdings
26,27
195.6
\u2010
150.7
\u2010
14.7
165.4
84.6%
190.3
\u2010
156.3
\u2010
2.0
158.3
83.2%
Non-current financial assets
18
162.8
\u2010
11.0
10.6
21.2
42.8
26.3%
151.8
\u2010
14.3
12.1
25.3
51.7
34,1%
Deferred tax assets
14
302.3
\u2010
\u2010
\u2010
\u2010
\u2010
240.4
\u2010
\u2010
\u2010
\u2010
\u2010
Derivative financial instruments
29
0.3
\u2010
\u2010
\u2010
\u2010
\u2010
1.0
\u2010
\u2010
\u2010
\u2010
\u2010
Total non-current assets
8,439.2
\u2010
161.7
10.6
35.9
208.2
7,917.6
\u2010
170.6
12.1
27.3
210.0
Current assets
Inventories
32
631.6
\u2010
\u2010
\u2010
\u2010
\u2010
995.1
\u2010
\u2010
\u2010
\u2010
\u2010
Trade receivables
33
3,586.8
\u2010
10.3
81.8
18.9
111.0
3.1%
3,875.0
\u2010
24.9
85.3
24.8
135.0
3.5%
Current financial assets
18
90.9
\u2010
7.0
3.7
1.3
12.0
13.2%
77.7
\u2010
9.2
3.7
1.4
14.3
18.4%
Current tax assets
13
11.4
\u2010
\u2010
\u2010
\u2010
\u2010
46.0
\u2010
\u2010
\u2010
\u2010
\u2010
Other current assets
35
509.3
\u2010
3.1
(3.9)
4.0
3.2
0.6%
642.5
\u2010
2.9
(2.3)
3.9
4.5
0,7%
Derivative financial instruments
29
478.0
\u2010
\u2010
\u2010
\u2010
\u2010
1,622.2
\u2010
\u2010
\u2010
\u2010
\u2010
Cash and cash equivalents
18
1,332.8
\u2010
\u2010
\u2010
\u2010
\u2010
1,942.4
\u2010
\u2010
\u2010
\u2010
\u2010
Total current assets
6,640.8
\u2010
20.4
81.6
24.2
126.2
9,200.9
\u2010
37.0
86.7
30.1
153.8
TOTAL ASSETS
15,080.0
\u2010
182.1
92.2
60.1
334.4
17,118.5
\u2010
207.6
98.8
57.4
363.8
Column headings related parties: A non-consolidated subsidiaries, B Associated and jointly controlled companies, C Related companies with significant influence (shareholder municipalities), D Other related parties
2.03.02
| Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 218 notes 31 Dec 23 of which related parties 31 Dec 22 of which related parties A B C D Total % A B C D Total % NET EQUITY AND LIABILITIES Share capital and reserves Share capital 15 1,443.0 \u2010 \u2010 \u2010 \u2010 \u2010 1,450.3 \u2010 \u2010 \u2010 \u2010 \u2010 Reserves 15 1,553.8 \u2010 \u2010 \u2010 \u2010 \u2010 1,692.8 \u2010 \u2010 \u2010 \u2010 \u2010 Profit (loss) for the period 15 441.4 \u2010 \u2010 \u2010 \u2010 \u2010 255.2 \u2010 \u2010 \u2010 \u2010 \u2010 Group net equity 3,438.2 \u2010 \u2010 \u2010 \u2010 \u2010 3,398.4 \u2010 \u2010 \u2010 \u2010 \u2010 Non-controlling interests 16 313.4 \u2010 \u2010 \u2010 \u2010 \u2010 246.3 \u2010 \u2010 \u2010 \u2010 \u2010 Total net equity 3,751.6 \u2010 \u2010 \u2010 \u2010 \u2010 3,644.7 \u2010 \u2010 \u2010 \u2010 \u2010 Non-current liabilities Non-current financial liabilities 19 4,421.7 \u2010 \u2010 1.2 \u2010 1.2 0.0% 5,689.9 \u2010 \u2010 1.5 \u2010 1.5 0.0% Non-current lease liabilities 22 56.8 \u2010 \u2010 2.7 0.2 2.9 5.1% 55.1 \u2010 \u2010 3.7 0.3 4.0 7.3% Post-employment and other benefits 30 88.1 \u2010 \u2010 \u2010 \u2010 \u2010 92.0 \u2010 \u2010 \u2010 \u2010 \u2010 Provisions for risks and charges 31 617.8 \u2010 1.0 \u2010 \u2010 1.0 0.2% 565.6 \u2010 3.8 \u2010 \u2010 3.8 0,7% Deferred tax liabilities 14 156.9 \u2010 \u2010 \u2010 \u2010 \u2010 215.7 \u2010 \u2010 \u2010 \u2010 \u2010 Derivative financial instruments 29 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 6.3 \u2010 \u2010 \u2010 \u2010 \u2010 Total non-current liabilities 5,341.3 \u2010 1.0 3.9 0.2 5.1 6,624.6 \u2010 3.8 5.2 0.3 9.3 Current liabilities Current financial liabilities 19 890.8 \u2010 0.1 0.8 \u2010 0.9 0.1% 650.1 \u2010 5.2 0.5 \u2010 5.7 0.9% Current lease liabilities 22 24.5 \u2010 0.0 1.3 0.1 1.4 5.9% 21.3 \u2010 0.0 1.4 0.1 1.5 7.2% Trade payables 34 2,637.2 \u2010 12.9 18.6 23.4 54.9 2.1% 3,093.1 \u2010 33.8 22.8 33.3 89.9 2.9% Current tax liabilities 13 110.2 \u2010 \u2010 \u2010 \u2010 \u2010 17.1 \u2010 \u2010 \u2010 \u2010 \u2010 Other current liabilities 36 1,866.8 \u2010 0.3 6.3 0.6 7.2 0.4% 1,720.0 \u2010 1.5 6.5 0.1 8.1 0.5% Derivative financial instruments 29 457.6 \u2010 \u2010 \u2010 \u2010 \u2010 1,347.6 \u2010 \u2010 \u2010 \u2010 \u2010 Total current liabilities 5,987.1 \u2010 13.3 27.0 24.1 64.4 6,849.2 \u2010 40.5 31.2 33.5 105.2 TOTAL LIABILITIES 11,328.4 \u2010 14.3 30.9 24.3 69.5 13,473.8 \u2010 44.3 36.4 33.8 114.5 TOTAL NET EQUITY AND LIABILITIES 15,080.0 \u2010 14.3 30.9 24.3 69.5 17,118.5 \u2010 44.3 36.4 33.8 114.5 Column headings related parties: A non-consolidated subsidiaries, B Associated and jointly controlled companies, C Related companies with significant influence (shareholder municipalities), D Other related parties | Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 219 Cash flow statement as per Consob resolution 15519/2006 31 Dec 23 of which related parties Earnings before taxes 656.4 Adjustments to reconcile net profit to the cashflow from operating activities Amortisation and impairment of assets 526.2 Allocation to provisions 227.5 Effects from valuation using the net equity method (10.3) Financial (income) expenses 187.9 (Capital gains) losses and other non-monetary elements (8.4) Change in provision for risks and charges (27.7) Change in provision for employee and post-employment benefits (11.0) Total cash flow before changes in net working capital 1,540.6 (Increase) decrease in inventories 395.1 (Increase) decrease in trade receivables (81.9) 24.0 Increase (decrease) in trade payables (513.7) (35.0) Increase/decrease in other current assets/liabilities 429.7 0.4 Changes in working capital 229.2 Dividends collected 15.1 8.8 Interest income and other financial income collected 77.8 2.2 Interest expenses, net charges on derivatives and other paid financial charges (193.4) (0.2) Taxes paid (96.6) Cash flow from operating activities (a) 1,572.7 Investments in tangible assets (242.7) Investments in intangible assets (573.1) Investments in subsidiary companies and business units net of cash holdings (76.2) Sale price of tangible and intangible assets 2.6 (Increase) decrease in other investment activities 30.1 14.8 Cash flow from (for) investing activities (b) (859.3) New issue of long-term bonds 614.9 Repayments of non-current financial liabilities (750.0) Repayments and other net changes in financial liabilities (908.5) (5.1) Repayments of leasing liabilities (22.4) (1.4) Acquisition of Interests in consolidated companies (0.1) Increase minority shareholding 1.9 Dividends paid out to Hera shareholders and non-controlling interests (239.1) (71.0) Changes in treasury shares (19.7) Cash flow from (for) financing activities (c) (1,323.0) Increase (decrease) in cash holdings (a+b+c) (609.6) Cash and cash equivalents at the beginning of the period 1,942.4 Cash and cash equivalents at the end of the period 1,332.8 2.03.03 | Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 220 Net financial debt pursuant to Consob notice DEM/6064293 of 2006 31 Dec 23 31 Dec 22 A B C D A B C D A Cash 1,332.8 \u2010 \u2010 \u2010 \u2010 1,942.4 \u2010 \u2010 \u2010 \u2010 B Cash equivalents \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 C Other current financial assets 90.9 \u2010 7.0 3.7 1.3 77.7 \u2010 9.2 3.7 1.4 D Liquidity (A+B+C) 1,423.7 2,020.1 of which related parties \u2010 7.0 3.7 1.3 \u2010 9.2 3.7 1.4 E Current financial debt (411.9) \u2010 (0.1) (0.7) \u2010 (563.0) \u2010 \u2010 (0.5) \u2010 F Current portion of non-current financial debt (524.1) \u2010 \u2010 (1.4) (0.1) (108.4) \u2010 (5.2) (1.4) (0.1) G Current financial indebtedness (E+F) (936.0) (671.4) of which related parties \u2010 (0.1) (2.1) (0.1) \u2010 (5.2) (1.9) (0.1) H Net current financial indebtedness (G+D) 487.7 1,348.7 of which related parties \u2010 6.9 1.6 1.2 \u2010 4.0 1.8 1.3 I Non-current financial debt (1,087.0) \u2010 \u2010 (3.9) (0.2) (2,553.0) \u2010 \u2010 (5.2) (0.3) J Debt instruments (3,391.2) \u2010 \u2010 \u2010 \u2010 (3,197.3) \u2010 \u2010 \u2010 \u2010 K Non-current trade and other payables \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 L Non-current financial indebtedness (I+J+K) (4,478.2) (5,750.3) of which related parties \u2010 \u2010 (3.9) (0.2) \u2010 \u2010 (5.2) (0.3) M Total financial indebtedness (H+L) ESMA guidelines 32 - 382 - 1138 (3,990.5) (4,401.6) of which related parties \u2010 6.9 (2.3) 1.0 \u2010 4.0 (3.4) 1.0 Non-current financial receivables 162.8 151.8 of which related parties \u2010 11.0 10.6 21.2 \u2010 14.3 12.1 25.3 Net financial debt (3,827.7) (4,249.8) of which related parties \u2010 17.9 8.3 22.2 \u2010 18.3 8.7 26.3 2.03.04 | Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 221 List of related parties The values reported in the table at 31 December 2023 refer to the related parties listed below: Group A - Non-consolidated subsidiaries - - Group B- Affiliated and jointly controlled companies Adria Link Srl Aimag Spa ASM SET Srl Aurora Srl Enomondo Srl H.E.P.T. Co. Ltd Natura Srl in liquidation Oikothen Scarl in liquidation SEA - Servizi Ecologici Ambientali Srl Set Spa Sgr Servizi Spa Sinergie Italiane Srl in liquidation (ceased) Tamarete Energia Srl Tre Monti Srl Group C - Related parties with significant influence Municipality of Bologna Municipality of Casalecchio di Reno Municipality of Cesena Municipality of Ferrara Municipality of Imola Municipality of Modena Municipality of Padua Municipality of Ravenna Municipality of Rimini Municipality of Trieste CON.AMI Ferrara Tua Spa Ravenna Holding Spa Rimini Holding Spa Group D - Other related parties Acosea Impianti Srl Dragone Impianti Spa Acqeduct Aloe Spa Amir Spa - Asset Aspes Spa Calenia Energia Spa Fiorano Gestioni Patrimoniali Srl Formigine Patrimonio Srl Maranello Patrimonio Srl Romagna Acque Spa Sassuolo Gestioni Patrimoniali Srl Serramazzoni Patrimonio Srl Societ\u00e0 Italiana Servizi Spa - Sis Spa asset 2.03.05 | Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 222 Te.Am Societ\u00e0 Teramo Ambiente Srl Team Srl - Assets Unica Reti Spa - Asset Statutory auditors, strategic managers, family members of strategic managers and entities linked to strategic managers Explanatory notes to relations with related parties Service management In most of the areas it serves and in almost all shareholding municipalities in the provinces of Modena, Bologna, Ferrara, Forl\u00ec-Cesena, Ravenna, Rimini, Padua, Udine, Trieste, Gorizia and Pesaro, the Hera Group holds the concession for the local public services of economic interest (distribution of natural gas through local gas pipelines, integrated water service and environmental services, including sweeping, waste collection, transport, recovery and disposal). The electricity distribution service is carried out in the areas of Modena and Imola, and in the municipalities of Trieste and Gorizia. Other public utilities (including urban district heating, energy services and public lighting) are carried out in a free market regime or through specific agreements with the local authorities concerned. Through specific relations with the local authorities and/or local agencies, the Hera Group is also responsible for waste treatment and disposal services, not included in urban hygiene activities. Water sector The water services managed by the Hera Group are carried out in the areas served in the Emilia- Romagna, Veneto, Friuli-Venezia Giulia and Marche regions. It is carried out on the basis of conventions with the relevant local agencies, with a variable duration, which is usually twenty years. The Hera Group\u2019s mandate for managing integrated water services refers to activities of water collection and drinking water treatment and distribution for civil and industrial applications as well as sewerage and sewage treatment. The agreements signed with the local area authorities also require the operator to carry out the planning and construction of new networks and plants aimed at providing the service. The conventions regulate the economic aspects of the contractual agreement, as well as the modes of managing the service, and the performance and quality standards. Responsibility for tariff matters is delegated to the national Authority ARERA; the current 2020-2023 regulatory system is the third tariff period. Regulations for the 2020-2023 period are in continuity with the previous 2016-2019 period, with the introduction of some new elements such as the incentivisation of energy and environmental sustainability actions, as well as contractual and technical quality standard levels. Each operator is granted a revenue (VRG) independently of the trends in volumes distributed, which is established on the basis of operating costs (efficient and exogenous) and capital costs in relation to the investments made, as well as, for the Rimini area, the outcome of the tender procedure that led to the new concession contract signed for the period 2022 -2039. For the purpose of carrying out the service, the operator uses networks, facilities and other equipment owned by the company itself, municipalities and asset companies. These assets, part of the inaccessible water stores, or granted or leased to the provider, must be returned to the municipalities, asset companies or local area authorities at the end of the concession to be made available to the incoming provider. Any work carried out by the Hera Group for the water service must be returned to the above mentioned entities following payment or the residual value of the assets in question. Hera\u2019s relations with users are regulated by provisioning regulations as well as Service Charters drafted on the basis of templates approved by local area authorities in compliance with provisions set out by ARERA regarding the quality of the service and the resource. 2.03.06
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 223
Waste management sector
The municipal waste service managed by the Hera Group in the area it serves is provided on the basis
of agreements with local authorities and comprises the exclusive management of the collection,
transportation, sweeping and cleaning of streets, preparations for waste recovery or disposal and other
minor services. The agreements entered into with the relevant local authorities regulate the economic
aspects of the contractual agreement, as well as the modes of organising and managing the service, and
the performance and quality standards. Starting from 2020, responsibility for the regulation of the
municipal waste service was given to ARERA, which defined an initial regulatory two-year period 2020-
2021 concerning integrated waste management only (ARERA Resolution 443/2019) and a subsequent
update for the period 2022-2025 starting from which the fees for access to treatment plants qualified as
minimum plants by the regional authority was also regulated (ARERA Resolution 363/2021). Therefore,
the annual fee for the management of this service was determined with reference to the aforementioned
national regulation, taking into account, to supplement the results, the competitive procedures concluded
for the recently assigned areas (Ravenna and Cesena, Bologna, Modena and Saccolongo).
Following the recent rulings of the State Council on administrative disputes concerning minimum plants,
the beginning of national regulation for this type of plant was postponed from 2022 to 2024 (ARERA
Resolution 7/2024). For 2022-2023, the tariff assumptions already made by the local authorities, as
included in the economic and financial plans, were confirmed.
The municipal waste management service is billed by the Hera Group to the individual municipalities in
the case of the Tari regime or to the individual users in the case of the application of the punctual
correspondent tariff.
In order to operate municipal waste treatment plants, the Hera Group is required to obtain provincial
authorisations.
In accordance with the principle of continuity in public services, pursuant to the existing agreements,
operators are required to continue providing the service even in those areas where the concession has
already expired, until the start of the new assignments.
Energy sector
The duration of licenses for the distribution of natural gas via local gas pipelines, initially set for periods
ranging between ten and thirty years by the original agreements stipulated with the municipalities, was
revised by Italian decree 164/2000 (so-called Letta Decree, transposing Directive 98/30/EC) and by
subsequent reforms of the energy market. Inrete Distribution Energy Spa, an Hera Group company that
took over natural gas and electricity distribution from Hera Spa, takes advantage of longer residual terms
established for operators that have promoted partial privatizations and mergers. The duration of
distribution concessions is unchanged with respect to that foreseen in the company\u2019s stock exchange
listing. The agreements associated with the distribution licenses regarding the distribution of natural gas
or other similar gases for heating, domestic, handicraft and industry uses, and for other general uses.
Rates for the distribution of gas are fixed under current regulations and by periodical resolutions issued
by the agency in charge of this sector (Arera).
The area in which Inrete Distribuzione Energia Spa provides gas distribution services is divided into rate
zones in which a uniform distribution rate is applied to different categories of customers. The tariff
regulations in force at the time these annual financial statements were approved are ARERA resolution
736/2022/R/gas of 29 December 2022 (update of tariffs for gas distribution and metering services, for
2023), which replaced the 620/2021/R/gas of 28 December 2021 and which serve to approve the
mandatory tariffs for natural gas distribution, metering and marketing services for 2023.
The tariff rates valid as from 1 January 2023 are shown in Table 1 attached to the aforementioned
resolution. The tariffs for the 2023 financial year are part of the so-called 2020-2025 tariff period. As of 1
January 2020, in fact, the Regulation of gas distribution and metering service tariffs for the period 2020-
2025 (Rtdg 2020-2025), approved by resolution 570/2019/R/gas and updated by resolution
737/2022/R/gas, came into force.
Pursuant to Article 43 of the RTDG 2020-2025, the mandatory natural gas distribution and metering
tariffs are broken down into different rate areas:
| Introduction
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| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 224
\u25aa northwest area, which includes the regions of Valle d\u2019Aosta, Piedmont and Liguria;
\u25aa northeast area, including the regions of Lombardy, Trentino - Alto Adige, Veneto, Friuli - Venezia
Giulia, and Emilia - Romagna;
\u25aa central area, comprising the regions of Tuscany, Umbria and the Marche;
\u25aa central-south-eastern area, including the regions of Abruzzo, Molise, Apulia and Basilicata;
\u25aa central-southwestern area, including the Lazio and Campania regions;
\u25aa southern area, including the regions of Calabria and Sicily;
\u25aa Sardinia area, including the region of Sardinia.
The value of the tariff components GS, RE, RS and UG1 referred to in paragraph 42.3, sections c), d),
e), f) of the Rtdg 2020-2025 is subject to quarterly updating.
For 2023, as of 1 January 2023, the values already valid in Q4 2021 were confirmed - resolution
735/2022/R/com and Table 8 attached thereto and Table 7 attached to resolution 396/2021/R/com; as
of 1 April 2023, these values were amended in accordance with resolution 134/2023/R/com; as of 1 July
2023, Resolution 297/2023/R/com was applied and as of 1 October, resolution 429/2023/R/com came
into force.
Beginning on 1 October 2021, the values are those of Table 7 attached to resolution 396/2021/R/com.
With regard to electricity, the contracts (lasting thirty years and renewable pursuant to the current
regulations) govern power distribution activities comprising, inter alia, the management of distribution
networks and the operation of associated plants, ordinary and extraordinary maintenance, the planning
and identification of development projects, and metering. The contract may be suspended or terminated,
on the judgement of the national Authority, if defaults and violations occur on the part of the
concessionary company that seriously affect the performance of the distribution and metering of
electricity. The distribution company is obliged to apply to its customers (so called Distribution Users) the
rates set by current regulations and resolutions adopted by the sector Authority. The rate regulations in
effect at the time the annual financial statements were approved is that of the Authority\u2019s resolution
654/2015/R/Eel of 23 December 2015 (Rate regulations for electricity transmission, distribution and
metering, for the regulatory period 2016-2023), which replaced the previous Authority resolution Arg/elt
no. 199/2011 and subsequent amendments and additions (Official directives for the provision of
electricity transmission, distribution and metering services for the regulatory period 2012-2015 and
provisions on economic conditions for the provision of connection services), in force until 31 December
2015. With this resolution, the Authority issued the provisions on the tariff regulation of electricity
transmission, distribution and measurement services for the 2016-2023 regulatory period, defining an
eight-year regulatory period made up of two four-year semi-periods, also providing for an intra-period
update between the first and second semi-periods.
The mandatory rate for distribution services covers the costs of transporting electricity along distribution
networks. It is applied to all end customers, with the exception of low-voltage household customers. The
rate has a trinomial structure and is expressed in hundredths of a euro per sampling point per year (fixed
component), euro cents per KW per year (power component) and euro cents per kWh consumed (energy
component).
The compulsory tariff for the distribution service is periodically updated by the national Authority Arera
by means of an appropriate provision, therefore, on 27 December 2019, resolution 568/2019/R/Eel was
issued, approving the tariff regulation of electricity transmission, distribution and measurement services
for the 2020-2023 regulatory semi-period.
For household customers in 2023, the update of tariffs for the delivery of electricity transmission,
distribution and metering services has been established by resolution 721/2022/R/eel of 27 December
2022.
For non-household customers, the tariff update for 2023 for the distribution and metering services as well
as the economic conditions for the provision of the connection service was established by resolution
720/2022/R/eel of 27 December 2022.
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| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 225
SHAREHOLDINGS
List of consolidated companies
Subsidiaries
Registered name
Registered office
Share capital
(euro) (*)
Consolidated percentage
Total interest
direct
indirect
A.C.R. di Reggiani Albertino Spa
Mirandola (MO)
390,000
60.00%
60.00%
Acantho Spa
Imola (BO)
23,573,079
70.16%
70.16%
AcegasApsAmga Spa
Trieste
284,677,324
100.00%
100.00%
Aliplast Spa
Istrana (TV)
5,000,000
75.00%
75.00%
Aliplast France Recyclage Sas
La Wantzenau (France)
1,025,000
75.00%
75.00%
Aliplast Iberia Slu
Calle Castilla -Leon (Spain)
815,000
75.00%
75.00%
Aliplast Polska Spzoo
Zgierz (Poland)
1,200,000 PLN
75.00%
75.00%
Aresenergy Eood
Varna (Bulgaria)
50,000 Lev
100.00%
100.00%
AresGas Ead
Sofia (Bulgaria)
22,572,241 Lev
100.00%
100.00%
Ares Trading Eood
Varna (Bulgaria)
50,000 Lev
100.00%
100.00%
Asa Scpa
Castelmaggiore (BO)
1,820,000
38.25%
38.25%
Atlas Utilities Ead
Varna (Bulgaria)
50,000 Lev
100.00%
100.00%
Biorg Srl
Bologna
10,000,000
75.00%
75.00%
Black Sea Gas Company Eood
Varna (Bulgaria)
5,000 Lev
100.00%
100.00%
EstEnergy Spa
Trieste
299,925,761
100.00%
100.00%
Etra Energia Srl
Cittadella (PD)
100,000
51.00%
51.00%
F.lli Franchini Srl
Rimini
1,100,000
100.00%
100.00%
Feronia Srl
Finale Emilia (MO)
100,000
75.00%
75.00%
Frullo Energia Ambiente Srl
Bologna
17,139,100
38.25%
38.25%
Green Factory Srl
Pesaro
500,000
46.70%
46.70%
Herambiente Spa
Bologna
271,648,000
75.00%
75.00%
Herambiente Servizi Industriali Srl
Bologna
5,000,000
75.00%
75.00%
Hera Comm Spa
Imola (BO)
53,595,899
100.00%
100.00%
Hera Comm Marche Srl
Urbino (PU)
1,977,332
100.00%
100.00%
Hera Luce Srl
Cesena
1,000,000
100.00%
100.00%
Hera Servizi Energia Spa
Udine
13,216,899
84.50%
84.50%
Heratech Srl
Bologna
2,000,000
100.00%
100.00%
Hera Trading Srl
Trieste
22,600,000
100.00%
100.00%
HestAmbiente Srl
Trieste
1,010,000
82.50%
82.50%
Horowatt Srl
Cesena
50,000
50,00%
50,00%
Inrete Distribuzione Energia Spa
Bologna
10,091,815
100.00%
100.00%
Macero Maceratese Srl
Macerata (MC)
1,032,912
46.70%
46.70%
Marche Multiservizi Spa
Pesaro
16,388,535
46.70%
46.70%
Marche Multiservizi Falconara Srl
Falconara Marittima (AN)
100,000
46.70%
46.70%
Primagas Ad
Varna (Bulgaria)
1,149,860 Lev
97.34%
97.34%
2.04
2.04.01
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 226
Recycla Spa
Maniago (PN)
90,000
75.00%
75.00%
Tiepolo Srl
Bologna
1,305,000
100.00%
100.00%
Tri-Generazione Scarl
Padua
100,000
71.83%
71.83%
Uniflotte Srl
Bologna
2,254,177
97.00%
97.00%
Vallortigara Servizi Ambientali Spa
Torrebelvicino (VI)
330,000
75.00%
75.00%
Wolmann Spa
Bologna
400,000
100.00%
100.00%
(*) unless otherwise specified
Jointly controlled entities
Registered name
Registered office
Share capital
(Euro)
Percentage held
Total interest
direct
indirect
Enomondo Srl
Faenza (RA)
14,000,000
37.50%
37.50%
Hera Spa
Bologna
50,000
37.50%
37.50%
Associated companies
Registered name
Registered office
Share capital
(euro) (*)
Percentage held
Total interest
direct
indirect
Aimag Spa*
Mirandola (MO)
78,027,681
25.00%
25.00%
ASM Servizi Energetici e Tecnologici-ASM
SET Srl
Rovigo
200,000
49.00%
49.00%
SEA - Servizi Ecologici Ambientali Srl
Camerata Picena (AN)
100,000
23.25%
23.25%
Set Spa
Milan
120,000
39.00%
39.00%
Sgr Servizi Spa
Rimini
5,982,262
29.61%
29.61%
Tamarete Energia Srl
Ortona (CH)
3,600,000
40.00%
40.00%
*The share capital of these companies consists of 67,577,681 euro of ordinary shares and 10,450,000 euro of related shares.
| Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 227 Key figures in the financial statements of subsidiaries and associated companies Summary of key figures of the financial statements of subsidiaries pursuant to Article 2429, last paragraph, of the Civil Code. thousand euro A.C.R. Spa Acantho Spa AcegasApsAmga Spa* Aliplast Spa Aliplast France Recyclage Sas ASSETS Fixed assets 33,932 81,259 1,109,019 71,396 3,282 Circulating assets 96,874 36,059 195,482 70,507 2,610 Total assets 130,805 117,318 1,304,501 141,903 5,892 LIABILITIES Share capital 390 27,094 284,677 5,000 1,025 Reserves 37,963 13,750 274,643 34,236 903 Net profit / (loss) 12,420 6,601 24,769 10,118 404 Provisions 124 117 34,070 698 \u2010 Severance pay provision 619 1,217 10,363 613 \u2010 Payables 79,289 68,539 675,979 91,238 3,560 Total liabilities 130,805 117,318 1,304,501 141,903 5,892 INCOME STATEMENT Production value 159,838 91,383 399,176 155,147 6,684 Production costs (142,485) (80,693) (368,529) (141,024) (6,103) Financial income / (expenses) (510) (962) (977) (1,563) (44) Extraordinary income / (expenses) - - - - - Taxes for the year (4,422) (3,127) (4,901) (2,442) (133) Net profit / (loss) 12,420 6,601 24,769 10,118 404 2.04.02
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| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 228
thousand euro
Aliplast Iberia Slu
Aliplast Polska
Spzoo
Ares Trading
Eood
Aresenergy
Eood
AresGas Ead
ASSETS
Fixed assets
694
321
\u2010
8
83,687
Circulating assets
944
1,472
726
637
5,155
Total assets
1,638
1,793
726
645
88,842
LIABILITIES
Share capital
815
277
26
26
11,541
Reserves
176
924
457
(152)
18,076
Net profit / (loss)
86
173
180
60
1,465
Provisions
\u2010
\u2010
\u2010
\u2010
265
Severance pay provision
\u2010
\u2010
\u2010
\u2010
25
Payables
561
419
63
711
57,470
Total liabilities
1,638
1,793
726
645
88,842
INCOME STATEMENT
Production value
2,397
4,900
1,642
1,912
46,375
Production costs
(2,282)
(4,677)
(1,437)
(1,836)
(43,256)
Financial income / (expenses)
-
(5)
(5)
(16)
(1,503)
Extraordinary income / (expenses)
-
-
-
-
-
Taxes for the year
(29)
(45)
(20)
\u2010
(151)
Net profit / (loss)
86
173
180
60
1,465
thousand euro
Asa Scpa
Atlas Utilities
Ead
Biorg Srl
Black Sea Gas
Company Eood
EstEnergy Spa*
ASSETS
Fixed assets
2,734
\u2010
30,944
1,255
513,087
Circulating assets
16,366
37
3,862
4,656
325,002
Total assets
19,100
37
34,806
5,911
838,089
LIABILITIES
\u2010
Share capital
1,820
26
10,000
3
299,926
Reserves
622
(2,388)
(1,433)
4,152
205,374
Net profit / (loss)
\u2010
2,399
(2,938)
662
11,323
Provisions
15,382
\u2010
363
\u2010
6,532
Severance pay provision
97
\u2010
34
\u2010
2,107
Payables
1,179
\u2010
28,780
1,094
312,827
Total liabilities
19,100
37
34,806
5,911
838,089
INCOME STATEMENT
\u2010
Production value
5,537
8
5,481
5,450
1,139,635
Production costs
(5,828)
(10)
(8,585)
(4,693)
(1,114,772)
Financial income / (expenses)
305
2,401
(709)
(23)
(7,077)
Extraordinary income / (expenses)
\u2010
\u2010
\u2010
\u2010
\u2010
Taxes for the year
(14)
\u2010
875
(72)
(6.463)
Net profit / (loss)
\u2010
2,399
(2,938)
662
11,323
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 229
thousand euro
Etra Energia Srl*
F.lli Franchini Srl
Feronia Srl
Frullo Energia
Ambiente Srl*
Green Factory Srl
ASSETS
Fixed assets
154
318
9,574
45,788
3,876
Circulating assets
4,506
35,730
3,218
33,104
383
Total assets
4,660
36,047
12,792
78,891
4,259
LIABILITIES
Share capital
100
1,100
100
17,139
500
Reserves
1,570
1,205
2,648
29,953
(55)
Net profit / (loss)
663
1,673
(601)
16,410
(8)
Provisions
\u2010
108
4,141
3,110
\u2010
Severance pay provision
58
333
\u2010
1,500
\u2010
Payables
2,269
31,629
6,504
10,779
3,822
Total liabilities
4,660
36,047
12,792
78,891
4,259
INCOME STATEMENT
Production value
10,518
22,627
386
44,935
4
Production costs
(9,567)
(20,232)
(1,206)
(22,639)
(12)
Financial income / (expenses)
(33)
(87)
(9)
116
\u2010
Extraordinary income / (expenses)
\u2010
\u2010
\u2010
\u2010
\u2010
Taxes for the year
(255)
(635)
228
(6,001)
\u2010
Net profit / (loss)
663
1,673
(601)
16,410
(8)
thousand euro
Hera Comm Marche
Srl*
Hera Comm Spa*
Hera Luce Srl*
Hera Servizi
Energia Spa
Hera Trading Srl*
ASSETS
Fixed assets
16,586
208,512
131,789
122,161
114
Circulating assets
17,938
2,168,888
59,471
1,614,454
1,984,453
Total assets
34,525
2,377,400
191,260
1,736,615
1,984,568
LIABILITIES
Share capital
1,977
53,596
1,000
13.217
22,600
Reserves
6,760
272,086
60,772
75,407
65,397
Net profit /(loss)
5,396
127,814
9,644
2,195
118,300
Provisions
\u2010
17,599
1,112
24,016
\u2010
Severance pay provision
661
3,566
647
1,752
689
Payables
19,729
1,902,739
118,085
1,620,028
1,777,581
Total liabilities
34,525
2,377,400
191,260
1,736,615
1,984,568
INCOME STATEMENT
Production value
106,404
5,794,258
96,426
1,070,626
9,802,633
Production costs
(97,937)
(5,647,725)
(88,668)
(985,124)
(9,641,366)
Financial income / (expenses)
(1,106)
23,255
2,526
(81,910)
4,195
Extraordinary income / (expenses)
\u2010
\u2010
\u2010
\u2010
\u2010
Taxes for the year
(1,965)
(41,974)
(640)
(1,397)
(47,162)
Net profit / (loss)
5,396
127,814
9,644
2,195
118,300
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Hera Group \u2013 Consolidated financial statement at 31 December 2023 230
thousand euro
Herambiente
Servizi
Industriali Srl*
Herambiente Spa*
Heratech Srl*
HestAmbiente Srl*
Horowatt Srl
ASSETS
Fixed assets
229,466
1,029,349
72
101,989
7
Circulating assets
59,856
498,890
72,036
33,282
47
Total assets
289,321
1,528,239
72,108
135,271
54
LIABILITIES
Share capital
5,000
271,600
1,981
1,010
50
Reserves
20,223
92,789
6,448
25,497
Net profit / (loss)
23,416
73,234
(5,115)
21,570
(9)
Provisions
4,673
177,008
383
6,159
Severance pay provision
2,460
5,983
3,759
481
Payables
233,549
907,625
64,651
80,554
13
Total liabilities
289,321
1,528,239
72,108
135,271
54
INCOME STATEMENT
Production value
159,655
556,294
137,834
92,398
\u2010
Production costs
(159,857)
(506,213)
(144,043)
(60,907)
(9)
Financial income/ (expenses)
6,017
33,299
(609)
(1,977)
\u2010
Extraordinary income/ (expenses)
16,146
\u2010
\u2010
\u2010
\u2010
Taxes for the year
1,455
(10,146)
1,704
(7,944)
\u2010
Net profit / (loss)
23,416
73,234
(5,115)
21,570
(9)
Thousand euro
Inrete Distribuzione
Energia Spa
Macero
Maceratese Srl
Marche
Multiservizi Spa
Marche
Multiservizi
Falconara Srl
Primagas Ad
ASSETS
Fixed assets
1,387,510
5,820
267,087
2,668
2,717
Circulating assets
210,113
7,892
74,113
2,637
361
Total assets
1,597,624
13,712
341,200
5,305
3,078
LIABILITIES
Share capital
9,901
1,033
16,389
100
588
Reserves
563,983
5,815
112,706
695
800
Net profit / (loss)
34,117
811
12,066
267
349
Provisions
137,235
232
36,602
206
35
Severance pay provision
7,732
507
4,880
711
\u2010
Payables
844,655
5,313
158,558
3,326
1,306
Total liabilities
1,597,624
13,712
341,200
5,305
3,078
INCOME STATEMENT
Production value
393,937
16,350
139,621
8,386
4,329
Production costs
(329,353)
(15,193)
(121,986)
(7,978)
(3,914)
Financial income / (expenses)
(18,588)
(43)
(1,505)
(25)
8
Extraordinary income / (expenses)
\u2010
\u2010
\u2010
\u2010
(31)
Taxes of the year
(11,879)
(302)
(4,064)
(116)
(43)
Net profit / (loss)
34,117
811
12,066
267
349
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 231
thousand euro
Recycla Spa
Tiepolo Srl
Tri-Generazione
Scarl*
Uniflotte Srl*
Vallortigara Servizi
Ambientali Spa
ASSETS
Fixed assets
15,397
600
\u2010
141,271
13,847
Circulating assets
7,022
1,986
657
32,927
14,137
Total assets
22,419
2,586
657
174,198
27,984
LIABILITIES
Share capital
90
1,305
100
2.254
330
Reserves
6,483
7
289
28,014
13,592
Net profit / (loss)
3,153
(28)
\u2010
5,066
2,256
Provisions
776
\u2010
\u2010
690
380
Severance pay provision
1,146
\u2010
\u2010
1,503
809
Payables
10,771
1,302
268
136,671
10,617
Total liabilities
22,419
2,586
657
174,198
27,984
INCOME STATEMENT
Production value
23,716
1
810
113,337
27,680
Production costs
(19,363)
(42)
(815)
(103,772)
(24,675)
Financial income / (expenses)
(101)
\u2010
5
(3,057)
(56)
Extraordinary income / (expenses)
\u2010
\u2010
\u2010
\u2010
\u2010
Taxes for the year
(1,100)
13
\u2010
(1,442)
(693)
Net profit / (loss)
3,153
(28)
\u2010
5,066
2,256
thousand euro
Wolmann Spa
ASSETS
Fixed assets
87
Circulating assets
12,185
Total assets
12,272
LIABILITIES
\u2010
Share capital
145
Reserves
443
Net profit / (loss)
611
Provisions
61
Severance pay provision
144
Payables
10,868
Total liabilities
12,272
INCOME STATEMENT
\u2010
Production value
22,180
Production costs
(20,250)
Financial income / (expenses)
(1,011)
Extraordinary income / (expenses)
\u2010
Taxes for the year
(307)
Net profit / (loss)
611
*The company applies the international accounting standards, therefore the values stated comply with them.
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 232
Summary of key figures of the financial statements of joint ventures pursuant to Article 2429, last
paragraph, of the Civil Code.
thousand euro
Enomondo Srl
ASSETS
Fixed assets
36,893
Circulating assets
24,894
Total assets
61,788
LIABILITIES
Share capital
14,000
Reserves
23,611
Net profit / (loss)
2,952
Provisions
229
Severance pay provision
28
Payables
20,969
Total liabilities
61,788
INCOME STATEMENT
Production value
29,614
Production costs
(25,378)
Financial income / (expenses)
(243)
Extraordinary income / (expenses)
Taxes for the year
(1.042)
Net profit / (loss)
2,952
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 233
Summary of key figures of the financial statements of associated companies pursuant to Article 2429,
last paragraph, of the Civil code.
thousand euro
Aimag Spa
ASM SET Srl
SEA - Servizi
Ecologici
Ambientali Srl
Set Spa
Sgr Servizi Spa
Tamarete
Energia Srl
ASSETS
Fixed assets
389,816
154
13,307
100,246
1,378
46,727
Circulating assets
277,870
11,558
14,116
68,551
116,138
14,947
Total assets
667,686
11,712
27,423
168,797
117,516
61,674
LIABILITIES
Share capital
78,028
200
100
120
5,982
3,600
Reserves
140,805
367
10,274
71,385
46,510
1;993
Net profit / (loss)
10,898
2,955
4,370
1;432
10,588
477
Provisions
33,532
2
1,406
-
227
4,110
Severance pay provision
3,446
297
548
308
1,595
Payables
400,977
7,891
10,724
95,551
52,614
51,494
Total liabilities
667,686
11,712
27,423
168,797
117,516
61,674
INCOME STATEMENT
Production value
559,638
33,282
19,102
134,107
172,682
18,984
Production costs
(542,130)
(29,120)
(12,843)
(131,219)
(158,100)
(16,410)
Financial income / (expenses)
(2,514)
(16)
212
(395)
257
(1,913)
Extraordinary income / (expenses)
425
(476)
Taxes for the year
(4,521)
(1,191)
(2,102)
(584)
(4,250)
(185)
Net profit / (loss)
10,898
2,955
4,370
1;432
10,588
477
| Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 234 INFORMATION REQUIRED BY LAW 124 OF 4 AUGUST 2017 ART. 1 PARAGRAPHS 125-129 AND FOLLOWING AMENDMENTS Law 124/2017, Art. 1, paragraphs 125-129 and following amendments established that companies must disclose in the explanatory notes to the financial statements the \u201csubsidies, grants, benefits, contributions or aid, in cash or in kind, without consideration, remuneration or compensation\u201d received from the Public Administration, above the threshold of 10,000 euro and on a cash basis. The following table shows the cases present within the Group: Operating grants Issuing entity Description Amount received (euro) National Emergency Fund Contributions for the May 2023 flood in the Emilia-Romagna, Tuscany and Marche Regions 40,199,797 Atersir Support for the circular economy and the reduction of urban waste production 1,003,923 Emilia Romagna Region Interventions for continuity in the drinking water service 535,014 CNR-Institute of Photonics and Nanotechnologies Initiatives to develop innovative sensors for gas network monitoring 104,062 European Commission - Capofila Snam Spa Development of validated tests and requirements for instruments to measure mixtures of natural gas and hydrogen 88,705 Ministry of Education and Merit Realisation of a prototype system for monitoring seismic risk in an urban environment (Clara Project) 84,936 Arpae Emilia-Romagna Systematic surveillance system for Sars-CoV-2 in wastewater 82,705 European Commission - Capofila Sintef AS Project on the impacts of H2 blending in non-metallic network materials 74,528 Municipality of Cesena Fund for mobility management initiatives 72,254 Ministry of Culture - Friuli- Venezia Giulia Region Reorganisation and inventorying of the AcegasApsAmga Spa Archives, at the Municipality of Muggia 49,300 Ministry of Infrastructures and Transport Ordinary maintenance works on networks 45,251 Municipality of Bologna Fund for mobility management initiatives 32,982 Alma Mater Studiorum University of Bologna Design of the professional module GrEnFIn - Greening energy market and finance 13,511 2.05
| Introduction
| Directors\u2019 report
| Consolidated financial statements
Hera Group \u2013 Consolidated financial statement at 31 December 2023 235
Plant investment grants
Issuing entity
Description
Amount received
(euro)
Municipality of Ravenna
Realisation of the sewerage network at the dock of the Municipality of Ravenna
4,721,223
Emilia Romagna Region
Reinforcement of water and sewerage networks and waste collection
3,332,456
ATO - Bacino di Bacchiglione
Council
NRRP funds for water networks
1,250,000
Pesaro optimal local authority
Mari 4 and 10 project
1,145,773
Single authority for water
services - Friuli-Venezia Giulia
Region
Servola (Trieste) purification plant - Regional funds
742,803
Cafc Spa
NRRP Smart Water Management Project
610,905
Cafc Spa
Aqueduct Masterplan (Trieste)
311,514
Ministry of Infrastructures and
Transport
Water and sewer network upgrading works
237,252
Aps Holding Spa
Sir 3 line works Padua
95,388
Municipality of Pesaro
Interventions to upgrade gas networks
60,000
Single authority for water
services - Friuli-Venezia Giulia
Region
Zaule purifier \u2013 UV lamps
46,500
RAEE Coordination Centre
Interventions for the implementation of the WEEE system
33,927
Marche Region
Braccone purifier in Urbino
23,091
Cafc Spa
Network interconnection masterplan
13,856
| Introduction | Directors\u2019 report | Consolidated financial statements Hera Group \u2013 Consolidated financial statement at 31 December 2023 236 OUTLINE OF ARTICLE149 DUODECIES OF THE CONSOB ISSUER\u2019S REGULATION thousand euro 2023 Services provided to certify the financial statements 1,200 Provision of other services for the issue of an attestation by the independent auditor company 468 Provision of other services by the independent auditor 63 Total 1,731 2.06", "dimensions": { "concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-435": { "value": "Introduction Hera S.p.A. is a joint-stock company established in Italy, listed on the Milan Stock Exchange and with registered office in Bologna, Viale Berti Pichat 2/4. Hera Spa and its subsidiaries (the Hera Group) operate mainly in Italy in the waste management (waste management and treatment), water (aqueduct, sewerage and purification) and energy (distribution and sale of electricity, gas and energy services) sectors; it also offers services for public lighting and telecommunications. The consolidated financial statement at 31 December 2023 was prepared in compliance with Regulation (EC) No. 1606/2002 of 19 July 2002, observing the International Accounting Financial Reporting Standards (IFRSs) issued by the International Accounting Standard Board (IASB) and endorsed by the European Commission, as well as the provisions enacted in implementing Article 9 of Italian Legislative Decree no. 38/2005. IFRSs also include the International Accounting Standards (IAS) currently in force, the interpretative documents issued by the International Financial Reporting Standards Interpretation Committee (IFRSIC) and the previous Standing Interpretation Committee (SIC). The directors considered the applicability of the assumed going concern in drafting the consolidated financial statement, and decided that such assumption is appropriate in that there are no doubts about the going concern. This assessment took into account the current context created by the conflicts between Russia and Ukraine and between Israel and Palestine. Sufficient obligatory information to present a true and fair view of the Group\u2019s capital-financial conditions as well as its economic performance. Information on the Group\u2019s activities and on significant events after year end is provided in the Directors\u2019 report, in paragraph 1.03 \u201cMain significant events\u201d. The general principle adopted in preparing these consolidated financial statements is the cost principle, except for the financial assets and liabilities (including the derivative instruments), which were measured at fair value. In drawing up the consolidated financial statements, management was required to use estimates; the major areas characterised by valuations and assumptions of particular significance together with those having notable effects on the situations accounted for here are provided in the paragraph \u201cSignificant estimates and valuations\u201d at the end of this section. These consolidated financial statements at 31 December 2023 were drawn up by the Board of Directors and approved by the same at the meeting held on 26 March 2024. These financial statements were audited by Deloitte & Touche Spa. Financial statement content and format These consolidated financial statements comprise: \u25aa primary reporting formats; they are the same as those used for the consolidated financial statements for the year ended 31 December 2022 and have the following features: \u2013 the income statement includes individual items analysed by type. We believe that this type of presentation, which is also used by our major competitors and is in line with international practice, best represents company results; \u2013 the statement of comprehensive income is presented in a separate document and distinguishing items that may and may not be reclassified subsequently to profit and loss. \u2013 the statement of changes in net equity reports separately the other items of the comprehensive income statement; \u2013 the statement of financial position makes the distinction between current and non-current assets and liabilities. \u2013 the cash-flow statement has been prepared using the indirect method; \u25aa explanatory notes. In the financial statements, any non-recurring costs and revenues are indicated separately. Moreover, with reference to Consob resolution 15519 of 27 July 2006 on financial statements, specific supplementary formats of income statement, statement of financial position and cash flow statement
2.02.01
have been included, highlighting the most significant balances with related parties, in order to avoid altering the overall clarity of the financial statements. The financial statement formats and the information included in the explanatory notes are expressed in millions of euro with one decimal point, unless otherwise indicated.", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1": { "value": "Hera S.p.A.", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-2": { "value": "joint-stock company", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-3": { "value": "Italy", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-4": { "value": "Bologna", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-5": { "value": "Viale Berti Pichat 2/4", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-6": { "value": "Hera Spa ", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-12": { "value": "Hera Group", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-422": { "value": "operate mainly in Italy in the waste management (waste management and treatment), water (aqueduct, sewerage and purification) and energy (distribution and sale of electricity, gas and energy services) sectors; it also offers services for public lighting and telecommunications.", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-7": { "value": "Italy", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-8": { "value": "The consolidated financial statement at 31 December 2023 was prepared in compliance with Regulation (EC) No. 1606/2002 of 19 July 2002, observing the International Accounting Financial Reporting Standards (IFRSs) issued by the International Accounting Standard Board (IASB) and endorsed by the European Commission, as well as the provisions enacted in implementing Article 9 of Italian Legislative Decree no. 38/2005. IFRSs also include the International Accounting Standards (IAS) currently in force, the interpretative documents issued by the International Financial Reporting Standards Interpretation Committee (IFRSIC) and the previous Standing Interpretation Committee (SIC). ", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-9": { "value": "The directors considered the applicability of the assumed going concern in drafting the consolidated financial statement, and decided that such assumption is appropriate in that there are no doubts about the going concern. This assessment took into account the current context created by the conflicts between Russia and Ukraine and between Israel and Palestine.", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-510": { "value": "Information on the Group\u2019s activities and on significant events after year end is provided in the Directors\u2019 report, in paragraph 1.03 \u201cMain significant events\u201d. ", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-10": { "value": "The general principle adopted in preparing these consolidated financial statements is the cost principle, except for the financial assets and liabilities (including the derivative instruments), which were measured at fair value. In drawing up the consolidated financial statements, management was required to use estimates; the major areas characterised by valuations and assumptions of particular significance together with those having notable effects on the situations accounted for here are provided in the paragraph \u201cSignificant estimates and valuations\u201d at the end of this section.", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-455": { "value": "In drawing up the consolidated financial statements, management was required to use estimates; the major areas characterised by valuations and assumptions of particular significance together with those having notable effects on the situations accounted for here are provided in the paragraph \u201cSignificant estimates and valuations\u201d at the end of this section. Preparation of the consolidated financial statements and related notes requires the use of estimates and valuations by the directors, with effects on the balance sheet figures, based on historical data and on the forecasts of specific events that are reasonably likely to occur on the basis of currently available information. These estimates, by definition, are an approximation of the final figures. Hence the main areas characterised by valuations and assumptions that could give rise to variations in the values of assets and liabilities by the next accounting period are set forth below.", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-11": { "value": "These consolidated financial statements at 31 December 2023 were drawn up by the Board of Directors and approved by the same at the meeting held on 26 March 2024. These financial statements were audited by Deloitte & Touche Spa.", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-436": { "value": "Scope of consolidation The consolidated financial statements at 31 December 2023 include the financial statements of the Parent Company Hera S.p.A. and those of its subsidiaries. Control is obtained when the Parent Company has the power to determine the financial and operational policies of a company, by way of currently valid rights, in such a way as to obtain benefits from the company\u2019s activity. Joint operations, in the form of corporate vehicles, are recognised in proportion to the Group\u2019s interest. Equity investments in joint ventures in which the Hera Group exercises joint control with other companies as well as the companies over which the Group exercises significant control are consolidated with the equity method. Small-scale subsidiaries and associated companies are excluded from overall consolidation and valued at fair value. These companies are reported in note 26, item \u201cOther shareholdings\u201d. Changes in the scope of consolidation The table below shows changes in the scope of consolidation introduced during the 2023 financial year as compared to the consolidated financial statements at 31 December 2022: Acquisition of control Company/business unit Valuation A.C.R. di Reggiani Albertino Spa (A.C.R. Spa) Entire Asco TLC Spa* Entire F.lli Franchini Srl Entire \u201cPagnanini\u201d business unit Entire Entry within the scope of consolidation Hea Spa Joint operation Horowatt Srl Entire Tiepolo Srl Entire * Company merged by incorporation into Acantho Spa. For an overview of the control acquisition transactions carried out during the period, see Section 1.03 \u201cMain Events Occurred\u201d of the Directors\u2019 Report and the \u201cBusiness Combinations (supplementary information)\u201d section of Section 2.2.10 \u201cOther Information\u201d for accounting considerations and the valuation details of assets and liabilities acquired. As of 1 January 2023, due to the launch of the design phase carried out prior to constructing the plants, the Group\u2019s consolidated financial statements include the portion of jointly owned assets and liabilities, revenues from jointly controlled activities and jointly incurred costs relating to the joint operation Hea Spa, previously valued at cost. On 11 May 2023, Hera Spa and Orogel Societ\u00e0 cooperativa agricola established the company Horowatt Srl, with an equal interest in the share capital. This NewCo, which will produce renewable energy following the construction of an agrivoltaic plant, was consolidated as of the date of its establishment due to the shareholders\u2019 agreements granting control to the Hera Group. On 6 July 2023, Hera Spa acquired the entire shareholding of Tiepolo Srl. At the time of its acquisition, this company, which is entirely consolidated, had a single relevant asset, i.e. a project for the construction of a photovoltaic solar park in Bondeno (FE), which it will build and manage in the upcoming years. This transaction was recorded as an investment in tangible assets, not a business combination. Change in equity investments On 21 December 2023, Hera Servizi Energia Spa acquired a 15% holding in the share capital of Tri- Generazione Scarl from a minority shareholder. The shareholding in this company increased from 70% to 85%, while the Group\u2019s overall interest rose from 59.15% to 71.83%. The difference between the adjustment of these minority shareholdings and the fair value of the equivalent amount paid was reported directly in net equity and attributed to the parent company\u2019s shareholders. Other corporate operations With effect from 1 January 2023, Vallortigara Angelo Srl and Hydro Mud Srl merged into the holding company Vallortigara Servizi Ambientali Spa. With effect from 1 January 2023, Hera Servizi Energia Srl, 67.61% owned, was merged by incorporation into the holding company AcegasApsAmga Servizi Energetici Spa (ASE Spa). As a consequence of this merger, the incorporating company changed its name to Hera Servizi Energia Spa. In addition, as a result of the exchange ratio, AcegasApsAmga Spa\u2019s equity investment in Hera Servizi Energia Spa went from 100% to 84.5%. With effect from March 2023, and with accounting effects backdated to 1 January 2023, Alibardi Fiorenzo Srl was merged by incorporation into the holding company Aliplast Spa. On 23 May 2023, Hera Comm Spa, following the exercise of the put option it held, correlated to a corresponding put option held by minority shareholders, acquired the residual stake in Eco Gas Srl, equivalent to 10% of the share capital, thus becoming the sole shareholder. With effect from October 2023 and accounting effects backdated to 1 January 2023, Eco Gas Srl and Con Energia Spa were merged by incorporation into the holding company Hera Comm Spa. With effect from 1 October 2023 and accounting effects backdated to 1 January 2023, Asco TLC Spa was merged by incorporation into Acantho Spa. For the purposes of these consolidated financial statements, the effects of the acquisition of control of Asco TLC Spa by the Group, which came about at the same time as the merger transaction, take effect as of 1 October 2023. For further details, see paragraph 1.03 \u201cMain events occurred\u201d the Directors\u2019 report and the section \u201cBusiness Combinations (supplementary information)\u201d in paragraph 2.02.10 \u201cOther information\u201d. On 24 October 2023, Hera Servizi Industriali Srl, following the exercise of the put option it possessed, correlated to a corresponding put option held by the minority shareholders, acquired the residual stake in Recycla Spa, equivalent to 30% of the share capital, thus becoming the sole shareholder. On 10 November 2023, Ascopiave Spa transferred to Hera Comm Spa, following the partial exercise of the put option it possessed, a stake in EstEnergy Spa equivalent to 15% of the share capital. Following this transaction, Hera Comm Spa increased its shareholding in EstEnergy Spa from 60% to 75%. The aforementioned transactions involving the exercise of put options by the Group as well as put options by minority shareholders had no impact on minority interests, since the Group\u2019s policy is not to represent minority interests when there is a put option, given that the financial debt related to their acquisition is already recognised in the financial statements. Accounting policies and consolidation principles The financial statements used for the preparation of the consolidated statement of financial position and income statement were those which the companies included within the scope of consolidation reclassified and adjusted (on the basis of specific instructions issued by the Parent Company) for the purposes of consistency with the accounting standards and principles of the Group. In processing the values referring to companies valued at net equity, adjustments to their respective financial statements were considered in order to adapt them to IFRS standards, in case these companies do not adopt them. When drawing up the consolidated statement of financial position and income statement, the assets and liabilities as well as the income and expenses of the companies included in the scope of consolidation are included on a line-by-line basis. However, the receivables and payables, income and expenses, gains and losses resulting from operations carried out between companies included in the scope of consolidation have been eliminated. The book value of the equity investments is cancelled by the corresponding portion of investees\u2019 equity. On first-time consolidation, the positive difference between the book value of the equity investments and the fair value of the assets and liabilities acquired, was allocated to the asset and liability items and on a residual basis to goodwill. The negative difference was immediately recorded in the income statement, as illustrated in the following section \u201cBusiness combinations\u201d. The total of capital and reserves of subsidiaries pertaining to non-controlling interests is recorded within equity in the item \u201cNon-controlling interests\u201d. The portion of the consolidated result relating to non- controlling interests is recorded in the account \u201cMinority shareholders\u201d. The valuation of the financial statement items has been carried out on the basis of the general criteria of prudence and on an accrual basis, with a view of the business as a going concern. For the purposes of the accounting entries, priority is given to the economic substance of the transactions rather than their legal form. In preparing these consolidated financial statements, the accounting policies and principles were the same as those adopted in the previous year, considering the new accounting standards reported in the section \u201cChanges to accounting standards\u201d of section 2.02.10 \u201cOther information\u201d. As far as the income statement is concerned, the costs and revenues stated include those recorded at year-end, which have a balancing entry in the statement of financial position. In this regard, income is included only if realised by said year-end date, while account has been taken of the risks and losses even if known after said date. The transactions with minority shareholders are recognised as equity transactions. Therefore, for purchases of additional shares after control is attained, the difference between the cost of acquisition and the book value of the shares purchased from non-controlling interests is recognized in Group net equity. The functional and presentation currency adopted by the Group is the euro. The assets and liabilities of foreign companies denominated in currencies other than the euro which are included in the scope of consolidation are converted using the exchange rates prevailing on the balance sheet date. Income and expenses are converted at the average exchange rate for the year. Exchange rate differences are included in a reserve until the respective foreign operation is sold. The main exchange rates used to convert the value of the investees outside the Eurozone are as follows: 2023 31 Dec 23 2022 31 Dec 22 Average Specific Average Specific Bulgarian Lev 1.9558 1.9558 1.9558 1.9558 Polish Zloty 4.5420 4.3395 4.6861 4.6808 ", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-511": { "value": "Scope of consolidation The consolidated financial statements at 31 December 2023 include the financial statements of the Parent Company Hera S.p.A. and those of its subsidiaries. Control is obtained when the Parent Company has the power to determine the financial and operational policies of a company, by way of currently valid rights, in such a way as to obtain benefits from the company\u2019s activity. Joint operations, in the form of corporate vehicles, are recognised in proportion to the Group\u2019s interest. Equity investments in joint ventures in which the Hera Group exercises joint control with other companies as well as the companies over which the Group exercises significant control are consolidated with the equity method. Small-scale subsidiaries and associated companies are excluded from overall consolidation and valued at fair value. These companies are reported in note 26, item \u201cOther shareholdings\u201d. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-13": { "value": "The transactions with minority shareholders are recognised as equity transactions. Therefore, for purchases of additional shares after control is attained, the difference between the cost of acquisition and the book value of the shares purchased from non-controlling interests is recognized in Group net equity. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-14": { "value": "The functional and presentation currency adopted by the Group is the euro. The assets and liabilities of foreign companies denominated in currencies other than the euro which are included in the scope of consolidation are converted using the exchange rates prevailing on the balance sheet date. Income and expenses are converted at the average exchange rate for the year. Exchange rate differences are included in a reserve until the respective foreign operation is sold. The main exchange rates used to convert the value of the investees outside the Eurozone are as follows: 2023 31 Dec 23 2022 31 Dec 22 Average Specific Average Specific Bulgarian Lev 1.9558 1.9558 1.9558 1.9558 Polish Zloty 4.5420 4.3395 4.6861 4.6808 ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-437": { "value": "Tangible assets \u2013 Tangible assets are recorded at cost or production cost, including accessory costs, or at the value based on expert appraisals, if relating to purchased companies, net of the related accumulated depreciation and any impairment. The production cost includes the portion of direct and indirect costs reasonably attributable to the asset (e.g. personnel costs, transport, customs duty, costs for the preparation of the installation location, final test & inspection costs, notary fees, land registry expenses). The cost includes any professional fees and, for certain assets, capitalised financial charges up to the moment the asset enters into service. The cost includes any costs for dismantling, restoration and reclamation of the site on which the tangible asset is located. Ordinary maintenance costs are charged in full to the income statement. Improvement, upgrading and transformation costs that increase the value of the assets are recorded as assets. Depreciation starts to be applied when the assets enter the production cycle. Tangible assets are classified as in progress when the process of economic use has not yet begun. Property, plants and equipment are systematically depreciated in each accounting period using the depreciation rates considered representative of the remaining useful lives of the assets. The rates of the amortisation for tangible assets are outlined here below: Category rates Buildings 1.8% - 2.8% Distribution plants 1.4% - 5.9% Production plants 2.5% - 25.0% Other plants 3.9% - 7.5% Equipment 5.0% - 20.0% Electronic machines 16.7% - 20.0% Vehicles 10.0% - 20.0% Land is not depreciated, with the exception of land in which landfills are located, which is depreciated based on the quantity of waste disposed of with respect to the total conferrable capacity. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-456": { "value": "Tangible assets \u2013 Tangible assets are recorded at cost or production cost, including accessory costs, or at the value based on expert appraisals, if relating to purchased companies, net of the related accumulated depreciation and any impairment. The production cost includes the portion of direct and indirect costs reasonably attributable to the asset (e.g. personnel costs, transport, customs duty, costs for the preparation of the installation location, final test & inspection costs, notary fees, land registry expenses). The cost includes any professional fees and, for certain assets, capitalised financial charges up to the moment the asset enters into service. The cost includes any costs for dismantling, restoration and reclamation of the site on which the tangible asset is located. Ordinary maintenance costs are charged in full to the income statement. Improvement, upgrading and transformation costs that increase the value of the assets are recorded as assets. Depreciation starts to be applied when the assets enter the production cycle. Tangible assets are classified as in progress when the process of economic use has not yet begun. Property, plants and equipment are systematically depreciated in each accounting period using the depreciation rates considered representative of the remaining useful lives of the assets. The rates of the amortisation for tangible assets are outlined here below: Category rates Buildings 1.8% - 2.8% Distribution plants 1.4% - 5.9% Production plants 2.5% - 25.0% Other plants 3.9% - 7.5% Equipment 5.0% - 20.0% Electronic machines 16.7% - 20.0% Vehicles 10.0% - 20.0% Land is not depreciated, with the exception of land in which landfills are located, which is depreciated based on the quantity of waste disposed of with respect to the total conferrable capacity. Investment property \u2013 Investment property has been recognized at cost. As such, these assets are reported at purchasing cost minus depreciation and any impairment. Rights of use \u2013 The right of use of a good or service is initially valued by the Group at cost. Service components that may be included in the contract are excluded from projections of future lease payments and accounted for separately under operating expenses on a straight-line basis. After the initial recognition, the value of the right of use is reduced by accrued depreciation and impairment and is adjusted for any restatements of the lease liability. Intangible assets and goodwill \u2013 Intangible assets are stated at cost and, if they have a definite useful life, they are amortised systematically over the period of the estimated useful life. The depreciation begins when the asset is available for use or in any case begins to generate economic benefit for the Group. Work in progress includes costs relating to intangible assets for which the process of economic use has not yet commenced. If the Intangible assets have an indefinite useful life, they are not amortised but rather subjected to an annual impairment test, even in the absence of indicators signalling losses in value. Concessions mainly comprise the rights associated with networks, plants and other facilities related to gas and integrated water cycle services managed by the Group and are instrumental to the management of these services. These concessions were listed as intangible assets even before the IFRIC 12 - Agreements for concession services - interpretation was first applied. Depreciation of the concessions is calculated on the basis of the provisions of the respective conventions, and namely: i) according to a constant rate for the shorter of the following two periods: the useful life of the assets granted in concession and the duration of that same concession, provided that, when this concession expires, the outgoing operator is not granted any compensation value (Residual industrial value, or RIV); ii) according to the useful life of the individual assets if, at the moment the concessions expire, the assets in question are expected to pass into the hands of the operator. Public services under concession include the rights over networks, plants and other facilities related to gas, the integrated water cycle and electricity (with the sole exception of the assets related to the Modena area, which are classified among the assets owned by virtue of the associated acquisition) and public lighting services (for the latter, except for what is highlighted in the following note describing the accounting principles applied to the \u201cPayables and financing\u201d item) linked to services managed by the Group. These arrangements are accounted for by applying the intangible asset model provided for the IFRIC 12 interpretation, since it was considered that the underlying concession arrangements do not guarantee the existence of an unconditional right in favour of the concessionaire to receive cash or other financial assets. Construction and improvement services carried out on behalf of the grantor are accounted for as contract work in progress. Considering that most works are contracted out externally and that on construction activities carried out internally the job margin cannot be identified individually from the benefits included in the remuneration for the service, these infrastructures are reported on the basis of costs actually incurred, net of any contributions paid by the entities and/or private customers. This category also includes improvements made and infrastructure constructed on the goods instrumental to the management of these services, which are the property of the Holding Companies (so called Asset Companies, pursuant to Article 113 of Italian Legislative Decree no. 267/00), yet managed by the Group by virtue of business branch leasing contracts. These contracts, in addition to establishing the fees due, also include clauses governing the restitution of assets, normally maintained, upon payment of a balance corresponding to the net book value or the Residual industrial value (also taking into account the recovery funds) of these assets. The depreciation of these rights is carried out based on the useful life of the individual assets, also in view of the relevant legislation which, in the event of a change in service provider, calls for compensation to be paid to the outgoing operator in the amount of the Residual Industrial value (RIV) for assets constructed under their ownership, or at Net book value (NBV), for assets manufactured under a business unit leasing contract. The intangible assets acquired following a business combination are recorded separately from goodwill if their fair value can be reliably determined and are depreciated over the useful life estimated during the purchase. The depreciation rates of intangible assets are outlined here below: Category rates IT applications 20.0% Patents and trademarks 10.0% Buildings under concession 1.8% - 3.5% Distribution plants under concession 1.8% - 10.0% Other plants under concession 2.5% - 12.5% Equipment under concession 12.5% Cost of acquiring new contracts \u2013 Incremental costs, represented by commissions paid to agents for the acquisition of new contracts, are recognized as intangible assets and are amortised according to the average useful life of the acquired customers (churn rate). For this purpose, only the types of commissions related to new customers not present in the Group\u2019s customer base are recognized. Business combinations \u2013 Any positive difference between the cost of the transaction and the fair value at the date the assets and liabilities are acquired is attributed to goodwill. If the process of allocating the purchase price shows a negative difference, such difference is immediately charged to the income statement among non-operating revenues at the date of acquisition. For the purpose of determining the goodwill or the negative differential, the fair value assessment of put options granted to minority shareholders on their own shares is also considered within the cost of the transaction. Any consideration subject to conditions, including those related to future results (earn-out), as set forth in the business combination contract is measured at fair value on the acquisition date and considered in the value of the consideration paid for the business combination, for the purposes of calculating the goodwill. Non-controlling interests on the acquisition date are measured at fair value or according to the pro rata amount of the net assets of the acquired company. The valuation method selected is stated for each transaction. Losses in value (impairment) \u2013 In order to assess any losses in value, the Group takes into consideration the book value of property, plant and equipment, rights of use and intangible assets, comparing it with the recoverable amount of these assets to define the value of any write-downs. The recoverable value is calculated as a right of use. Where it is not possible to estimate the recoverable value of an asset individually, the Group estimates the recoverable value of the unit generating the cash flows to which said assets belong. Future cash flows are discounted to present value at a rate (net of taxation) that reflects the current market value and takes into account the risks associated with the specific business activities. Investments valued at shareholders\u2019 equity method \u2013 Investments entered in this item refer to long- term investments in associated companies and joint ventures. The excess price over the Group\u2019s share of the fair value of an associated company\u2019s identifiable assets, liabilities and contingent liabilities at the date of acquisition is recognised as goodwill. Other investments \u2013 This category includes investments that are not included in the scope of consolidation, including investments in negligible size subsidiaries, associates and joint ventures. For these investments, upon initial recognition, it is irrevocably determined whether subsequent changes in fair value are recognised in other comprehensive income; otherwise, changes in fair value are periodically recognised in profit or loss. The risk deriving from any losses exceeding the book value of the investment is recorded in a specific reserve to the extent that the holder is obliged to fulfil legal or implicit obligations vis-\u00e0-vis the investee company or in any event cover its losses. Financial assets \u2013 The Group classifies financial assets through the business model adopted for managing them and on the basis of the features of contractual cashflows. In relation to the previous conditions, financial assets are subsequently valued as follows: \u25aa depreciated cost; \u25aa fair value of the other comprehensive income components; \u25aa fair value of the profit (loss) for the fiscal period. Management determines their classification when they are first recorded. Receivables and loans \u2013 This category includes assets not represented by derivative instruments and not listed on an active market, from which fixed or determinable payments are expected. Since the business model generally adopted by the Group provides for the holding of these financial instruments solely for the purpose of collecting the contractual cash flows, these assets are valued at depreciated cost on the basis of the effective interest rate method. The value of the assets is reduced on the basis of the expected losses, using information that is available without unreasonable charges or efforts, including historical, current and prospective data. Losses determined by an impairment test are recognized in the income statement, as are any subsequent reversals of impairment losses. These assets are classified as current assets, except for the portions accruing after 12 months, which are included amongst the non- current assets. This category includes, as provided by the interpretation IFRIC 12, the financial assets associated to those public service under concession for which the Group has the unconditional contractual right to receive liquidity from the issuer for the construction services rendered. The Group uses the financial asset model for the contracts of public lighting service provision, in view of their characteristics, in which increasingly frequently the issuer guarantees the area provider a specific amount, or at any rate an amount which can be reliably determined, not depending on the use of the infrastructure by the final customer. Under that model, the financial asset reported in the balance sheet in relation to the issuer for an amount equal to the fair value of the construction services rendered. Financial assets at fair value recorded in the comprehensive income statement components \u2013 This category includes assets, other than derivatives, held by the Group for the purpose of receiving contractual cash flows (represented by equity and interest payments) or for monetisation through sale. These assets are valued at fair value, the latter determined by referring to the market prices at the balance sheet date or using financial measurement techniques and models. Classification as a current or non-current asset depends on management\u2019s plans and on the real tradability of the security. Those whose sale is expected during the next 12 months are recorded as current assets . Assets valued at fair value recorded as profit (loss) for the fiscal period \u2013 This category includes the financial assets acquired for short-term trading purposes, in addition to the derivatives, which are described in the specific paragraph below. The fair value of these instruments is determined by referring to the market value on the date the registration period ends. Classification under current and non-current reflects management `s expectations regarding their trading: current assets include those whose trading is expected within 12 months or those identified as held for trading. Cash and cash equivalents \u2013 The item regarding cash holdings and cash equivalents includes cash and bank accounts and deposits repayable on demand and other short-term financial investments with high liquidity that are readily convertible into cash and are subject to an insignificant risk regarding their change in value. Trade receivables \u2013 These refer to financial assets arising from the provision of goods and services and are valued at amortised cost, adjusted for any impairment. These assets are derecognized in the event of sale which transfers all risks and benefits associated with their management to third parties. Other current assets \u2013 These are stated at par value, and possibly adjusted for any losses in value corresponding to the amortised cost. Environmental certificates \u2013 The Group complies with the various regulations issued in relation to the environment that require compliance with restrictions established through the use of certificates or bonds. Therefore, the Group is obliged to meet a need in terms of grey certificates (emission trading) and white certificates (energy efficiency instruments). The development of markets in which these bonds/certificates are traded has also made it possible to initiate a trading activity. These bonds are valued according to the intended use. The bonds held to meet the company\u2019s requirement are recorded as assets at cost. If the bonds in the portfolio prove to be insufficient to meet the need, a liability is recorded to guarantee adequate coverage when the certificates are delivered to the operator. Bonds held for trading are recognised as assets and are measured at fair value through profit or loss. Contract work in progress \u2013 Where the outcome of a construction contract can be estimated reliably, contract work in progress is measured on the basis of revenues accrued with reasonable certainty, according to the percentage of completion method of accounting, so as to apportion revenues and costs to the relevant financial years in proportion to the stage of completion of the work in question. Contract revenues, in addition to the contractual payments, include the variations, the price review and the recognition of the incentives to the extent it is probable that they represent effective revenues which can be determined reliably. When the result of a contract cannot be reliably estimated, the revenues referable to the related contract are recorded solely within the limits of the contract costs incurred which will probably be recovered. The contract costs are recorded as expenses during the accounting period in which they are incurred. When it is probable that the total contract costs will be greater than the contractual revenues, the expected loss is immediately stated at cost. Inventories \u2013 Inventories are recorded at cost, including directly attributable costs, or net estimated realizable value, whichever is the lower. The cost configurations used for the valuation of stocks are the average cost measured on a continuous basis (used for raw materials and consumables) and the specific cost of other inventories. Inventories of work in progress are valued at weighted average manufacturing cost for the period, which comprises the raw materials, the consumables and the direct and indirect production costs excluding general expenses. Share capital \u2013 Share capital is recorded at par value, reduced, if necessary, by costs directly attributable to transactions involving the issuing or repurchase of equity instruments. Treasury shares \u2013 Treasury shares are recognised as a reduction in shareholders\u2019 equity, and any differences generated by future purchase or sale transactions are recorded directly as changes in shareholders\u2019 equity. Earnings per share \u2013 Earnings per share are represented by the net profit for the year attributable to the shareholders holding ordinary shares, taking into account the weighted average of the ordinary shares outstanding during the year. The diluted earnings per share are obtained by means of the adjustment of the weighted average of the shares outstanding, taking into account all the potential ordinary shares with dilution effect. Financial liabilities \u2013 This item is initially stated at cost, corresponding to the fair value of the liability net of the transaction costs which are directly attributable to the issue of said liability. Following their initial recognition, financial liabilities, with the exception of derivatives, are valued on the basis of amortised cost, using the original effective interest rate method. If the estimates of payments are revised, the adjustment of the liability is stated as income or expense in the income statement, except for lease liabilities. Lease liabilities \u2013 As at the effective date of the contract, lease liabilities are calculated as the present value of payments due, discounted using the marginal lending rate. This rate refers to the average rate at which the Group borrows, broken down by contractual maturity. It is determined annually in the budget on the basis of the final figures for previous financial year and is applied to contracts signed from 1 January of each subsequent financial year. It is updated during the period in the event of significant changes to the Group\u2019s average borrowing rate. For contracts with a life of more than four years, the Group uses the medium/long-term borrowing rate, while for contracts with a life of four years or less, the equivalent short-term rate is adopted. Post-employment and other benefits \u2013 Liabilities related to defined-benefit plans (such as the employee severance accrued before 1 January 2007) are reported net of any plan assets on the basis of actuarial assumptions and on an accrual basis, in keeping with the service necessary to obtain benefits. The liability is valued by independent actuaries. Independent actuaries assess financial liabilities. The liability is valued by independent actuaries. Actuarial gains and losses are reported as other comprehensive income/losses. Following Law 296 of 27 December 2006, for companies with more than 50 employees, the severance amounts accruing after 1 January 2017 qualify as a defined-benefit plan. Provisions for risks and charges \u2013 Provisions are set aside on the basis of the best estimate of the costs required to meet the obligation, as of the balance sheet date, and are discounted to present value when the effect is significant and the necessary information is available. In such event, the provisions are determined by discounting to present value the future cash flows at a pre-tax discount rate that reflects the current market valuation and takes into account the risk associated with the business activities. When the discounting to present value is carried out, the increase in the provision due to the passing of time is recorded amongst the financial charges. If the liability relates to property, plant and equipment (e.g. restoration of sites), the contra-entry to the provision made is an increase of the asset to which the liability refers; on the other hand, the financial charges are expensed out through the depreciation process of the item of property, plant and equipment to which the charge refers. Trade payables \u2013 These refer to payables derived from commercial supply transactions and are recorded at amortised cost. Other current liabilities \u2013 These concern sundry transactions and are stated at nominal value, corresponding to the amortised cost. Derivative instruments \u2013 The Group holds derivative instruments for the purpose of hedging its exposure to the risk of interest rate and exchange rate fluctuations and the risk of changes in methane gas and electricity prices. In relation to said activities, the Group must handle the risks associated with the misalignment between the index-linking formulas relating to the purchase of gas and electricity and the index-linking formulas linked to the sale of said commodities. The instruments the Group uses for handling price risk, both with regards to the price of the goods and the related Euro/Dollar exchange rate, are aimed at pre-establishing the effects on the sales margins irrespective of the changes in the aforementioned market conditions. In relation to commodity derivatives, operations are managed through OTCs \u2013 over the counter financial instruments (index swaps), currency derivatives (forward purchases in dollars), derivative instruments traded on the regulated platforms, as well as through brokerage contracts that provide for the physical delivery of the underlying (so-called physical contracts). In particular, the accounting method used for physical contracts varies according to their purpose: contracts related to procurement activities are subject to the own-use exemption and the related economic effects are recognised on an accrual basis only at the time of actual delivery, while contracts signed with reference to price or volume risk management activities are considered derivative financial instruments and measured at fair value from the time they are signed. Given the nature of physical contracts, in order to give a more consistent representation of the actual transactions carried out, at the time they become operational, regardless of their purpose, the settlement is recorded in the income statement either in the item \u201cRevenues\u201d or in the item \u201cRaw and other materials\u201d depending on whether the sale or procurement of commodities was involved. From an operational point of view, a commercial portfolio has been identified, which includes physical and financial contracts signed for the management of procurement, and a trading portfolio, which includes physical and financial contracts signed for speculation, based on pure position taking logics whenever there is a market opportunity, always within the risk limits defined by the Board of Directors of the parent company. The fair-value changes pertaining transactions that, in observance of the risk management policies, meet the requirements for hedge accounting treatment are recorded as part of the other components of comprehensive income, while those that despite being entered into for hedging purposes, do not meet the requirements are recognised in profit or loss in the period in which they occur. Operations identified from their outset as speculative are recognised in profit or loss in the reporting period. Fair value is established with adequate valuation models for each type of instrument, according to the reference market value as more fully described below. For accounting purposes, the hedging transactions are classified as fair value hedges if they cover the risk of fluctuations in the market value of the underlying asset or liability; or as cash flow hedges if they cover the risk of changes in cash flows deriving both from an existing asset or liability, or from a future transaction, including transactions on commodities. As far as derivative instruments classified as fair value hedges are concerned, which observe the conditions for the accounting treatment as hedging transactions, the gains and losses deriving from the determination of their market value are recognized through profit or loss. The gains and losses deriving from the adjustment to fair value of the element underlying the hedge are also recognized through profit or loss. For instruments classified as cash flow hedges and that qualify as such, the fair value changes are recorded, only as far as the effective amount is concerned, in a reserve called \u201cCash flow hedge reserve\u201d through the statement of comprehensive income. This reserve is recorded to income as soon as the underlying hedged instrument is realised. The change in fair value referring to the ineffective portion is immediately recorded in the income statement of the period. If the underlying transaction should no longer be considered highly probable, or the hedging relationship can no longer be demonstrated, the corresponding portion of the \u201cReserve of derivatives valued at fair value\u201d is immediately reversed to income. If, on the other hand, the derivative instrument is sold and therefore the hedging of the risk for which the transaction was created no longer qualifies as effective, the amount of \u201cReserve of derivatives valued at fair value\u201d relating to it is kept until the economic effects of the underlying contract arise. Whenever applicable, the Group adopts the fair value option. Assets and liabilities held for sale \u2013 Assets and liabilities are classified under this category the moment the sale operation is considered highly likely and the assets and liabilities are immediately available for sale in their current condition. Revenue and cost recognition \u2013 Revenues and income are recognized net of returned items, discounts and rebates, and net of taxes directly related to the sales of products and services rendered. These are broken down into revenues deriving from operating activities and financial income which accrues between the sale date and the payment date. Specifically: \u25aa revenues from energy, gas and water sales are recognised and recorded at the moment of the provision of the service and include the services provided but not yet invoiced (estimated on the basis of historical analyses determined according to previous consumption levels); \u25aa revenues from the distribution are recognized on the basis of the tariffs paid by the Authority and are subject to equalization at year end to reflect in accordance with the competence criterion the compensation recognised by the Authority in relation to the investments made; \u25aa revenues are booked at the time (or as) the obligation is fulfilled, transferring the promised good or service to the customer. The transfer occurs when (or as) the customer gains control over the good or service. The revenue recorded corresponds to the price attributed to the obligation to be recorded. Revenue is recorded only if the consideration for the goods or services transferred to the customer is likely to be received; \u25aa costs are accounted for in accordance with the accruals principle. Grants \u2013 Capital grants are recognized in the income statement over the period necessary for correlating them to the related costs. They are represented in the statement of financial position by recording the grant as deferred revenue. Operating grants, including those received from users for connection purposes, are considered to be revenues for services rendered during the fiscal period and are therefore recorded on an accruals basis. Lease payments \u2013 Lease payments relating to lease contracts for low-value assets and leases with a contract duration of 12 months or less (short-term leases) are recorded in the income statement as charges for the period. The Group has set a threshold of 10 thousand euro for deeming the individual underlying asset to be of modest value. Financial income and expense \u2013 Financial income and expense are recognised on an accrual basis. Dividends from \u201cOther shareholdings\u201d are recorded in the income statement, at the time the right to receive payment is established, the economic benefits arising from the dividends are likely to be received by the Group and their value can be assessed reliably. Taxes \u2013 Taxes are the sum of current, deferred and possible substitute taxes. Current taxes are calculated on the taxable income for the financial period. \u201cCurrent tax liabilities\u201d are calculated on the basis of the tax rates applicable on the balance sheet date. In determining tax rates for the period, the Group took into due consideration the effects of the IAS tax reform introduced by Law 244 of 24 December 2007 and in particular the reinforced derivation principle established by Article 83 of the TUIR. 83 of the TUIR. This regulation calls for entities that use IFRSs to apply, including in a departure from the provisions of the TUIR, the criteria for the determination, recognition and classification in the financial statements provided for by said accounting standards. Deferred taxes are calculated having regard to timing differences in taxation, and are recorded under item \u201cDeferred tax liabilities\u201d. \u201cDeferred tax assets\u201d are recognised to the extent that the existence of a taxable income at least equal to the amount of the differences to be offset is considered probable when the timing differences will reverse. Deferred taxes are determined on the basis of the tax rates foreseen to be in force during the financial year in which the tax asset will be conferred or the tax liability will be extinguished, on the basis of tax rates established by provisions in force or substantively in force at the date of the financial statements. These changes are recognised in profit or loss or in equity, depending on how the difference in question was originally recorded. Finally, substitute taxes may be recorded when legal provisions exist that allow the Group to take advantage of special tax regimes. These are, by nature, non-recurring taxes, which may be attributed to the Group\u2019s desire to opt or not for the related tax regime. In the event that the substitute tax is paid pursuant to a tax regulation that allows the balance sheet value of a utility to be aligned, in whole or in part, with the corresponding tax value of the utility, the Group proceeds to recognize the total value of future tax benefits (tax assets) and, at the same time, the entire substitute tax in the financial year in which management makes the decision to take advantage of this opportunity. Conversion of foreign currency balances \u2013 Foreign currency transactions are initially recorded using the exchange rate in force as of the transaction date. Foreign currency assets and liabilities, with the exception of fixed assets, are recorded using the exchange rate in force as at the period end date and the related exchange gains and losses are recognized through profit or loss. Any net gain that might arise is set aside in a specific restricted reserve until the date of realization. Transactions with related parties \u2013 Transactions with related parties take place on an arms\u2019-length basis, in observance of efficiency and cost-effectiveness criteria. Some specific transactions are remunerated on the basis of rates established by ARERA resolutions. ", "dimensions": { "concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-492": { "value": "Tangible assets are recorded at cost or production cost, including accessory costs, or at the value based on expert appraisals, if relating to purchased companies, net of the related accumulated depreciation and any impairment. The production cost includes the portion of direct and indirect costs reasonably attributable to the asset (e.g. personnel costs, transport, customs duty, costs for the preparation of the installation location, final test & inspection costs, notary fees, land registry expenses). The cost includes any professional fees and, for certain assets, capitalised financial charges up to the moment the asset enters into service. The cost includes any costs for dismantling, restoration and reclamation of the site on which the tangible asset is located. Ordinary maintenance costs are charged in full to the income statement. Improvement, upgrading and transformation costs that increase the value of the assets are recorded as assets.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDecommissioningRestorationAndRehabilitationProvisionsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-465": { "value": "Tangible assets are recorded at cost or production cost, including accessory costs, or at the value based on expert appraisals, if relating to purchased companies, net of the related accumulated depreciation and any impairment. The production cost includes the portion of direct and indirect costs reasonably attributable to the asset (e.g. personnel costs, transport, customs duty, costs for the preparation of the installation location, final test & inspection costs, notary fees, land registry expenses). The cost includes any professional fees and, for certain assets, capitalised financial charges up to the moment the asset enters into service. The cost includes any costs for dismantling, restoration and reclamation of the site on which the tangible asset is located. Ordinary maintenance costs are charged in full to the income statement. Improvement, upgrading and transformation costs that increase the value of the assets are recorded as assets.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-512": { "value": "Ordinary maintenance costs are charged in full to the income statement. Improvement, upgrading and transformation costs that increase the value of the assets are recorded as assets.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-15": { "value": "Depreciation starts to be applied when the assets enter the production cycle. Tangible assets are classified as in progress when the process of economic use has not yet begun. Property, plants and equipment are systematically depreciated in each accounting period using the depreciation rates considered representative of the remaining useful lives of the assets. The rates of the amortisation for tangible assets are outlined here below: Category rates Buildings 1.8% - 2.8% Distribution plants 1.4% - 5.9% Production plants 2.5% - 25.0% Other plants 3.9% - 7.5% Equipment 5.0% - 20.0% Electronic machines 16.7% - 20.0% Vehicles 10.0% - 20.0% Land is not depreciated, with the exception of land in which landfills are located, which is depreciated based on the quantity of waste disposed of with respect to the total conferrable capacity. After the initial recognition, the value of the right of use is reduced by accrued depreciation and impairment and is adjusted for any restatements of the lease liability. Depreciation of the concessions is calculated on the basis of the provisions of the respective conventions, and namely: i) according to a constant rate for the shorter of the following two periods: the useful life of the assets granted in concession and the duration of that same concession, provided that, when this concession expires, the outgoing operator is not granted any compensation value (Residual industrial value, or RIV); ii) according to the useful life of the individual assets if, at the moment the concessions expire, the assets in question are expected to pass into the hands of the operator. The depreciation of these rights is carried out based on the useful life of the individual assets, also in view of the relevant legislation which, in the event of a change in service provider, calls for compensation to be paid to the outgoing operator in the amount of the Residual Industrial value (RIV) for assets constructed under their ownership, or at Net book value (NBV), for assets manufactured under a business unit leasing contract. The depreciation rates of intangible assets are outlined here below: Category rates IT applications 20.0% Patents and trademarks 10.0% Buildings under concession 1.8% - 3.5% Distribution plants under concession 1.8% - 10.0% Other plants under concession 2.5% - 12.5% Equipment under concession 12.5% ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-16": { "value": "Investment property \u2013 Investment property has been recognized at cost. As such, these assets are reported at purchasing cost minus depreciation and any impairment.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentPropertyExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-439": { "value": "Rights of use \u2013 The right of use of a good or service is initially valued by the Group at cost. Service components that may be included in the contract are excluded from projections of future lease payments and accounted for separately under operating expenses on a straight-line basis. After the initial recognition, the value of the right of use is reduced by accrued depreciation and impairment and is adjusted for any restatements of the lease liability. Lease liabilities \u2013 As at the effective date of the contract, lease liabilities are calculated as the present value of payments due, discounted using the marginal lending rate. This rate refers to the average rate at which the Group borrows, broken down by contractual maturity. It is determined annually in the budget on the basis of the final figures for previous financial year and is applied to contracts signed from 1 January of each subsequent financial year. It is updated during the period in the event of significant changes to the Group\u2019s average borrowing rate. For contracts with a life of more than four years, the Group uses the medium/long-term borrowing rate, while for contracts with a life of four years or less, the equivalent short-term rate is adopted. Lease payments \u2013 Lease payments relating to lease contracts for low-value assets and leases with a contract duration of 12 months or less (short-term leases) are recorded in the income statement as charges for the period. The Group has set a threshold of 10 thousand euro for deeming the individual underlying asset to be of modest value. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-438": { "value": "Intangible assets and goodwill \u2013 Intangible assets are stated at cost and, if they have a definite useful life, they are amortised systematically over the period of the estimated useful life. The depreciation begins when the asset is available for use or in any case begins to generate economic benefit for the Group. Work in progress includes costs relating to intangible assets for which the process of economic use has not yet commenced. If the Intangible assets have an indefinite useful life, they are not amortised but rather subjected to an annual impairment test, even in the absence of indicators signalling losses in value. Concessions mainly comprise the rights associated with networks, plants and other facilities related to gas and integrated water cycle services managed by the Group and are instrumental to the management of these services. These concessions were listed as intangible assets even before the IFRIC 12 - Agreements for concession services - interpretation was first applied. Depreciation of the concessions is calculated on the basis of the provisions of the respective conventions, and namely: i) according to a constant rate for the shorter of the following two periods: the useful life of the assets granted in concession and the duration of that same concession, provided that, when this concession expires, the outgoing operator is not granted any compensation value (Residual industrial value, or RIV); ii) according to the useful life of the individual assets if, at the moment the concessions expire, the assets in question are expected to pass into the hands of the operator. Public services under concession include the rights over networks, plants and other facilities related to gas, the integrated water cycle and electricity (with the sole exception of the assets related to the Modena area, which are classified among the assets owned by virtue of the associated acquisition) and public lighting services (for the latter, except for what is highlighted in the following note describing the accounting principles applied to the \u201cPayables and financing\u201d item) linked to services managed by the Group. These arrangements are accounted for by applying the intangible asset model provided for the IFRIC 12 interpretation, since it was considered that the underlying concession arrangements do not guarantee the existence of an unconditional right in favour of the concessionaire to receive cash or other financial assets. Construction and improvement services carried out on behalf of the grantor are accounted for as contract work in progress. Considering that most works are contracted out externally and that on construction activities carried out internally the job margin cannot be identified individually from the benefits included in the remuneration for the service, these infrastructures are reported on the basis of costs actually incurred, net of any contributions paid by the entities and/or private customers. This category also includes improvements made and infrastructure constructed on the goods instrumental to the management of these services, which are the property of the Holding Companies (so called Asset Companies, pursuant to Article 113 of Italian Legislative Decree no. 267/00), yet managed by the Group by virtue of business branch leasing contracts. These contracts, in addition to establishing the fees due, also include clauses governing the restitution of assets, normally maintained, upon payment of a balance corresponding to the net book value or the Residual industrial value (also taking into account the recovery funds) of these assets. The depreciation of these rights is carried out based on the useful life of the individual assets, also in view of the relevant legislation which, in the event of a change in service provider, calls for compensation to be paid to the outgoing operator in the amount of the Residual Industrial value (RIV) for assets constructed under their ownership, or at Net book value (NBV), for assets manufactured under a business unit leasing contract. The intangible assets acquired following a business combination are recorded separately from goodwill if their fair value can be reliably determined and are depreciated over the useful life estimated during the purchase. The depreciation rates of intangible assets are outlined here below: Category rates IT applications 20.0% Patents and trademarks 10.0% Buildings under concession 1.8% - 3.5% Distribution plants under concession 1.8% - 10.0% Other plants under concession 2.5% - 12.5% Equipment under concession 12.5% ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-466": { "value": "Intangible assets and goodwill \u2013 Intangible assets are stated at cost and, if they have a definite useful life, they are amortised systematically over the period of the estimated useful life. The depreciation begins when the asset is available for use or in any case begins to generate economic benefit for the Group. Work in progress includes costs relating to intangible assets for which the process of economic use has not yet commenced. If the Intangible assets have an indefinite useful life, they are not amortised but rather subjected to an annual impairment test, even in the absence of indicators signalling losses in value. Concessions mainly comprise the rights associated with networks, plants and other facilities related to gas and integrated water cycle services managed by the Group and are instrumental to the management of these services. These concessions were listed as intangible assets even before the IFRIC 12 - Agreements for concession services - interpretation was first applied. Depreciation of the concessions is calculated on the basis of the provisions of the respective conventions, and namely: i) according to a constant rate for the shorter of the following two periods: the useful life of the assets granted in concession and the duration of that same concession, provided that, when this concession expires, the outgoing operator is not granted any compensation value (Residual industrial value, or RIV); ii) according to the useful life of the individual assets if, at the moment the concessions expire, the assets in question are expected to pass into the hands of the operator. Public services under concession include the rights over networks, plants and other facilities related to gas, the integrated water cycle and electricity (with the sole exception of the assets related to the Modena area, which are classified among the assets owned by virtue of the associated acquisition) and public lighting services (for the latter, except for what is highlighted in the following note describing the accounting principles applied to the \u201cPayables and financing\u201d item) linked to services managed by the Group. These arrangements are accounted for by applying the intangible asset model provided for the IFRIC 12 interpretation, since it was considered that the underlying concession arrangements do not guarantee the existence of an unconditional right in favour of the concessionaire to receive cash or other financial assets. Construction and improvement services carried out on behalf of the grantor are accounted for as contract work in progress. Considering that most works are contracted out externally and that on construction activities carried out internally the job margin cannot be identified individually from the benefits included in the remuneration for the service, these infrastructures are reported on the basis of costs actually incurred, net of any contributions paid by the entities and/or private customers. This category also includes improvements made and infrastructure constructed on the goods instrumental to the management of these services, which are the property of the Holding Companies (so called Asset Companies, pursuant to Article 113 of Italian Legislative Decree no. 267/00), yet managed by the Group by virtue of business branch leasing contracts. These contracts, in addition to establishing the fees due, also include clauses governing the restitution of assets, normally maintained, upon payment of a balance corresponding to the net book value or the Residual industrial value (also taking into account the recovery funds) of these assets. The depreciation of these rights is carried out based on the useful life of the individual assets, also in view of the relevant legislation which, in the event of a change in service provider, calls for compensation to be paid to the outgoing operator in the amount of the Residual Industrial value (RIV) for assets constructed under their ownership, or at Net book value (NBV), for assets manufactured under a business unit leasing contract. The intangible assets acquired following a business combination are recorded separately from goodwill if their fair value can be reliably determined and are depreciated over the useful life estimated during the purchase. The depreciation rates of intangible assets are outlined here below: Category rates IT applications 20.0% Patents and trademarks 10.0% Buildings under concession 1.8% - 3.5% Distribution plants under concession 1.8% - 10.0% Other plants under concession 2.5% - 12.5% Equipment under concession 12.5% ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-493": { "value": "Intangible assets and goodwill \u2013 Intangible assets are stated at cost and, if they have a definite useful life, they are amortised systematically over the period of the estimated useful life. The depreciation begins when the asset is available for use or in any case begins to generate economic benefit for the Group. Work in progress includes costs relating to intangible assets for which the process of economic use has not yet commenced. If the Intangible assets have an indefinite useful life, they are not amortised but rather subjected to an annual impairment test, even in the absence of indicators signalling losses in value. Concessions mainly comprise the rights associated with networks, plants and other facilities related to gas and integrated water cycle services managed by the Group and are instrumental to the management of these services. These concessions were listed as intangible assets even before the IFRIC 12 - Agreements for concession services - interpretation was first applied. Depreciation of the concessions is calculated on the basis of the provisions of the respective conventions, and namely: i) according to a constant rate for the shorter of the following two periods: the useful life of the assets granted in concession and the duration of that same concession, provided that, when this concession expires, the outgoing operator is not granted any compensation value (Residual industrial value, or RIV); ii) according to the useful life of the individual assets if, at the moment the concessions expire, the assets in question are expected to pass into the hands of the operator. Public services under concession include the rights over networks, plants and other facilities related to gas, the integrated water cycle and electricity (with the sole exception of the assets related to the Modena area, which are classified among the assets owned by virtue of the associated acquisition) and public lighting services (for the latter, except for what is highlighted in the following note describing the accounting principles applied to the \u201cPayables and financing\u201d item) linked to services managed by the Group. These arrangements are accounted for by applying the intangible asset model provided for the IFRIC 12 interpretation, since it was considered that the underlying concession arrangements do not guarantee the existence of an unconditional right in favour of the concessionaire to receive cash or other financial assets. Construction and improvement services carried out on behalf of the grantor are accounted for as contract work in progress. Considering that most works are contracted out externally and that on construction activities carried out internally the job margin cannot be identified individually from the benefits included in the remuneration for the service, these infrastructures are reported on the basis of costs actually incurred, net of any contributions paid by the entities and/or private customers. This category also includes improvements made and infrastructure constructed on the goods instrumental to the management of these services, which are the property of the Holding Companies (so called Asset Companies, pursuant to Article 113 of Italian Legislative Decree no. 267/00), yet managed by the Group by virtue of business branch leasing contracts. These contracts, in addition to establishing the fees due, also include clauses governing the restitution of assets, normally maintained, upon payment of a balance corresponding to the net book value or the Residual industrial value (also taking into account the recovery funds) of these assets. The depreciation of these rights is carried out based on the useful life of the individual assets, also in view of the relevant legislation which, in the event of a change in service provider, calls for compensation to be paid to the outgoing operator in the amount of the Residual Industrial value (RIV) for assets constructed under their ownership, or at Net book value (NBV), for assets manufactured under a business unit leasing contract. The intangible assets acquired following a business combination are recorded separately from goodwill if their fair value can be reliably determined and are depreciated over the useful life estimated during the purchase. The depreciation rates of intangible assets are outlined here below: Category rates IT applications 20.0% Patents and trademarks 10.0% Buildings under concession 1.8% - 3.5% Distribution plants under concession 1.8% - 10.0% Other plants under concession 2.5% - 12.5% Equipment under concession 12.5% ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-423": { "value": "Public services under concession include the rights over networks, plants and other facilities related to gas, the integrated water cycle and electricity (with the sole exception of the assets related to the Modena area, which are classified among the assets owned by virtue of the associated acquisition) and public lighting services (for the latter, except for what is highlighted in the following note describing the accounting principles applied to the \u201cPayables and financing\u201d item) linked to services managed by the Group. These arrangements are accounted for by applying the intangible asset model provided for the IFRIC 12 interpretation, since it was considered that the underlying concession arrangements do not guarantee the existence of an unconditional right in favour of the concessionaire to receive cash or other financial assets. Construction and improvement services carried out on behalf of the grantor are accounted for as contract work in progress. Considering that most works are contracted out externally and that on construction activities carried out internally the job margin cannot be identified individually from the benefits included in the remuneration for the service, these infrastructures are reported on the basis of costs actually incurred, net of any contributions paid by the entities and/or private customers. This category also includes improvements made and infrastructure constructed on the goods instrumental to the management of these services, which are the property of the Holding Companies (so called Asset Companies, pursuant to Article 113 of Italian Legislative Decree no. 267/00), yet managed by the Group by virtue of business branch leasing contracts. These contracts, in addition to establishing the fees due, also include clauses governing the restitution of assets, normally maintained, upon payment of a balance corresponding to the net book value or the Residual industrial value (also taking into account the recovery funds) of these assets. \u201cPublic services under concession\u201d includes assets relating to gas distribution, electricity distribution (Imola area), the integrated water cycle and public lighting activities (except for the latter, as specified in Note 18 \u201cCurrent financial assets, cash holdings and cash equivalents\u201d) provided through contracts awarded by the respective public bodies. These concession relationships and associated assets involved in carrying out the activities for which the Group holds the use rights, are accounted for by applying the intangible asset model as set forth by IFRIC 12 interpretation. Investments for the year related mainly to the water networks, in the amount of 133.8 million euro, and gas distribution networks, in the amount of 70.5 million euro. \u201cIntangible assets ongoing and public services under concession\u201d includes investments related to concessions that are still to be completed at the end of the period and mainly refers to the water networks, in the amount of 244.2 million euro, and gas distribution networks, in the amount of 76.8 million euro and municipal waste collection in the amount of 35.5 million euro.", "dimensions": { "concept": "ifrs-full:DisclosureOfServiceConcessionArrangementsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-513": { "value": "Public services under concession include the rights over networks, plants and other facilities related to gas, the integrated water cycle and electricity (with the sole exception of the assets related to the Modena area, which are classified among the assets owned by virtue of the associated acquisition) and public lighting services (for the latter, except for what is highlighted in the following note describing the accounting principles applied to the \u201cPayables and financing\u201d item) linked to services managed by the Group. These arrangements are accounted for by applying the intangible asset model provided for the IFRIC 12 interpretation, since it was considered that the underlying concession arrangements do not guarantee the existence of an unconditional right in favour of the concessionaire to receive cash or other financial assets. Construction and improvement services carried out on behalf of the grantor are accounted for as contract work in progress. Considering that most works are contracted out externally and that on construction activities carried out internally the job margin cannot be identified individually from the benefits included in the remuneration for the service, these infrastructures are reported on the basis of costs actually incurred, net of any contributions paid by the entities and/or private customers. This category also includes improvements made and infrastructure constructed on the goods instrumental to the management of these services, which are the property of the Holding Companies (so called Asset Companies, pursuant to Article 113 of Italian Legislative Decree no. 267/00), yet managed by the Group by virtue of business branch leasing contracts. These contracts, in addition to establishing the fees due, also include clauses governing the restitution of assets, normally maintained, upon payment of a balance corresponding to the net book value or the Residual industrial value (also taking into account the recovery funds) of these assets. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForServiceConcessionArrangementsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-17": { "value": "Cost of acquiring new contracts \u2013 Incremental costs, represented by commissions paid to agents for the acquisition of new contracts, are recognized as intangible assets and are amortised according to the average useful life of the acquired customers (churn rate). For this purpose, only the types of commissions related to new customers not present in the Group\u2019s customer base are recognized.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCustomerAcquisitionCostsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-440": { "value": "Business combinations \u2013 Any positive difference between the cost of the transaction and the fair value at the date the assets and liabilities are acquired is attributed to goodwill. If the process of allocating the purchase price shows a negative difference, such difference is immediately charged to the income statement among non-operating revenues at the date of acquisition. For the purpose of determining the goodwill or the negative differential, the fair value assessment of put options granted to minority shareholders on their own shares is also considered within the cost of the transaction. Any consideration subject to conditions, including those related to future results (earn-out), as set forth in the business combination contract is measured at fair value on the acquisition date and considered in the value of the consideration paid for the business combination, for the purposes of calculating the goodwill. Non-controlling interests on the acquisition date are measured at fair value or according to the pro rata amount of the net assets of the acquired company. The valuation method selected is stated for each transaction.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-467": { "value": "Business combinations \u2013 Any positive difference between the cost of the transaction and the fair value at the date the assets and liabilities are acquired is attributed to goodwill. If the process of allocating the purchase price shows a negative difference, such difference is immediately charged to the income statement among non-operating revenues at the date of acquisition. For the purpose of determining the goodwill or the negative differential, the fair value assessment of put options granted to minority shareholders on their own shares is also considered within the cost of the transaction. Any consideration subject to conditions, including those related to future results (earn-out), as set forth in the business combination contract is measured at fair value on the acquisition date and considered in the value of the consideration paid for the business combination, for the purposes of calculating the goodwill. Non-controlling interests on the acquisition date are measured at fair value or according to the pro rata amount of the net assets of the acquired company. The valuation method selected is stated for each transaction. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-19": { "value": "Losses in value (impairment) \u2013 In order to assess any losses in value, the Group takes into consideration the book value of property, plant and equipment, rights of use and intangible assets, comparing it with the recoverable amount of these assets to define the value of any write-downs. The recoverable value is calculated as a right of use. Where it is not possible to estimate the recoverable value of an asset individually, the Group estimates the recoverable value of the unit generating the cash flows to which said assets belong. Future cash flows are discounted to present value at a rate (net of taxation) that reflects the current market value and takes into account the risks associated with the specific business activities. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-468": { "value": "Losses in value (impairment) \u2013 In order to assess any losses in value, the Group takes into consideration the book value of property, plant and equipment, rights of use and intangible assets, comparing it with the recoverable amount of these assets to define the value of any write-downs. The recoverable value is calculated as a right of use. Where it is not possible to estimate the recoverable value of an asset individually, the Group estimates the recoverable value of the unit generating the cash flows to which said assets belong. Future cash flows are discounted to present value at a rate (net of taxation) that reflects the current market value and takes into account the risks associated with the specific business activities. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-441": { "value": "Investments valued at shareholders\u2019 equity method \u2013 Investments entered in this item refer to long- term investments in associated companies and joint ventures. The excess price over the Group\u2019s share of the fair value of an associated company\u2019s identifiable assets, liabilities and contingent liabilities at the date of acquisition is recognised as goodwill.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-469": { "value": "Investments valued at shareholders\u2019 equity method \u2013 Investments entered in this item refer to long- term investments in associated companies and joint ventures. The excess price over the Group\u2019s share of the fair value of an associated company\u2019s identifiable assets, liabilities and contingent liabilities at the date of acquisition is recognised as goodwill. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-495": { "value": "Investments valued at shareholders\u2019 equity method \u2013 Investments entered in this item refer to long- term investments in associated companies and joint ventures. The excess price over the Group\u2019s share of the fair value of an associated company\u2019s identifiable assets, liabilities and contingent liabilities at the date of acquisition is recognised as goodwill. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-18": { "value": "Other investments \u2013 This category includes investments that are not included in the scope of consolidation, including investments in negligible size subsidiaries, associates and joint ventures. For these investments, upon initial recognition, it is irrevocably determined whether subsequent changes in fair value are recognised in other comprehensive income; otherwise, changes in fair value are periodically recognised in profit or loss. The risk deriving from any losses exceeding the book value of the investment is recorded in a specific reserve to the extent that the holder is obliged to fulfil legal or implicit obligations vis-\u00e0-vis the investee company or in any event cover its losses.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-442": { "value": "Financial assets \u2013 The Group classifies financial assets through the business model adopted for managing them and on the basis of the features of contractual cashflows. In relation to the previous conditions, financial assets are subsequently valued as follows: \u25aa depreciated cost; \u25aa fair value of the other comprehensive income components; \u25aa fair value of the profit (loss) for the fiscal period. Management determines their classification when they are first recorded. Receivables and loans \u2013 This category includes assets not represented by derivative instruments and not listed on an active market, from which fixed or determinable payments are expected. Since the business model generally adopted by the Group provides for the holding of these financial instruments solely for the purpose of collecting the contractual cash flows, these assets are valued at depreciated cost on the basis of the effective interest rate method. The value of the assets is reduced on the basis of the expected losses, using information that is available without unreasonable charges or efforts, including historical, current and prospective data. Losses determined by an impairment test are recognized in the income statement, as are any subsequent reversals of impairment losses. These assets are classified as current assets, except for the portions accruing after 12 months, which are included amongst the non- current assets. This category includes, as provided by the interpretation IFRIC 12, the financial assets associated to those public service under concession for which the Group has the unconditional contractual right to receive liquidity from the issuer for the construction services rendered. The Group uses the financial asset model for the contracts of public lighting service provision, in view of their characteristics, in which increasingly frequently the issuer guarantees the area provider a specific amount, or at any rate an amount which can be reliably determined, not depending on the use of the infrastructure by the final customer. Under that model, the financial asset reported in the balance sheet in relation to the issuer for an amount equal to the fair value of the construction services rendered. Financial assets at fair value recorded in the comprehensive income statement components \u2013 This category includes assets, other than derivatives, held by the Group for the purpose of receiving contractual cash flows (represented by equity and interest payments) or for monetisation through sale. These assets are valued at fair value, the latter determined by referring to the market prices at the balance sheet date or using financial measurement techniques and models. Classification as a current or non-current asset depends on management\u2019s plans and on the real tradability of the security. Those whose sale is expected during the next 12 months are recorded as current assets .", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-470": { "value": "Financial assets \u2013 The Group classifies financial assets through the business model adopted for managing them and on the basis of the features of contractual cashflows. In relation to the previous conditions, financial assets are subsequently valued as follows: \u25aa depreciated cost; \u25aa fair value of the other comprehensive income components; \u25aa fair value of the profit (loss) for the fiscal period. Management determines their classification when they are first recorded. Receivables and loans \u2013 This category includes assets not represented by derivative instruments and not listed on an active market, from which fixed or determinable payments are expected. Since the business model generally adopted by the Group provides for the holding of these financial instruments solely for the purpose of collecting the contractual cash flows, these assets are valued at depreciated cost on the basis of the effective interest rate method. The value of the assets is reduced on the basis of the expected losses, using information that is available without unreasonable charges or efforts, including historical, current and prospective data. Losses determined by an impairment test are recognized in the income statement, as are any subsequent reversals of impairment losses. These assets are classified as current assets, except for the portions accruing after 12 months, which are included amongst the non- current assets. This category includes, as provided by the interpretation IFRIC 12, the financial assets associated to those public service under concession for which the Group has the unconditional contractual right to receive liquidity from the issuer for the construction services rendered. The Group uses the financial asset model for the contracts of public lighting service provision, in view of their characteristics, in which increasingly frequently the issuer guarantees the area provider a specific amount, or at any rate an amount which can be reliably determined, not depending on the use of the infrastructure by the final customer. Under that model, the financial asset reported in the balance sheet in relation to the issuer for an amount equal to the fair value of the construction services rendered. Financial assets at fair value recorded in the comprehensive income statement components \u2013 This category includes assets, other than derivatives, held by the Group for the purpose of receiving contractual cash flows (represented by equity and interest payments) or for monetisation through sale. These assets are valued at fair value, the latter determined by referring to the market prices at the balance sheet date or using financial measurement techniques and models. Classification as a current or non-current asset depends on management\u2019s plans and on the real tradability of the security. Those whose sale is expected during the next 12 months are recorded as current assets . Assets valued at fair value recorded as profit (loss) for the fiscal period \u2013 This category includes the financial assets acquired for short-term trading purposes, in addition to the derivatives, which are described in the specific paragraph below. The fair value of these instruments is determined by referring to the market value on the date the registration period ends. Classification under current and non-current reflects management `s expectations regarding their trading: current assets include those whose trading is expected within 12 months or those identified as held for trading. Financial liabilities \u2013 This item is initially stated at cost, corresponding to the fair value of the liability net of the transaction costs which are directly attributable to the issue of said liability. Following their initial recognition, financial liabilities, with the exception of derivatives, are valued on the basis of amortised cost, using the original effective interest rate method. If the estimates of payments are revised, the adjustment of the liability is stated as income or expense in the income statement, except for lease liabilities. Derivative instruments \u2013 The Group holds derivative instruments for the purpose of hedging its exposure to the risk of interest rate and exchange rate fluctuations and the risk of changes in methane gas and electricity prices. In relation to said activities, the Group must handle the risks associated with the misalignment between the index-linking formulas relating to the purchase of gas and electricity and the index-linking formulas linked to the sale of said commodities. The instruments the Group uses for handling price risk, both with regards to the price of the goods and the related Euro/Dollar exchange rate, are aimed at pre-establishing the effects on the sales margins irrespective of the changes in the aforementioned market conditions. In relation to commodity derivatives, operations are managed through OTCs \u2013 over the counter financial instruments (index swaps), currency derivatives (forward purchases in dollars), derivative instruments traded on the regulated platforms, as well as through brokerage contracts that provide for the physical delivery of the underlying (so-called physical contracts). In particular, the accounting method used for physical contracts varies according to their purpose: contracts related to procurement activities are subject to the own-use exemption and the related economic effects are recognised on an accrual basis only at the time of actual delivery, while contracts signed with reference to price or volume risk management activities are considered derivative financial instruments and measured at fair value from the time they are signed. Given the nature of physical contracts, in order to give a more consistent representation of the actual transactions carried out, at the time they become operational, regardless of their purpose, the settlement is recorded in the income statement either in the item \u201cRevenues\u201d or in the item \u201cRaw and other materials\u201d depending on whether the sale or procurement of commodities was involved. From an operational point of view, a commercial portfolio has been identified, which includes physical and financial contracts signed for the management of procurement, and a trading portfolio, which includes physical and financial contracts signed for speculation, based on pure position taking logics whenever there is a market opportunity, always within the risk limits defined by the Board of Directors of the parent company. The fair-value changes pertaining transactions that, in observance of the risk management policies, meet the requirements for hedge accounting treatment are recorded as part of the other components of comprehensive income, while those that despite being entered into for hedging purposes, do not meet the requirements are recognised in profit or loss in the period in which they occur. Operations identified from their outset as speculative are recognised in profit or loss in the reporting period. Fair value is established with adequate valuation models for each type of instrument, according to the reference market value as more fully described below. For accounting purposes, the hedging transactions are classified as fair value hedges if they cover the risk of fluctuations in the market value of the underlying asset or liability; or as cash flow hedges if they cover the risk of changes in cash flows deriving both from an existing asset or liability, or from a future transaction, including transactions on commodities. As far as derivative instruments classified as fair value hedges are concerned, which observe the conditions for the accounting treatment as hedging transactions, the gains and losses deriving from the determination of their market value are recognized through profit or loss. The gains and losses deriving from the adjustment to fair value of the element underlying the hedge are also recognized through profit or loss. For instruments classified as cash flow hedges and that qualify as such, the fair value changes are recorded, only as far as the effective amount is concerned, in a reserve called \u201cCash flow hedge reserve\u201d through the statement of comprehensive income. This reserve is recorded to income as soon as the underlying hedged instrument is realised. The change in fair value referring to the ineffective portion is immediately recorded in the income statement of the period. If the underlying transaction should no longer be considered highly probable, or the hedging relationship can no longer be demonstrated, the corresponding portion of the \u201cReserve of derivatives valued at fair value\u201d is immediately reversed to income. If, on the other hand, the derivative instrument is sold and therefore the hedging of the risk for which the transaction was created no longer qualifies as effective, the amount of \u201cReserve of derivatives valued at fair value\u201d relating to it is kept until the economic effects of the underlying contract arise. Whenever applicable, the Group adopts the fair value option. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-494": { "value": "Receivables and loans \u2013 This category includes assets not represented by derivative instruments and not listed on an active market, from which fixed or determinable payments are expected. Since the business model generally adopted by the Group provides for the holding of these financial instruments solely for the purpose of collecting the contractual cash flows, these assets are valued at depreciated cost on the basis of the effective interest rate method. The value of the assets is reduced on the basis of the expected losses, using information that is available without unreasonable charges or efforts, including historical, current and prospective data. Losses determined by an impairment test are recognized in the income statement, as are any subsequent reversals of impairment losses. These assets are classified as current assets, except for the portions accruing after 12 months, which are included amongst the non- current assets. This category includes, as provided by the interpretation IFRIC 12, the financial assets associated to those public service under concession for which the Group has the unconditional contractual right to receive liquidity from the issuer for the construction services rendered. The Group uses the financial asset model for the contracts of public lighting service provision, in view of their characteristics, in which increasingly frequently the issuer guarantees the area provider a specific amount, or at any rate an amount which can be reliably determined, not depending on the use of the infrastructure by the final customer. Under that model, the financial asset reported in the balance sheet in relation to the issuer for an amount equal to the fair value of the construction services rendered.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLoansAndReceivablesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-496": { "value": "Financial assets at fair value recorded in the comprehensive income statement components \u2013 This category includes assets, other than derivatives, held by the Group for the purpose of receiving contractual cash flows (represented by equity and interest payments) or for monetisation through sale. These assets are valued at fair value, the latter determined by referring to the market prices at the balance sheet date or using financial measurement techniques and models. Classification as a current or non-current asset depends on management\u2019s plans and on the real tradability of the security. Those whose sale is expected during the next 12 months are recorded as current assets . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHeldtomaturityInvestmentsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-514": { "value": "Financial assets at fair value recorded in the comprehensive income statement components \u2013 This category includes assets, other than derivatives, held by the Group for the purpose of receiving contractual cash flows (represented by equity and interest payments) or for monetisation through sale. These assets are valued at fair value, the latter determined by referring to the market prices at the balance sheet date or using financial measurement techniques and models. Classification as a current or non-current asset depends on management\u2019s plans and on the real tradability of the security. Those whose sale is expected during the next 12 months are recorded as current assets ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForAvailableforsaleFinancialAssetsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-424": { "value": "Assets valued at fair value recorded as profit (loss) for the fiscal period \u2013 This category includes the financial assets acquired for short-term trading purposes, in addition to the derivatives, which are described in the specific paragraph below. The fair value of these instruments is determined by referring to the market value on the date the registration period ends. Classification under current and non-current reflects management `s expectations regarding their trading: current assets include those whose trading is expected within 12 months or those identified as held for trading.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-24": { "value": "Cash and cash equivalents \u2013 The item regarding cash holdings and cash equivalents includes cash and bank accounts and deposits repayable on demand and other short-term financial investments with high liquidity that are readily convertible into cash and are subject to an insignificant risk regarding their change in value. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-20": { "value": "Trade receivables \u2013 These refer to financial assets arising from the provision of goods and services and are valued at amortised cost, adjusted for any impairment. These assets are derecognized in the event of sale which transfers all risks and benefits associated with their management to third parties. Other current assets \u2013 These are stated at par value, and possibly adjusted for any losses in value corresponding to the amortised cost. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-21": { "value": "Environmental certificates \u2013 The Group complies with the various regulations issued in relation to the environment that require compliance with restrictions established through the use of certificates or bonds. Therefore, the Group is obliged to meet a need in terms of grey certificates (emission trading) and white certificates (energy efficiency instruments). The development of markets in which these bonds/certificates are traded has also made it possible to initiate a trading activity. These bonds are valued according to the intended use. The bonds held to meet the company\u2019s requirement are recorded as assets at cost. If the bonds in the portfolio prove to be insufficient to meet the need, a liability is recorded to guarantee adequate coverage when the certificates are delivered to the operator. Bonds held for trading are recognised as assets and are measured at fair value through profit or loss.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmissionRightsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-22": { "value": "Contract work in progress \u2013 Where the outcome of a construction contract can be estimated reliably, contract work in progress is measured on the basis of revenues accrued with reasonable certainty, according to the percentage of completion method of accounting, so as to apportion revenues and costs to the relevant financial years in proportion to the stage of completion of the work in question. Contract revenues, in addition to the contractual payments, include the variations, the price review and the recognition of the incentives to the extent it is probable that they represent effective revenues which can be determined reliably. When the result of a contract cannot be reliably estimated, the revenues referable to the related contract are recorded solely within the limits of the contract costs incurred which will probably be recovered. The contract costs are recorded as expenses during the accounting period in which they are incurred. When it is probable that the total contract costs will be greater than the contractual revenues, the expected loss is immediately stated at cost. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForConstructionInProgressExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-23": { "value": "Inventories \u2013 Inventories are recorded at cost, including directly attributable costs, or net estimated realizable value, whichever is the lower. The cost configurations used for the valuation of stocks are the average cost measured on a continuous basis (used for raw materials and consumables) and the specific cost of other inventories. Inventories of work in progress are valued at weighted average manufacturing cost for the period, which comprises the raw materials, the consumables and the direct and indirect production costs excluding general expenses.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-497": { "value": "Share capital \u2013 Share capital is recorded at par value, reduced, if necessary, by costs directly attributable to transactions involving the issuing or repurchase of equity instruments. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-30": { "value": "Treasury shares \u2013 Treasury shares are recognised as a reduction in shareholders\u2019 equity, and any differences generated by future purchase or sale transactions are recorded directly as changes in shareholders\u2019 equity. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-25": { "value": "Earnings per share \u2013 Earnings per share are represented by the net profit for the year attributable to the shareholders holding ordinary shares, taking into account the weighted average of the ordinary shares outstanding during the year. The diluted earnings per share are obtained by means of the adjustment of the weighted average of the shares outstanding, taking into account all the potential ordinary shares with dilution effect.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-26": { "value": "Financial liabilities \u2013 This item is initially stated at cost, corresponding to the fair value of the liability net of the transaction costs which are directly attributable to the issue of said liability. Following their initial recognition, financial liabilities, with the exception of derivatives, are valued on the basis of amortised cost, using the original effective interest rate method. If the estimates of payments are revised, the adjustment of the liability is stated as income or expense in the income statement, except for lease liabilities.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-498": { "value": "Financial liabilities \u2013 This item is initially stated at cost, corresponding to the fair value of the liability net of the transaction costs which are directly attributable to the issue of said liability. Following their initial recognition, financial liabilities, with the exception of derivatives, are valued on the basis of amortised cost, using the original effective interest rate method. If the estimates of payments are revised, the adjustment of the liability is stated as income or expense in the income statement, except for lease liabilities.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-27": { "value": "Post-employment and other benefits \u2013 Liabilities related to defined-benefit plans (such as the employee severance accrued before 1 January 2007) are reported net of any plan assets on the basis of actuarial assumptions and on an accrual basis, in keeping with the service necessary to obtain benefits. The liability is valued by independent actuaries. Independent actuaries assess financial liabilities. The liability is valued by independent actuaries. Actuarial gains and losses are reported as other comprehensive income/losses. Following Law 296 of 27 December 2006, for companies with more than 50 employees, the severance amounts accruing after 1 January 2017 qualify as a defined-benefit plan.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-28": { "value": "Provisions for risks and charges \u2013 Provisions are set aside on the basis of the best estimate of the costs required to meet the obligation, as of the balance sheet date, and are discounted to present value when the effect is significant and the necessary information is available. In such event, the provisions are determined by discounting to present value the future cash flows at a pre-tax discount rate that reflects the current market valuation and takes into account the risk associated with the business activities. When the discounting to present value is carried out, the increase in the provision due to the passing of time is recorded amongst the financial charges. If the liability relates to property, plant and equipment (e.g. restoration of sites), the contra-entry to the provision made is an increase of the asset to which the liability refers; on the other hand, the financial charges are expensed out through the depreciation process of the item of property, plant and equipment to which the charge refers.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-29": { "value": "Trade payables \u2013 These refer to payables derived from commercial supply transactions and are recorded at amortised cost. Other current liabilities \u2013 These concern sundry transactions and are stated at nominal value, corresponding to the amortised cost. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-443": { "value": "Derivative instruments \u2013 The Group holds derivative instruments for the purpose of hedging its exposure to the risk of interest rate and exchange rate fluctuations and the risk of changes in methane gas and electricity prices. In relation to said activities, the Group must handle the risks associated with the misalignment between the index-linking formulas relating to the purchase of gas and electricity and the index-linking formulas linked to the sale of said commodities. The instruments the Group uses for handling price risk, both with regards to the price of the goods and the related Euro/Dollar exchange rate, are aimed at pre-establishing the effects on the sales margins irrespective of the changes in the aforementioned market conditions. In relation to commodity derivatives, operations are managed through OTCs \u2013 over the counter financial instruments (index swaps), currency derivatives (forward purchases in dollars), derivative instruments traded on the regulated platforms, as well as through brokerage contracts that provide for the physical delivery of the underlying (so-called physical contracts). In particular, the accounting method used for physical contracts varies according to their purpose: contracts related to procurement activities are subject to the own-use exemption and the related economic effects are recognised on an accrual basis only at the time of actual delivery, while contracts signed with reference to price or volume risk management activities are considered derivative financial instruments and measured at fair value from the time they are signed. Given the nature of physical contracts, in order to give a more consistent representation of the actual transactions carried out, at the time they become operational, regardless of their purpose, the settlement is recorded in the income statement either in the item \u201cRevenues\u201d or in the item \u201cRaw and other materials\u201d depending on whether the sale or procurement of commodities was involved. From an operational point of view, a commercial portfolio has been identified, which includes physical and financial contracts signed for the management of procurement, and a trading portfolio, which includes physical and financial contracts signed for speculation, based on pure position taking logics whenever there is a market opportunity, always within the risk limits defined by the Board of Directors of the parent company. The fair-value changes pertaining transactions that, in observance of the risk management policies, meet the requirements for hedge accounting treatment are recorded as part of the other components of comprehensive income, while those that despite being entered into for hedging purposes, do not meet the requirements are recognised in profit or loss in the period in which they occur. Operations identified from their outset as speculative are recognised in profit or loss in the reporting period. Fair value is established with adequate valuation models for each type of instrument, according to the reference market value as more fully described below. For accounting purposes, the hedging transactions are classified as fair value hedges if they cover the risk of fluctuations in the market value of the underlying asset or liability; or as cash flow hedges if they cover the risk of changes in cash flows deriving both from an existing asset or liability, or from a future transaction, including transactions on commodities. As far as derivative instruments classified as fair value hedges are concerned, which observe the conditions for the accounting treatment as hedging transactions, the gains and losses deriving from the determination of their market value are recognized through profit or loss. The gains and losses deriving from the adjustment to fair value of the element underlying the hedge are also recognized through profit or loss. For instruments classified as cash flow hedges and that qualify as such, the fair value changes are recorded, only as far as the effective amount is concerned, in a reserve called \u201cCash flow hedge reserve\u201d through the statement of comprehensive income. This reserve is recorded to income as soon as the underlying hedged instrument is realised. The change in fair value referring to the ineffective portion is immediately recorded in the income statement of the period. If the underlying transaction should no longer be considered highly probable, or the hedging relationship can no longer be demonstrated, the corresponding portion of the \u201cReserve of derivatives valued at fair value\u201d is immediately reversed to income. If, on the other hand, the derivative instrument is sold and therefore the hedging of the risk for which the transaction was created no longer qualifies as effective, the amount of \u201cReserve of derivatives valued at fair value\u201d relating to it is kept until the economic effects of the underlying contract arise. Whenever applicable, the Group adopts the fair value option. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-499": { "value": "Derivative instruments \u2013 The Group holds derivative instruments for the purpose of hedging its exposure to the risk of interest rate and exchange rate fluctuations and the risk of changes in methane gas and electricity prices. In relation to said activities, the Group must handle the risks associated with the misalignment between the index-linking formulas relating to the purchase of gas and electricity and the index-linking formulas linked to the sale of said commodities. The instruments the Group uses for handling price risk, both with regards to the price of the goods and the related Euro/Dollar exchange rate, are aimed at pre-establishing the effects on the sales margins irrespective of the changes in the aforementioned market conditions. In relation to commodity derivatives, operations are managed through OTCs \u2013 over the counter financial instruments (index swaps), currency derivatives (forward purchases in dollars), derivative instruments traded on the regulated platforms, as well as through brokerage contracts that provide for the physical delivery of the underlying (so-called physical contracts). In particular, the accounting method used for physical contracts varies according to their purpose: contracts related to procurement activities are subject to the own-use exemption and the related economic effects are recognised on an accrual basis only at the time of actual delivery, while contracts signed with reference to price or volume risk management activities are considered derivative financial instruments and measured at fair value from the time they are signed. Given the nature of physical contracts, in order to give a more consistent representation of the actual transactions carried out, at the time they become operational, regardless of their purpose, the settlement is recorded in the income statement either in the item \u201cRevenues\u201d or in the item \u201cRaw and other materials\u201d depending on whether the sale or procurement of commodities was involved. From an operational point of view, a commercial portfolio has been identified, which includes physical and financial contracts signed for the management of procurement, and a trading portfolio, which includes physical and financial contracts signed for speculation, based on pure position taking logics whenever there is a market opportunity, always within the risk limits defined by the Board of Directors of the parent company. The fair-value changes pertaining transactions that, in observance of the risk management policies, meet the requirements for hedge accounting treatment are recorded as part of the other components of comprehensive income, while those that despite being entered into for hedging purposes, do not meet the requirements are recognised in profit or loss in the period in which they occur. Operations identified from their outset as speculative are recognised in profit or loss in the reporting period. Fair value is established with adequate valuation models for each type of instrument, according to the reference market value as more fully described below. For accounting purposes, the hedging transactions are classified as fair value hedges if they cover the risk of fluctuations in the market value of the underlying asset or liability; or as cash flow hedges if they cover the risk of changes in cash flows deriving both from an existing asset or liability, or from a future transaction, including transactions on commodities. As far as derivative instruments classified as fair value hedges are concerned, which observe the conditions for the accounting treatment as hedging transactions, the gains and losses deriving from the determination of their market value are recognized through profit or loss. The gains and losses deriving from the adjustment to fair value of the element underlying the hedge are also recognized through profit or loss. For instruments classified as cash flow hedges and that qualify as such, the fair value changes are recorded, only as far as the effective amount is concerned, in a reserve called \u201cCash flow hedge reserve\u201d through the statement of comprehensive income. This reserve is recorded to income as soon as the underlying hedged instrument is realised. The change in fair value referring to the ineffective portion is immediately recorded in the income statement of the period. If the underlying transaction should no longer be considered highly probable, or the hedging relationship can no longer be demonstrated, the corresponding portion of the \u201cReserve of derivatives valued at fair value\u201d is immediately reversed to income. If, on the other hand, the derivative instrument is sold and therefore the hedging of the risk for which the transaction was created no longer qualifies as effective, the amount of \u201cReserve of derivatives valued at fair value\u201d relating to it is kept until the economic effects of the underlying contract arise. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-425": { "value": "In relation to commodity derivatives, operations are managed through OTCs \u2013 over the counter financial instruments (index swaps), currency derivatives (forward purchases in dollars), derivative instruments traded on the regulated platforms, as well as through brokerage contracts that provide for the physical delivery of the underlying (so-called physical contracts). In particular, the accounting method used for physical contracts varies according to their purpose: contracts related to procurement activities are subject to the own-use exemption and the related economic effects are recognised on an accrual basis only at the time of actual delivery, while contracts signed with reference to price or volume risk management activities are considered derivative financial instruments and measured at fair value from the time they are signed. Given the nature of physical contracts, in order to give a more consistent representation of the actual transactions carried out, at the time they become operational, regardless of their purpose, the settlement is recorded in the income statement either in the item \u201cRevenues\u201d or in the item \u201cRaw and other materials\u201d depending on whether the sale or procurement of commodities was involved. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradingIncomeAndExpenseExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-515": { "value": "For accounting purposes, the hedging transactions are classified as fair value hedges if they cover the risk of fluctuations in the market value of the underlying asset or liability; or as cash flow hedges if they cover the risk of changes in cash flows deriving both from an existing asset or liability, or from a future transaction, including transactions on commodities. As far as derivative instruments classified as fair value hedges are concerned, which observe the conditions for the accounting treatment as hedging transactions, the gains and losses deriving from the determination of their market value are recognized through profit or loss. The gains and losses deriving from the adjustment to fair value of the element underlying the hedge are also recognized through profit or loss.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-31": { "value": "Assets and liabilities held for sale \u2013 Assets and liabilities are classified under this category the moment the sale operation is considered highly likely and the assets and liabilities are immediately available for sale in their current condition.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-471": { "value": "Assets and liabilities held for sale \u2013 Assets and liabilities are classified under this category the moment the sale operation is considered highly likely and the assets and liabilities are immediately available for sale in their current condition. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-32": { "value": "Revenue and cost recognition \u2013 Revenues and income are recognized net of returned items, discounts and rebates, and net of taxes directly related to the sales of products and services rendered. These are broken down into revenues deriving from operating activities and financial income which accrues between the sale date and the payment date. Specifically: \u25aa revenues from energy, gas and water sales are recognised and recorded at the moment of the provision of the service and include the services provided but not yet invoiced (estimated on the basis of historical analyses determined according to previous consumption levels); \u25aa revenues from the distribution are recognized on the basis of the tariffs paid by the Authority and are subject to equalization at year end to reflect in accordance with the competence criterion the compensation recognised by the Authority in relation to the investments made; \u25aa revenues are booked at the time (or as) the obligation is fulfilled, transferring the promised good or service to the customer. The transfer occurs when (or as) the customer gains control over the good or service. The revenue recorded corresponds to the price attributed to the obligation to be recorded. Revenue is recorded only if the consideration for the goods or services transferred to the customer is likely to be received; \u25aa costs are accounted for in accordance with the accruals principle.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-472": { "value": "Revenue and cost recognition \u2013 Revenues and income are recognized net of returned items, discounts and rebates, and net of taxes directly related to the sales of products and services rendered. These are broken down into revenues deriving from operating activities and financial income which accrues between the sale date and the payment date. Specifically: \u25aa revenues from energy, gas and water sales are recognised and recorded at the moment of the provision of the service and include the services provided but not yet invoiced (estimated on the basis of historical analyses determined according to previous consumption levels); \u25aa revenues from the distribution are recognized on the basis of the tariffs paid by the Authority and are subject to equalization at year end to reflect in accordance with the competence criterion the compensation recognised by the Authority in relation to the investments made; \u25aa revenues are booked at the time (or as) the obligation is fulfilled, transferring the promised good or service to the customer. The transfer occurs when (or as) the customer gains control over the good or service. The revenue recorded corresponds to the price attributed to the obligation to be recorded. Revenue is recorded only if the consideration for the goods or services transferred to the customer is likely to be received; \u25aa costs are accounted for in accordance with the accruals principle. Recognition of revenues Revenues for the sale of electricity, gas and water are recognised and accounted for at supply only if the consideration is expected to be collected. They include the allocation for services rendered between the date of the last reading and the end of the financial year, but not yet billed. This allocation is based on estimated of the customer\u2019s daily consumption, based on the historic profile, adjusted to reflect the weather conditions or other factors which might affect consumption under evaluation.", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-426": { "value": "Revenue and cost recognition \u2013 Revenues and income are recognized net of returned items, discounts and rebates, and net of taxes directly related to the sales of products and services rendered. These are broken down into revenues deriving from operating activities and financial income which accrues between the sale date and the payment date. Specifically: \u25aa revenues from energy, gas and water sales are recognised and recorded at the moment of the provision of the service and include the services provided but not yet invoiced (estimated on the basis of historical analyses determined according to previous consumption levels); \u25aa revenues from the distribution are recognized on the basis of the tariffs paid by the Authority and are subject to equalization at year end to reflect in accordance with the competence criterion the compensation recognised by the Authority in relation to the investments made; \u25aa revenues are booked at the time (or as) the obligation is fulfilled, transferring the promised good or service to the customer. The transfer occurs when (or as) the customer gains control over the good or service. The revenue recorded corresponds to the price attributed to the obligation to be recorded. Revenue is recorded only if the consideration for the goods or services transferred to the customer is likely to be received; \u25aa costs are accounted for in accordance with the accruals principle. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-33": { "value": "Grants \u2013 Capital grants are recognized in the income statement over the period necessary for correlating them to the related costs. They are represented in the statement of financial position by recording the grant as deferred revenue. Operating grants, including those received from users for connection purposes, are considered to be revenues for services rendered during the fiscal period and are therefore recorded on an accruals basis.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-34": { "value": "Financial income and expense \u2013 Financial income and expense are recognised on an accrual basis. Dividends from \u201cOther shareholdings\u201d are recorded in the income statement, at the time the right to receive payment is established, the economic benefits arising from the dividends are likely to be received by the Group and their value can be assessed reliably.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-473": { "value": "Financial income and expense \u2013 Financial income and expense are recognised on an accrual basis. Dividends from \u201cOther shareholdings\u201d are recorded in the income statement, at the time the right to receive payment is established, the economic benefits arising from the dividends are likely to be received by the Group and their value can be assessed reliably.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-500": { "value": "Financial income and expense \u2013 Financial income and expense are recognised on an accrual basis. Dividends from \u201cOther shareholdings\u201d are recorded in the income statement, at the time the right to receive payment is established, the economic benefits arising from the dividends are likely to be received by the Group and their value can be assessed reliably.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-516": { "value": "Financial income and expense \u2013 Financial income and expense are recognised on an accrual basis. Dividends from \u201cOther shareholdings\u201d are recorded in the income statement, at the time the right to receive payment is established, the economic benefits arising from the dividends are likely to be received by the Group and their value can be assessed reliably.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-444": { "value": "Taxes \u2013 Taxes are the sum of current, deferred and possible substitute taxes. Current taxes are calculated on the taxable income for the financial period. \u201cCurrent tax liabilities\u201d are calculated on the basis of the tax rates applicable on the balance sheet date. In determining tax rates for the period, the Group took into due consideration the effects of the IAS tax reform introduced by Law 244 of 24 December 2007 and in particular the reinforced derivation principle established by Article 83 of the TUIR. 83 of the TUIR. This regulation calls for entities that use IFRSs to apply, including in a departure from the provisions of the TUIR, the criteria for the determination, recognition and classification in the financial statements provided for by said accounting standards. Deferred taxes are calculated having regard to timing differences in taxation, and are recorded under item \u201cDeferred tax liabilities\u201d. \u201cDeferred tax assets\u201d are recognised to the extent that the existence of a taxable income at least equal to the amount of the differences to be offset is considered probable when the timing differences will reverse. Deferred taxes are determined on the basis of the tax rates foreseen to be in force during the financial year in which the tax asset will be conferred or the tax liability will be extinguished, on the basis of tax rates established by provisions in force or substantively in force at the date of the financial statements. These changes are recognised in profit or loss or in equity, depending on how the difference in question was originally recorded. Finally, substitute taxes may be recorded when legal provisions exist that allow the Group to take advantage of special tax regimes. These are, by nature, non-recurring taxes, which may be attributed to the Group\u2019s desire to opt or not for the related tax regime. In the event that the substitute tax is paid pursuant to a tax regulation that allows the balance sheet value of a utility to be aligned, in whole or in part, with the corresponding tax value of the utility, the Group proceeds to recognize the total value of future tax benefits (tax assets) and, at the same time, the entire substitute tax in the financial year in which management makes the decision to take advantage of this opportunity. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-35": { "value": "Deferred taxes are calculated having regard to timing differences in taxation, and are recorded under item \u201cDeferred tax liabilities\u201d. \u201cDeferred tax assets\u201d are recognised to the extent that the existence of a taxable income at least equal to the amount of the differences to be offset is considered probable when the timing differences will reverse. Deferred taxes are determined on the basis of the tax rates foreseen to be in force during the financial year in which the tax asset will be conferred or the tax liability will be extinguished, on the basis of tax rates established by provisions in force or substantively in force at the date of the financial statements. These changes are recognised in profit or loss or in equity, depending on how the difference in question was originally recorded.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-474": { "value": "Finally, substitute taxes may be recorded when legal provisions exist that allow the Group to take advantage of special tax regimes. These are, by nature, non-recurring taxes, which may be attributed to the Group\u2019s desire to opt or not for the related tax regime. In the event that the substitute tax is paid pursuant to a tax regulation that allows the balance sheet value of a utility to be aligned, in whole or in part, with the corresponding tax value of the utility, the Group proceeds to recognize the total value of future tax benefits (tax assets) and, at the same time, the entire substitute tax in the financial year in which management makes the decision to take advantage of this opportunity", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTaxesOtherThanIncomeTaxExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-501": { "value": "In the event that the substitute tax is paid pursuant to a tax regulation that allows the balance sheet value of a utility to be aligned, in whole or in part, with the corresponding tax value of the utility, the Group proceeds to recognize the total value of future tax benefits (tax assets) and, at the same time, the entire substitute tax in the financial year in which management makes the decision to take advantage of this opportunity. The share capital at 31 December 2023 amounted to 1,489,538,745 ordinary shares with a nominal value of 1 euro each and is fully paid-up. The number of treasury shares held by the Group at 31 December 2023 was 45,830,208 (38,541,380 at 31 December 2022).", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-36": { "value": "Conversion of foreign currency balances \u2013 Foreign currency transactions are initially recorded using the exchange rate in force as of the transaction date. Foreign currency assets and liabilities, with the exception of fixed assets, are recorded using the exchange rate in force as at the period end date and the related exchange gains and losses are recognized through profit or loss. Any net gain that might arise is set aside in a specific restricted reserve until the date of realization.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-37": { "value": "Transactions with related parties \u2013 Transactions with related parties take place on an arms\u2019-length basis, in observance of efficiency and cost-effectiveness criteria. Some specific transactions are remunerated on the basis of rates established by ARERA resolutions. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithRelatedPartiesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-445": { "value": "Risk management Credit risk The credit risk faced by the Group originates from the broad structure of the client portfolios in the main business areas in which it operates; for the same reason, this risk is spread out over a large number of clients. In order to manage the credit risk, the Group established procedures for selecting, monitoring and evaluating its customer portfolio. The Italian market is the benchmark market. The Group\u2019s credit management model makes it possible to analytically determine the different risks associated with the collectability of trade receivables as soon as they arise and progressively according to their increasing seniority. This approach allows the company to reduce the concentration and exposure to credit risk posed by both business and household customers. With regard to receivables from small- sized customers, write-downs are carried out on the basis of future-oriented analysis regarding the amount of probable future income, taking into consideration the seniority of the receivables, the type of recovery action undertaken and the status of the creditor. From time to time, analyses are conducted on the individual credit positions yet to be resolved, identifying any criticality, and if the amounts outstanding are uncollectible, in whole or in part, the related receivables are written down. Liquidity risk Liquidity risk concerns the inability to meet the financial obligations taken on due to a lack of internal resources or an inability to find external resources at acceptable costs. Liquidity risk is mitigated by adopting policies and procedures that maximise the efficiency of management of financial resources. For the most part, this is accomplished through the centralised management of cash inflows and outflows (centralised treasury service); in the prospective assessment of the liquidity conditions; in obtaining adequate lines of credit; and preserving an adequate amount of liquidity. The financial planning of requirements, focused on medium-term borrowings, and the availability of abundant funds in credit facilities, allow effective management of liquidity risk. Interest rate risk and currency risk on financing operations The cost of financing is affected by interest rate fluctuations. In the same way, the fair value of financial liabilities is also subject to interest rate and exchange rate fluctuations. The Group regularly assesses its exposure to such risks and manages them by means of derivative financial instruments, in accordance with its risk management guidelines. To mitigate interest rate volatility risk and simultaneously ensure a correct balance between fixed rate debt and variable rate debt, the Group has stipulated interest rate derivatives in relation to a portion of its financial liabilities. At the same time, to mitigate exchange rate volatility risk, the Group has signed foreign exchange derivatives to fully hedge loans in foreign currencies. Under these guidelines, derivative financial instruments may only be used to manage its exposure to interest and exchange rate fluctuations related to cash flows and balance sheet assets and liabilities. These policies do not enable speculative activities to be carried out. Market risk and currency risk on commercial operations Concerning the wholesale business carried on by Hera Trading Srl, the Group manages risks related to the misalignment between indexation formulas related to the purchase of gas and electric energy and the indexation formulas related to the sales of the same commodities (including contracts entered into at fixed prices) as well as exchange rate risks in case the trading contracts for the commodities are denominated in currencies other than the euro (U.S. dollar). In relation to these risks, the Group has set up a number of instruments, including different types of commodity derivatives (which may also include physical delivery) aimed at pre-establishing the effects on sales margins irrespective of changes in market conditions. The organisational model adopted and the supporting management systems make it possible to identify the nature of the operation (hedging vs. trading) and produce the information required for a formal identification of the purpose of these instruments. Specifically, from an operational standpoint, the Group identified a commercial portfolio, including contracts signed to manage the Group\u2019s procurement activities, and a trading portfolio, including instruments whose purpose cannot be strictly related to the underlying procurement activities. For an exhaustive discussion of how the Group analyses, measures, monitors and manages exposure to these risks, please refer to paragraph 1.02.03 \u201cRisk areas: identification and management of risk factors\u201d in the management report. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-428": { "value": "Credit risk The credit risk faced by the Group originates from the broad structure of the client portfolios in the main business areas in which it operates; for the same reason, this risk is spread out over a large number of clients. In order to manage the credit risk, the Group established procedures for selecting, monitoring and evaluating its customer portfolio. The Italian market is the benchmark market. The Group\u2019s credit management model makes it possible to analytically determine the different risks associated with the collectability of trade receivables as soon as they arise and progressively according to their increasing seniority. This approach allows the company to reduce the concentration and exposure to credit risk posed by both business and household customers. With regard to receivables from small- sized customers, write-downs are carried out on the basis of future-oriented analysis regarding the amount of probable future income, taking into consideration the seniority of the receivables, the type of recovery action undertaken and the status of the creditor. From time to time, analyses are conducted on the individual credit positions yet to be resolved, identifying any criticality, and if the amounts outstanding are uncollectible, in whole or in part, the related receivables are written down.", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-40": { "value": "The Group\u2019s credit management model makes it possible to analytically determine the different risks associated with the collectability of trade receivables as soon as they arise and progressively according to their increasing seniority. This approach allows the company to reduce the concentration and exposure to credit risk posed by both business and household customers. With regard to receivables from small- sized customers, write-downs are carried out on the basis of future-oriented analysis regarding the amount of probable future income, taking into consideration the seniority of the receivables, the type of recovery action undertaken and the status of the creditor. From time to time, analyses are conducted on the individual credit positions yet to be resolved, identifying any criticality, and if the amounts outstanding are uncollectible, in whole or in part, the related receivables are written down.", "dimensions": { "concept": "ifrs-full:ExplanationOfCreditRiskManagementPracticesAndHowTheyRelateToRecognitionAndMeasurementOfExpectedCreditLossesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-427": { "value": "Liquidity risk Liquidity risk concerns the inability to meet the financial obligations taken on due to a lack of internal resources or an inability to find external resources at acceptable costs. Liquidity risk is mitigated by adopting policies and procedures that maximise the efficiency of management of financial resources. For the most part, this is accomplished through the centralised management of cash inflows and outflows (centralised treasury service); in the prospective assessment of the liquidity conditions; in obtaining adequate lines of credit; and preserving an adequate amount of liquidity. The financial planning of requirements, focused on medium-term borrowings, and the availability of abundant funds in credit facilities, allow effective management of liquidity risk. ", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-39": { "value": "Liquidity risk is mitigated by adopting policies and procedures that maximise the efficiency of management of financial resources. For the most part, this is accomplished through the centralised management of cash inflows and outflows (centralised treasury service); in the prospective assessment of the liquidity conditions; in obtaining adequate lines of credit; and preserving an adequate amount of liquidity. The financial planning of requirements, focused on medium-term borrowings, and the availability of abundant funds in credit facilities, allow effective management of liquidity risk. ", "dimensions": { "concept": "ifrs-full:DescriptionOfManagingLiquidityRisk", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-38": { "value": "Concerning the wholesale business carried on by Hera Trading Srl, the Group manages risks related to the misalignment between indexation formulas related to the purchase of gas and electric energy and the indexation formulas related to the sales of the same commodities (including contracts entered into at fixed prices) In relation to these risks, the Group has set up a number of instruments, including different types of commodity derivatives (which may also include physical delivery) aimed at pre-establishing the effects on sales margins irrespective of changes in market conditions. The organisational model adopted and the supporting management systems make it possible to identify the nature of the operation (hedging vs. trading) and produce the information required for a formal identification of the purpose of these instruments. Specifically, from an operational standpoint, the Group identified a commercial portfolio, including contracts signed to manage the Group\u2019s procurement activities, and a trading portfolio, including instruments whose purpose cannot be strictly related to the underlying procurement activities. ", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-429": { "value": "Significant estimates and valuations Preparation of the consolidated financial statements and related notes requires the use of estimates and valuations by the directors, with effects on the balance sheet figures, based on historical data and on the forecasts of specific events that are reasonably likely to occur on the basis of currently available information. These estimates, by definition, are an approximation of the final figures. Hence the main areas characterised by valuations and assumptions that could give rise to variations in the values of assets and liabilities by the next accounting period are set forth below. Recognition of revenues Revenues for the sale of electricity, gas and water are recognised and accounted for at supply only if the consideration is expected to be collected. They include the allocation for services rendered between the date of the last reading and the end of the financial year, but not yet billed. This allocation is based on estimated of the customer\u2019s daily consumption, based on the historic profile, adjusted to reflect the weather conditions or other factors which might affect consumption under evaluation. Provisions for risks These provisions were made by adopting the same procedures as in previous years, with reference to reports by the legal advisors and consultants that are following the cases, and on the basis of developments in the relevant legal proceedings as well as of the updates of the hypotheses concerning future expenses for post-mortem costs of the landfills, following the revision of the estimated costs identified by external consultants. Depreciation Depreciation is calculated on the basis of the useful life of an asset. The useful life is determined by Management at the time the asset is recognized in the balance sheet; valuations of the duration of useful life are based on historical experience, market conditions and the expectation of future events that could affect the useful life itself, including technological changes. Therefore, the actual useful life might differ from the estimated useful life. Impairment test The Group carries out an analysis of the recoverable value of assets (including goodwill) as well as of its investment (not majority investment) in companies holding assets for generating thermoelectric energy, through impairment tests, at least once a year. This test is based on the calculation of its value in use, which requires the use of estimates as specified in note 25 and 27 of the comments to the financial statement formats. Deferred tax assets Accounting for deferred tax assets takes place on the basis of expectations of taxable income in future years. The evaluation of the taxable income expected for the purposes of accounting for deferred tax assets depends on factors that may vary over time and significantly affect the recoverability of deferred tax assets. Fair value assessment and evaluation process The fair value of financial instruments, both on interest rates and foreign exchange rates, derives from market prices. In the absence of prices quoted in active markets, the method of discounting back future cash flows is used, taking the parameters observed on the market as reference. The fair value of contracts on commodities are determined using directly observable market inputs, where available. The methodology for calculating the fair value of these instruments includes the assessment of the non- performance risk, where relevant. All derivative contracts entered into by the Group are with leading institutional counterparties. Fair Value Hierarchy The financial instruments measured at fair value are classified through a three-level hierarchy based on the way the fair value was determined, i.e., with reference to the factors used in determining the value: \u25aa level 1, financial instruments the fair value of which is determined on the basis of quoted prices in active markets; \u25aa level 2, financial instruments the fair value of which is determined using valuation techniques that employ parameters that are directly or indirectly observable on the market. Instruments valued on the basis of the market forward curve and short term differential contracts are classified in this category; \u25aa level 3, financial instruments the fair value of which is determined using valuation techniques that employ parameters that cannot be observed on the market, using internal estimates exclusively.", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-41": { "value": "Fair value assessment and evaluation process The fair value of financial instruments, both on interest rates and foreign exchange rates, derives from market prices. In the absence of prices quoted in active markets, the method of discounting back future cash flows is used, taking the parameters observed on the market as reference. The fair value of contracts on commodities are determined using directly observable market inputs, where available. The methodology for calculating the fair value of these instruments includes the assessment of the non- performance risk, where relevant. All derivative contracts entered into by the Group are with leading institutional counterparties. Fair Value Hierarchy The financial instruments measured at fair value are classified through a three-level hierarchy based on the way the fair value was determined, i.e., with reference to the factors used in determining the value: \u25aa level 1, financial instruments the fair value of which is determined on the basis of quoted prices in active markets; \u25aa level 2, financial instruments the fair value of which is determined using valuation techniques that employ parameters that are directly or indirectly observable on the market. Instruments valued on the basis of the market forward curve and short term differential contracts are classified in this category; \u25aa level 3, financial instruments the fair value of which is determined using valuation techniques that employ parameters that cannot be observed on the market, using internal estimates exclusively.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-517": { "value": "The financial results for the year by comparison with the previous year are outlined below. notes 2023 2022 Revenues 1 14,897.3 20,082.0 Other operating revenues 2 667.8 548.2 Raw and other materials 3 (9,672.2) (16,730.0) Service costs 4 (3,655.9) (2,105.8) Personnel costs 5 (641.1) (601.1) Other operating expenses 6 (90.3) (74.9) Capitalised costs 7 82.1 82.5 Ebitda 1,587.7 1,200.9 Amortisation, provisions and depreciation 8 (753.7) (667.1) Operating profit 834.0 533.8 Share of profits (losses) pertaining to joint ventures and associated companies 9 10.3 10.0 Financial income 10 157.1 82.2 Financial expenses 11 (345.0) (217.2) Financial operations (177.6) (125.0) Earnings before taxes 656.4 408.8 A breakdown of the most significant operating items by business sector is provided in the section \u201cReporting by operational sector\u201d under 2.02.10 \u201cOther Information.\u201d Operating revenues and costs decreased significantly during the year, mainly due to the fall in energy commodity prices compared to the amounts reached during the previous year and the lower volumes of gas sold to end customers. The Group\u2019s Ebitda is an alternative performance measure whose definition can be found in Section 1.04 \u201cOverview of operating and financial trends and definition of alternative performance measures\u201d. The gross operating result, positive and amounting to 1,587.7 million euro, with a strong increase over the previous year, benefited from improvement in all main businesses managed by the Group. Note in particular the performance of the electricity sales business, mainly due to the lower impact of modulation and higher volumes sold, related to increases in the customer base both in traditional markets and in safeguarded markets due to the new scope of operations managed. A positive impact also came from intermediation on wholesale gas markets, which benefited from less volatility, while margins on gas sales decreased due to lower volumes sold, as well as the downward trend in reference prices. In addition, although to a lesser extent compared to the previously mentioned factors, there was a continually upward trend, in line with the previous year, in the Ebitda obtained by the energy services and the waste treatment business, partially due to the acquisitions made during the year. \u201cAmortization, provisions and depreciation\u201d increased both as a result of investments entering into depreciation and amortization during the year, and as a result of higher allocations to the provision for bad debts and the provisions for risks and charges. The significant change in financial operations was related to the performance of the energy and financial markets last year. In fact, in the second half of the previous year, the Group underwrote short-medium term loans and short-term credit lines to meet cash requirements, particularly for the storage of methane gas needed to supply its customers for the 2022-2023 thermal year, which took place in a scenario of high prices, coinciding with the rise in the level of reference interest rates. During the 2023 financial year, the Group, once the macroeconomic tensions on the commodity market had subsided, was able to effectively manage the trend of net working capital, thus being able to repay a considerable portion of these loans, although it suffered the effects of the higher financial exposure in a high interest rate scenario on the economic result. ", "dimensions": { "concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-446": { "value": "1 Revenues 2023 2022 Change Revenues from sales and services 14,976.8 19,871.3 (4,894.5) Changes in work in progress and semi-finished products (79.5) 210.7 (290.2) Total 14,897.3 20,082.0 (5,184.7) The decrease in \u201cRevenues from sales and services\u201d was mainly due to the drop in energy commodity prices and the decrease in gas volumes sold, partially offset by the higher volumes sold in the electricity sales, energy services and waste treatment businesses. Energy prices, after the sudden rise in the previous year, steadily decreased in 2023, returning to values that were still high but more in line with the years prior to 2022. The change in gas volumes was influenced by the trend of milder weather and, to a lesser degree, by the fact that customers opted for lower consumption, partially as a result of widespread energy saving measures. Due to the particular types of activities that the Group oversees, \u201cRevenues from sales and services\u201d include substantial allocations for services provided to end customers and not yet invoiced as of the financial statement date. Below are the values of invoices to be issued pertaining to the reference period in relation to the three commodities most significantly impacted by the estimated year-end accruals. 2023 2022 Change Gas sales 405.2 730.2 (325.0) Electricity sales 305.5 371.3 (65.8) Water 174.7 159.8 14.9 Total 885.4 1,261.3 (375.9) A breakdown of revenues from sales and services by geographical area is shown below. 2023 2022 Change Italy 11,500.2 14,102.2 (2,602.0) European Union 1,923.8 2,874.3 (950.5) Outside European Union 1,552.8 2,894.8 (1,342.0) Total 14,976.8 19,871.3 (4,894.5) The revenues generated outside Italy mainly refer to natural gas trading and electric energy activities, whose value amounted to 3,383.3 million euro at 31 December 2023 (5,617.8 million at 31 December 2022). Also note that, of the total value of revenues, 2,079.5 million refer to counterparties operating in the Dutch TTF market (4,064.6 million at 31 December 2022). \u201cChanges in work in progress and semi-finished products\u201d, includes the economic effect for the year of changes in contract work, determined on the basis of the percentage of work in progress. It is mainly attributable to energy efficiency works carried out for end customers, typically condominiums. The change compared to the previous year reflects the conclusion in 2023 of the activities related to the 110% super-bonus and insulation subsidies, in progress at 31 December 2022, an effect partially offset by the orders still in progress at the end of the period that will be completed in the first months of 2024. Revenues from related parties are presented in Note 2.03.01, \u201cIncome statement as per Consob resolution 15519/ 2006\u201d. ", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-475": { "value": "Due to the particular types of activities that the Group oversees, \u201cRevenues from sales and services\u201d include substantial allocations for services provided to end customers and not yet invoiced as of the financial statement date. Below are the values of invoices to be issued pertaining to the reference period in relation to the three commodities most significantly impacted by the estimated year-end accruals. 2023 2022 Change Gas sales 405.2 730.2 (325.0) Electricity sales 305.5 371.3 (65.8) Water 174.7 159.8 14.9 Total 885.4 1,261.3 (375.9) ", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-42": { "value": "A breakdown of revenues from sales and services by geographical area is shown below. 2023 2022 Change Italy 11,500.2 14,102.2 (2,602.0) European Union 1,923.8 2,874.3 (950.5) Outside European Union 1,552.8 2,894.8 (1,342.0) Total 14,976.8 19,871.3 (4,894.5) The revenues generated outside Italy mainly refer to natural gas trading and electric energy activities, whose value amounted to 3,383.3 million euro at 31 December 2023 (5,617.8 million at 31 December 2022). Also note that, of the total value of revenues, 2,079.5 million refer to counterparties operating in the Dutch TTF market (4,064.6 million at 31 December 2022).", "dimensions": { "concept": "ifrs-full:DisclosureOfGeographicalAreasExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-476": { "value": "2 Other operating revenues 2023 2022 Change Long-term contracts 433.8 397.6 36.2 Operating grants 86.2 52.9 33.3 White certificates 47.1 14.5 32.6 Grants related to plants 13.3 12.8 0.5 Gains from asset disposals 1.8 0.9 0.9 Other revenues 85.6 69.5 16.1 Total 667.8 548.2 119.6 \u201cLong-term contracts\u201d include revenues generated from the construction or improvement of infrastructures held in concession as per the application of the accounting model for intangible assets for public services held under concession. \u201cOperating grants\u201d mainly involve: \u25aa grants related to gas and electricity costs amounting to 43.3 million euro (38 million euro at 31 December 2022), recognised, in the form of tax credits, by the government\u2019s aid decrees introduced since the 2022 financial year to address the energy price emergency. These grants were fully offset already in 2023 with taxes and contributions to be paid by the Group; \u25aa grants amounting to 35.7 million euro recompensing the costs incurred for the management of the flood emergency that hit Emilia-Romagna and some neighbouring regions in May 2023, affecting part of the areas in which the Group manages public utilities. \u201cWhite certificates\u201d represent the revenues calculated on the basis of energy efficiency objectives as established by the GSE and regulated in relation to the Cassa per i Servizi Energetici e Ambientali, amounting to 47.1 million euro (14.5 million euro at 31 December 2022). The change compared to the previous year was mainly due to the higher number of certificates defined for the 2023 obligation, with essentially the same tariff contribution recognised for distribution companies, as well as the different modality for fulfilment of 2022 obligations compared to what was included in the financial statements at 31 December 2022. \u201cGrants related to plants\u201d represent the proceeds for the period associated with the depreciation rate of the assets subject to grants. \u201cOther revenues\u201d mainly consist of insurance reimbursements and recovery of fees. In particular, note that in the year in question the Group has received insurance reimbursements for the flood emergency described above, amounting to 10 million euro for the costs incurred linked to the reconstruction of plant and network equipment. 6 Other operating costs 2023 2022 Change Taxation other than income taxes 25.0 23.3 1.7 Losses on the sale and disposal of assets 16.6 9.2 7.4 Fees paid to Institutional Authorities 15.5 13.3 2.2 Minor charges 33.2 29.1 4.1 Total 90.3 74.9 15.4 \u201cTaxation other than income taxes\u201d mainly relate to taxes on buildings, stamp duties and registration fees, public area occupation fee, fees related to the landfills managed and excise duties. \u201cLosses on the sale and disposal of assets\u201d were mainly due to the disposals carried out during the year of plants and equipment related to network-managed businesses, district heating and waste management. This amount includes the effects of the May 2023 flooding that affected some areas managed by the Group. \u201cFees paid to Institutional authorities\u201d paid to the regions, land reclamation consortia, sector agencies and mountain-area communities, mainly regarding the withdrawal and use of water, as well as maintenance and management costs for hydraulic works. The item also includes fees for the safeguarding of hydrogeological protection areas in mountain municipalities (as provided for by Regional government decree. 933/2012) and fees paid for the operation of Atersir. \u201cMinor charges\u201d comprise other residual items including membership fees, indemnities, sanctions and fines. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-447": { "value": "2 Other operating revenues 2023 2022 Change Long-term contracts 433.8 397.6 36.2 Operating grants 86.2 52.9 33.3 White certificates 47.1 14.5 32.6 Grants related to plants 13.3 12.8 0.5 Gains from asset disposals 1.8 0.9 0.9 Other revenues 85.6 69.5 16.1 Total 667.8 548.2 119.6 \u201cLong-term contracts\u201d include revenues generated from the construction or improvement of infrastructures held in concession as per the application of the accounting model for intangible assets for public services held under concession. \u201cOperating grants\u201d mainly involve: \u25aa grants related to gas and electricity costs amounting to 43.3 million euro (38 million euro at 31 December 2022), recognised, in the form of tax credits, by the government\u2019s aid decrees introduced since the 2022 financial year to address the energy price emergency. These grants were fully offset already in 2023 with taxes and contributions to be paid by the Group; \u25aa grants amounting to 35.7 million euro recompensing the costs incurred for the management of the flood emergency that hit Emilia-Romagna and some neighbouring regions in May 2023, affecting part of the areas in which the Group manages public utilities. \u201cWhite certificates\u201d represent the revenues calculated on the basis of energy efficiency objectives as established by the GSE and regulated in relation to the Cassa per i Servizi Energetici e Ambientali, amounting to 47.1 million euro (14.5 million euro at 31 December 2022). The change compared to the previous year was mainly due to the higher number of certificates defined for the 2023 obligation, with essentially the same tariff contribution recognised for distribution companies, as well as the different modality for fulfilment of 2022 obligations compared to what was included in the financial statements at 31 December 2022. \u201cGrants related to plants\u201d represent the proceeds for the period associated with the depreciation rate of the assets subject to grants. \u201cOther revenues\u201d mainly consist of insurance reimbursements and recovery of fees. In particular, note that in the year in question the Group has received insurance reimbursements for the flood emergency described above, amounting to 10 million euro for the costs incurred linked to the reconstruction of plant and network equipment. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-43": { "value": "\u201cOperating grants\u201d mainly involve: \u25aa grants related to gas and electricity costs amounting to 43.3 million euro (38 million euro at 31 December 2022), recognised, in the form of tax credits, by the government\u2019s aid decrees introduced since the 2022 financial year to address the energy price emergency. These grants were fully offset already in 2023 with taxes and contributions to be paid by the Group; \u25aa grants amounting to 35.7 million euro recompensing the costs incurred for the management of the flood emergency that hit Emilia-Romagna and some neighbouring regions in May 2023, affecting part of the areas in which the Group manages public utilities. \u201cWhite certificates\u201d represent the revenues calculated on the basis of energy efficiency objectives as established by the GSE and regulated in relation to the Cassa per i Servizi Energetici e Ambientali, amounting to 47.1 million euro (14.5 million euro at 31 December 2022). The change compared to the previous year was mainly due to the higher number of certificates defined for the 2023 obligation, with essentially the same tariff contribution recognised for distribution companies, as well as the different modality for fulfilment of 2022 obligations compared to what was included in the financial statements at 31 December 2022. \u201cGrants related to plants\u201d represent the proceeds for the period associated with the depreciation rate of the assets subject to grants. ", "dimensions": { "concept": "ifrs-full:DisclosureOfGovernmentGrantsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-457": { "value": "3 Raw and other materials 2023 2022 Change Raw materials earmarked for sale 9,330.9 16,725.0 (7,394.1) Environmental certificates 117.7 35.1 82.6 Materials for industrial use 57.7 41.4 16.3 Plastic materials 57.1 93.6 (36.5) Charges and revenues from derivatives (188.7) (371.4) 182.7 Maintenance and other materials 297.5 206.3 91.2 Total 9,672.2 16,730.0 7,057.8 \u201cRaw materials earmarked for sale\u201d, net of changes in stocks and the write-downs introduced, include supplies of natural gas, electricity and water. The natural gas brokerage business on the Dutch TTF market generated costs of 1,927 million euro (4,364.9 million euro at 31 December 2022). The decrease seen during the period, similarly to what was described in Note 1, \u201cRevenues\u201d, was due to the reduction in energy commodity procurement prices and lower volumes of gas sold, which were partially offset by the increase in volumes sold to electricity end customers. \u201dEnvironmental certificates\u201d include the purchase cost of white certificates, which are supplied in accordance with the obligations assigned to the distribution companies. This item also includes the environmental certificates in stock, mainly made up of grey certificates as well as the valorisation of commitments for purchasing electricity from renewable sources in relation to contracts signed with end customers and greenhouse gas emission allowance trading contracts. The increase seen during the period involved the higher number of trading portfolio grey certificate transactions, higher obligations for white certificates pertaining to 2023, and higher charges for purchase commitments for certificates of origin of electricity from renewable sources, the latter matched by increased unit prices. \u201cMaterials for industrial use\u201d mainly include the procurement of methane gas and electricity to power the Group\u2019s production plants, as well as the purchase of fuels and lubricants for fleet management. \u201cPlastic materials\u201d, net of changes in stocks, include the cost of purchasing plastic raw materials destined for subsequent processing and transformation as part of Aliplast\u2019s activities. The change in costs was consistent with the decrease in sales revenue as a result of the trend seen in the plastics market which, after a considerable price increase during the previous year, showed a downward trend, settling back to the prices of previous years. \u201cMaintenance and other materials\u201d, net of changes in stocks, mainly include consumables used in the management of the Group\u2019s operating activities and, marginally, products purchased to be resold to end customers. The significant increase seen during the period was mainly due to increased activities for network services, energy services related to energy efficiency, in particular in apartment buildings, and the effect of the acquisition of control transactions that took place in 2023. As regards \u201cCharges and revenues from derivatives\u201d, see Note 29, \u201cDerivative instruments\u201d, for an analysis of the nature and performance of these items. 4 Service costs 2023 2022 Change Work and maintenance expenses 1,252.0 872,2 379.8 Transport and storage 1,221.2 269.3 951.9 Waste transportation, disposal and collection 560.4 467.6 92.8 Technical services 161.9 119.6 42.3 IT and data processing services 83.3 65.5 17.8 Fees paid to local authorities 64.3 61.7 2.6 Professional services 56.6 43.5 13.1 Other service costs 256.2 206.4 49.8 Total 3,655.9 2,105.8 1,550.1 \u201cWork and maintenance expenses\u201d refer to the costs for the construction or improvement of infrastructures under concession pursuant to the application of the accounting model for intangible assets for public services held under concession, the costs of implementing energy efficiency measures, and the costs for maintaining the plants managed by the Group. The change with respect to the previous year is mainly due to activities related to increasing the energy efficiency of apartment buildings. Also note that this item was influenced at 31 December 2023 by costs related to the emergency that struck Emilia-Romagna and neighbouring regions in May 2023, affecting part of the areas in which the Group manages public utilities. \u201cTransport and storage\u201d include the costs of transporting and storing gas as well as the costs of distributing gas and electricity distribution, including system charges. The latter, in particular, represent cost components charged to end customers and therefore not substantially affecting the Group\u2019s results. The change compared to the previous year is mainly attributable to: \u25aa higher system charges related to the electricity business, following the conclusion of the effects of the regulatory measures that, starting from the last quarter of 2021 and until the first quarter of 2023, called first for a reduction and later the annulment of general system charges in the electricity sector for a very wide range of users, in order to lower the high bills caused by sharp rises in energy commodity prices; \u25aa higher natural gas storage and transportation costs due to the greater volumes managed directly by the Group on Remi substations, without turning to procurement contracts; \u25aa higher electricity commodity distribution costs mainly due to the increase in volumes sold. \u201cWaste transportation, disposal and collection\u201d mainly include the operating costs of urban hygiene and waste disposal activities. The change from the previous year was due to: \u25aa the effect of the acquisition transactions carried out in 2023, relating in particular to the company A.C.R. Spa, which operates in the waste treatment business; \u25aa the atmospheric emergency that struck Emilia-Romagna and neighbouring regions in May 2023, affecting part of the areas in which the Group manages public utilities; \u25aa higher waste transport and treatment costs due to an increase in trading, which led to a rise in the volumes treated on the utility market and for the management of by-products. \u201cTechnical services\u201d mainly include costs incurred in carrying out the administrational activities related to increasing the energy efficiency of apartment buildings and installing photovoltaic systems for the Group\u2019s end customers. \u201cIT and data processing services\u201d include costs for maintaining and managing the Group\u2019s IT and telecommunications infrastructure, as well as corporate applications and cybersecurity systems. The item \u201cFees paid to local authorities\u201d includes the charges incurred for the use of public owned networks, fees paid to companies that own these assets for the rent of gas, water and electricity cycle assets. It also includes, marginally, the fees paid for the use of telecommunications and district heating networks. \u201cProfessional services\u201d include charges for commercial, legal, notary, administrative and tax services. This item includes fees paid for auditing financial statements and issuing certifications. The change compared to the previous year was due to the increase in costs for both managing documents for receivables, arising from the application of the discount included in invoices for improving the energy efficiency of apartment buildings, and managing receivables in litigation and credit recovery. \u201cOther service costs\u201d include all other costs for services not specified in the above categories. This item also includes commissions and other costs to agents totalling 39.2 million euro (21.4 million euro at of 31 December 2022) and bank commissions in the amount of 22.3 million euro (15.2 million euro at 31 December 2022). Note that the item \u201cOther service costs\u201d also includes instalments relating to short-term leases and low-value leases, the amount of which is not significant for 2023. 5 Personnel costs 2023 2022 Change Salaries and wages 455.0 423.0 32.0 Social security costs 147.7 136.7 11.0 Other costs 38.4 41.4 (3.0) Total 641.1 601.1 40.0 The increase as compared to the previous year is mainly linked to: \u25aa an increase in the number of employees in force, especially as a result of the acquisitions made in 2023; \u25aa changes in salaries provided for by the national collective labour agreements. These effects were partially offset by lower charges incurred for termination of employment compared to the previous year. The average and specific number of employees for the period in question, analysed by category, is as follows: Average Specific 2023 2022 Change 2023 2022 Change Managers 159 154 5 158 153 5 Middle managers 591 580 11 593 593 \u2010 Clerks 5,616 5,276 340 5,604 5,251 353 Blue-collar workers 3,644 3,441 203 3,610 3,418 192 Total 10,009 9,451 558 9,965 9,415 550 The average cost of labour per capita for 2023, in line with 2022, is as follows: thousand euro 2023 2022 Change Average cost of labour per capita 64.0 64.0 \u2010 6 Other operating costs 2023 2022 Change Taxation other than income taxes 25.0 23.3 1.7 Losses on the sale and disposal of assets 16.6 9.2 7.4 Fees paid to Institutional Authorities 15.5 13.3 2.2 Minor charges 33.2 29.1 4.1 Total 90.3 74.9 15.4 \u201cTaxation other than income taxes\u201d mainly relate to taxes on buildings, stamp duties and registration fees, public area occupation fee, fees related to the landfills managed and excise duties. \u201cLosses on the sale and disposal of assets\u201d were mainly due to the disposals carried out during the year of plants and equipment related to network-managed businesses, district heating and waste management. This amount includes the effects of the May 2023 flooding that affected some areas managed by the Group. \u201cFees paid to Institutional authorities\u201d paid to the regions, land reclamation consortia, sector agencies and mountain-area communities, mainly regarding the withdrawal and use of water, as well as maintenance and management costs for hydraulic works. The item also includes fees for the safeguarding of hydrogeological protection areas in mountain municipalities (as provided for by Regional government decree. 933/2012) and fees paid for the operation of Atersir. \u201cMinor charges\u201d comprise other residual items including membership fees, indemnities, sanctions and fines. 7 Capitalised costs 2023 2022 Change Increase of self-constructed assets 82.1 82.5 (0.4) This item, in line with the previous year, mainly includes labour costs and other charges (such as storage materials and costs for use of equipment) directly attributable to the Group\u2019s self-constructed assets.", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-477": { "value": "4 Service costs 2023 2022 Change Work and maintenance expenses 1,252.0 872,2 379.8 Transport and storage 1,221.2 269.3 951.9 Waste transportation, disposal and collection 560.4 467.6 92.8 Technical services 161.9 119.6 42.3 IT and data processing services 83.3 65.5 17.8 Fees paid to local authorities 64.3 61.7 2.6 Professional services 56.6 43.5 13.1 Other service costs 256.2 206.4 49.8 Total 3,655.9 2,105.8 1,550.1 \u201cWork and maintenance expenses\u201d refer to the costs for the construction or improvement of infrastructures under concession pursuant to the application of the accounting model for intangible assets for public services held under concession, the costs of implementing energy efficiency measures, and the costs for maintaining the plants managed by the Group. The change with respect to the previous year is mainly due to activities related to increasing the energy efficiency of apartment buildings. Also note that this item was influenced at 31 December 2023 by costs related to the emergency that struck Emilia-Romagna and neighbouring regions in May 2023, affecting part of the areas in which the Group manages public utilities. \u201cTransport and storage\u201d include the costs of transporting and storing gas as well as the costs of distributing gas and electricity distribution, including system charges. The latter, in particular, represent cost components charged to end customers and therefore not substantially affecting the Group\u2019s results. The change compared to the previous year is mainly attributable to: \u25aa higher system charges related to the electricity business, following the conclusion of the effects of the regulatory measures that, starting from the last quarter of 2021 and until the first quarter of 2023, called first for a reduction and later the annulment of general system charges in the electricity sector for a very wide range of users, in order to lower the high bills caused by sharp rises in energy commodity prices; \u25aa higher natural gas storage and transportation costs due to the greater volumes managed directly by the Group on Remi substations, without turning to procurement contracts; \u25aa higher electricity commodity distribution costs mainly due to the increase in volumes sold. \u201cWaste transportation, disposal and collection\u201d mainly include the operating costs of urban hygiene and waste disposal activities. The change from the previous year was due to: \u25aa the effect of the acquisition transactions carried out in 2023, relating in particular to the company A.C.R. Spa, which operates in the waste treatment business; \u25aa the atmospheric emergency that struck Emilia-Romagna and neighbouring regions in May 2023, affecting part of the areas in which the Group manages public utilities; \u25aa higher waste transport and treatment costs due to an increase in trading, which led to a rise in the volumes treated on the utility market and for the management of by-products. \u201cTechnical services\u201d mainly include costs incurred in carrying out the administrational activities related to increasing the energy efficiency of apartment buildings and installing photovoltaic systems for the Group\u2019s end customers. \u201cIT and data processing services\u201d include costs for maintaining and managing the Group\u2019s IT and telecommunications infrastructure, as well as corporate applications and cybersecurity systems. The item \u201cFees paid to local authorities\u201d includes the charges incurred for the use of public owned networks, fees paid to companies that own these assets for the rent of gas, water and electricity cycle assets. It also includes, marginally, the fees paid for the use of telecommunications and district heating networks. \u201cProfessional services\u201d include charges for commercial, legal, notary, administrative and tax services. This item includes fees paid for auditing financial statements and issuing certifications. The change compared to the previous year was due to the increase in costs for both managing documents for receivables, arising from the application of the discount included in invoices for improving the energy efficiency of apartment buildings, and managing receivables in litigation and credit recovery. \u201cOther service costs\u201d include all other costs for services not specified in the above categories. This item also includes commissions and other costs to agents totalling 39.2 million euro (21.4 million euro at of 31 December 2022) and bank commissions in the amount of 22.3 million euro (15.2 million euro at 31 December 2022). Note that the item \u201cOther service costs\u201d also includes instalments relating to short-term leases and low-value leases, the amount of which is not significant for 2023.", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-448": { "value": "5 Personnel costs 2023 2022 Change Salaries and wages 455.0 423.0 32.0 Social security costs 147.7 136.7 11.0 Other costs 38.4 41.4 (3.0) Total 641.1 601.1 40.0 The increase as compared to the previous year is mainly linked to: \u25aa an increase in the number of employees in force, especially as a result of the acquisitions made in 2023; \u25aa changes in salaries provided for by the national collective labour agreements. These effects were partially offset by lower charges incurred for termination of employment compared to the previous year. The average and specific number of employees for the period in question, analysed by category, is as follows: Average Specific 2023 2022 Change 2023 2022 Change Managers 159 154 5 158 153 5 Middle managers 591 580 11 593 593 \u2010 Clerks 5,616 5,276 340 5,604 5,251 353 Blue-collar workers 3,644 3,441 203 3,610 3,418 192 Total 10,009 9,451 558 9,965 9,415 550
The average cost of labour per capita for 2023, in line with 2022, is as follows:
thousand euro
2023
2022
Change
Average cost of labour per capita
64.0
64.0
\u2010
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-44": { "value": "The average and specific number of employees for the period in question, analysed by category, is as follows: Average Specific 2023 2022 Change 2023 2022 Change Managers 159 154 5 158 153 5 Middle managers 591 580 11 593 593 \u2010 Clerks 5,616 5,276 340 5,604 5,251 353 Blue-collar workers 3,644 3,441 203 3,610 3,418 192 Total 10,009 9,451 558 9,965 9,415 550 ", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-45": { "value": "6 Other operating costs 2023 2022 Change Taxation other than income taxes 25.0 23.3 1.7 Losses on the sale and disposal of assets 16.6 9.2 7.4 Fees paid to Institutional Authorities 15.5 13.3 2.2 Minor charges 33.2 29.1 4.1 Total 90.3 74.9 15.4 \u201cTaxation other than income taxes\u201d mainly relate to taxes on buildings, stamp duties and registration fees, public area occupation fee, fees related to the landfills managed and excise duties. \u201cLosses on the sale and disposal of assets\u201d were mainly due to the disposals carried out during the year of plants and equipment related to network-managed businesses, district heating and waste management. This amount includes the effects of the May 2023 flooding that affected some areas managed by the Group. \u201cFees paid to Institutional authorities\u201d paid to the regions, land reclamation consortia, sector agencies and mountain-area communities, mainly regarding the withdrawal and use of water, as well as maintenance and management costs for hydraulic works. The item also includes fees for the safeguarding of hydrogeological protection areas in mountain municipalities (as provided for by Regional government decree. 933/2012) and fees paid for the operation of Atersir. \u201cMinor charges\u201d comprise other residual items including membership fees, indemnities, sanctions and fines. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-502": { "value": "8 Amortisation, provisions and depreciation 2023 2022 Change Amortisation, depreciation and write-down 526.2 478.6 47.6 Net provisions 227.5 188.5 39.0 Total 753.7 667.1 86.6 Details of the item Amortisation, depreciation and write-down are as follows: notes 2023 2022 Change Amortisation and depreciation 21, 22, 23 519.3 477.1 42.2 Write-down 21, 22, 23 6.9 1.5 5.4 Total 526.2 478.6 47.6 Amortisation and depreciation refer to tangible assets, rights of use and intangible assets. Write-down mainly refers to waste treatment assets, amounting to 3.7 million euro. Details of the item Net provisions are as follows: notes 2023 2022 Change Provisions to the bad debts fund 33 158.0 133.9 24.1 Provisions to risks and charge funds 31 85.7 66.6 19.1 De-provisioning 31,33 (16.2) (12.0) (4.2) Total 227.5 188.5 39.0 Provisions include value adjustments to the bad debts fund and provisions for risks and charges. De-provisioning includes the re-verification of funds in view of the fact that the underlying risks no longer exist. 31 Provisions for risks and charges Opening value Provisions Financial expenses Uses Other movements Changes in the scope of consolidation Terminal value 31 Dec 22 Provision for third-party asset restoration 207.5 6.3 4.1 \u2010 \u2010 \u2010 217.9 Provision for closure and post- closure landfill expenses 182.6 6.0 8.0 (13.5) 3.2 \u2010 186.3 Provision for personnel legal cases and disputes 10.7 2.4 \u2010 (1.3) (1.0) 0.1 10.9 Provisions for waste disposal 8.1 9.3 \u2010 (7.6) (0.1) \u2010 9.7 Provision for plants dismantling 6.0 \u2010 0.1 \u2010 \u2010 \u2010 6.1 Other provisions for risks and charges 113.1 44.0 \u2010 (5.6) (16.8) \u2010 134.7 Total 528.0 68.0 12.2 (28.0) (14.7) 0.1 565.6 31 Dec 23 Provision for third-party asset restoration 217.9 6.4 4.4 \u2010 0.1 \u2010 228.8 Provision for closure and post- closure landfill expenses 186.3 6.6 0.3 (12.0) 3.9 \u2010 185.1 Provision for personnel legal cases and disputes 10.9 8.1 \u2010 (3.0) (1.0) \u2010 15.0 Provisions for waste disposal 9.7 8.3 \u2010 (9.4) (0.1) \u2010 8.5 Provision for plants dismantling 6.1 0.1 0.1 \u2010 \u2010 \u2010 6.3 Other provisions for risks and charges 134.7 59.0 \u2010 (3.3) (16.5) 0.2 174.1 Total 565.6 88.5 4.8 (27.7) (13.6) 0.2 617.8 The \u201cProvision for third-party asset restoration\u201d includes provisions made in relation to legal and contractual requirements for the Group companies as lessees of the distribution networks of the entity that owns the assets. The allocations are made on the basis of depreciation rates held to be representative of the remaining useful life of the assets in question in order to compensate the owner companies for the wear and tear of the assets used for business activities. In the event that the concession system is not yet undergoing an extension, pending the setting of tenders for the area, this provision reflects the present value of the disbursements that will be determined in future periods (generally at the expiry of the agreements signed with the area authorities, in the case of the water service, and at the end of the transitional period provided for by current legislation, in the case of gas distribution). The increases in this provision comprise the sum total of the provisions for the year, including those discounted to present value, and the financial charges for the period associated with the cash flows discounted to present value. Note that since most of the concessions are undergoing an extension, the discounting process and the resulting financial charges only refer to concessions that are still fully in force. The \u201cProvision for closure and post-closure landfill expenses\u201d represents the amount set aside to cover the costs which will have to be incurred for the management of the closure and post-closure period pertaining to the landfills currently managed. The future outlays, calculated for each landfill by means of a specific appraisal, have been discounted to present value. The increases in the provision comprise the financial component derived from the discounting process and provisions due to changes in the assumptions about future outlays, following the change in expert estimates on closed landfills. Financial expenses decreased significantly compared to the previous year, mainly due to updates in the parameters used to reflect current market conditions (in particular, the reference WACC increased by more than 1%) and to a lesser extent due to the revised assumptions on the distribution over time of future disbursements. Uses are made up of actual disbursements that occurred during the year, while \u201cOther movements\u201d mainly includes estimated closure and post-closure costs in relation to newly constructed landfills and the changes in the estimated closure and post-closure costs of active landfills, which required the recording of an adjustment having the same amount as the value of tangible assets (landfill asset), totalling 3.7 million euro for 2023. The \u201cProvision for personnel legal cases and disputes\u201d reflects the outcomes of lawsuits and disputes brought by employees. The \u201cProvision for waste disposal\u201d reports the estimated costs of disposal of the waste already stored at the Group\u2019s plants. The provisions reflect the estimated costs of contributions for 2023 not yet processed at the end of the financial period, while the uses represent the costs incurred over the period for processing waste that was residual at 31 December 2022. \u201cProvision for plants dismantling\u201d includes the amounts allocated for the future dismantling of the plants for cases in which this is mandatory. \u201cOther provisions for risks and charges\u201d comprises provisions made against sundry risks. Below, there is a description of the main items: Liabilities Type Amount (mn\u20ac) Risks arising from the activity of energy efficiency upgrading of buildings carried out on behalf of end customers, particularly apartment blocks Likely 23.8 The amount of the WTE and cogeneration plants\u2019 green certificates, calculated according to the difference between auxiliary services resulting from total self- consumption and services estimated on the basis of the benchmark percentage, was not recognised; Likely 14.0 Outstanding bonds (guarantee on financial exposure given by AcegasApsAmga Spa) in case of abandonment of the operations run by the foreign subsidiary AresGas (Bulgaria). Contingent 11.3 The higher cost of the electricity used in the water service provision was not recognised, due to the volatility of the energy market, which resulted in price values for 2022 that were higher than the allowed maximum limit provided for by the tariff system. Likely 9.3 Risk of non-reimbursement by some provincial offices of the Customs Agency, relating to surcharges on electricity reimbursed to end users following the ruling of the Court of Cassation in line with European Directive 2008/118/EC. Likely 9.0 Reimbursement of a portion of the sewerage and purification tariffs for the water service Likely 6.1 Higher expenses that may be incurred in connection with extraordinary maintenance on the Ponte San Nicol\u00f2 (Padua) landfill Contingent 5.0 Potential litigations arising from the risk of disputes in relation to the gas distribution unit of the Veneto and Friuli Venezia-Giulia regions, sold at the end of 2019 Likely 3.5 The liabilities classified as contingent were recognised as part of the business combination in the year in which it occurred. Provisions amounted to 59 million euro, increasing from the previous year mainly for regulatory and contractual execution risks. Out of the amount of \u201cOther movements\u201d, coming to 16.5 million euro, 14.7 million euro is due to the release from provisions recorded in previous years, whose valuation proved to be in excess of the actual liability. The \u201cChange in the scope of consolidation\u201d include the provisions of the companies acquired during 2023. For detailed information on risk provisions for tax litigations, see Note 12 \u201cTaxes\u201d. ", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-449": { "value": "8 Amortisation, provisions and depreciation 2023 2022 Change Amortisation, depreciation and write-down 526.2 478.6 47.6 Net provisions 227.5 188.5 39.0 Total 753.7 667.1 86.6 Details of the item Amortisation, depreciation and write-down are as follows: notes 2023 2022 Change Amortisation and depreciation 21, 22, 23 519.3 477.1 42.2 Write-down 21, 22, 23 6.9 1.5 5.4 Total 526.2 478.6 47.6 Amortisation and depreciation refer to tangible assets, rights of use and intangible assets. Write-down mainly refers to waste treatment assets, amounting to 3.7 million euro. Details of the item Net provisions are as follows: notes 2023 2022 Change Provisions to the bad debts fund 33 158.0 133.9 24.1 Provisions to risks and charge funds 31 85.7 66.6 19.1 De-provisioning 31,33 (16.2) (12.0) (4.2) Total 227.5 188.5 39.0 Provisions include value adjustments to the bad debts fund and provisions for risks and charges. De-provisioning includes the re-verification of funds in view of the fact that the underlying risks no longer exist.", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-450": { "value": "9 Share of profits (losses) pertaining to joint ventures and associated companies 2023 2022 Change Joint venture share of net profits 2.2 3.1 (0.9) Associated companies share of net profits 8.1 6.9 1.2 Total 10.3 10.0 0.3 The share of profits and losses of joint ventures and associated companies includes the effects generated by the valuation of the companies included in the scope of consolidation carried out using the equity method. For further details see Note 26, \u201cShareholdings\u201d.
31 Dec 23
31 Dec 22
Change
Shareholdings valued using the equity method
147.0
151.4
(4.4)
Other shareholdings
48.6
38.9
9.7
Total
195.6
190.3
5.3
The changes in joint ventures and associated companies as compared to 31 December 2022 take into
account the pro-quota losses and profits reported by the respective companies (including the other
components of the comprehensive income statement) as well as the possible reduction of the value for
any dividends that were distributed and for depreciations due to the impairment test.
Changes in consolidated shareholdings using the net equity method are as follows:
Associated
companies
and joint
ventures
Opening value
Investments and
disinvestments
Profit for the year
Dividends paid out
Changes in the
scope of
consolidation
Write-downs and
other changes
Terminal value
31 Dec 22
Joint ventures
Enomondo Srl
17.6
\u2010
3.1
(2.2)
\u2010
0.3
18.8
Total joint ventures
17.6
\u2010
3.1
(2.2)
\u2010
0.3
18.8
Associated companies
Aimag Spa
51.7
\u2010
2.3
(2.8)
\u2010
\u2010
51.2
Set Spa
28.5
\u2010
(0.6)
\u2010
\u2010
\u2010
27.9
Sgr Servizi Spa
25.2
\u2010
2.4
(2.0)
\u2010
(0.1)
25.5
ASM SET Srl
18.9
\u2010
1.5
(1.4)
\u2010
(0.1)
18.9
SEA - Servizi Ecologici Ambientali
Srl
8.7
\u2010
1.3
(1.0)
\u2010
0.1
9.1
Total associated companies
133.0
\u2010
6.9
(7.2)
\u2010
(0.1)
132.6
Total
150.6
\u2010
10.0
(9.4)
\u2010
0.2
151.4
31 Dec 23
Joint ventures
Enomondo Srl
18.8
\u2010
2.2
(2.2)
\u2010
(0.2)
18.6
Total joint ventures
18.8
\u2010
2.2
(2.2)
\u2010
(0.2)
18.6
Associated companies
Aimag Spa
51.2
\u2010
1.4
(1.7)
\u2010
\u2010
50.9
Set Spa
27.9
\u2010
0.6
\u2010
\u2010
(5.9)
22.6
Sgr Servizi Spa
25.5
\u2010
3.3
(2.1)
\u2010
0.1
26.8
ASM SET Srl
18.9
\u2010
1.5
(1.3)
\u2010
\u2010
19.1
SEA - Servizi Ecologici Ambientali
Srl
9.1
\u2010
1.3
(1.4)
\u2010
\u2010
9.0
Total associated companies
132.6
\u2010
8.1
(6.5)
\u2010
(5.8)
128.4
Total
151.4
\u2010
10.3
(8.7)
\u2010
(6.0)
147.0
The result for the year, essentially in line with the previous year, was positively influenced by the higher
results achieved by Sgr Servizi Spa, which operates in the business of gas and electricity commodity
sales to end customers, offset by the drop in the results of the companies Aimag Spa and Enomondo
Srl.
\u201cWrite-downs and other changes\u201d mainly include the results of the impairment test conducted on the
associated company Set Spa. For more details on the assumptions and results of the impairment tests
to which the carrying values of the investments in affiliates that represent vehicles through which the
Group holds shares in the production of electricity generation plants (Set Spa and Tamarete Energia Srl)
were subjected, see the information in Note 27 \u201cImpairment tests on shareholdings\u201d below.
Below are presented the main aggregate values of the joint venture Enomondo Srl as well as companies with significant influence (Aimag Spa, ASM SET Srl, SEA Srl, Set Spa, Sgr Servizi Spa and Tamarete Energia Srl): Assets Joint ventures Associated companies Total Non-current assets Tangible assets 33.0 401.3 434.3 Rights of use 0.4 0.4 Intangible assets 58.6 58.6 Goodwill 101.5 101.5 Shareholdings 7.3 7.3 Financial assets 0.5 13.2 13.7 Deferred tax assets 0.5 4.0 4.5 Total non-current assets 34.0 586.3 620.3 Current assets Inventories 0.7 7.0 7.7 Trade receivables 7.3 279.7 287.0 Contract work in progress 0.4 0.4 Current tax assets 0.2 2.9 3.1
Other current assets
4.5
80.3
84.8
Derivative instruments
0.3
0.3
Cash and cash equivalents
11.6
28.9
40.5
Total current assets
24.6
399.2
423.8
Total assets
58.6
985.5
1,044.1
Investee
data
Net equity and liabilities
Joint
ventures
Associated
companies
Total
Share capital and reserves
Share capital
14.0
88.0
102.0
Reserves
18.9
286.5
305.4
Profit (loss) for the period
4.4
27.0
31.4
Group net equity
37.3
401.5
438.8
Non-controlling interests
14.6
14.6
Total net equity
37.3
416.1
453.4
Non-current liabilities
Non-current financial liabilities
7.7
202.3
210.0
Non-current lease liabilities
0.3
0.3
Post-employment and other benefits
6.2
6.2
Provisions for risks and charges
0.2
41.5
41.7
Deferred tax liabilities
0.1
0.6
0.7
Derivative financial instruments
0.1
0.1
Total non-current liabilities
8.0
251.0
259.0
Current liabilities
Current financial liabilities
3.7
100.8
104.5
Current lease liabilities
0.1
0.1
Trade payables
6.3
207.4
213.7
Current tax liabilities
(0.1)
(0.1)
Other current liabilities
3.3
10.2
13.5
Total current liabilities
13.3
318.4
331.7
Total liabilities
21.3
569.4
590.7
Total net equity and total liabilities
58.6
985.5
1,044.1
Income statement
Joint
ventures
Associated
companies
Total
Revenues
28.4
773.0
801.4
Other operating revenues
1.3
4.2
5.5
Raw and other materials
(1.8)
(520.2)
(522.0)
Service costs
(16.6)
(108.3)
(124.9)
Personnel costs
(0.3)
(35.4)
(35.7)
Amortisation, provisions and depreciation
(5.0)
(56.5)
(61.5)
Other operating expenses
(0.2)
(6.4)
(6.6)
Operating profit
5.8
50.4
56.2
Financial income
0.3
8.2
8.5
Financial expenses
(0.6)
(18.9)
(19.5)
Total financial operations
(0.3)
(10.7)
(11.0)
Other non-operating revenues (expenses)
0.3
0.3
Earnings before taxes
5.5
40.0
45.5
Taxes for the period
(1.1)
(12.5)
(13.6)
Net profit for the period
4.4
27.5
31.9
Jointly controlled entities Registered name Registered office Share capital (Euro) Percentage held Total interest direct indirect Enomondo Srl Faenza (RA) 14,000,000 37.50% 37.50% Hera Spa Bologna 50,000 37.50% 37.50% Associated companies Registered name Registered office Share capital (euro) (*) Percentage held Total interest direct indirect Aimag Spa* Mirandola (MO) 78,027,681 25.00% 25.00% ASM Servizi Energetici e Tecnologici-ASM SET Srl Rovigo 200,000 49.00% 49.00% SEA - Servizi Ecologici Ambientali Srl Camerata Picena (AN) 100,000 23.25% 23.25% Set Spa Milan 120,000 39.00% 39.00% Sgr Servizi Spa Rimini 5,982,262 29.61% 29.61% Tamarete Energia Srl Ortona (CH) 3,600,000 40.00% 40.00% *The share capital of these companies consists of 67,577,681 euro of ordinary shares and 10,450,000 euro of related shares. Summary of key figures of the financial statements of joint ventures pursuant to Article 2429, last paragraph, of the Civil Code. thousand euro Enomondo Srl ASSETS Fixed assets 36,893 Circulating assets 24,894 Total assets 61,788 LIABILITIES Share capital 14,000 Reserves 23,611 Net profit / (loss) 2,952 Provisions 229 Severance pay provision 28 Payables 20,969 Total liabilities 61,788 INCOME STATEMENT Production value 29,614 Production costs (25,378) Financial income / (expenses) (243) Extraordinary income / (expenses) Taxes for the year (1.042) Net profit / (loss) 2,952 Summary of key figures of the financial statements of associated companies pursuant to Article 2429, last paragraph, of the Civil code. thousand euro Aimag Spa ASM SET Srl SEA - Servizi Ecologici Ambientali Srl Set Spa Sgr Servizi Spa Tamarete Energia Srl ASSETS Fixed assets 389,816 154 13,307 100,246 1,378 46,727 Circulating assets 277,870 11,558 14,116 68,551 116,138 14,947 Total assets 667,686 11,712 27,423 168,797 117,516 61,674 LIABILITIES Share capital 78,028 200 100 120 5,982 3,600 Reserves 140,805 367 10,274 71,385 46,510 1;993 Net profit / (loss) 10,898 2,955 4,370 1;432 10,588 477 Provisions 33,532 2 1,406 - 227 4,110 Severance pay provision 3,446 297 548 308 1,595 Payables 400,977 7,891 10,724 95,551 52,614 51,494 Total liabilities 667,686 11,712 27,423 168,797 117,516 61,674 INCOME STATEMENT Production value 559,638 33,282 19,102 134,107 172,682 18,984 Production costs (542,130) (29,120) (12,843) (131,219) (158,100) (16,410) Financial income / (expenses) (2,514) (16) 212 (395) 257 (1,913) Extraordinary income / (expenses) 425 (476) Taxes for the year (4,521) (1,191) (2,102) (584) (4,250) (185) Net profit / (loss) 10,898 2,955 4,370 1;432 10,588 477", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-518": { "value": "10 Financial income 2023 2022 Change Customers 47.8 24.2 23.6 Income from valuation at fair value of financial assets and liabilities 46.9 11.2 35.7 Bank interest 27.4 1.1 26.3 Income from derivatives 5.1 18.3 (13.2) Income from the disposal of tax credits 0.1 16.0 (15.9) Other financial income 29.8 11.4 18.4 Total 157.1 82.2 74.9 \u201cCustomers\u201d mainly include interest on arrears in the gas and electricity sales business and interest applied to customers for energy efficiency enhancement measures linked to the 110% super-bonus. The item \u201cIncome from valuation at fair value of financial assets and liabilities\u201d includes the following: notes 2023 2022 Change Put options and contingent consideration 19 31.3 12.6 18.7 Bonds 29 15.6 \u2010 15.6 Other reserves \u2010 (1.4) 1.4 Total 46.9 11.2 35.7 \u25aa Put options and contingent consideration represent the positive effects of updating the estimates of liabilities recognized in previous years in connection with one-time acquisition transactions. The amount at 31 December 2023 mainly includes the effects of: \u2013 the updated valuation, amounting to 26.9 million euro, of the liability for the put option held by Ascopiave Spa on the minority interest in EstEnergy Spa, taking into account the partial exercise of a 15% share that occurred; \u2013 the excess, amounting to 4.1 million euro, of the value of the put option on the minority interest in Recycla Spa, following the exercise thereof, which resulted in the Group obtaining all of the shares. \u25aa Bonds represent valuation adjustments, in application of the fair value hedge, of a bond loan in currency. \u201cBank interest\u201d includes income from the short-term use of available liquidity. The significant change compared to the previous year is due to an increase in average balances bearing interest rates that rose during the year. \u201cIncome from derivatives\u201d includes the effects of both valuation and realization of interest and foreign exchange derivatives, as detailed in Note 29 \u201cDerivative Instruments\u201d. \u201cIncome from the disposal of tax credits\u201d represents the financial income realized following the transfers to banking institutions of tax credits resulting from the application of the discount on invoices for energy efficiency work carried out on behalf of customers who have taken advantage of the 110% super-bonus rebate. The near-annulment of this item is due to both the increasingly restrictive measures issued by the government beginning in late 2022 deadline concerning the reference legislation, and the increase in the cost of money, which led to an increase in the discount rate requested by financial institutions to the point of creating transfer prices lower than the nominal value of the original receivable. The effect of this was the recording, in relation to these transactions, of transfer charges, as explained in Note 11, \u201cFinancial expenses\u201d. The item \u201cOther financial income\u201d includes the following: notes 2023 2022 Change Discounting of energy efficiency receivables 7.8 \u2010 7.8 Dividends 6.4 4.1 2.3 Discounting of non-current financial receivables 18 6.3 4.7 1.6 Write-backs of value 25, 27 3.5 \u2010 3.5 Loans 18 2.1 2.0 0.1 Other 3.7 0.6 3.1 Total 29.8 11.4 18.4 \u25aa Discounting of energy efficiency receivables represents the valuation at amortised cost of tax credits deriving from the application of the discount included in invoices for apartment building redevelopment, intended compensation within the Group thanks to the use of its tax capacity; \u25aa Dividends represent the portions of profit paid by companies classified as \u201cOther equity investments\u201d, specifically referring to the equity investment in Ascopiave Spa and Veneta Sanitaria Spa, which increased due to the payment of a non-recurring dividend by the latter during 2023; \u25aa Discounting of non-current financial receivables mainly includes the effect of valuation at the amortised cost the receivables for construction and improvements of assets recorded as part of applying the financial activity model for public services under concession; \u25aa Write-backs of value mainly refer to the portion of financial receivables previously written down concerning the associated companies Tamarete Energia Srl and H.E.P.T. Co. Ltd., which were collected during the year; \u25aa The item Loans, in line with the previous year, represents interest income on loans granted to companies valued at net equity and minor investees. 11 Financial expenses 2023 2022 Change Expenses from bonds and loans 133.9 82.2 51.7 Factoring charges and disposals of tax credits 58.8 47.3 11.5 Expenses from valuation at fair value of financial assets and liabilities 56.5 (6.3) 62.8 Valuation at ammortized cost of financial liabilities 33.5 30.0 3.5 Expenses from derivatives 23.8 21.4 2.4 Discounting of options and consideration on equity investments 17.6 20.7 (3.1) Discounting of provisions 7.9 12.5 (4.6) Other financial expenses 13.0 9.4 3.6 Total 345.0 217.2 127.8 \u201cExpenses from bonds and loans\u201d include interest for the period relating to bond instruments issued by the parent company Hera Spa and interest relating to loans provided by the banking system and other financing institutions. The financial collection operations carried out during the second half of 2022 in order to meet the cash requirements caused by the macroeconomic context, strongly influenced by the rise in commodity prices and the significant amount of gas storage in a context of rising interest rates, led to a significant increase in the Group\u2019s short-medium term debt expenses for 2023. \u201cFactoring charges and disposals of tax credits\u201d includes the following: notes 2023 2022 Change Disposals of trade receivables and other operating receivables 44.8 14.0 30.8 Disposals of tax credits 35 14.0 33.3 (19.3) Total 58.8 47.3 11.5 \u25aa Disposals of trade receivables and other operating receivables increased as a result of the higher discount rates applied in the year in question by financial institutions, despite a reduction in the volume of receivables transferred, and a change in the mix of receivables concerned by transfers, since assets characterised by longer and, therefore, more costly collection times became prevalent. \u25aa Disposals of tax credits includes expenses caused by the transfer of receivables recognised as a result of the application of the discount included in invoices to customers for energy efficiency measures. The decrease in these charges compared to the previous year, despite an increase in the nominal value of the transfers carried out and the respective discount rates, is essentially due to the different mix of receivables transferred. In 2023, in fact, only credits for the 110% super-bonus were transferred, while in the previous year the transfers also referred to other types of tax credits, which were more costly since they were to be paid over a longer period of time. Furthermore, as explained in Note 10 \u201cFinancial income\u201d with reference to the 110% super-bonus credits, the increase in interest rates and the regulatory tightening resulted in financial expenses being recognised in 2023 against financial income recognised in the previous year. The item \u201cExpenses from valuation at fair value of financial assets and liabilities\u201d includes the following: notes 2023 2022 Change Energy efficiency credits 35 56.4 (12.6) 69.0 Minority shareholders\u2019 put option 19 0.1 5.7 (5.6) Bonds 29 \u2010 0.6 (0.6) Total 56.5 (6.3) 62.8 \u25aa Energy efficiency credits involved the valuation at market value of receivables related to the application of the discount included in invoices to end customers for energy efficiency measures. The accounting policy adopted by the Group foresees that in the event of a subsequent transfer, the final charge correlated to the transaction is recognised under the item \u201cFactoring and tax credit transfer charges\u201d, while at the same time closing the valuation position opened in the previous year, generating a substantially offsetting effect, while in the event of compensation within the Group, the valuation is made at amortised cost, recording a corresponding financial income by way of the cash savings generated. The significant increase in valuation expenses compared to the previous year is attributable to both the greater volume of receivables in the portfolio at 31 December 2023, as a result of the energy efficiency works falling under the 110% super-bonus regulations and the lower market value used for the valuation compared to 2022; \u25aa Put options and contingent consideration represent the negative effects of updating the estimates of liabilities recognized in previous years in connection with one-time commercial acquisition transactions. \u201cValuation at ammortized cost of financial liabilities\u201d include imputed charges necessary to bring the face cost of debt in line with that calculated using the effective interest rate method. The item also includes figurative charges of 3.2 million euro, in line with the previous year, relating to the put option held by Ascopiave Spa on the minority shareholding in Hera Comm, accounted for as a loan (with a nominal value of 54 million euro), as reported in Note 19, \u201cFinancial liabilities.\u201d The increase seen during the year was mainly due to the green bond issued in May 2022 and the sustainability-linked bond issued in April 2023. \u201cExpenses from derivatives\u201d includes the effects of both valuation and realization of interest and foreign exchange derivatives, as detailed in Note 29 \u201cDerivative Instruments.\u201d \u201cDiscounting of options and consideration on equity investments\u201d mainly includes notional discounting charges related to the fair value valuation of put options granted to minority shareholders, as reported in Note 19 \u201cFinancial liabilities\u201d. \u201cDiscounting of provisions\u201d is broken down as follows: notes 2023 2022 Change Restoration of third-party assets 31 4.4 4.1 0.3 Post-employment and other employee benefits 30 3.0 0.3 2.7 Post-closure landfills 31 0.3 8.0 (7.7) Plant dismantling 31 0.2 0.1 0.1 Total 7.9 12.5 (4.6) See the notes to the respective balance sheet items for an analysis of the change in charges for funds updating from the comparison year, where significant. The item \u201cOther financial expenses\u201d, residual in nature, includes the following: notes 2023 2022 Change Write-downs 27 5.9 \u2010 5.9 Leases 22 2.8 2.6 0.2 Other expenses 4.3 6.8 (2.5) Total 13.0 9.4 3.6 Write-downs include the valuations made during impairment tests on shareholdings and refer entirely to the investment in the associated company Set Spa, a vehicle through which the Group holds production quotas for a power generation plant. For further details, see Note 27 \u201cImpairment tests on equity investments\u201d. Other expenses mainly include interest for financial intermediation and interest related to payment deferrals. ", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-503": { "value": "10 Financial income 2023 2022 Change Customers 47.8 24.2 23.6 Income from valuation at fair value of financial assets and liabilities 46.9 11.2 35.7 Bank interest 27.4 1.1 26.3 Income from derivatives 5.1 18.3 (13.2) Income from the disposal of tax credits 0.1 16.0 (15.9) Other financial income 29.8 11.4 18.4 Total 157.1 82.2 74.9 \u201cCustomers\u201d mainly include interest on arrears in the gas and electricity sales business and interest applied to customers for energy efficiency enhancement measures linked to the 110% super-bonus. The item \u201cIncome from valuation at fair value of financial assets and liabilities\u201d includes the following: notes 2023 2022 Change Put options and contingent consideration 19 31.3 12.6 18.7 Bonds 29 15.6 \u2010 15.6 Other reserves \u2010 (1.4) 1.4 Total 46.9 11.2 35.7 \u25aa Put options and contingent consideration represent the positive effects of updating the estimates of liabilities recognized in previous years in connection with one-time acquisition transactions. The amount at 31 December 2023 mainly includes the effects of: \u2013 the updated valuation, amounting to 26.9 million euro, of the liability for the put option held by Ascopiave Spa on the minority interest in EstEnergy Spa, taking into account the partial exercise of a 15% share that occurred; \u2013 the excess, amounting to 4.1 million euro, of the value of the put option on the minority interest in Recycla Spa, following the exercise thereof, which resulted in the Group obtaining all of the shares. \u25aa Bonds represent valuation adjustments, in application of the fair value hedge, of a bond loan in currency. \u201cBank interest\u201d includes income from the short-term use of available liquidity. The significant change compared to the previous year is due to an increase in average balances bearing interest rates that rose during the year. \u201cIncome from derivatives\u201d includes the effects of both valuation and realization of interest and foreign exchange derivatives, as detailed in Note 29 \u201cDerivative Instruments\u201d. \u201cIncome from the disposal of tax credits\u201d represents the financial income realized following the transfers to banking institutions of tax credits resulting from the application of the discount on invoices for energy efficiency work carried out on behalf of customers who have taken advantage of the 110% super-bonus rebate. The near-annulment of this item is due to both the increasingly restrictive measures issued by the government beginning in late 2022 deadline concerning the reference legislation, and the increase in the cost of money, which led to an increase in the discount rate requested by financial institutions to the point of creating transfer prices lower than the nominal value of the original receivable. The effect of this was the recording, in relation to these transactions, of transfer charges, as explained in Note 11, \u201cFinancial expenses\u201d. The item \u201cOther financial income\u201d includes the following: notes 2023 2022 Change Discounting of energy efficiency receivables 7.8 \u2010 7.8 Dividends 6.4 4.1 2.3 Discounting of non-current financial receivables 18 6.3 4.7 1.6 Write-backs of value 25, 27 3.5 \u2010 3.5 Loans 18 2.1 2.0 0.1 Other 3.7 0.6 3.1 Total 29.8 11.4 18.4 \u25aa Discounting of energy efficiency receivables represents the valuation at amortised cost of tax credits deriving from the application of the discount included in invoices for apartment building redevelopment, intended compensation within the Group thanks to the use of its tax capacity; \u25aa Dividends represent the portions of profit paid by companies classified as \u201cOther equity investments\u201d, specifically referring to the equity investment in Ascopiave Spa and Veneta Sanitaria Spa, which increased due to the payment of a non-recurring dividend by the latter during 2023; \u25aa Discounting of non-current financial receivables mainly includes the effect of valuation at the amortised cost the receivables for construction and improvements of assets recorded as part of applying the financial activity model for public services under concession; \u25aa Write-backs of value mainly refer to the portion of financial receivables previously written down concerning the associated companies Tamarete Energia Srl and H.E.P.T. Co. Ltd., which were collected during the year; \u25aa The item Loans, in line with the previous year, represents interest income on loans granted to companies valued at net equity and minor investees. 11 Financial expenses 2023 2022 Change Expenses from bonds and loans 133.9 82.2 51.7 Factoring charges and disposals of tax credits 58.8 47.3 11.5 Expenses from valuation at fair value of financial assets and liabilities 56.5 (6.3) 62.8 Valuation at ammortized cost of financial liabilities 33.5 30.0 3.5 Expenses from derivatives 23.8 21.4 2.4 Discounting of options and consideration on equity investments 17.6 20.7 (3.1) Discounting of provisions 7.9 12.5 (4.6) Other financial expenses 13.0 9.4 3.6 Total 345.0 217.2 127.8 \u201cExpenses from bonds and loans\u201d include interest for the period relating to bond instruments issued by the parent company Hera Spa and interest relating to loans provided by the banking system and other financing institutions. The financial collection operations carried out during the second half of 2022 in order to meet the cash requirements caused by the macroeconomic context, strongly influenced by the rise in commodity prices and the significant amount of gas storage in a context of rising interest rates, led to a significant increase in the Group\u2019s short-medium term debt expenses for 2023. \u201cFactoring charges and disposals of tax credits\u201d includes the following: notes 2023 2022 Change Disposals of trade receivables and other operating receivables 44.8 14.0 30.8 Disposals of tax credits 35 14.0 33.3 (19.3) Total 58.8 47.3 11.5 \u25aa Disposals of trade receivables and other operating receivables increased as a result of the higher discount rates applied in the year in question by financial institutions, despite a reduction in the volume of receivables transferred, and a change in the mix of receivables concerned by transfers, since assets characterised by longer and, therefore, more costly collection times became prevalent. \u25aa Disposals of tax credits includes expenses caused by the transfer of receivables recognised as a result of the application of the discount included in invoices to customers for energy efficiency measures. The decrease in these charges compared to the previous year, despite an increase in the nominal value of the transfers carried out and the respective discount rates, is essentially due to the different mix of receivables transferred. In 2023, in fact, only credits for the 110% super-bonus were transferred, while in the previous year the transfers also referred to other types of tax credits, which were more costly since they were to be paid over a longer period of time. Furthermore, as explained in Note 10 \u201cFinancial income\u201d with reference to the 110% super-bonus credits, the increase in interest rates and the regulatory tightening resulted in financial expenses being recognised in 2023 against financial income recognised in the previous year. The item \u201cExpenses from valuation at fair value of financial assets and liabilities\u201d includes the following: notes 2023 2022 Change Energy efficiency credits 35 56.4 (12.6) 69.0 Minority shareholders\u2019 put option 19 0.1 5.7 (5.6) Bonds 29 \u2010 0.6 (0.6) Total 56.5 (6.3) 62.8 \u25aa Energy efficiency credits involved the valuation at market value of receivables related to the application of the discount included in invoices to end customers for energy efficiency measures. The accounting policy adopted by the Group foresees that in the event of a subsequent transfer, the final charge correlated to the transaction is recognised under the item \u201cFactoring and tax credit transfer charges\u201d, while at the same time closing the valuation position opened in the previous year, generating a substantially offsetting effect, while in the event of compensation within the Group, the valuation is made at amortised cost, recording a corresponding financial income by way of the cash savings generated. The significant increase in valuation expenses compared to the previous year is attributable to both the greater volume of receivables in the portfolio at 31 December 2023, as a result of the energy efficiency works falling under the 110% super-bonus regulations and the lower market value used for the valuation compared to 2022; \u25aa Put options and contingent consideration represent the negative effects of updating the estimates of liabilities recognized in previous years in connection with one-time commercial acquisition transactions. \u201cValuation at ammortized cost of financial liabilities\u201d include imputed charges necessary to bring the face cost of debt in line with that calculated using the effective interest rate method. The item also includes figurative charges of 3.2 million euro, in line with the previous year, relating to the put option held by Ascopiave Spa on the minority shareholding in Hera Comm, accounted for as a loan (with a nominal value of 54 million euro), as reported in Note 19, \u201cFinancial liabilities.\u201d The increase seen during the year was mainly due to the green bond issued in May 2022 and the sustainability-linked bond issued in April 2023. \u201cExpenses from derivatives\u201d includes the effects of both valuation and realization of interest and foreign exchange derivatives, as detailed in Note 29 \u201cDerivative Instruments.\u201d \u201cDiscounting of options and consideration on equity investments\u201d mainly includes notional discounting charges related to the fair value valuation of put options granted to minority shareholders, as reported in Note 19 \u201cFinancial liabilities\u201d. \u201cDiscounting of provisions\u201d is broken down as follows: notes 2023 2022 Change Restoration of third-party assets 31 4.4 4.1 0.3 Post-employment and other employee benefits 30 3.0 0.3 2.7 Post-closure landfills 31 0.3 8.0 (7.7) Plant dismantling 31 0.2 0.1 0.1 Total 7.9 12.5 (4.6) See the notes to the respective balance sheet items for an analysis of the change in charges for funds updating from the comparison year, where significant. The item \u201cOther financial expenses\u201d, residual in nature, includes the following: notes 2023 2022 Change Write-downs 27 5.9 \u2010 5.9 Leases 22 2.8 2.6 0.2 Other expenses 4.3 6.8 (2.5) Total 13.0 9.4 3.6 Write-downs include the valuations made during impairment tests on shareholdings and refer entirely to the investment in the associated company Set Spa, a vehicle through which the Group holds production quotas for a power generation plant. For further details, see Note 27 \u201cImpairment tests on equity investments\u201d. Other expenses mainly include interest for financial intermediation and interest related to payment deferrals. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-46": { "value": "10 Financial income 2023 2022 Change Customers 47.8 24.2 23.6 Income from valuation at fair value of financial assets and liabilities 46.9 11.2 35.7 Bank interest 27.4 1.1 26.3 Income from derivatives 5.1 18.3 (13.2) Income from the disposal of tax credits 0.1 16.0 (15.9) Other financial income 29.8 11.4 18.4 Total 157.1 82.2 74.9 \u201cCustomers\u201d mainly include interest on arrears in the gas and electricity sales business and interest applied to customers for energy efficiency enhancement measures linked to the 110% super-bonus. The item \u201cIncome from valuation at fair value of financial assets and liabilities\u201d includes the following: notes 2023 2022 Change Put options and contingent consideration 19 31.3 12.6 18.7 Bonds 29 15.6 \u2010 15.6 Other reserves \u2010 (1.4) 1.4 Total 46.9 11.2 35.7 \u25aa Put options and contingent consideration represent the positive effects of updating the estimates of liabilities recognized in previous years in connection with one-time acquisition transactions. The amount at 31 December 2023 mainly includes the effects of: \u2013 the updated valuation, amounting to 26.9 million euro, of the liability for the put option held by Ascopiave Spa on the minority interest in EstEnergy Spa, taking into account the partial exercise of a 15% share that occurred; \u2013 the excess, amounting to 4.1 million euro, of the value of the put option on the minority interest in Recycla Spa, following the exercise thereof, which resulted in the Group obtaining all of the shares. \u25aa Bonds represent valuation adjustments, in application of the fair value hedge, of a bond loan in currency. \u201cBank interest\u201d includes income from the short-term use of available liquidity. The significant change compared to the previous year is due to an increase in average balances bearing interest rates that rose during the year. \u201cIncome from derivatives\u201d includes the effects of both valuation and realization of interest and foreign exchange derivatives, as detailed in Note 29 \u201cDerivative Instruments\u201d. \u201cIncome from the disposal of tax credits\u201d represents the financial income realized following the transfers to banking institutions of tax credits resulting from the application of the discount on invoices for energy efficiency work carried out on behalf of customers who have taken advantage of the 110% super-bonus rebate. The near-annulment of this item is due to both the increasingly restrictive measures issued by the government beginning in late 2022 deadline concerning the reference legislation, and the increase in the cost of money, which led to an increase in the discount rate requested by financial institutions to the point of creating transfer prices lower than the nominal value of the original receivable. The effect of this was the recording, in relation to these transactions, of transfer charges, as explained in Note 11, \u201cFinancial expenses\u201d. The item \u201cOther financial income\u201d includes the following: notes 2023 2022 Change Discounting of energy efficiency receivables 7.8 \u2010 7.8 Dividends 6.4 4.1 2.3 Discounting of non-current financial receivables 18 6.3 4.7 1.6 Write-backs of value 25, 27 3.5 \u2010 3.5 Loans 18 2.1 2.0 0.1 Other 3.7 0.6 3.1 Total 29.8 11.4 18.4 \u25aa Discounting of energy efficiency receivables represents the valuation at amortised cost of tax credits deriving from the application of the discount included in invoices for apartment building redevelopment, intended compensation within the Group thanks to the use of its tax capacity; \u25aa Dividends represent the portions of profit paid by companies classified as \u201cOther equity investments\u201d, specifically referring to the equity investment in Ascopiave Spa and Veneta Sanitaria Spa, which increased due to the payment of a non-recurring dividend by the latter during 2023; \u25aa Discounting of non-current financial receivables mainly includes the effect of valuation at the amortised cost the receivables for construction and improvements of assets recorded as part of applying the financial activity model for public services under concession; \u25aa Write-backs of value mainly refer to the portion of financial receivables previously written down concerning the associated companies Tamarete Energia Srl and H.E.P.T. Co. Ltd., which were collected during the year; \u25aa The item Loans, in line with the previous year, represents interest income on loans granted to companies valued at net equity and minor investees. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-478": { "value": "\u25aa The item Loans, in line with the previous year, represents interest income on loans granted to companies valued at net equity and minor investees.", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-47": { "value": "11 Financial expenses 2023 2022 Change Expenses from bonds and loans 133.9 82.2 51.7 Factoring charges and disposals of tax credits 58.8 47.3 11.5 Expenses from valuation at fair value of financial assets and liabilities 56.5 (6.3) 62.8 Valuation at ammortized cost of financial liabilities 33.5 30.0 3.5 Expenses from derivatives 23.8 21.4 2.4 Discounting of options and consideration on equity investments 17.6 20.7 (3.1) Discounting of provisions 7.9 12.5 (4.6) Other financial expenses 13.0 9.4 3.6 Total 345.0 217.2 127.8 \u201cExpenses from bonds and loans\u201d include interest for the period relating to bond instruments issued by the parent company Hera Spa and interest relating to loans provided by the banking system and other financing institutions. The financial collection operations carried out during the second half of 2022 in order to meet the cash requirements caused by the macroeconomic context, strongly influenced by the rise in commodity prices and the significant amount of gas storage in a context of rising interest rates, led to a significant increase in the Group\u2019s short-medium term debt expenses for 2023. \u201cFactoring charges and disposals of tax credits\u201d includes the following: notes 2023 2022 Change Disposals of trade receivables and other operating receivables 44.8 14.0 30.8 Disposals of tax credits 35 14.0 33.3 (19.3) Total 58.8 47.3 11.5 \u25aa Disposals of trade receivables and other operating receivables increased as a result of the higher discount rates applied in the year in question by financial institutions, despite a reduction in the volume of receivables transferred, and a change in the mix of receivables concerned by transfers, since assets characterised by longer and, therefore, more costly collection times became prevalent. \u25aa Disposals of tax credits includes expenses caused by the transfer of receivables recognised as a result of the application of the discount included in invoices to customers for energy efficiency measures. The decrease in these charges compared to the previous year, despite an increase in the nominal value of the transfers carried out and the respective discount rates, is essentially due to the different mix of receivables transferred. In 2023, in fact, only credits for the 110% super-bonus were transferred, while in the previous year the transfers also referred to other types of tax credits, which were more costly since they were to be paid over a longer period of time. Furthermore, as explained in Note 10 \u201cFinancial income\u201d with reference to the 110% super-bonus credits, the increase in interest rates and the regulatory tightening resulted in financial expenses being recognised in 2023 against financial income recognised in the previous year. The item \u201cExpenses from valuation at fair value of financial assets and liabilities\u201d includes the following: notes 2023 2022 Change Energy efficiency credits 35 56.4 (12.6) 69.0 Minority shareholders\u2019 put option 19 0.1 5.7 (5.6) Bonds 29 \u2010 0.6 (0.6) Total 56.5 (6.3) 62.8 \u25aa Energy efficiency credits involved the valuation at market value of receivables related to the application of the discount included in invoices to end customers for energy efficiency measures. The accounting policy adopted by the Group foresees that in the event of a subsequent transfer, the final charge correlated to the transaction is recognised under the item \u201cFactoring and tax credit transfer charges\u201d, while at the same time closing the valuation position opened in the previous year, generating a substantially offsetting effect, while in the event of compensation within the Group, the valuation is made at amortised cost, recording a corresponding financial income by way of the cash savings generated. The significant increase in valuation expenses compared to the previous year is attributable to both the greater volume of receivables in the portfolio at 31 December 2023, as a result of the energy efficiency works falling under the 110% super-bonus regulations and the lower market value used for the valuation compared to 2022; \u25aa Put options and contingent consideration represent the negative effects of updating the estimates of liabilities recognized in previous years in connection with one-time commercial acquisition transactions. \u201cValuation at ammortized cost of financial liabilities\u201d include imputed charges necessary to bring the face cost of debt in line with that calculated using the effective interest rate method. The item also includes figurative charges of 3.2 million euro, in line with the previous year, relating to the put option held by Ascopiave Spa on the minority shareholding in Hera Comm, accounted for as a loan (with a nominal value of 54 million euro), as reported in Note 19, \u201cFinancial liabilities.\u201d The increase seen during the year was mainly due to the green bond issued in May 2022 and the sustainability-linked bond issued in April 2023. \u201cExpenses from derivatives\u201d includes the effects of both valuation and realization of interest and foreign exchange derivatives, as detailed in Note 29 \u201cDerivative Instruments.\u201d \u201cDiscounting of options and consideration on equity investments\u201d mainly includes notional discounting charges related to the fair value valuation of put options granted to minority shareholders, as reported in Note 19 \u201cFinancial liabilities\u201d. \u201cDiscounting of provisions\u201d is broken down as follows: notes 2023 2022 Change Restoration of third-party assets 31 4.4 4.1 0.3 Post-employment and other employee benefits 30 3.0 0.3 2.7 Post-closure landfills 31 0.3 8.0 (7.7) Plant dismantling 31 0.2 0.1 0.1 Total 7.9 12.5 (4.6) See the notes to the respective balance sheet items for an analysis of the change in charges for funds updating from the comparison year, where significant. The item \u201cOther financial expenses\u201d, residual in nature, includes the following: notes 2023 2022 Change Write-downs 27 5.9 \u2010 5.9 Leases 22 2.8 2.6 0.2 Other expenses 4.3 6.8 (2.5) Total 13.0 9.4 3.6 Write-downs include the valuations made during impairment tests on shareholdings and refer entirely to the investment in the associated company Set Spa, a vehicle through which the Group holds production quotas for a power generation plant. For further details, see Note 27 \u201cImpairment tests on equity investments\u201d. Other expenses mainly include interest for financial intermediation and interest related to payment deferrals. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-479": { "value": "
2023
2022
Change
Expenses from bonds and loans
133.9
82.2
51.7
Factoring charges and disposals of tax credits
58.8
47.3
11.5
Expenses from valuation at fair value of financial assets and
liabilities
56.5
(6.3)
62.8
Valuation at ammortized cost of financial liabilities
33.5
30.0
3.5
Expenses from derivatives
23.8
21.4
2.4
Discounting of options and consideration on equity investments
17.6
20.7
(3.1)
Discounting of provisions
7.9
12.5
(4.6)
Other financial expenses
13.0
9.4
3.6
Total
345.0
217.2
127.8
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-451": { "value": "Taxation 2023 2022 Change Earnings before taxes 656.4 408.8 247.6 Taxes (173.2) (103.5) (69.7) Net profit for the period 483.2 305.3 177.9 Tax rate 26.4% 25.3% The increase in the tax rate was mainly due to the dilution of the positive effects on the tax burden of incentives such as maxi and hyper amortisation, as well as ACE (which also decreased in absolute terms), on account of the higher pre-tax profit for the year in question, in addition to the lesser benefits recorded in 2023 relating to exemption transactions and the impact of taxes dating to previous years. The tax rate, lower than the nominal IRES and IRAP rates, was positively impacted by: \u25aa the non-recurring incentives, in the form of tax credits, introduced for the purchase of electricity and gas, which represented untaxed income components coming to 43.3 million euro (as against 38 million euro at 31 December 2022); \u25aa the positive effects on the result of the fair value valuation of put options to minority shareholders that are not relevant for tax purposes, amounting to roughly 31 million euro (12.6 million euro as of 31 December 2022); 2.02.03 \u25aa the benefits arising from the exemption of the higher values originating from the acquisition of controlling interests, coming to 2.8 million euro (4.2 million euro at 31 December 2022). 12 Taxes This item is made up as follows: 2023 2022 Change Current Pre-paid Deferred Total Current Pre-paid Deferred Total IRES 178.9 (63.9) 10.6 125.6 81.0 (13.0) 0.7 68.7 56.9 IRAP 47.2 (4.1) 0.7 43.8 26.7 (0.7) 1.1 27.1 16.7 Substitute tax 3.8 \u2010 \u2010 3.8 5.4 \u2010 \u2010 5.4 (1.6) Nonrecurring subsidies \u2010 \u2010 \u2010 \u2010 2.3 \u2010 \u2010 2.3 (2.3) Total 229.9 (68.0) 11.3 173.2 115.4 (13.7) 1.8 103.5 69.7 A higher current tax burden was seen in 2023 compared to the previous year, mainly due to the sharp increase in the pre-tax result. Pre-paid taxes include the effect of temporary changes in income components not deductible from tax income for the year, mainly relating to the fair value adjustment of trade receivables arising from the application of the discount included in invoices and provisions for risks and charges. It also includes the benefit on IRES and IRAP taxes deriving from the exemption carried out pursuant to Decree Law No. 185/2008 (converted into Law No. 2/2009) involving the higher values arising following the acquisition of Con Energia Spa, amounting to 6.5 million euro, against the payment of a substitute tax of set at 3.7 million euro. Note that during the previous year this item included tax benefits resulting from exemptions totalling 9.5 million euro against the payment of substitute taxes coming to 5.3 million euro. Note that during the previous year, non-recurring grants consisted of the nonrecurring solidarity-oriented levy contribution established for 2022 by Decree-Law No. 21/2022, in order to contain the effects of the increase in prices and tariffs in the energy sector for businesses and consumers. As regards this nonrecurring contribution and its possible application to an additional company with respect to the amount recognised as a tax expense in the previous year, the Group, while believing that there was no objective probability of having to pay said contribution (supported in this conclusion by the opinion of its tax advisors), even in a context of uncertainty related to the interpretation of this legislation, in order to avoid the application of penalties, believed it was appropriate to proceed with the payment of an additional 9.6 million euro, subsequently proceeding to file a refund application. Lastly, the subsequent Law 197/2022, the so-called Budget Law 2023, changed the scope of this nonrecurring contribution, and the amount of 13 million euro already paid by Hera Spa was no longer due. The same Budget Law 2023 also established a nonrecurring solidarity contribution, in the form of a temporary levy, to be paid during 2023. The levy, unlike ordinary taxes, did not apply to the profit produced in 2022, but on the surplus profits arising from a comparison with previous periods. In consideration of the criteria for determining the tax base under the aforementioned law, the levy was not payable by any Group company. The Group has adopted the temporary exception provided for by IAS 12 to the recording of deferred tax assets and liabilities related to the application of the Pillar 2 provisions, which were introduced into Italian law with effect from 1 January 2024 by Legislative Decree No. 209 of 28 December 2023. Based on this decree, Hera Spa qualifies as an Ultimate Parent Entity (UPE) since it fully consolidates the assets, liabilities, revenues, costs and cash flows of the Group companies in which it holds an interest (directly and indirectly). Based on the results of the preliminary calculation of the Transitional CbCR Safe harbour (TSH) test relating to the 2022 tax period carried out by UPE, the Group (understood as all the companies consolidated for accounting purposes by the UPE) benefits from the TSH in all jurisdictions except Bulgaria. The impact of profits generated in Bulgaria with respect to the overall profits of the Hera Group is not significant, and therefore, if this preliminary assessment were to be confirmed for the 2024 financial year as well, the possible exposure of the Group to the supplementary taxes deriving from Pillar 2 would not be significant. For further analysis of trends in the tax rate, see paragraph 1.04.01 \u201cOperating results and investments\u201d in the Directors\u2019 Report, where both the pre-tax result and the tax burden have been adjusted on a managerial basis, in order to define a fully comparable adjusted tax rate. The statutory tax rate determined on the basis of the configuration of taxable income for the purposes of IRES is equal to 24%. The reconciliation with the effective rate is shown below. 2023 2022 Nominal effective Percentage effect Nominal effective Percentage effect Earnings before taxes 656.4 408.8 IRES Standard rate (157.5) (24.0)% (98.1) (24.0)% IRAP deduction 1.1 0.2% 0.9 0.2% Ace 4.3 0,7% 4.9 1.2% Maxi and hyper depreciation 7.1 1.1% 8.0 1.9% IRES previous years (1.5) (0.2)% 0.8 0.2% Other changes 15.3 2.4% 4.6 1.1% IRAP and other current taxes IRAP (43.8) (6.7)% (27.1) (6.6)% Exemption 1.8 0.3% 2.6 0.6% Taxes (173.2) (26.4)% (103.5) (25.3)% This reconciliation is performed only in connection with the IRES, given that, as a result of the rules governing the IRAP, reconciliation between the statutory tax rate derived from financial statement information and the effective tax rate is not very meaningful. The item \u201cMaxi and hyper depreciation\u201d decreased in absolute terms due to the end of the period of tax benefits for the portion of investments in new instrumental goods made by the Group in past years. Note that starting from 2020, this benefit was replaced by a tax credit recognition mechanism. The item \u201cOther changes\u201d increased compared to the previous year, mainly due to the effect of components of the pre-tax result not relevant for tax purposes relating to the fair value valuation of put options for minority shareholders and to the higher non-recurring incentives recognised in the form of tax credits to some Group companies for the purchase of electricity and natural gas. In addition, this item was negatively affected by the solidarity contribution mentioned above, which was not present in the year in question. The item \u201cExemption\u201d includes the net benefit only on IRES taxes resulting from the exemption for the higher values mentioned above, recognised with the acquisition of Con Energia Spa and amounting to 1.8 million euro (the 1 million euro IRAP benefit is classified under \u201cIRAP\u201d in the same table). Tax rate / Ires reconciliation 13 Current tax assets and liabilities 31 Dec 23 31 Dec 22 Change Income tax receivables 10.3 44.8 (34.5) IRES refund receivables. 1.1 1.2 (0.1) Total current tax assets 11.4 46.0 (34.6) Income tax payables 110.2 17.1 93.1 Total current tax liabilities 110.2 17.1 93.1 \u201cIncome tax receivables\u201d refer to the excess of advances paid for direct IRES and IRAP taxes with respect to the current tax burden for the year. \u201cIncome tax payables\u201d, mainly include provisions for IRES and IRAP taxes on income produced during the year, net of advances paid and any prior balances not yet compensated. The sharp decrease in \u201cIncome tax receivables\u201d and the considerable increase in \u201cIncome tax payables\u201d compared to the previous year reflect, for certain significant companies, a positive change in pre-tax profit with respect to 2022, which, due to the mechanism under which direct taxes are paid through deposits on a historical basis, resulted in a debit for net exposure at 31 December 2023. 14 Deferred tax assets and liabilities 31 Dec 23 31 Dec 22 Change Pre-paid tax assets 448.2 429.8 18.4 Offsetting of deferred tax liabilities (146.1) (189.6) 43.5 Substitute tax credit 0.2 0.2 \u2010 Total net deferred tax assets 302.3 240.4 61.9 Deferred tax liabilities 303.0 405.3 (102.3) Offsetting of deferred tax liabilities (146.1) (189.6) 43.5 Total net deferred tax liabilities 156.9 215.7 (58.8) Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets with the corresponding current tax liabilities. The prepaid and deferred taxes relating to 2023 refer to the following temporary difference between the value attributed to assets and liabilities according to statutory criteria and the corresponding values for tax purposes. Deferred tax assets 2023 2022 Temporary changes Tax effect (IRES+IRAP) Changes in equity Temporary changes Tax effect (IRES+IRAP) Changes in equity Pre-paid taxes with effect on the income statement and the statement of comprehensive income Depreciation 698.2 181.1 686.0 178.5 Provisions for bad debts 321.6 76.2 241.9 57.6 Provisions for risks and charges 244.5 67.8 209.4 56.6 Shareholdings 148.4 41.9 182.3 51.5 Cash flow hedge 60.6 17.4 202.3 58.3 Other 258.6 63.8 117.6 27.4 Total tax effect 1,731.9 448.2 (9.3) 1,639.5 429.8 0.7 Credited (or debited) amount to the statement of comprehensive income (40.3) (42.9) Credited (or debited) amount to the income statement 68.0 13.7 Deferred tax liabilities 2023 2022 Temporary changes Tax effect (IRES+IRAP) Changes in equity Temporary changes Tax effect (IRES+IRAP) Changes in equity Deferred taxes with effect on the income statement and statement of comprehensive income Depreciation 739.7 150.3 696.6 147.0 Cash flow hedge 133.4 38.1 563.6 161.9 Discounted financial liabilities 60.1 14.4 105.4 18.8 Provisions for risks and charges 32.5 8.8 34.3 9.9 Other 355.1 91.4 263.1 67.6 Total tax effect 1,320.8 303.0 10.3 1,663.0 405.3 13.3 Credited (or debited) amount to the statement of comprehensive income 123.9 (28.9) Credited (or debited) amount to the income statement (11.3) (1.8) \u201cChanges in equity\u201d do not affect the income statement and statement of comprehensive income for the year, as they include the balances of deferred tax assets and liabilities arising from business combinations carried out in 2023 (for which, see paragraph 2.02.10 \u201cOther Information\u201d) and reclassifications arising between deferred tax assets and liabilities. \u201cDeferred tax assets\u201d arise from temporary differences between the value attributed to assets and liabilities according to statutory criteria and the corresponding values for tax purposes. The increase for the period is due to the following effects: \u25aa the change in the fair value of commodity derivatives classified as cash flow hedge, resulting in an asset decrease with a balancing entry in the statement of comprehensive income in the amount of 40.9 million euro. \u25aa non-deductible components for the year in question, relating to credits for discounts included in invoices for energy efficiency activities in apartment buildings, resulting in an increase in tax assets amounting to 23.4 million euro; \u25aa net allocations to the provision for bad debts of the Parent company and the main sales companies, resulting in an increase in tax assets amounting to 18.6 million euro overall. \u25aa net allocations to the provision for risks and expenses, resulting in an increase in tax assets coming to 11.2 million euro. As regards the assets recorded in 2021 for the realignment of goodwill defined by specific legal provisions, for which tax regulations provide for annual utilisation on a straight-line basis over a period of 50 years from the date of recognition, the Group\u2019s management confirms its assessment of full recoverability, considering the temporal extension of predictability for regulated distribution businesses, the particularly limited impact of the taxable income required to recover these deferred tax assets on the overall taxable income generated by the distribution assets with a residual useful life of several decades, as well as the tax consolidation regime under which the Group operates, which makes it possible to offset any tax losses across all businesses. \u201cDeferred tax liabilities\u201d arise from timing differences between reported profit and taxable profit. The item also includes the significant tax effects of recognising or adjusting assets and liabilities in the consolidated financial statements. The substantial decrease compared to 31 December 2022 is due to the following effects: \u25aa change for the period in the fair value of commodity derivatives classified as cash flow hedge, resulting in a decrease in liabilities coming to 123.8 million euro with a balancing entry in the statement of comprehensive income; \u25aa recognition of deferred taxes on customer lists and other intangible assets recognised as a result of acquisitions of control in 2023, totalling 19.6 million euro, as illustrated in the section \u201cBusiness combinations (additional information)\u201d in paragraph 2.02.10 \u201cOther information\u201d. Reporting on tax litigations IRES, IRAP and VAT Company Tax Description of litigation Status of litigation Disputed amount* Amounts paid (including provisionally)** Provisions booked in the financial statement Ascotrade Spa IRES, IRAP and VAT Notice of assessment for the years between 2013 and 2017, and for the year 2019 concerning the deductibility of a number of components of the purchase cost of raw material and the irregular VAT deduction. Notice of assessment for the year 2018 concerning VAT alone. For the years 2013 and 2014, the Second Degree Tax Court rejected the appeal brought by the Revenue Agency and ordered it to pay the costs. The proceedings for the year 2015 saw first instance rulings in favour of the company, but the Revenue Agency appealed and the proceedings are pending before the Second Degree Tax Court. For the years 2016 to 2018, the First Degree Tax Court annulled the assessments, but the Tax Agency appealed the ruling. For the year 2019, the company notified an appeal. 11.8 0.7 - Hera Trading Srl IRES and \u201cRobin Tax\u201d surtax Notices of assessment for the years between 2011 and 2013 (only the latter for the Robin tax) concerning the deduction of valuation charges, net of related income, from commodity derivatives and environmental certificates. In 2023, the company settled the claims contained in the notices of assessment for all the years from 2011 to 2013 by paying the amount due and requesting the extinction of the judgement. Believing that it has in any case behaved in compliance with the reference regulations, a request for reimbursement is currently being prepared. 3.4 3.4 - Herambiente Spa IRAP Notices of assessment for the years from 2009 to 2013, focused on eligibility for the IRAP \u201ctax wedge\u201d relief in favour of the company. In relation to the tax years for which notices were received, proceedings are pending before the Court of Cassation following the appeals lodged by the losing party (the rulings are both favourable and unfavourable to the company). 4.1 4.1 - Herambiente Spa Witholdings on dividends Notices of assessment towards non- application of withholding tax on dividends paid to Ambiente Arancione U.A. and European Waste Holding Ltd in the years 2016 and 2017. Appeals have been lodged with the appropriate Tax Court in relation to the proceedings for both years. The hearing was held and the first degree judgement is pending. 5.1 Marche Multiservizi Spa IRES and IRAP Notices of assessment for the years 2009 and 2016 with objection to the deduction of the provision to the landfill post management allowance. Proceedings for the years 2009 to 2014, following appeals filed by the losing party against unfavourable rulings (there are rulings both favourable and unfavourable to the company), are pending before the Regional Tax Commission. The proceeding for the year 2015 witnessed a ruling favourable to the Company, but the Inland Revenue has lodged an appeal and the Company appeared before the second-degree Tax Court of the Marche Region. Regarding the year 2016, the company has appealed the assessment, with the first hearing held at the end 2.5 1.3 0.
of 2023, with the issuance of an order remanding the
case for further proceedings.
Inrete
Distribuzione Spa
IRES and IRAP
IRES and IRAP notices of assessment
for the years 2016 and 2017 concerning
the undue deduction of discounting
charges, the erroneous determination of
the maxi-amortisation and hyper-
amortisation relief (the latter contested
for 2017) concerning the ancillary
charges for the installation of smart
meters, or the undue deduction of
employee-related costs for IRAP
purposes (2016 only).
With regard to the IRAP claim, the Company settled
the dispute with the Inland Revenue Office and paid
the tax due (of a modest amount). With regard to the
two IRES assessments, against which an appeal was
lodged, in 2022 the Tax Court ruled in the first degree
in favour of the company. Consequently, the Revenue
Agency filed an appeal. The proceedings are currently
pending in the second degree. Amounts paid on an
interim basis were refunded following the favourable
first instance ruling.
With reference to the 2017 notice of assessment, an
appeal has been filed and a hearing is awaited.
Pending the hearing, the company has provisionally
paid 1/3 of the tax and interest due.
1.3
0.2
-
Hera Luce Srl
IRES and IRAP
Notice of assessment for the year 2013
concerning the deductibility of routine
maintenance costs.
An appeal was lodged with the Second Degree Tax
Court against the first degree ruling, which cancelled
the penalties but confirmed the higher taxes claimed.
The Company settled the case by resorting to the
definition of tax disputes pursuant to Article 1,
paragraphs 197 ff of Law no. 197 of 29/12/2022
(Budget Law 2023).
0.6
0.3
-
Hera Servizi Energia
Spa
IRES, IRAP and VAT
Assessment with adhesion for the 2018
tax year.
As a result of the adversarial process established with
the Revenue Agency, the deeds of adhesion were
signed in 2024, which led to the closure of the dispute.
2.4
2.4
* \u201cdisputed amount\u201d indicates the original amount of the claim with no interest, unless it was redetermined as a result of judicial conciliation, assessment with
adhesion, partial annulment in judicial proceedings or on self-defence.
** the amounts paid include interest, where due.
Other taxes
Company
Tax
Description
of litigation
Status
of litigation
Disputed amount*
Amounts paid
(including
provisionally)**
Provisions
booked in the
financial statement
Herambiente Spa
Eco-tax
Dispute documents related to the
Sommacampagna landfill for the
periods 2014-2017.
For the 2014, 2016 and 2017 tax periods, a hearing
was held and the publication of the ruling is pending.
For the 2015 period, instead, an unfavourable ruling
was given to the company with a redetermination of
the penalties against which the company filed an
appeal with the competent Second Degree Tax Court.
7
-
1.5
Herambiente Spa
ICI/IMU
Notices of assessment for the years
2008 to 2018 following the re-
classification in the real estate registry
of the Ferrara waste-to-energy plant.
The proceedings were concluded for the 2008-2013
notices with a ruling favourable to the Company, while
they are still pending before the first-instance Tax
Court for the remaining years.
2.1
-
3.2
Herambiente Spa
ICI/IMU
Notices of assessment for the years
between 2011 and 2020 concerning the
classification in the real estate registry
of land, facilities and buildable areas
located in Ravenna.
For the years 2011-2020, partially favourable and
partially unfavourable rulings were given. For the
purpose of payment of the amount due, the outcome
of the real estate registry disputes is awaited.
2
-
2.7
Herambiente Spa
ICI/IMU
Notices of assessment for the years
between 2013 and 2019 concerning the
waste to energy plant and the recycling
plant located in the municipality of
Coriano.
For the years 2013-2019, the Company, with a
settlement agreement pursuant to Article 48 of
Legislative Decree 546/1992, defined with the
Municipality of Coriano the amounts due, paying the
amounts requested.
0.7
0.7
-
AcegasApsAmga Spa
Excise on
self-consumption
Technical-administrative audit of the
Padua and Trieste waste-to-energy
plants carried out by the Customs
Agency for the years 2012 to 2015 in
relation to the installation of measuring
instruments for detecting electricity
With reference to the Padua waste-to-energy plant,
the Court of Cassation upheld the appeal and sent the
case back to the Second Instance Tax Court. At
present, a date for the hearing is pending. With
reference to the Trieste waste-to-energy plant,
following the sentence of the Tax Court that had
2.1
1
-
produced and used for self- consumption and associated payment of the excise. granted the entitlement to the reduced excise tax, the Revenue Agency appealed to the Court of Cassation. A date for the hearing is pending. EstEnergy Spa Windfall contributions Request for reimbursement of the non- recurring contribution against high utility bills \u2013 Revenue Agency. The Company filed an application with the competent office of the Revenue Agency for reimbursement of the amounts paid as advance and balance for the year 2022. The Company has filed an appeal against the tacit refusal given by the office and is currently waiting for the date of the hearing to be set. - 9.6 - Hera Spa Windfall contributions Application for reimbursement in relation to the payment of the \u201cnon- recurring contribution against the high cost of utility bills\u201d introduced for the year 2022 only by Law No 51/2022, since it is no longer due as a result of the change in the scope of the matter introduced by the subsequent Law No 197/2022. The company filed an appeal against the silent rejection of the refund request in the second half of 2023. A date for the hearing is pending. - 13 - Notices of assessment for the tax periods from 2013 to 2017, notified by the Municipality of Riccione for the permanent occupation of public land with waste bins. The Tosap proceedings for the years from 2013 to 2016 are pending at the Emilia-Romagna Second Degree Tax Court, and the Cosap 2018 procedure is pending before the Bologna Court of Appeals. The first-degree ruling is partially favourable to the Company. 1.2 1.2 1.8 Hera Spa COSAP/TOSAP COSAP notice of objection for the tax periods from 2018 and 2019, notified by the Municipality of Riccione for the permanent occupation of public land with waste bins. The proceedings concerning 2018 are pending before the Civil Court. With reference to 2019, the judgment of first instance was partially unfavourable. An appeal was filed against the same before the Court of Appeal of Bologna. 1.3 0.2 TOSAP notices of assessment for the tax years 2014-2018, notified by the Municipality of Coriano for the permanent occupation of public land with waste bins. The 2014 and 2015 proceedings are currently pending at the Emilia-Romagna Second Degree Tax Court. Both first instance rulings were unfavourable to the company. Concerning the notices for 2016, 2017 and 2018, the first instance rulings were both unfavourable and therefore the Company has filed an appeal. The case is pending before the Court of Emilia-Romagna. 0.9 0.1 * \u201cdisputed amount\u201d indicates the original amount of the claim with no interest, unless it was redetermined as a result of judicial conciliation, assessment with adhesion, partial annulment in judicial proceedings or on self-defence. ** the amounts paid include interest, where due. As regards the disputes in question, having consulted its lawyers, the Group has decided to allocate the provisions indicated. In cases in which no provision has been allocated, the alleged violations have been deemed groundless. ", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-49": { "value": "13 Current tax assets and liabilities 31 Dec 23 31 Dec 22 Change Income tax receivables 10.3 44.8 (34.5) IRES refund receivables. 1.1 1.2 (0.1) Total current tax assets 11.4 46.0 (34.6) Income tax payables 110.2 17.1 93.1 Total current tax liabilities 110.2 17.1 93.1 \u201cIncome tax receivables\u201d refer to the excess of advances paid for direct IRES and IRAP taxes with respect to the current tax burden for the year. \u201cIncome tax payables\u201d, mainly include provisions for IRES and IRAP taxes on income produced during the year, net of advances paid and any prior balances not yet compensated. The sharp decrease in \u201cIncome tax receivables\u201d and the considerable increase in \u201cIncome tax payables\u201d compared to the previous year reflect, for certain significant companies, a positive change in pre-tax profit with respect to 2022, which, due to the mechanism under which direct taxes are paid through deposits on a historical basis, resulted in a debit for net exposure at 31 December 2023. ", "dimensions": { "concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-430": { "value": "14 Deferred tax assets and liabilities 31 Dec 23 31 Dec 22 Change Pre-paid tax assets 448.2 429.8 18.4 Offsetting of deferred tax liabilities (146.1) (189.6) 43.5 Substitute tax credit 0.2 0.2 \u2010 Total net deferred tax assets 302.3 240.4 61.9 Deferred tax liabilities 303.0 405.3 (102.3) Offsetting of deferred tax liabilities (146.1) (189.6) 43.5 Total net deferred tax liabilities 156.9 215.7 (58.8) Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets with the corresponding current tax liabilities. The prepaid and deferred taxes relating to 2023 refer to the following temporary difference between the value attributed to assets and liabilities according to statutory criteria and the corresponding values for tax purposes. Deferred tax assets 2023 2022 Temporary changes Tax effect (IRES+IRAP) Changes in equity Temporary changes Tax effect (IRES+IRAP) Changes in equity Pre-paid taxes with effect on the income statement and the statement of comprehensive income Depreciation 698.2 181.1 686.0 178.5 Provisions for bad debts 321.6 76.2 241.9 57.6 Provisions for risks and charges 244.5 67.8 209.4 56.6 Shareholdings 148.4 41.9 182.3 51.5 Cash flow hedge 60.6 17.4 202.3 58.3 Other 258.6 63.8 117.6 27.4 Total tax effect 1,731.9 448.2 (9.3) 1,639.5 429.8 0.7 Credited (or debited) amount to the statement of comprehensive income (40.3) (42.9) Credited (or debited) amount to the income statement 68.0 13.7 Deferred tax liabilities 2023 2022 Temporary changes Tax effect (IRES+IRAP) Changes in equity Temporary changes Tax effect (IRES+IRAP) Changes in equity Deferred taxes with effect on the income statement and statement of comprehensive income Depreciation 739.7 150.3 696.6 147.0 Cash flow hedge 133.4 38.1 563.6 161.9 Discounted financial liabilities 60.1 14.4 105.4 18.8 Provisions for risks and charges 32.5 8.8 34.3 9.9 Other 355.1 91.4 263.1 67.6 Total tax effect 1,320.8 303.0 10.3 1,663.0 405.3 13.3 Credited (or debited) amount to the statement of comprehensive income 123.9 (28.9) Credited (or debited) amount to the income statement (11.3) (1.8) \u201cChanges in equity\u201d do not affect the income statement and statement of comprehensive income for the year, as they include the balances of deferred tax assets and liabilities arising from business combinations carried out in 2023 (for which, see paragraph 2.02.10 \u201cOther Information\u201d) and reclassifications arising between deferred tax assets and liabilities. \u201cDeferred tax assets\u201d arise from temporary differences between the value attributed to assets and liabilities according to statutory criteria and the corresponding values for tax purposes. The increase for the period is due to the following effects: \u25aa the change in the fair value of commodity derivatives classified as cash flow hedge, resulting in an asset decrease with a balancing entry in the statement of comprehensive income in the amount of 40.9 million euro. \u25aa non-deductible components for the year in question, relating to credits for discounts included in invoices for energy efficiency activities in apartment buildings, resulting in an increase in tax assets amounting to 23.4 million euro; \u25aa net allocations to the provision for bad debts of the Parent company and the main sales companies, resulting in an increase in tax assets amounting to 18.6 million euro overall. \u25aa net allocations to the provision for risks and expenses, resulting in an increase in tax assets coming to 11.2 million euro. As regards the assets recorded in 2021 for the realignment of goodwill defined by specific legal provisions, for which tax regulations provide for annual utilisation on a straight-line basis over a period of 50 years from the date of recognition, the Group\u2019s management confirms its assessment of full recoverability, considering the temporal extension of predictability for regulated distribution businesses, the particularly limited impact of the taxable income required to recover these deferred tax assets on the overall taxable income generated by the distribution assets with a residual useful life of several decades, as well as the tax consolidation regime under which the Group operates, which makes it possible to offset any tax losses across all businesses. \u201cDeferred tax liabilities\u201d arise from timing differences between reported profit and taxable profit. The item also includes the significant tax effects of recognising or adjusting assets and liabilities in the consolidated financial statements. The substantial decrease compared to 31 December 2022 is due to the following effects: \u25aa change for the period in the fair value of commodity derivatives classified as cash flow hedge, resulting in a decrease in liabilities coming to 123.8 million euro with a balancing entry in the statement of comprehensive income; \u25aa recognition of deferred taxes on customer lists and other intangible assets recognised as a result of acquisitions of control in 2023, totalling 19.6 million euro, as illustrated in the section \u201cBusiness combinations (additional information)\u201d in paragraph 2.02.10 \u201cOther information\u201d. ", "dimensions": { "concept": "ifrs-full:DisclosureOfTemporaryDifferenceUnusedTaxLossesAndUnusedTaxCreditsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-48": { "value": "14 Deferred tax assets and liabilities 31 Dec 23 31 Dec 22 Change Pre-paid tax assets 448.2 429.8 18.4 Offsetting of deferred tax liabilities (146.1) (189.6) 43.5 Substitute tax credit 0.2 0.2 \u2010 Total net deferred tax assets 302.3 240.4 61.9 Deferred tax liabilities 303.0 405.3 (102.3) Offsetting of deferred tax liabilities (146.1) (189.6) 43.5 Total net deferred tax liabilities 156.9 215.7 (58.8) The prepaid and deferred taxes relating to 2023 refer to the following temporary difference between the value attributed to assets and liabilities according to statutory criteria and the corresponding values for tax purposes. Deferred tax assets 2023 2022 Temporary changes Tax effect (IRES+IRAP) Changes in equity Temporary changes Tax effect (IRES+IRAP) Changes in equity Pre-paid taxes with effect on the income statement and the statement of comprehensive income Depreciation 698.2 181.1 686.0 178.5 Provisions for bad debts 321.6 76.2 241.9 57.6 Provisions for risks and charges 244.5 67.8 209.4 56.6 Shareholdings 148.4 41.9 182.3 51.5 Cash flow hedge 60.6 17.4 202.3 58.3 Other 258.6 63.8 117.6 27.4 Total tax effect 1,731.9 448.2 (9.3) 1,639.5 429.8 0.7 Credited (or debited) amount to the statement of comprehensive income (40.3) (42.9) Credited (or debited) amount to the income statement 68.0 13.7 Deferred tax liabilities 2023 2022 Temporary changes Tax effect (IRES+IRAP) Changes in equity Temporary changes Tax effect (IRES+IRAP) Changes in equity Deferred taxes with effect on the income statement and statement of comprehensive income Depreciation 739.7 150.3 696.6 147.0 Cash flow hedge 133.4 38.1 563.6 161.9 Discounted financial liabilities 60.1 14.4 105.4 18.8 Provisions for risks and charges 32.5 8.8 34.3 9.9 Other 355.1 91.4 263.1 67.6 Total tax effect 1,320.8 303.0 10.3 1,663.0 405.3 13.3 Credited (or debited) amount to the statement of comprehensive income 123.9 (28.9) Credited (or debited) amount to the income statement (11.3) (1.8) \u201cChanges in equity\u201d do not affect the income statement and statement of comprehensive income for the year, as they include the balances of deferred tax assets and liabilities arising from business combinations carried out in 2023 (for which, see paragraph 2.02.10 \u201cOther Information\u201d) and reclassifications arising between deferred tax assets and liabilities. \u201cDeferred tax assets\u201d arise from temporary differences between the value attributed to assets and liabilities according to statutory criteria and the corresponding values for tax purposes. The increase for the period is due to the following effects: \u25aa the change in the fair value of commodity derivatives classified as cash flow hedge, resulting in an asset decrease with a balancing entry in the statement of comprehensive income in the amount of 40.9 million euro. \u25aa non-deductible components for the year in question, relating to credits for discounts included in invoices for energy efficiency activities in apartment buildings, resulting in an increase in tax assets amounting to 23.4 million euro; \u25aa net allocations to the provision for bad debts of the Parent company and the main sales companies, resulting in an increase in tax assets amounting to 18.6 million euro overall. \u25aa net allocations to the provision for risks and expenses, resulting in an increase in tax assets coming to 11.2 million euro. As regards the assets recorded in 2021 for the realignment of goodwill defined by specific legal provisions, for which tax regulations provide for annual utilisation on a straight-line basis over a period of 50 years from the date of recognition, the Group\u2019s management confirms its assessment of full recoverability, considering the temporal extension of predictability for regulated distribution businesses, the particularly limited impact of the taxable income required to recover these deferred tax assets on the overall taxable income generated by the distribution assets with a residual useful life of several decades, as well as the tax consolidation regime under which the Group operates, which makes it possible to offset any tax losses across all businesses. \u201cDeferred tax liabilities\u201d arise from timing differences between reported profit and taxable profit. The item also includes the significant tax effects of recognising or adjusting assets and liabilities in the consolidated financial statements. The substantial decrease compared to 31 December 2022 is due to the following effects: \u25aa change for the period in the fair value of commodity derivatives classified as cash flow hedge, resulting in a decrease in liabilities coming to 123.8 million euro with a balancing entry in the statement of comprehensive income; \u25aa recognition of deferred taxes on customer lists and other intangible assets recognised as a result of acquisitions of control in 2023, totalling 19.6 million euro, as illustrated in the section \u201cBusiness combinations (additional information)\u201d in paragraph 2.02.10 \u201cOther information\u201d. ", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-458": { "value": "Net equity 15 Group net equity 31 Dec 23 31 Dec 22 Change Share capital (nominal value) 1,489.5 1,489.5 \u2010 Treasury share reserve (45.8) (38.5) (7.3) Share capital increase costs (0.7) (0.7) \u2010 Share capital 1,443.0 1,450.3 (7.3) Legal reserve 133.9 120.3 13.6 Other reserves 1,471.4 1,409.1 62.3 Components of comprehensive income (OCI) 4.5 207.1 (202.6) Reserve for treasury share transactions (56.0) (43.6) (12.4) Reserves 1,553.8 1,692.9 (139.1) Profit (loss) for the period 441.4 255.2 186.2 Total 3,438.2 3,398.4 39.8 The share capital at 31 December 2023 amounted to 1,489,538,745 ordinary shares with a nominal value of 1 euro each and is fully paid-up. The number of treasury shares held by the Group at 31 December 2023 was 45,830,208 (38,541,380 at 31 December 2022). Other reserves consist of the profits generated in previous years and reserves established on capital contributions or equity investments. The reserve for treasury share operations reflects transactions on treasury shares at 31 December 2023. Note that in 2023 only transactions involving purchases were carried out.", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-480": { "value": "15 Group net equity 31 Dec 23 31 Dec 22 Change Share capital (nominal value) 1,489.5 1,489.5 \u2010 Treasury share reserve (45.8) (38.5) (7.3) Share capital increase costs (0.7) (0.7) \u2010 Share capital 1,443.0 1,450.3 (7.3) Legal reserve 133.9 120.3 13.6 Other reserves 1,471.4 1,409.1 62.3 Components of comprehensive income (OCI) 4.5 207.1 (202.6) Reserve for treasury share transactions (56.0) (43.6) (12.4) Reserves 1,553.8 1,692.9 (139.1) Profit (loss) for the period 441.4 255.2 186.2 Total 3,438.2 3,398.4 39.8 The share capital at 31 December 2023 amounted to 1,489,538,745 ordinary shares with a nominal value of 1 euro each and is fully paid-up. The number of treasury shares held by the Group at 31 December 2023 was 45,830,208 (38,541,380 at 31 December 2022). Other reserves consist of the profits generated in previous years and reserves established on capital contributions or equity investments. The reserve for treasury share operations reflects transactions on treasury shares at 31 December 2023. Note that in 2023 only transactions involving purchases were carried out.", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-50": { "value": "The number of treasury shares held by the Group at 31 December 2023 was 45,830,208 (38,541,380 at 31 December 2022). The reserve for treasury share operations reflects transactions on treasury shares at 31 December 2023. Note that in 2023 only transactions involving purchases were carried out. ", "dimensions": { "concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-51": { "value": "16 Non-controlling interests 31 Dec 23 31 Dec 22 Change Share capital and reserves 266.8 197.4 69.4 Components of other comprehensive income (OCI) 4.8 (1.2) 6.0 Profit (loss) for the period 41.8 50.1 (8.3) Total 313.4 246.3 67.1 This item mainly comprises the minority equity interests of the Herambiente Group, the Marche Multiservizi Spa Group and Acantho Spa. The change is mainly due to the non-total acquisitions of A.C.R. Spa, amounting to 32.7 million euro, and Asco TLC Spa (through merger by incorporation into Acantho Spa), amounting to 24.1 million euro. For further details, see the section \u201cBusiness combinations (additional information)\u201d in paragraph 2.02.10 \u201cOther information\u201d. As regards the acquisition of non-total controlling interests achieved in previous years through business combinations, various contractual agreements entered into by the Group provided for granting irrevocable put options to minority shareholders, to be exercised within specific timeframes. The existence of these rights owned by minority shareholders has led to the need to classify the options on the shares/quotas of the acquired companies held by minority shareholders as financial liabilities in the consolidated financial statements, thus considering the related shareholdings as fully owned. For further details on the calculation of the fair value of the put option debt, see Note 19 \u201cFinancial liabilities\u201d. Net profit attributable to non-controlling interests decreased compared to the previous year, mainly due to the lower results seen in the energy services and plastics processing businesses, only partially offset by the effect of the acquisitions made in 2023. Reconciliation statement The following is a reconciliation between the Parent Company\u2019s separate financial statements and the consolidated financial statement. Net result Net equity Balances as per parent company\u2019s financial statements 244.8 2,584.8 Excess of shareholders\u2019 equity (including the result of the period) over the carrying amounts of investments in consolidated companies 197.2 728.0 Consolidation adjustments net equity valuation of companies recognised in the separate financial statements at cost (0.6) 43.9 difference between purchase price and corresponding net book equity 2.1 94.5 elimination of intra-group transaction effects (2.1) (13.0) Total 441.4 3,438.2 Allocation of third-party holdings 41.8 313.4 Balances as per consolidated financial statement 483.2 3,751.6 ", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-52": { "value": "17 Earnings per share 2023 2022 Profit or loss for the period attributable to holders of ordinary shares of the parent company (A) 441.4 255.2 Weighted average number of shares outstanding for the purposes of calculation of earnings (loss) per share basic (B) 1,446,069,736 1,454,636,032 diluted (C) 1,446,069,736 1,454,636,032 Earnings (loss) per share (in euro) basic (A/B) 0.305 0.175 diluted (A/C) 0.305 0.175 Basic earnings per share are calculated on the operating result attributable to holders of ordinary shares of the parent company. Diluted earnings per share are equal to basic, as there are no classes of shares other than ordinary shares and there are no instruments that can be converted into shares. When this consolidated financial statement was prepared, the share capital of the parent company Hera Spa consisted of 1,489,538,745 ordinary shares, unchanged from 31 December 2022, which were used in determining basic and diluted earnings per share. ", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-459": { "value": "18 Financial assets, cash holdings and cash equivalents 31 Dec 23 31 Dec 22 Change Loan receivables 19.6 27.0 (7.4) Receivables for construction services 100.3 80.4 19.9 Portfolio securities 2.0 2.0 \u2010 Other financial receivables 40.9 42.4 (1.5) Total non-current financial assets 162.8 151.8 11.0 Loan receivables 6.3 7.2 (0.9) Portfolio securities 1.6 \u2010 1.6 Other financial receivables 83.0 70.5 12.5 Total current financial assets 90.9 77.7 13.2 Total cash holdings 1,332.8 1,942.4 (609.6) Total financial assets and cash holdings 1,586.5 2,171.9 (585.4) \u201cLoan receivables\u201d comprises the loans, regulated at market rate, made to the following companies: Fatto fi31 Dec 23 31 Dec 22 Non-current portion Current portion Total Non-current portion Current portion Total Aloe SpA 4.6 0.8 5.4 5.4 0.8 6.2 Calenia Energia Spa \u2010 \u2010 \u2010 3.3 \u2010 3.3 Set Spa 8.9 5.2 14.1 12.2 3.2 15.4 Other minor companies 6.1 0.3 6.4 6.1 3.2 9.3 Total 19.6 6.3 25.9 27.0 7.2 34.2 Loans to companies that are vehicles through which the Group owns production quotas for electricity generation plants (Set Spa and Tamarete Energia Srl) were tested for impairment, the result of which did not lead to changes in the carrying values during the 2023 financial year, as explained in Note 27 \u201cImpairment tests on equity investments\u201d. As regards receivables from the associated companies Tamarete Energia Srl and H.E.P.T. Co. Ltd, which were already fully written down at 31 December 2022, the Group received collections during the year totalling 2.6 million euro and recorded the consequent revaluation under financial income. \u201cReceivables for construction services\u201d from municipalities for the construction of public lighting systems identified in keeping with the financial asset model provided by the IFRIC 12 interpretation, as shown in greater detail in the section describing the evaluation criteria for the item \u201cLoans and receivables\u201d in section 2.02.01 \u201cIntroduction\u201d. \u201cPortfolio securities\u201d, in its non-current and current portions, mainly include bonds, funds and insurance policies guaranteeing post-mortem management of the landfill held by subsidiary Asa Scpa, amounting to 3.4 million euro, whose book value was essentially aligned with the fair value at year-end. These securities are measured at fair value through other comprehensive income components. \u201cOther financial receivables\u201d include the following counterparties: 31 Dec 23 31 Dec 22 Non-current portion Current portion Total Non-current portion Current portion Total Collinare Consortium 13.3 \u2010 13.3 13.0 \u2010 13.0 Acosea Impianti 12.7 \u2010 12.7 12.7 \u2010 12.7 Municipality of Padua 10.6 1.5 12.1 12.1 1.5 13.6 Market data exchange \u2010 10.8 10.8 \u2010 \u2010 \u2010 Cato and Veneto Region \u2010 6.1 6.1 \u2010 7.0 7.0 ex-CMV municipalities 3.9 \u2010 3.9 3.9 \u2010 3.9 Other financial receivables 0.4 64.6 65.0 0.7 62.0 62.7 Total 40.9 83.0 123.9 42.4 70.5 112.9 \u25aa The item Collinare Consortium represents the compensation owed to the outgoing provider when the gas distribution services contract comes to an end; \u25aa Acosea Impianti refers to a security deposit left with the parent company Hera Spa; \u25aa The Municipality of Padua is mainly related to the construction of photovoltaic systems. The repayment of this credit, which is regulated at a market rate, is scheduled at the end of 2030; \u25aa Market data exchange includes advances related to electricity and gas exchange contracts entered into on the EEX and ICE platforms, which call for the daily settlement of outstanding fair value differentials. The change compared to the previous year, in which this item was a 145.1 million euro payable, is due to the trend in energy commodity prices, which decreased significantly in 2023 compared to the peak values reached in 2022; \u25aa Cato and Veneto Region reflects government grants that will be collected after the balance sheet date; \u25aa Ex-CMV municipalities concerns the compensation due to the outgoing operator at the end of the concession of the management of gas distribution service in the municipalities of Vigarano, Goro and Castello d\u2019Argile; \u25aa Other financial receivables include transactions for the assignment of energy efficiency tax credits concluded at the end of fiscal year 2022, formally validated and accepted by the bank counterparties, the collection of which took place in January 2023, amounting to 43.6 million euro (46.3 million euro at 31 December 2002). \u201cCash and cash equivalents\u201d consisted solely of bank and postal deposits amounting to 1,332.8 million euro at 31 December 2023 (1,941.8 million euro at 31 December 2022). To better understand the change in the amount of cash and cash equivalents, see the cash flow statement. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialAssetsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-452": { "value": "18 Financial assets, cash holdings and cash equivalents 31 Dec 23 31 Dec 22 Change Loan receivables 19.6 27.0 (7.4) Receivables for construction services 100.3 80.4 19.9 Portfolio securities 2.0 2.0 \u2010 Other financial receivables 40.9 42.4 (1.5) Total non-current financial assets 162.8 151.8 11.0 Loan receivables 6.3 7.2 (0.9) Portfolio securities 1.6 \u2010 1.6 Other financial receivables 83.0 70.5 12.5 Total current financial assets 90.9 77.7 13.2 Total cash holdings 1,332.8 1,942.4 (609.6) Total financial assets and cash holdings 1,586.5 2,171.9 (585.4) \u201cLoan receivables\u201d comprises the loans, regulated at market rate, made to the following companies: Fatto fi31 Dec 23 31 Dec 22 Non-current portion Current portion Total Non-current portion Current portion Total Aloe SpA 4.6 0.8 5.4 5.4 0.8 6.2 Calenia Energia Spa \u2010 \u2010 \u2010 3.3 \u2010 3.3 Set Spa 8.9 5.2 14.1 12.2 3.2 15.4 Other minor companies 6.1 0.3 6.4 6.1 3.2 9.3 Total 19.6 6.3 25.9 27.0 7.2 34.2 Loans to companies that are vehicles through which the Group owns production quotas for electricity generation plants (Set Spa and Tamarete Energia Srl) were tested for impairment, the result of which did not lead to changes in the carrying values during the 2023 financial year, as explained in Note 27 \u201cImpairment tests on equity investments\u201d. As regards receivables from the associated companies Tamarete Energia Srl and H.E.P.T. Co. Ltd, which were already fully written down at 31 December 2022, the Group received collections during the year totalling 2.6 million euro and recorded the consequent revaluation under financial income. \u201cReceivables for construction services\u201d from municipalities for the construction of public lighting systems identified in keeping with the financial asset model provided by the IFRIC 12 interpretation, as shown in greater detail in the section describing the evaluation criteria for the item \u201cLoans and receivables\u201d in section 2.02.01 \u201cIntroduction\u201d. \u201cPortfolio securities\u201d, in its non-current and current portions, mainly include bonds, funds and insurance policies guaranteeing post-mortem management of the landfill held by subsidiary Asa Scpa, amounting to 3.4 million euro, whose book value was essentially aligned with the fair value at year-end. These securities are measured at fair value through other comprehensive income components. \u201cOther financial receivables\u201d include the following counterparties: 31 Dec 23 31 Dec 22 Non-current portion Current portion Total Non-current portion Current portion Total Collinare Consortium 13.3 \u2010 13.3 13.0 \u2010 13.0 Acosea Impianti 12.7 \u2010 12.7 12.7 \u2010 12.7 Municipality of Padua 10.6 1.5 12.1 12.1 1.5 13.6 Market data exchange \u2010 10.8 10.8 \u2010 \u2010 \u2010 Cato and Veneto Region \u2010 6.1 6.1 \u2010 7.0 7.0 ex-CMV municipalities 3.9 \u2010 3.9 3.9 \u2010 3.9 Other financial receivables 0.4 64.6 65.0 0.7 62.0 62.7 Total 40.9 83.0 123.9 42.4 70.5 112.9 \u25aa The item Collinare Consortium represents the compensation owed to the outgoing provider when the gas distribution services contract comes to an end; \u25aa Acosea Impianti refers to a security deposit left with the parent company Hera Spa; \u25aa The Municipality of Padua is mainly related to the construction of photovoltaic systems. The repayment of this credit, which is regulated at a market rate, is scheduled at the end of 2030; \u25aa Market data exchange includes advances related to electricity and gas exchange contracts entered into on the EEX and ICE platforms, which call for the daily settlement of outstanding fair value differentials. The change compared to the previous year, in which this item was a 145.1 million euro payable, is due to the trend in energy commodity prices, which decreased significantly in 2023 compared to the peak values reached in 2022; \u25aa Cato and Veneto Region reflects government grants that will be collected after the balance sheet date; \u25aa Ex-CMV municipalities concerns the compensation due to the outgoing operator at the end of the concession of the management of gas distribution service in the municipalities of Vigarano, Goro and Castello d\u2019Argile; \u25aa Other financial receivables include transactions for the assignment of energy efficiency tax credits concluded at the end of fiscal year 2022, formally validated and accepted by the bank counterparties, the collection of which took place in January 2023, amounting to 43.6 million euro (46.3 million euro at 31 December 2002). \u201cCash and cash equivalents\u201d consisted solely of bank and postal deposits amounting to 1,332.8 million euro at 31 December 2023 (1,941.8 million euro at 31 December 2022). To better understand the change in the amount of cash and cash equivalents, see the cash flow statement. ", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-481": { "value": "\u201cCash and cash equivalents\u201d consisted solely of bank and postal deposits amounting to 1,332.8 million euro at 31 December 2023 (1,941.8 million euro at 31 December 2022). To better understand the change in the amount of cash and cash equivalents, see the cash flow statement. ", "dimensions": { "concept": "ifrs-full:DisclosureOfDepositsFromBanksExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-460": { "value": "19 Financial liabilities 31 Dec 23 31 Dec 22 Change Bonds and loans 4,072.2 5,171.5 (1,099.3) Minority shareholder\u2019 put option 327.8 499.5 (171.7) Payables to acquire controlling shareholdings and potential consideration 20.1 17.4 2.7 Other financial liabilities 1.6 1.5 0.1 Total non-current financial liabilities 4,421.7 5,689.9 (1,268.2) Bonds and loans 479.2 87.1 392.1 Overdrafts and interest liabilities 92.6 316.6 (224.0) Payables to acquire controlling shareholdings and potential consideration 13.8 13.3 0.5 Minority shareholders\u2019 put option \u2010 1.7 (1.7) Other financial liabilities 305.2 231.4 73.8 Total current financial liabilities 890.8 650.1 240.7 Total financial liabilities 5,312.5 6,340.0 (1,027.5) The non-current portion of \u201cBonds and loans\u201d changed mainly due to the overall effect of the following: \u25aa issue of the Hera Group\u2019s second Sustainability-linked bond, part of its strategy aimed at reducing greenhouse gas emissions and increasing the amount of recycled plastic. The new bond, listed on the regulated markets of the Irish, Luxembourg and Italian stock exchanges, has a nominal value of 600 million euro, a ten-year term and a nominal coupon of 4.25%, with a possible step-up starting from 2032 should the company fail to achieve the sustainability targets called for by the bond. For further details regarding the new issuance, reference should be made to chapter 1.03 \u201cMain events occurred\u201d in the Directors\u2019 report; \u25aa early repayment of the medium/long-term credit line, in the form of a Term loan bullet, granted in 2022 by a pool of major banks operating with the Group, amounting to 450 million euro and secured by a guarantee issued by Sace Spa (based on Article 15 of Legislative Decree No. 50 of 17 May 2022, subsequently converted into law); \u25aa early repayment of debts underwritten with leading financial institutions in 2022 totalling 300 million euro. \u25aa classification in the current portion and subsequent early repayment of the 500 million euro bridge loan that a pool of banks granted in October 2022 in anticipation of the aforementioned issuance of the new Sustainability-linked bond; \u25aa classification in the current portion of two bonds with a total residual nominal value of 438.1 million euro, both maturing in August 2024. The item also includes the value of the put option, amounting to 55.3 million euro, related to Ascopiave Spa\u2019s 3% minority shareholding in Hera Comm Spa which, as a result of the contractual provisions, is classified as a loan and valued according to the depreciated cost method. This debt, with a nominal value of 54 million euro, increased due to the financial evaluation component and decreased due to dividends paid out: Opening value Financial expenses Flows paid out Terminal value 2022 financial year 55.0 3.2 (3.4) 54.8 2023 financial year 54.8 3.2 (2.7) 55.3 Total 54.8 3.2 (2.7) 55.3 The current portion of \u201cBonds and loans\u201d includes the amounts of medium- and long-term debt due within the next financial year, in addition to the bonds mentioned above maturing in August 2024. The main conditions of the bonds outstanding at 31 December 2023 are as follows: Bonds Duration (years) Maturity Nominal value (mn) Coupon Annual rate Sustainability linked bond 12.5 25 Apr 2034 500 EUR Fixed, annual 1.00% Sustainability linked bond 10 20 Apr 2033 600 EUR Fixed, annual 4.25% Green bond 10 04 Jul 2024 288.3 EUR Fixed, annual 2.375% Bond* 15 05 Aug 2024 20,000 JPY Fixed, six-monthly 2.93% Bond 12 22 May 2025 15 EUR Fixed, annual 3.5% Green bond 7 25-mag-2029 500 EUR Fixed, annual 2.5% Bond 10 14 Oct 2026 325.44 EUR Fixed, annual 0.875% Bond 10 03 Dec 2030 500 EUR Fixed, annual 0.25% Bond* 15/20 14 May 2027/2032 102.5 EUR Fixed, annual 5.25% Green bond 8 05 Jul 2027 357.2 EUR Fixed, annual 0.875% Bond 15 29 Jan 2028 599.02 EUR Fixed, annual 5.20% * Unlisted instrument At 31 December 2023, the outstanding bonds, totalling a face value of 3,937.2 million euro (3,359.2 at 31 December 2022) and recorded at discounted cost of 3,804.5 million euro, have a fair value of 3,737.7 million euro (2,986.8 at 31 December 2022) determined by market quotations where available. There are covenants on some loans that require compliance with the corporate rating limit, which must be rated, even only by a single rating agency, no lower than investment grade (BBB-). As of the balance sheet date this covenant has been complied with. \u201dMinority shareholders\u2019 put option\u201d includes the fair value assessment of the put options granted, with specific contractual arrangements, to minority shareholders on their own shares. The most significant amount refers to the put option on the non-controlling shares in EstEnergy Spa, equal to 25% of the share capital, held by Ascopiave Spa. The Group\u2019s policy is not to represent the holdings of minority shareholders in the component of results for the period, and therefore the value of debts for the options (to be paid at the date of exercising the option according to the contractual mechanism agreed between the parties) is increased by the dividends expected to be paid by the subsidiary companies along the hypothetical life of the options themselves. The fair value recognised as a liability in the balance sheet is therefore not only the present value of the expected price of the put option at the date of it is exercised, but also contains the discounted estimate of future dividends paid as part of the variable consideration due to the counterparty. Given the structure of the operation, during the period in which the option is exercised, the profit generated by subsidiary companies will be distributed according to their respective nominal shareholdings. This mechanism means that the portion of the fair value of the put option that will be settled through the distribution of future dividends is actually self-liquidating, since the necessary financial resources (i.e. dividends of non- controlling shareholdings) will be directly generated by the subsidiary companies, without thus determining during that period a real additional financial need for the Group. Put options Bonds The following are the changes for the year, compared with the previous period: Put options Opening value Acquisitions Financial expenses Changes in assumptions Flows paid out Terminal balance 31 Dec 22 Equity value 442.9 6.9 15.4 35.0 (79.0) 421.2 Future dividends 142.3 2.2 5.1 (47.6) (21.9) 80.0 Total 585.2 9.0 20.5 (12.6) (100.9) 501.2 31 Dec 23 Equity value 421.2 7.6 14.4 (11.9) (149.5) 281.9 Future dividends 80.0 3.1 2.8 (19.3) (20.7) 45.9 Total 501.2 10.7 17.2 (31.1) (170.2) 327.8 Regarding the changes occurring during the year: \u25aa acquisitions refer to the extraordinary acquisition of F.lli Franchini Srl; \u25aa financial expenses include the notional effects of discounting the liability recognised at the previous balance sheet date; \u25aa changes in assumptions represent the effects of updating the variables underlying the determination of the fair value of the options themselves. More specifically, the fair value of these options is calculated by referring to the future exercise scenario deemed most probable by Group management, taking into account the partial exercises carried out, consistently with the updated planning assumptions, adopting criteria according to the conditions agreed between the parties and discounting the corresponding future cash flows, using the average cost of the Group\u2019s long-term debt at the date of the transaction as the discount rate. In 2023, the revision of the estimates resulted in the recognition of income amounting to 31.3 million euro and expenses totalling 0.2 million euro. the income mainly refers to options on minority interests in EstEnergy Spa amounting to 26.9 million euro and Recycla Spa totalling 4.1 million euro; \u25aa the flows paid out include the amounts paid to minority shareholders both for exercising the options themselves (equity value) and for the payment of dividends belonging to them. During 2023, note the following movements in relation to the equity value component: \u2013 the partial exercise by Ascopiave Spa of the put option in its possession, resulting in the sale to Hera Comm Spa of 15% of the shares of EstEnergy Spa for an amount of 137.5 million euro; \u2013 the total exercise by Herambiente Servizi Industriali Srl of the put option in its possession, correlated with a corresponding put option held by minority shareholders, equal to 30% of the shares of Recycla Spa for an amount of 10.3 million euro. In \u201cOverdrafts and interest liabilities\u201d, the significant change compared with the previous financial period is due to the underwriting of short-term monetary loans in the form of hot money in the last quarter of 2022, totalling 230 million euro. These loans were paid up in the initial months of 2023 and, at the same time, the Group did not take out any further short-term loans with these characteristics, given its satisfactory cash position. \u201cPayables to acquire controlling shareholdings and potential consideration\u201d include the amounts still to be paid to transferor shareholders as part of the business combination transactions concluded in the period or in previous periods, as well as the estimate of the potential payments (earn-out) foreseen by the agreements signed at the time of the acquisition. The following is a breakdown of this item at 31 December 2023 by individual acquisition, compared with the previous period: 31 Dec 23 31 Dec 22 Non-current portion Current portion Total Non-current portion Current portion Total Aliplast Spa 17.4 \u2010 17.4 17.4 \u2010 17.4 Macero Maceratese Srl \u2010 \u2010 \u2010 \u2010 1.1 1.1 Payables to acquire controlling shareholdings 17.4 \u2010 17.4 17.4 1.1 18.5 Pistoia Ambiente Srl \u2010 11.9 11.9 \u2010 11.5 11.5 A.C.R Spa 2.5 1.0 3.5 \u2010 \u2010 \u2010 Aliplast Spa \u2010 0.5 0.5 \u2010 0.5 0.5 F.lli Franchini Srl 0.2 0.3 0.5 \u2010 \u2010 \u2010 Recycla Spa \u2010 \u2010 \u2010 \u2010 0.2 0.2 Other minor companies \u2010 0.1 0.1 \u2010 \u2010 \u2010 Potential consideration 2.7 13.8 16.5 \u2010 12.2 12.2 Total 20.1 13.8 33.9 17.4 13.3 30.7 \u201cOther financial payables\u201d mainly refer to: 31 Dec 23 31 Dec 22 Non-current portion Current portion Total Non-current portion Current portion Total Settlements \u2010 154.1 154.1 \u2010 \u2010 \u2010 Factoring \u2010 117.7 117.7 \u2010 61.0 61.0 Fund for energy and waste management services (CSEA) \u2010 21.3 21.3 \u2010 20.4 20.4 Municipal Pension Fund of the Municipality of Trieste 1.2 0.3 1.5 1.5 0.3 1.8 Market data exchange \u2010 \u2010 \u2010 \u2010 145.1 145.1 Other minor items 0.4 11.8 12.2 \u2010 4.6 4.6 Total 1.6 305.2 306.8 1.5 231.4 232.9 \u25aa Settlements includes the amounts collected as of the reporting date in relation to the provisional balancing service adjustment session for the gas sector in 2019-2022 (pursuant to the mechanism set out by ARERA in resolution 72/2018/R/gas) that took place during 2023. Following a verification of the volumes provided to end customers, the Group believes that it will have to reimburse these amounts in future sessions involving annual adjustments, during which the allocations will be redefined, until the definitive determination of the fifth consecutive year. These assessments were carried out also on the basis of the data communicated by distributors and taking into account noteworthy critical issues relating to the allocation and equalisation of methane gas orders in the Italian market; \u25aa Factoring mainly includes collections yet to be transferred to financial institutions at the end of the year, in relation to receivables subject to non-recourse assignments for which the Group has maintained collection activities on behalf of factor companies. The increase during the year is related to the higher amount of revolving transfers made compared to the previous year; \u25aa Fund for energy and waste management services includes revenues to be retroceded since they have already been advanced by CSEA mainly in relation to the reports made by the Group for the activities carried out in the gas and electricity sales markets subject to tenders, as detailed in Note 36 \u201cOther current liabilities\u201d which can be consulted for more details; \u25aa Market data exchange includes advances related to electricity and gas exchange contracts concluded on the EEX and ICE platforms, which provide for the daily settlement of outstanding fair value differentials. This item is a credit in the current year, as illustrated in Note 18 \u201cFinancial assets, cash and cash equivalents\u201d; \u25aa Other minor items mainly include payables to the Tax authorities in relation to the collection of the RAI fee charged to customers in their electricity bills by the Group\u2019s sales companies, amounting to 6.4 million euro (3.6 million euro at 31 December 2022). The following table shows financial liabilities broken down by nature at 31 December 2023, with an indication of their maturity: Type Residual amount 31 Dec 23 Portion due within the period Portion due within 2nd year Portion due within 5th year Portion due beyond 5th year Bonds 3.804.5 414.1 14.6 1,260.5 2,115.3 Loans 746.9 65.2 433.5 202.9 45.3 Minority shareholders\u2019 put option 327.8 \u2010 10.4 317.4 \u2010 Payables to acquire controlling shareholdings and potential consideration 33.9 13.7 18.5 1.7 \u2010 Other financial liabilities 306.8 305.2 1.4 0.1 0.1 Overdrafts and interest liabilities 92.6 92.6 \u2010 \u2010 \u2010 Total 5,312.5 890.8 478.4 1,782.6 2,160.7 The table below shows the worst-case scenario, in which assets (cash, financial and trade receivables) are not taken into account, unlike financial liabilities for bonds, financing and overdrafts, shown in the capital and interest portion, trade payables and interest rate derivatives. Financial lines were assumed to be revoked on demand, while loans were assumed to be repaid at the earliest date provided for in the contractual terms. Worst case scenario 31 Dec 23 31 Dec 22 (mn\u20ac) from 1 to 3 months more than 3 months to 1 year from 1 to 2 years from 1 to 3 months more than 3 months to 1 year from 1 to 2 years Bonds 33.2 536.2 102.3 33.0 99.0 511.0 Financial payables and other liabilities 98.0 81.9 444.9 329.6 732.0 91.0 Payables to suppliers 2,637.2 \u2010 \u2010 3,093.1 \u2010 \u2010 Total 2,768.4 618.1 547.2 3,455.8 831.0 602.0 Current cash and lines of credit, in addition to the resources generated by the operating and financing activities, are deemed sufficient to meet future financial needs. The following is a summary of the credit lines available at 31 December 2023, compared with the previous year: 31 Dec 23 31 Dec 22 Committed credit lines 1,565.0 1,230.0 Uncommitted credit lines 752.0 517.0 Total 2,317.0 1,747.0 The credit lines are distributed among the leading Italian and international banks and allow for adequate diversification of counterparty risk and competitive conditions. In 2023, in particular, the following were signed: \u25aa a sustainability-linked revolving credit facility with a pool of leading banks totalling 450 million euro, with a five-year term; \u25aa a credit line with the European Investment Bank amounting to 460 million euro, usable within the next three years and repayable in sixteen annual instalments starting four years after being drawn. Debt analysis by maturity Scenario analysis Credit line Sureties and guarantees 31 Dec 23 31 Dec 22 Bank sureties and guarantees 2,951.4 2,780.0 Insurance sureties and guarantees 987.5 851.5 Total 3,938.9 3,631.5 For \u201cBank sureties and guarantees\u201d, the value at 31 December 2023, compared with the previous period, comprises the following: 31 Dec 23 31 Dec 22 Bank sureties 1,075.8 1,244.4 Letters of patronage 1,875.6 1,535.6 Total 2,951.4 2,780.0 More specifically: \u25aa bank sureties are related to sureties made to public institutions (the Ministry of the Environment and Energy Security, the regions, provinces and municipalities) and private entities to guarantee the suitable management of plants for treating and disposing of waste, for the suitable provision of waste disposal and intermediation services, for reclamation work and for the proper fulfilment of contractual commitments on wholesale energy commodity markets; \u25aa letters of patronage are issued mainly to guarantee the timely payment of raw material supplies. The increase compared to the previous year is due to the higher guarantees provided for operations on the wholesale procurement markets and sales to end customers of gas and electricity commodities. \u201cInsurance sureties and guarantees\u201d refers to sureties issued to public entities (provinces, municipalities and the Ministry of the Environment and Energy Security) and third parties to guarantee the suitable management of public utility and waste disposal services, the proper execution of the work to lay company pipelines across land owned by private individuals, reclamation work, managing waste treatment and disposal systems. Note, lastly, that at 31 December 2023, the Hera Group provided the guarantees for certain bank loans, in the amount of 11.8 million euro. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialLiabilitiesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-482": { "value": "
The non-current portion of \u201cBonds and loans\u201d changed mainly due to the overall effect of the following:
\u25aa issue of the Hera Group\u2019s second Sustainability-linked bond, part of its strategy aimed at reducing
greenhouse gas emissions and increasing the amount of recycled plastic. The new bond, listed on
the regulated markets of the Irish, Luxembourg and Italian stock exchanges, has a nominal value of
600 million euro, a ten-year term and a nominal coupon of 4.25%, with a possible step-up starting
from 2032 should the company fail to achieve the sustainability targets called for by the bond. For
further details regarding the new issuance, reference should be made to chapter 1.03 \u201cMain events
occurred\u201d in the Directors\u2019 report;
\u25aa early repayment of the medium/long-term credit line, in the form of a Term loan bullet, granted in
2022 by a pool of major banks operating with the Group, amounting to 450 million euro and secured
by a guarantee issued by Sace Spa (based on Article 15 of Legislative Decree No. 50 of 17 May
2022, subsequently converted into law);
\u25aa early repayment of debts underwritten with leading financial institutions in 2022 totalling 300 million
euro.
\u25aa classification in the current portion and subsequent early repayment of the 500 million euro bridge
loan that a pool of banks granted in October 2022 in anticipation of the aforementioned issuance of
the new Sustainability-linked bond;
\u25aa classification in the current portion of two bonds with a total residual nominal value of 438.1 million
euro, both maturing in August 2024.
The item also includes the value of the put option, amounting to 55.3 million euro, related to Ascopiave
Spa\u2019s 3% minority shareholding in Hera Comm Spa which, as a result of the contractual provisions, is
classified as a loan and valued according to the depreciated cost method. This debt, with a nominal value
of 54 million euro, increased due to the financial evaluation component and decreased due to dividends
paid out:
Opening value
Financial expenses
Flows paid out
Terminal value
2022 financial year
55.0
3.2
(3.4)
54.8
2023 financial year
54.8
3.2
(2.7)
55.3
Total
54.8
3.2
(2.7)
55.3
The current portion of \u201cBonds and loans\u201d includes the amounts of medium- and long-term debt due within
the next financial year, in addition to the bonds mentioned above maturing in August 2024.
The main conditions of the bonds outstanding at 31 December 2023 are as follows: Bonds Duration (years) Maturity Nominal value (mn) Coupon Annual rate Sustainability linked bond 12.5 25 Apr 2034 500 EUR Fixed, annual 1.00% Sustainability linked bond 10 20 Apr 2033 600 EUR Fixed, annual 4.25% Green bond 10 04 Jul 2024 288.3 EUR Fixed, annual 2.375% Bond* 15 05 Aug 2024 20,000 JPY Fixed, six-monthly 2.93% Bond 12 22 May 2025 15 EUR Fixed, annual 3.5% Green bond 7 25-mag-2029 500 EUR Fixed, annual 2.5% Bond 10 14 Oct 2026 325.44 EUR Fixed, annual 0.875% Bond 10 03 Dec 2030 500 EUR Fixed, annual 0.25% Bond* 15/20 14 May 2027/2032 102.5 EUR Fixed, annual 5.25% Green bond 8 05 Jul 2027 357.2 EUR Fixed, annual 0.875% Bond 15 29 Jan 2028 599.02 EUR Fixed, annual 5.20% * Unlisted instrument At 31 December 2023, the outstanding bonds, totalling a face value of 3,937.2 million euro (3,359.2 at 31 December 2022) and recorded at discounted cost of 3,804.5 million euro, have a fair value of 3,737.7 million euro (2,986.8 at 31 December 2022) determined by market quotations where available. There are covenants on some loans that require compliance with the corporate rating limit, which must be rated, even only by a single rating agency, no lower than investment grade (BBB-). As of the balance sheet date this covenant has been complied with.
Bonds
", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-53": { "value": "The non-current portion of \u201cBonds and loans\u201d changed mainly due to the overall effect of the following: \u25aa issue of the Hera Group\u2019s second Sustainability-linked bond, part of its strategy aimed at reducing greenhouse gas emissions and increasing the amount of recycled plastic. The new bond, listed on the regulated markets of the Irish, Luxembourg and Italian stock exchanges, has a nominal value of 600 million euro, a ten-year term and a nominal coupon of 4.25%, with a possible step-up starting from 2032 should the company fail to achieve the sustainability targets called for by the bond. For further details regarding the new issuance, reference should be made to chapter 1.03 \u201cMain events occurred\u201d in the Directors\u2019 report; \u25aa early repayment of the medium/long-term credit line, in the form of a Term loan bullet, granted in 2022 by a pool of major banks operating with the Group, amounting to 450 million euro and secured by a guarantee issued by Sace Spa (based on Article 15 of Legislative Decree No. 50 of 17 May 2022, subsequently converted into law); \u25aa early repayment of debts underwritten with leading financial institutions in 2022 totalling 300 million euro. \u25aa classification in the current portion and subsequent early repayment of the 500 million euro bridge loan that a pool of banks granted in October 2022 in anticipation of the aforementioned issuance of the new Sustainability-linked bond; \u25aa classification in the current portion of two bonds with a total residual nominal value of 438.1 million euro, both maturing in August 2024. The item also includes the value of the put option, amounting to 55.3 million euro, related to Ascopiave Spa\u2019s 3% minority shareholding in Hera Comm Spa which, as a result of the contractual provisions, is classified as a loan and valued according to the depreciated cost method. This debt, with a nominal value of 54 million euro, increased due to the financial evaluation component and decreased due to dividends paid out: Opening value Financial expenses Flows paid out Terminal value 2022 financial year 55.0 3.2 (3.4) 54.8 2023 financial year 54.8 3.2 (2.7) 55.3 Total 54.8 3.2 (2.7) 55.3 The current portion of \u201cBonds and loans\u201d includes the amounts of medium- and long-term debt due within the next financial year, in addition to the bonds mentioned above maturing in August 2024. The main conditions of the bonds outstanding at 31 December 2023 are as follows: Bonds Duration (years) Maturity Nominal value (mn) Coupon Annual rate Sustainability linked bond 12.5 25 Apr 2034 500 EUR Fixed, annual 1.00% Sustainability linked bond 10 20 Apr 2033 600 EUR Fixed, annual 4.25% Green bond 10 04 Jul 2024 288.3 EUR Fixed, annual 2.375% Bond* 15 05 Aug 2024 20,000 JPY Fixed, six-monthly 2.93% Bond 12 22 May 2025 15 EUR Fixed, annual 3.5% Green bond 7 25-mag-2029 500 EUR Fixed, annual 2.5% Bond 10 14 Oct 2026 325.44 EUR Fixed, annual 0.875% Bond 10 03 Dec 2030 500 EUR Fixed, annual 0.25% Bond* 15/20 14 May 2027/2032 102.5 EUR Fixed, annual 5.25% Green bond 8 05 Jul 2027 357.2 EUR Fixed, annual 0.875% Bond 15 29 Jan 2028 599.02 EUR Fixed, annual 5.20% * Unlisted instrument At 31 December 2023, the outstanding bonds, totalling a face value of 3,937.2 million euro (3,359.2 at 31 December 2022) and recorded at discounted cost of 3,804.5 million euro, have a fair value of 3,737.7 million euro (2,986.8 at 31 December 2022) determined by market quotations where available. There are covenants on some loans that require compliance with the corporate rating limit, which must be rated, even only by a single rating agency, no lower than investment grade (BBB-). As of the balance sheet date this covenant has been complied with. Bonds ", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-54": { "value": "Sureties and guarantees 31 Dec 23 31 Dec 22 Bank sureties and guarantees 2,951.4 2,780.0 Insurance sureties and guarantees 987.5 851.5 Total 3,938.9 3,631.5 For \u201cBank sureties and guarantees\u201d, the value at 31 December 2023, compared with the previous period, comprises the following: 31 Dec 23 31 Dec 22 Bank sureties 1,075.8 1,244.4 Letters of patronage 1,875.6 1,535.6 Total 2,951.4 2,780.0 More specifically: \u25aa bank sureties are related to sureties made to public institutions (the Ministry of the Environment and Energy Security, the regions, provinces and municipalities) and private entities to guarantee the suitable management of plants for treating and disposing of waste, for the suitable provision of waste disposal and intermediation services, for reclamation work and for the proper fulfilment of contractual commitments on wholesale energy commodity markets; \u25aa letters of patronage are issued mainly to guarantee the timely payment of raw material supplies. The increase compared to the previous year is due to the higher guarantees provided for operations on the wholesale procurement markets and sales to end customers of gas and electricity commodities. \u201cInsurance sureties and guarantees\u201d refers to sureties issued to public entities (provinces, municipalities and the Ministry of the Environment and Energy Security) and third parties to guarantee the suitable management of public utility and waste disposal services, the proper execution of the work to lay company pipelines across land owned by private individuals, reclamation work, managing waste treatment and disposal systems. Note, lastly, that at 31 December 2023, the Hera Group provided the guarantees for certain bank loans, in the amount of 11.8 million euro. ", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-453": { "value": "20 Cash flows related to financing activities Changes in financial liabilities The following is a breakdown of information on changes in financial liabilities during the 2023 financial year, differentiating between cash flows and non-cash flows. Type 31 Dec 23 31 Dec 22 Change (a) Non-cash flows Cash flows (f)=(a)- [(b)+(c)+(d)+ (e)] Acquisitions divestitures (b) Economic valuation components (c) Changes in fair value (d) Other changes (e) Non-current financial liabilities 4,421.7 5,689.9 (1,268.2) 15.3 47.5 (27.1) (1,031.3) (272.6) Current financial liabilities 890.8 650.1 240.7 14.0 3.6 (19.7) 1,013.8 (771.0) Cash flows related to financial liabilities 5,312.5 6,340.0 (1,027.5) (29.3) 51.1 (46.8) (17.5) (1,043.6) of which New issue of long-term bonds 614.9 Repayments of non-current financial liabilities (750.0) Repayments and other net changes in financial liabilities (908.5) Lease liabilities 81.3 76.4 4.9 7.0 \u2010 \u2010 20.3 (22.4) Financial liabilities generated by financing activities 5,393.8 6,416.4 (1,022.6) 36.3 51.1 (46.8) 2.8 (1,066.0) \u201cAcquisitions and Divestitures\u201d include the effects arising from the control acquisition transactions carried out in the 2023 financial year, as explained in the section \u201cBusiness combination (supplementary information)\u201d in Section 2.02.10 \u201cOther information\u201d. \u201cEconomic valuation components\u201d include: \u25aa charges from the amortised cost valuation of bonds and loans in the amount of 33.5 million euro, as reported in Note 11 \u201cFinancial expenses\u201d; \u25aa discounting charges related to the put options of non-controlling shareholdings and earn-outs contracted as part of the acquisition of control over companies and business units, amounting to 17.6 million euros, as reported in Note 11 \u201cFinancial expenses\u201d, \u201cChanges in fair value\u201d mainly include: \u25aa the adjustment to fair value of the carrying amount of the put option recorded against the minority shareholder of EstEnergy Spa, which resulted in the recognition of income in the amount of 26.9 million euro, as reported in Note 19 \u201cFinancial liabilities\u201d; \u25aa the adjustment to fair value of the carrying amount of the put option recognised to the minority shareholders of Recycla Spa, following the Group\u2019s exercise of the related put option on all remaining shares, which resulted in the recognition of income coming to 4.1 million, as reported in Note 19 \u201cFinancial Liabilities\u201d; \u25aa the adjustment made to the carrying value of a foreign currency bond due to the fair value hedge relationship that resulted in the recognition of charges amounting to 15.6 million euro, as reported in Note 29 \u201cDerivative Instruments\u201d. \u201cOther changes\u201d include effects mainly due to: \u25aa payment of dividends to minority shareholders with whom the Group contracted put options at the time of acquiring control, amounting to 20.7 million euro. In the cash flow statement, the related cash flow is represented in dividends paid out, although it is accounted for as a change in the financial liability already recorded (this mechanism is explained in Note 19 \u201cFinancial liabilities\u201d); \u25aa recognition, in application of amortised cost, of the initial adjustment of the nominal value of the bond issued during the year totalling 7.1 million euro, in order to represent the costs related to this issuance as separate cash flows; \u25aa the recognition of liabilities related to leases entered into during the year and the remeasurement of outstanding lease liabilities generated by an update of the underlying assumptions about renewal, purchase, or early termination options, as reported in Note 22, \u201cRights of Use and Lease Liabilities\u201d. Acquisition of interests in consolidated companies This amount mainly refers to the outlay related to the purchase of non-controlling shares in Tri- Generazione Scarl, as described in paragraph 2.02.01 \u201cIntroduction\u201d, while the amount for the previous year refers to the acquisition of shares in Hera Comm Marche Srl. Minority share capital increase This amount mainly refers to the share capital increase subscribed and paid up by the minority shareholders of A.C.R. Spa, which took place after the acquisition of control by the Hera Group. Dividends paid out to Hera shareholders and non-controlling interests The value refers to dividends paid out during 2023 to: \u25aa parent company\u2019s shareholders in the amount of 182.6 million euro; \u25aa minority shareholders in the amount of 56.5 million euro, of which 20.7 million euro were paid to minority shareholders to whom the Group had recognized payables for put options in previous years, as mentioned above. Lastly, note that non-monetary flows due to exchange rate differences were absent in 2023. 28 Cash flows related to investment activities Investments in subsidiary companies and business units net of cash holdings For further details on the acquisition transactions carried out during 2023, see paragraph 2.02.10, \u201cOther Information\u201d. The table below details the main cash disbursements and cash holdings acquired, when present, associated with shareholdings in companies and business units. 31 Dec 23 A.C.R. Spa Asco TLC Spa F.lli Franchini Srl business unit \u201cPagnanini\u201d Total investments Cash outlays leading to the acquisition of control 72.6 14.9 9.0 0.3 96.8 Cash holdings acquired (15.3) (2.3) (3.0) (20.6) Investments in subsidiary companies and business units net of cash holdings 57.3 12.6 6.0 0.3 76.2 Cash outlays in non-consolidated companies \u2010 Investments in subsidiary companies, business units and other shareholdings 57.3 12.6 6.0 0.3 76.2 Increase/decrease in other investment activities The following is a breakdown of information on changes in the other investment activities during the 2023 financial year, differentiating between cash flows and non-cash flows. Type 31 Dec 23 31 Dec 22 Change (a) Non-cash flows Cash flows (f)=[(b)+(c)+( d)+(e)]-(a) Acquisitions divestitures (b) Economic valuation components (c) Changes in fair value (d) Other changes (e) Current and non- current financial assets 253.7 229.5 24.2 0.1 6.5 3.5 44.2 30.1 \u201cAcquisitions divestitures\u201d, include the effects arising from acquisitions of control during 2023, as illustrated in paragraph 2.02.10 \u201cOther information\u201d. \u201cEconomic valuation components\u201d mainly include income from discounting non-current financial receivables amounting to 6.5 million, as reported in Note 10 \u201cFinancial income\u201d. \u201cFair value changes\u201d include the economic effects related to the revaluation of financial receivables subject to impairment, as illustrated in Note 18 \u201cFinancial assets, cash and cash equivalents\u201d. \u201cOther changes\u201d mainly include the amount of tax credit transfers carried out at the end of 2023, the which were collected in January 2024, amounting to 43.6 million euro. For further details, see Note 18 \u201cFinancial assets, cash holdings and cash equivalents\u201d. 37 Cash flows of operating activities Changes in net working capital The following is a breakdown of information on changes in financial liabilities during the 2023 financial year, differentiating between cash flows and non-cash flows. Type 31 Dec 23 31 Dec 22 Change (a) Non-cash flows Cash flows (f)=[(b)+(c)+( d)+(e)]-(a) Acquisitions divestitures (b) Economic valuation components (c) Changes in fair value (d) Other changes (e) Inventories 631.6 995.1 (363.5) 53.0 (28.1) 6.7 395.1 Trade receivables 3,586.8 3,875.0 (288.2) 37.5 (146.5) (49.0) (212.1) (81.9) Trade payables (2,637.2) (3,093.1) 455.9 (57.6) (0.2) (513.7) Other current assets/liabilities (1,357.5) (1,077.5) (280.0) (0.8) (2.8) (9.3) 162.6 429.7 Changes in working capital 223.7 699.5 (475.8) 32.1 (177.4) (58.3) (43.0) 229.2 \u201cAcquisitions divestitures\u201d include the effects arising from acquisitions of control during 2023, as illustrated in paragraph 2.02.10 \u201cOther information\u201d. \u201cEconomic valuation components\u201d mainly includes: \u25aa the provision for bad debts for a negative 154 million euro; \u25aa the write-down of natural gas inventories amounting to a negative 27.4 million euro, as reported in Note 32 \u201cInventories\u201d; \u25aa income related to the discounting process for receivables pertaining to discounts included directly in invoices, whose cashflows will be seen in subsequent years, amounting to a positive 7.8 million euro, as reported in Note 10 \u201cFinancial income\u201d; \u25aa the portions pertaining to the period of plan related grants, the total amount of which was collected in previous years, totalling a positive amount of 13.3 million euro, as stated in Note 2 \u201cOther operating revenues\u201d. \u201cChanges in fair value\u201d includes: \u25aa the fair value assessment of receivables related to the application of the discount included in invoices linked to energy efficiency measures for end customers amounting to a negative 56.4 million euro, as reported in Note 11 \u201cFinancial expenses\u201d; \u25aa the valuation of environmental certificates and greenhouse gas emission obligations assigned to the Group, as well as the valuation of forward contracts for the purchase and sale of greenhouse gas emission allowances, for a total negative 1.9 million euro, as illustrated in Note 35 \u201cOther current assets\u201d and 36 \u201cOther current liabilities\u201d. \u201cOther changes\u201d mainly comprises offsets within net working capital of transactions involving the gross recognition of assets and liabilities. Also note, as reported above in Note 28 \u201cCashflows from investing activities\u201d, the reinstatement of the value of cashflows for tax credits amounting to 43.6 million euro, whose transfer took place in January 2024, but was finalised in December 2023. Dividends collected In 2023, dividends for 8.7 million euro were received from companies consolidated according to the equity method and 6.4 million euro from shareholdings held in other companies. For further details, see Note 10 \u201cFinancial income\u201d and 26 \u201cShareholdings\u201d. Net interest paid The following is a reconciliation of the balance sheet values of financial income and expenses and the related net cash flows for the year. Type 2023 (a) Non-cash components Other changes (d) Cash components (e)=(a)-[(b)+(c)+(d)] Economic valuation components (b) Changes in fair value (c) Financial income 157.1 14.1 51.0 14.2 77.8 Financial expenses (345.0) (59.0) (77.7) (14.9) (193.4) Total (187.9) (44.9) (26.7) (0.7) (115.6) \u201cEconomic valuation components\u201d includes income and expenses arising from both the assessment at amortised cost and the discounting of receivables and liabilities characterised by monetary outlays to be carried out in the medium to long term, as illustrated in Note 10 \u201cFinancial income\u201d and Note 11 \u201cFinancial expenses\u201d. \u201cChanges in fair value\u201d include assessments at current market value of financial assets and liabilities, mainly related to: \u25aa receivables related to the application of the discount included in invoices linked to subsidised energy efficiency interventions carried out on behalf of end customers amounting to a negative 56.4 million euro, as reported in Note 11 \u201cFinancial expenses\u201d; \u25aa a fair value assessment of put options and contingent consideration for a total net effect amounting to a positive 31.1 million euro. \u25aa an adjustment made to the book value of a bond issued in foreign currency as a result of the fair value hedge, which led to the recognition of income amounting to a positive 15.6 million euro; \u25aa hedging derivatives that resulted in the recognition of net valuation losses amounting to a negative 14.8 million euro. \u201cOther changes\u201d include effects mainly due to: \u25aa the adjustment of interest income and expenses recognised on an accrual basis in order to show the actual cash flows realised in 2023, amounting to 12.9 million euro; \u25aa dividends paid by other minor holdings, whose cashflow for the period is shown in a specific item in the cash flow statement, amounting to 6.4 million euro. Taxes paid The breakdown of flows by tax type is as follows: 31 Dec 23 31 Dec 22 Income taxes 92.9 131.9 Substitute tax 3.7 9.1 Nonrecurring taxes \u2010 24.9 Taxes paid 96.6 165.9 Income taxes include the amount paid by the Group during 2023 in relation to the 2022 IRES and IRAP balances and the advance payments due for 2023. For 2022, nonrecurring taxes represented the amount paid during the year in relation to the nonrecurring extra-profits tax. At 31 December 2023, the substitute tax included the amount paid linked to the redemption of the controlling interest in the acquisition of Con Energia Spa. At 31 December 2022, this item included the amount paid linked to the redemption of similar transactions involving the companies Eco Gas Srl and Vallortigara Servizi Ambientali Spa. ", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-55": { "value": "20 Cash flows related to financing activities Changes in financial liabilities The following is a breakdown of information on changes in financial liabilities during the 2023 financial year, differentiating between cash flows and non-cash flows. Type 31 Dec 23 31 Dec 22 Change (a) Non-cash flows Cash flows (f)=(a)- [(b)+(c)+(d)+ (e)] Acquisitions divestitures (b) Economic valuation components (c) Changes in fair value (d) Other changes (e) Non-current financial liabilities 4,421.7 5,689.9 (1,268.2) 15.3 47.5 (27.1) (1,031.3) (272.6) Current financial liabilities 890.8 650.1 240.7 14.0 3.6 (19.7) 1,013.8 (771.0) Cash flows related to financial liabilities 5,312.5 6,340.0 (1,027.5) (29.3) 51.1 (46.8) (17.5) (1,043.6) of which New issue of long-term bonds 614.9 Repayments of non-current financial liabilities (750.0) Repayments and other net changes in financial liabilities (908.5) Lease liabilities 81.3 76.4 4.9 7.0 \u2010 \u2010 20.3 (22.4) Financial liabilities generated by financing activities 5,393.8 6,416.4 (1,022.6) 36.3 51.1 (46.8) 2.8 (1,066.0) \u201cAcquisitions and Divestitures\u201d include the effects arising from the control acquisition transactions carried out in the 2023 financial year, as explained in the section \u201cBusiness combination (supplementary information)\u201d in Section 2.02.10 \u201cOther information\u201d. \u201cEconomic valuation components\u201d include: \u25aa charges from the amortised cost valuation of bonds and loans in the amount of 33.5 million euro, as reported in Note 11 \u201cFinancial expenses\u201d; \u25aa discounting charges related to the put options of non-controlling shareholdings and earn-outs contracted as part of the acquisition of control over companies and business units, amounting to 17.6 million euros, as reported in Note 11 \u201cFinancial expenses\u201d, \u201cChanges in fair value\u201d mainly include: \u25aa the adjustment to fair value of the carrying amount of the put option recorded against the minority shareholder of EstEnergy Spa, which resulted in the recognition of income in the amount of 26.9 million euro, as reported in Note 19 \u201cFinancial liabilities\u201d; \u25aa the adjustment to fair value of the carrying amount of the put option recognised to the minority shareholders of Recycla Spa, following the Group\u2019s exercise of the related put option on all remaining shares, which resulted in the recognition of income coming to 4.1 million, as reported in Note 19 \u201cFinancial Liabilities\u201d; \u25aa the adjustment made to the carrying value of a foreign currency bond due to the fair value hedge relationship that resulted in the recognition of charges amounting to 15.6 million euro, as reported in Note 29 \u201cDerivative Instruments\u201d. \u201cOther changes\u201d include effects mainly due to: \u25aa payment of dividends to minority shareholders with whom the Group contracted put options at the time of acquiring control, amounting to 20.7 million euro. In the cash flow statement, the related cash flow is represented in dividends paid out, although it is accounted for as a change in the financial liability already recorded (this mechanism is explained in Note 19 \u201cFinancial liabilities\u201d); \u25aa recognition, in application of amortised cost, of the initial adjustment of the nominal value of the bond issued during the year totalling 7.1 million euro, in order to represent the costs related to this issuance as separate cash flows; \u25aa the recognition of liabilities related to leases entered into during the year and the remeasurement of outstanding lease liabilities generated by an update of the underlying assumptions about renewal, purchase, or early termination options, as reported in Note 22, \u201cRights of Use and Lease Liabilities\u201d.", "dimensions": { "concept": "ifrs-full:DisclosureOfReconciliationOfLiabilitiesArisingFromFinancingActivitiesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-483": { "value": "Dividends paid out to Hera shareholders and non-controlling interests The value refers to dividends paid out during 2023 to: \u25aa parent company\u2019s shareholders in the amount of 182.6 million euro; \u25aa minority shareholders in the amount of 56.5 million euro, of which 20.7 million euro were paid to minority shareholders to whom the Group had recognized payables for put options in previous years, as mentioned above.", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-461": { "value": "21 Tangible assets 31 Dec 23 31 Dec 22 Change Land and buildings 635.7 620.4 15.3 Plants and machinery 1,067.9 1,089.5 (21.6) Other movable assets 107.7 89.5 18.2 Assets under construction 246.1 183.0 63.1 Total operating assets 2,057.4 1,982.4 75.0 Investment property 1.9 2.0 (0.1) Total 2,059.3 1,984.4 74.9 Property, plant and equipment are disclosed net of accumulated depreciation. Their composition and changes in the period are as follows: Net opening balance Investments Disinvestments Depreciation and amortisation Changes in the scope of consolidation Other changes Net terminal value of which gross terminal value of which amortis - ation provision 31 Dec 22 Land and buildings 585.3 24.0 (1.9) (19.5) 3.7 28.8 620.4 908.7 (288.3) Plants and machinery 1,107.8 61.8 (3.7) (112.5) 9.0 27.1 1,089.5 3,060.2 (1,970.7) Other movable assets 123.7 13.7 (0.3) (21.0) 0.6 (27.2) 89.5 433.1 (343.6) Assets under construction 122.1 126.1 (0.5) \u2010 \u2010 (64.7) 183.0 183.0 \u2010 Total 1,938.9 225.6 (6.4) (153.0) 13.3 (36.0) 1,982.4 4,585.0 (2,602.6) 31 Dec 23 Land and buildings 620.4 21.0 (0.5) (23.7) 8.4 10.1 635.7 955.0 (319.3) Plants and machinery 1,089.5 57.1 (7.8) (123.4) 5.5 47.0 1,067.9 3,152.4 (2,084.5) Other movable assets 89.5 22.0 (0.4) (24.2) 7.7 13.1 107.7 480.1 (372.4) Assets under construction 183.0 142.6 (0.8) (0.9) 0.4 (78.2) 246.1 246.1 \u2010 Total 1,982.4 242.7 (9.5) (172.2) 22.0 (8.0) 2,057.4 4,833.6 (2,776.2) \u201cLand and buildings\u201d consists of 127.2 million euro in land and 508.5 million euro in buildings. These are mainly company-owned properties on which the majority of the sites and production plants stand. \u201cPlants and machinery\u201d is made up mainly of distribution networks and plants relating to business not falling within the scope of the concession system such as district heating, electricity in the Modena area, waste disposal and waste treatment as well as plastic production plants. The main investments for the year were in waste treatment activities amounting to 28.8 million euro and electricity distribution amounting to 21.3 million euro. Disinvestments concern demolitions and divestitures of obsolete plants. \u201cOther movable assets\u201d mainly include, regarding business areas that have not yet gone out to tender for service concessions, waste collection equipment and bins amounting to 67 million euro and motor vehicles amounting to 40.7 million euro. \u201cAssets under construction\u201d mainly consist of investments in progress for waste treatment plants amounting to 59 million euro and for the electricity distribution network amounting to 25.7 million euro, as well as investments for developing the district heating network amounting to 23.7 million euro. \u201cOther changes\u201d covers the in-progress reclassification of fixed assets to the specific categories for assets brought into operation during the financial year, as well as the reclassification from tangible assets to intangible assets, especially when goods used in activities under concession are involved. For the column \u201cChange in the scope of consolidation,\u201d please refer to the section \u201cBusiness combinations (supplementary information)\u201d contained in paragraph 2.02.10 \u201cOther information\u201d. For additional details on guarantees granted in favour of third parties and in relation to tangible assets held by the Group, see Note 19 \u201cFinancial liabilities\u201d. ", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentPropertyExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-431": { "value": "21 Tangible assets 31 Dec 23 31 Dec 22 Change Land and buildings 635.7 620.4 15.3 Plants and machinery 1,067.9 1,089.5 (21.6) Other movable assets 107.7 89.5 18.2 Assets under construction 246.1 183.0 63.1 Total operating assets 2,057.4 1,982.4 75.0 Investment property 1.9 2.0 (0.1) Total 2,059.3 1,984.4 74.9 Property, plant and equipment are disclosed net of accumulated depreciation. Their composition and changes in the period are as follows: Net opening balance Investments Disinvestments Depreciation and amortisation Changes in the scope of consolidation Other changes Net terminal value of which gross terminal value of which amortis - ation provision 31 Dec 22 Land and buildings 585.3 24.0 (1.9) (19.5) 3.7 28.8 620.4 908.7 (288.3) Plants and machinery 1,107.8 61.8 (3.7) (112.5) 9.0 27.1 1,089.5 3,060.2 (1,970.7) Other movable assets 123.7 13.7 (0.3) (21.0) 0.6 (27.2) 89.5 433.1 (343.6) Assets under construction 122.1 126.1 (0.5) \u2010 \u2010 (64.7) 183.0 183.0 \u2010 Total 1,938.9 225.6 (6.4) (153.0) 13.3 (36.0) 1,982.4 4,585.0 (2,602.6) 31 Dec 23 Land and buildings 620.4 21.0 (0.5) (23.7) 8.4 10.1 635.7 955.0 (319.3) Plants and machinery 1,089.5 57.1 (7.8) (123.4) 5.5 47.0 1,067.9 3,152.4 (2,084.5) Other movable assets 89.5 22.0 (0.4) (24.2) 7.7 13.1 107.7 480.1 (372.4) Assets under construction 183.0 142.6 (0.8) (0.9) 0.4 (78.2) 246.1 246.1 \u2010 Total 1,982.4 242.7 (9.5) (172.2) 22.0 (8.0) 2,057.4 4,833.6 (2,776.2) \u201cLand and buildings\u201d consists of 127.2 million euro in land and 508.5 million euro in buildings. These are mainly company-owned properties on which the majority of the sites and production plants stand. \u201cPlants and machinery\u201d is made up mainly of distribution networks and plants relating to business not falling within the scope of the concession system such as district heating, electricity in the Modena area, waste disposal and waste treatment as well as plastic production plants. The main investments for the year were in waste treatment activities amounting to 28.8 million euro and electricity distribution amounting to 21.3 million euro. Disinvestments concern demolitions and divestitures of obsolete plants. \u201cOther movable assets\u201d mainly include, regarding business areas that have not yet gone out to tender for service concessions, waste collection equipment and bins amounting to 67 million euro and motor vehicles amounting to 40.7 million euro. \u201cAssets under construction\u201d mainly consist of investments in progress for waste treatment plants amounting to 59 million euro and for the electricity distribution network amounting to 25.7 million euro, as well as investments for developing the district heating network amounting to 23.7 million euro. \u201cOther changes\u201d covers the in-progress reclassification of fixed assets to the specific categories for assets brought into operation during the financial year, as well as the reclassification from tangible assets to intangible assets, especially when goods used in activities under concession are involved. For the column \u201cChange in the scope of consolidation,\u201d please refer to the section \u201cBusiness combinations (supplementary information)\u201d contained in paragraph 2.02.10 \u201cOther information\u201d. For additional details on guarantees granted in favour of third parties and in relation to tangible assets held by the Group, see Note 19 \u201cFinancial liabilities\u201d.", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-56": { "value": "22 Rights of use and lease liabilities The following tables show the breakdown of rights of use (reported net of the associated amortisation provision) and lease liabilities at the transition date and the related movements. Contracts taken over as part of business combinations are separately reported in movements and classified as \u201cChanges in the scope of consolidation\u201d. 31 Dec 23 31 Dec 22 Change Rights of use land and buildings 59.1 50.7 8.4 Rights of use plants and machinery 6.4 7.1 (0.7) Rights of use other movable assets 25.1 26.4 (1.3) Total 90.6 84.2 6.4 Net opening balance New contracts and contractual changes Depreciation and amortisation Changes in the scope of consolidation Other changes Net terminal value of which gross terminal value of which amortis - ation provision 31 Dec 22 Rights of use land and buildings 65.7 12.5 (7.6) 0.4 (20.3) 50.7 94.1 (43.4) Rights of use plants and machinery 7.8 0.6 (1.2) 0.8 (0.9) 7.1 12.4 (5.3) Rights of use other movable assets 28.1 8.2 (10.1) 0.8 (0.6) 26.4 49.4 (23.0) Total 101.6 21.3 (18.9) 2.0 (21.8) 84.2 155.9 (71.7) 31 Dec 23 Rights of use land and buildings 50.7 10.1 (8.6) 6.9 \u2010 59.1 104.1 (45.0) Rights of use plants and machinery 7.1 0.8 (1.3) \u2010 (0.2) 6.4 12.5 (6.1) Rights of use other movable assets 26.4 9.6 (10.6) 0.1 (0.4) 25.1 48.5 (23.4) Total 84.2 20.5 (20.5) 7.0 (0.6) 90.6 165.1 (74.5) \u201cRights of use land and buildings\u201d consists of 51 million euro in rights of use related to buildings and 8.1 million euro in rights of use related to land. The rights of use for buildings refers mainly to contracts concerning the real estate structures used for headquarters, offices and customer service desk. \u201cRights of use plants and machinery\u201d refers mainly to contracts regarding purification and composting plants. \u201cRights of use other movable assets\u201d refers mainly to contracts underwritten for the use of IT infrastructures (especially data centres), operational vehicles and cars. The column \u201cNew contracts and contractual changes\u201d shows the leases signed during the year, as well as the change in the assumptions regarding the duration, renewal or termination options of the existing contracts. The column \u201cOther changes\u201d includes the residual value of leased assets redeemed during the period and reclassified under tangible assets due to their nature. Financial liabilities show the following composition and change, compared with the previous year: Net opening balance New contracts and contractual changes Decreases Financial expen ses Changes in the scope of consolidation Other changes Net terminal value 31 Dec 22 Lease liabilities 96.6 21.2 (46.0) 2.7 1.9 \u2010 76.4 of which non-current liabilities 53.2 55.1 current liabilities 43.4 21.3 31 Dec 23 Lease liabilities 76.4 20.3 (25.2) 2.8 7.0 \u2010 81.3 of which non-current liabilities 55.1 56.8 current liabilities 21.3 24.5 The column \u201cNew contracts and contractual changes\u201d includes the new contracts signed in the period and the re-assessment of the debt of some of the existing contracts, generated by the update of the assumptions underlying the contracts themselves concerning options of renewal, purchase or early termination. \u201cDecreases\u201d are generated by the reimbursement of contractual fees scheduled during the course of the financial period and exemption options exercised. With reference to the previous year, note that buildings where some of the Group\u2019s major production facilities are located were redeemed, which represented the leases with the highest value. In accordance with its procurement policies, the Group subscribed contracts in line with market standards for all types of underlying assets. In the case of offices, customer service desks, cars and IT infrastructure, the contracts do not contain any binding clauses or special fees in the event of annulment, as these assets are perfectly interchangeable and are offered by a large number of counterparties. The liability reported in the financial statements therefore represents the most likely total sum of disbursements that the Group will have to make in future periods. For the same reasons, moreover, the renewal clauses, when they exist, are not currently expected to be exercised, possibly assessing their cost-effectiveness in the future or the option of signing new contracts with different counterparties. The table below shows the lease liabilities broken down by category according to their expiration date range: Type Total Portion due within the period Portion due within 2nd year Portion due within 5th year Portion due beyond 5th year 2022 financial year 76.4 21.3 17.4 25.1 12.6 2023 financial year 81.3 24.5 14.2 25.3 17.3", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-504": { "value": "23 Intangible assets 31 Dec 23 31 Dec 22 Change IT applications 105.3 82.5 22.8 Concessions and other rights 100.7 110.8 (10.1) Public services under concession 3,315.7 3,184.5 131.2 Customer lists 605.6 581.1 24.5 Other intangible assets 119.4 92.9 26.5 Intangible assets ongoing, public services under concession 380.3 273.9 106.4 Intangible assets ongoing 92.6 91.7 0.9 Total 4,719.6 4,417.4 302.2 Intangible assets are stated net of their accumulated amortisation and are broken down below with details of the changes during the year: Net opening balance Investments Disinvestments Depreciation and amortisation Changes in the scope of consolidation Other changes Net terminal value of which gross terminal value of which amortis - ation provision 31 Dec 22 IT applications 84.6 4.5 \u2010 (42.9) 0.1 36.2 82.5 565.7 (483.2) Concessions and other rights 113.8 0.5 \u2010 (15.8) 12.0 0.3 110.8 483.8 (373.0) Public services under concession 2,963.4 208.3 (4.7) (174.9) \u2010 192.4 3,184.5 5,595.3 (2,410.8) Customer lists 576.2 \u2010 \u2010 (39.4) 44.3 \u2010 581.1 741.8 (160.7) Other intangible assets 79.4 43.4 0.0 (33.5) 0.1 3.5 92.9 269.7 (176.8) Intangible assets ongoing, public services under concession 237.4 166.8 (0.4) \u2010 \u2010 (129.9) 273.9 273.9 \u2010 Intangible assets ongoing 71.9 60.4 \u2010 (0.3) \u2010 (40.3) 91.7 91.7 \u2010 Total 4,126.7 483.9 (5.1) (306.8) 56.5 62.2 4,417.4 8,021.9 (3,604.5) 31 Dec 23 IT applications 82.5 8.6 \u2010 (45.8) 0.1 59.9 105.3 637.1 (531.8) Concessions and other rights 110.8 0.6 \u2010 (14.1) 1.5 1.9 100.7 487.2 (386.5) Public services under concession 3,184.5 209.4 (7.3) (183.8) \u2010 112.9 3,315.7 5.902.5 (2,586.8) Customer lists 581.1 \u2010 \u2010 (42.6) 67.1 \u2010 605.6 808.9 (203.3) Other intangible assets 92.9 79.5 \u2010 (46.7) 1.8 (8.1) 119.4 328.7 (209.3) Intangible assets ongoing, public services under concession 273.9 212.2 (0.2) \u2010 \u2010 (105.6) 380.3 380.3 \u2010 Intangible assets ongoing 91.7 62.8 \u2010 (0.4) \u2010 (61.5) 92.6 92.6 \u2010 Total 4,417.4 573.1 (7.5) (333.4) 70.5 (0.5) 4,719.6 8,637.3 (3,917.7) \u201cIT applications\u201d refers to costs incurred in purchasing licenses and implementing corporate information systems. \u201cConcessions and other rights\u201d mainly includes: \u25aa concessions, for 32.3 million euro, primarily involving the rights relating to the activities of gas distribution and integrated water cycle, classified as intangible assets even before the IFRIC 12 interpretation \u201cService concession arrangements\u201d was first applied; \u25aa the authorisation to operate the Serravalle Pistoiese landfill, for 49.7 million euro, an asset recorded as part of a business combination operation carried out in previous periods and amortised on the basis of the number of tons consigned. \u201cPublic services under concession\u201d includes assets relating to gas distribution, electricity distribution (Imola area), the integrated water cycle and public lighting activities (except for the latter, as specified in Note 18 \u201cCurrent financial assets, cash holdings and cash equivalents\u201d) provided through contracts awarded by the respective public bodies. These concession relationships and associated assets involved in carrying out the activities for which the Group holds the use rights, are accounted for by applying the intangible asset model as set forth by IFRIC 12 interpretation. Investments for the year related mainly to the water networks, in the amount of 133.8 million euro, and gas distribution networks, in the amount of 70.5 million euro. \u201cIntangible assets ongoing and public services under concession\u201d includes investments related to concessions that are still to be completed at the end of the period and mainly refers to the water networks, in the amount of 244.2 million euro, and gas distribution networks, in the amount of 76.8 million euro and municipal waste collection in the amount of 35.5 million euro. \u201cIntangible assets ongoing\u201d essentially comprises IT projects that have not yet been completed. \u201cCustomer lists\u201d are recorded as a result of business combination transactions and the consequent valuation of the assets acquired. The amortisation period of these customer lists is correlated to the churn rate identified for each individual transaction. The item \u201cOther intangible assets\u201d refers mainly to the rights of use for networks and infrastructures for the passage and laying down of telecommunication networks and the incremental costs incurred for obtaining new sale contracts. In particular, the incremental costs for obtaining new contracts, represented exclusively by commissions, increased sharply as a result of the sales development strategy implemented, amounting to 78.3 million euro (as against 36 million euro in 2022), and the significant increase in amortisation for the period is due to them. \u201cOther changes\u201d include reclassifications of tangible assets ongoing to their respective categories, specific to assets that became operational during the year and reclassifications from/to tangible fixed assets, especially in the presence of assets under concession. \u201cChange in scope of consolidation\u201d reflects the control acquisitions made during the year, for details of which please refer to the section \u201cBusiness combinations (supplementary information)\u201d contained in Section 2.02.10 \u201cOther information\u201d. 24 Goodwill 31 Dec 23 31 Dec 22 Change Goodwill 908.7 848.1 60.6 The value of goodwill at 31 December 2023 mainly reflects the following operations of acquisition of control during previous years of: \u25aa \u201cAscopiave business activities,\u201d i.e. the companies EstEnergy Spa, Ascotrade Spa, Ascopiave Energie Spa, Blue Meta Spa, Etra Energia Srl and Amgas Blu Srl, which took place in 2019 for a total of 431.2 million euro; \u25aa the integration that resulted in the creation of Hera Spa, totalling 81.3 million euro (2002); \u25aa merger of Agea Spa, amounting to 41.7 million euro (2004): \u25aa merger of Gruppo Meta, as a result of the merger of Meta Spa into Hera Spa, totalling 117.7 million euro (2005); \u25aa merger of Sat Spa, amounting to 54.9 million euro (2008); \u25aa Gruppo Aliplast, amounting to 25 million euro (2017); \u25aa Marche Multiservizi Spa Group, amounting to 20.8 million euro. During the 2023 fiscal year, business combinations took place resulting in an increase in goodwill. More specifically, note the following: \u25aa A.C.R Spa, amounting to 27.1 million euro; \u25aa Asco TLC Spa through merger by incorporation into Acantho Spa, amounting to 18.1 million euro; \u25aa F.lli Franchini Srl, amounting to 15.4 million euro. For further details on business combination operations, see the section \u201cBusiness combinations (supplementary information)\u201d of paragraph 2.02.10 \u201cOther information\u201d. Below is the value of goodwill broken down by operating segment: 31 Dec 23 31 Dec 22 Change Gas 493.5 493.5 \u2010 Waste management 260.6 233.5 27.1 Electricity 88.9 73.5 15.4 Water cycle 42.7 42.7 \u2010 Other services 23.0 4.9 18.1 Total 908.7 848.1 60.6", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-57": { "value": "23 Intangible assets 31 Dec 23 31 Dec 22 Change IT applications 105.3 82.5 22.8 Concessions and other rights 100.7 110.8 (10.1) Public services under concession 3,315.7 3,184.5 131.2 Customer lists 605.6 581.1 24.5 Other intangible assets 119.4 92.9 26.5 Intangible assets ongoing, public services under concession 380.3 273.9 106.4 Intangible assets ongoing 92.6 91.7 0.9 Total 4,719.6 4,417.4 302.2 Intangible assets are stated net of their accumulated amortisation and are broken down below with details of the changes during the year: Net opening balance Investments Disinvestments Depreciation and amortisation Changes in the scope of consolidation Other changes Net terminal value of which gross terminal value of which amortis - ation provision 31 Dec 22 IT applications 84.6 4.5 \u2010 (42.9) 0.1 36.2 82.5 565.7 (483.2) Concessions and other rights 113.8 0.5 \u2010 (15.8) 12.0 0.3 110.8 483.8 (373.0) Public services under concession 2,963.4 208.3 (4.7) (174.9) \u2010 192.4 3,184.5 5,595.3 (2,410.8) Customer lists 576.2 \u2010 \u2010 (39.4) 44.3 \u2010 581.1 741.8 (160.7) Other intangible assets 79.4 43.4 0.0 (33.5) 0.1 3.5 92.9 269.7 (176.8) Intangible assets ongoing, public services under concession 237.4 166.8 (0.4) \u2010 \u2010 (129.9) 273.9 273.9 \u2010 Intangible assets ongoing 71.9 60.4 \u2010 (0.3) \u2010 (40.3) 91.7 91.7 \u2010 Total 4,126.7 483.9 (5.1) (306.8) 56.5 62.2 4,417.4 8,021.9 (3,604.5) 31 Dec 23 IT applications 82.5 8.6 \u2010 (45.8) 0.1 59.9 105.3 637.1 (531.8) Concessions and other rights 110.8 0.6 \u2010 (14.1) 1.5 1.9 100.7 487.2 (386.5) Public services under concession 3,184.5 209.4 (7.3) (183.8) \u2010 112.9 3,315.7 5.902.5 (2,586.8) Customer lists 581.1 \u2010 \u2010 (42.6) 67.1 \u2010 605.6 808.9 (203.3) Other intangible assets 92.9 79.5 \u2010 (46.7) 1.8 (8.1) 119.4 328.7 (209.3) Intangible assets ongoing, public services under concession 273.9 212.2 (0.2) \u2010 \u2010 (105.6) 380.3 380.3 \u2010 Intangible assets ongoing 91.7 62.8 \u2010 (0.4) \u2010 (61.5) 92.6 92.6 \u2010 Total 4,417.4 573.1 (7.5) (333.4) 70.5 (0.5) 4,719.6 8,637.3 (3,917.7) \u201cIT applications\u201d refers to costs incurred in purchasing licenses and implementing corporate information systems. \u201cConcessions and other rights\u201d mainly includes: \u25aa concessions, for 32.3 million euro, primarily involving the rights relating to the activities of gas distribution and integrated water cycle, classified as intangible assets even before the IFRIC 12 interpretation \u201cService concession arrangements\u201d was first applied; \u25aa the authorisation to operate the Serravalle Pistoiese landfill, for 49.7 million euro, an asset recorded as part of a business combination operation carried out in previous periods and amortised on the basis of the number of tons consigned. \u201cPublic services under concession\u201d includes assets relating to gas distribution, electricity distribution (Imola area), the integrated water cycle and public lighting activities (except for the latter, as specified in Note 18 \u201cCurrent financial assets, cash holdings and cash equivalents\u201d) provided through contracts awarded by the respective public bodies. These concession relationships and associated assets involved in carrying out the activities for which the Group holds the use rights, are accounted for by applying the intangible asset model as set forth by IFRIC 12 interpretation. Investments for the year related mainly to the water networks, in the amount of 133.8 million euro, and gas distribution networks, in the amount of 70.5 million euro. \u201cIntangible assets ongoing and public services under concession\u201d includes investments related to concessions that are still to be completed at the end of the period and mainly refers to the water networks, in the amount of 244.2 million euro, and gas distribution networks, in the amount of 76.8 million euro and municipal waste collection in the amount of 35.5 million euro. \u201cIntangible assets ongoing\u201d essentially comprises IT projects that have not yet been completed. \u201cCustomer lists\u201d are recorded as a result of business combination transactions and the consequent valuation of the assets acquired. The amortisation period of these customer lists is correlated to the churn rate identified for each individual transaction. The item \u201cOther intangible assets\u201d refers mainly to the rights of use for networks and infrastructures for the passage and laying down of telecommunication networks and the incremental costs incurred for obtaining new sale contracts. In particular, the incremental costs for obtaining new contracts, represented exclusively by commissions, increased sharply as a result of the sales development strategy implemented, amounting to 78.3 million euro (as against 36 million euro in 2022), and the significant increase in amortisation for the period is due to them. \u201cOther changes\u201d include reclassifications of tangible assets ongoing to their respective categories, specific to assets that became operational during the year and reclassifications from/to tangible fixed assets, especially in the presence of assets under concession. \u201cChange in scope of consolidation\u201d reflects the control acquisitions made during the year, for details of which please refer to the section \u201cBusiness combinations (supplementary information)\u201d contained in Section 2.02.10 \u201cOther information\u201d.", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-58": { "value": "24 Goodwill 31 Dec 23 31 Dec 22 Change Goodwill 908.7 848.1 60.6 The value of goodwill at 31 December 2023 mainly reflects the following operations of acquisition of control during previous years of: \u25aa \u201cAscopiave business activities,\u201d i.e. the companies EstEnergy Spa, Ascotrade Spa, Ascopiave Energie Spa, Blue Meta Spa, Etra Energia Srl and Amgas Blu Srl, which took place in 2019 for a total of 431.2 million euro; \u25aa the integration that resulted in the creation of Hera Spa, totalling 81.3 million euro (2002); \u25aa merger of Agea Spa, amounting to 41.7 million euro (2004): \u25aa merger of Gruppo Meta, as a result of the merger of Meta Spa into Hera Spa, totalling 117.7 million euro (2005); \u25aa merger of Sat Spa, amounting to 54.9 million euro (2008); \u25aa Gruppo Aliplast, amounting to 25 million euro (2017); \u25aa Marche Multiservizi Spa Group, amounting to 20.8 million euro. During the 2023 fiscal year, business combinations took place resulting in an increase in goodwill. More specifically, note the following: \u25aa A.C.R Spa, amounting to 27.1 million euro; \u25aa Asco TLC Spa through merger by incorporation into Acantho Spa, amounting to 18.1 million euro; \u25aa F.lli Franchini Srl, amounting to 15.4 million euro. For further details on business combination operations, see the section \u201cBusiness combinations (supplementary information)\u201d of paragraph 2.02.10 \u201cOther information\u201d. Below is the value of goodwill broken down by operating segment: 31 Dec 23 31 Dec 22 Change Gas 493.5 493.5 \u2010 Waste management 260.6 233.5 27.1 Electricity 88.9 73.5 15.4 Water cycle 42.7 42.7 \u2010 Other services 23.0 4.9 18.1 Total 908.7 848.1 60.6 ", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-59": { "value": "25 Impairment tests on assets Cash-generating and goodwill units Assets and goodwill have been subjected to impairment tests by determining the value in use, which is the current value of operating cash flows (duly discounted according to the dcf - discounted cash flow method) resulting from the 2023 - 2027 business plan approved by the Board of Directors of the parent company at its meeting 24 January 2024. The impairment test was applied to the following CGUs (Cash generating units): gas, electricity, integrated water management, environmental and other services (Public lighting and telecommunications) that are consistent with the business areas used for internal periodic reporting and with the information contained in the annual financial report in paragraph 2.02.10 \u201cOther Information\u201d. In relation to this, it should be noted that the Group has implemented a structured process for preparing and reviewing the business plan, which involves formulating the Plan on an annual basis according to an external context scenario that takes into account the market trends and rules for regulated businesses, with the support of all the business units and following a bottom-up logic. Specifically, assumptions were implemented in developing the 2023-2027 Business Plan consistent with those used in previous plans and, on the basis of the final reported values, forecasts were developed that refer to the most authoritative and updated external sources available wherever necessary. Revenues for regulated business areas were developed on the basis of the evolution of the rates deriving from national regulations and/or agreements with the Area Authority. In particular, revenues from energy distribution were projected according to the principles of ARERA resolutions 737/22 (RTDG) for gas and 616/23 (TIT), 163/23 (TIROSS) and 497/23 (version of ROSS-base regulation) for electricity distribution. Account was also taken of the respective rates of return on capital (WACC) approved by ARERA, up to the year 2024, as set forth in the integrated reference text (TIWACC 2022-2027, resolution 614/21 as amended). For subsequent years, the WACCs were updated in accordance with the methodology indicated by the same resolution and according to the forecasts of the financial and fiscal parameters included in the approved business plan. Revenues from energy sales under the protected system and with reference to last resort services were instead estimated on the basis of the respective reference regulatory texts, i.e. the TIV (resolutions 208/22 and 491/20, as amended and supplemented) for electricity and the TIVG (approved by resolution ARG/GAS/64/09, as amended and supplemented) for gas. Revenues from the awarded Gradual protection services for electricity customers were estimated on the basis of resolution 362/23, while the elimination of protected gas services was regulated by resolution 100/2023. For the integrated water cycle, revenues were forecast in the event of inertia in the volumes distributed, based on the tariffs deriving from the agreements signed with Atersir, as well as from the application of the new Water tariff method (MTI-4) updated by ARERA resolution 639/23, taking into account, among other factors, the parameters underlying the coverage of financial and tax charges. For urban sanitation, the hypothesis formalized involved achieving full rate coverage over all the areas served within the duration of the plan, consistent with the provisions of rules currently in effect. Price trends for electricity and gas bought and sold in the open market were worked out on the basis of business considerations consistent with the planned energy scenario, considering the forecasts provided by a panel of institutional observers. The development of plants for waste treatment and recycling is consistent with the forecasts of the provincial plans for the provinces in which the Hera Group operates. The investment schedule and the subsequent start of new plants is the result of the best estimate of the managers in charge. The inertial evolution of the Group\u2019s costs during the period covered by the plan was developed by formulating hypotheses based on the information available. In relation to employees and labour costs, instead, the indications included in the various types of employment contracts were considered. The first year of the plan represents the base reference for identifying economic, financial and management objectives that converge in the annual budget, the guiding operational element for achieving the Group\u2019s growth objectives. The cash flows generated were therefore determined using the data for the 2024 - 2027 period as a base. In particular, the net profit margin was used, from which taxes were deducted, depreciation and provision were added and the maintenance investments planned for each year of the plan were deducted. Following the last year of the plan, normalised free cash flows were considered equal to the amount of Ebit for the last year of the plan, following the assumption that the value of depreciation and provisions remains at the level of investments. In the event that the plan does not take into account the prediction of future events that significantly influence estimated cash flows as a result of its medium-term timeframe, adjustments were applied in order to incorporate the effects of such events. The cashflows are calculated by applying the growth rate (g) to the normalised free cash flows with the medium/long-term timeframe for the sector in question (2% on average) for the 2028-2043 period (20 years total). For regulated services, these flows are brought into line with the expected continuation of market shares following the completion of the expected calls for tenders. These flows are supplemented by the current value of perpetuity and calculated as follows: \u25aa for free-market activities, the cashflow resulting from the application of the perpetuity criterion for the last year (2043) was considered, assuming a 2% average growth factor; \u25aa for services under contract, the terminal value was established by considering the cash flow resulting from the application of the perpetuity criterion weighted by the percentage of competitive bidding processes that the Group is expected to win at the end of the contract periods (100% for network services, 80% for urban sanitation services) and the redemption value of assets weighted by the proportion of competitive bidding processes which the Group expected not to win. This value was estimated as equal to the current value of the net book value of assets owned and leasehold improvements, less the recovery values, in order to properly represent the non-renewal of the contract and the subsequent sale of the assets to the new operator with a value equal to the remaining book value. To discount unlevered cash flows, the rate used was the weighted average cost of capital (WACC), which represents the yield expected by the funders and shareholders of the company for the use of equity capital, adjusted for the risk of the specific country in which the asset being valued. The value of the specific country risk to be included in the discount rate is defined on the basis of information provided by external providers. Since the Group has a diversified business portfolio, with balance between regulated and free-market activities that make it less exposed to cyclical trends in the economy, a methodological approach has historically been used, which involves observing the nine months of the last financial year with reference to the main variables underlying the WACC calculation. A sensitivity scenario was then prepared with the aim of grasping possible short-term developments in the Group\u2019s economic context and financial structure. More specifically, the rates used for the purposes of the final assessments are as follows: 2023 2022 WACC Gas \u2013 Electricity \u2013 Water cycle \u2013 Other services 5,38% 4,58% WACC Waste management 6,24% 5,36% The results of the test were positive for all cash generating units, with a usage value appearing that was higher than the book value. Bearing this in mind, two sensitivity scenarios were imagined: \u25aa an initial analysis focused on the margins of the individual businesses, assuming a 5% decrease, with an ensuing reduction in the cashflows produced in the years covered by the plan and the following years; \u25aa a second analysis involved discounting all cash flows using WACC increased by 25 bps. In this context, the values obtained were much higher than those recorded in the balance sheets, and this analysis therefore additionally confirmed the carrying values. Assessments concerning climate change scenarios and consequent sensitivity The electrification of energy consumption is one of the most significant risks/opportunities related to climate change. Achieving climate change mitigation, as defined through emission reduction targets at the European level and translated on a national basis with related implementation plans, requires initiatives to change both the technologies adopted to meet energy needs and measures to make them more efficient. The Hera Group has therefore begun conducting specific analyses aimed at identifying the possible impacts of the scenario of transition on the evolution of end customers\u2019 energy consumption, with reference to the business areas it has selected within a timeframe that extends up to 2050. The analyses took into account exogenous drivers, such as national and European policies on the topic and consumer preferences, drivers of change, and related enabling technologies. The results have allowed the company to gauge the impact that the transitional scenario could have on the evolution of gas and electricity consumption as a function of key determinants such as energy efficiency, technology mix, mobility, and self-consumption. These analyses confirmed, in particular, the widespread expectation that the future will witness a growth in electricity consumption and a simultaneous reduction in gas consumption. With reference to the businesses operated by the Group, the assessments conducted necessarily took into account the differing nature of the regulated distribution business and the free-market sales business. Regarding the gas distribution business, it should first be mentioned that ordinary and extraordinary maintenance activities, for which tariff remuneration is provided, are correlated to the physicality of the assets and not to the volumes of gas distributed. Indeed, renovation work is mainly carried out to resolve critical issues through event-driven interventions, resulting, for example, from a network or plant leakage or breakdown, or through scheduled operations to comply with the dictates of technical and regulatory standards. The transitional risk related to climate change thus appears to depend on purely regulatory decisions and future systemic developments in the gas distribution network. One prospect considered likely by the Group is that the drivers generating gas network development needs might change from the need to meet consumption demands to the need to meet input requirements for biomethane and green gas in general that can enable the running of energy production systems using renewable sources. In this respect, ARERA has also shown interest in exploring issues related to possible transition costs that may emerge when there is a decline in consumption and thus a decline in the use of this energy vector. The 2022-25 Strategic Framework reveals an awareness of the need to reflect on which market and regulatory tools might be the most suitable to facilitate the carrying out of investments that are of real benefit to the system, in compliance with efficiency and economic sustainability criteria. At present, however, the Regulatory Authority has not issued any measures, deeming that it is proceeding in full accordance with the current regulatory criteria. Therefore, on the basis of these considerations, the Group does not judge that any elements can be identified in the current framework to assume that the system will be severely disrupted without mechanisms in place to protect the financial equilibrium of companies providing gas distribution services. Electricity distribution, on the other hand, is set to have an ever increasing impact on the energy grid due to the electrification of consumption. This may in effect represent a development opportunity for the Group, especially when the current concessions are put up for tender. Relative to sales activity, a model scenario extending beyond the horizon of the plan was formulated that, taking into account transitional risks, projects customer consumption by service and type of use through to 2050. In particular, by considering the various effects of energy efficiency and transition dynamics, average volumes by customer cluster were calculated and growth/decrease rates over time were applied to these calculated volumes. To provide an estimate of overall marginality, intermediate steps were taken, estimating the evolution of the customer base in terms of supply points, to which an average volume per segment was attributed, adjusted over time to consider the impact of energy transition. Assuming that the margins hypothesized in the business plan for each service/segment remain constant over time, a significant growth in electricity margins was estimated for the period 2028-2050, associated with a lesser reduction in gas margins. In order to conduct a sensitivity analysis in relation to the impairment test, projections for natural gas sales were incorporated into the valuation models, both adjusting the annual cash flows up to 2050 (based on the assumptions made previously) by an average of 4 million euro and normalizing the cash flow used to calculate the terminal value by an analogous amount. In this hypothetical scenario as well, the results confirm the full recoverability of the asset values recorded in the balance sheet. An additional physical risk that may impact the Group is increased temperatures. Therefore, an additional medium- to long-term Cgu gas stress scenario was developed that would take into account the effects of an increase in average winter temperatures. Specifically, the projected increase in the RCP8.5 scenario is 1.5\u00b0C up to 2030 2\u00b0C up to 2050, relative to the 1981-2010 average. In relation to the climate assumptions for estimating gas sales volumes for the purposes of the Business Plan, this results in an 0.7\u00b0C increase up to 2030 and an 1.2\u00b0C increase up to 2050, respectively. Based on this scenario, a sensitivity analysis was developed to take into account a consequent reduction in Cgu gas margins (please also refer to the section of the Directors\u2019 Report 1.02.03 \u201cEnvironmental-Catastrophic Risk Management\u201d). In this case, too, the results obtained confirm the full recoverability of the values of the assets recorded in the financial statements 27 Impairment tests on equity investments As regards the market for electric generation, in the presence of impairment indicators and in keeping with previous financial periods, an in-depth analysis was performed to determine the recoverable amount of the Group\u2019s investments, and related financial assets, operating in the sector. In particular, the analysis was conducted by discounting the value of the cash flows expected to be generated over the remaining useful lives of the plants of Set Spa and Tamarete Energia Srl. A downwards trend in gas and electricity prices on the reference markets appeared in 2023, resulting in a negative baseload Clean Spark Spread (CSS). The short-term trend shows no signs of improvement in the baseload CSS, while in the medium to long term the outlook indicates improving values, albeit still negative. Various causes have determined the performance of the electricity market in recent years and can be traced back to cyclical factors, as regards both supply and demand. The main factors affecting current price dynamics are to be found in: \u25aa an increasing amount of renewable generation within the production mix, due to the steady increase in wind and photovoltaic plants; \u25aa moderate growth in GDP and the drive for consumption efficiency (guided by the objectives of European and national climate policies) that contributed to slight growth in energy demand; \u25aa European and national policies favouring the reduction of CO 2 emissions. Based on the scenarios developed, it is believed that the market will maintain a negative Clean spark spread baseload in the short term, with improvement in the medium to long term, due to a combination of multiple factors, including: \u25aa entry, starting in 2022, of new and highly efficient capacity (CCGT) subsidised by the Capacity Market mechanism that is gradually replacing coal plants, aimed at phasing them out by 2025; \u25aa the end-of-life of CCGT plants having lower efficiency, which, for several years now, has been creating favourable market conditions for interventions to improve efficiency and flexibility and which will be given an adequate return on investment with the margins that can be extracted from the day- ahead and dispatching markets. These investments not only increase the adequacy of the system in the medium to long term, but are also necessary to guarantee an adequate amount of margins; \u25aa consequently, low margins on the day-ahead market; \u25aa increasing role of renewable energy sources, supported by the challenging European decarbonisation targets and by the need to reduce geopolitical risk in energy sources. That said, future cash flows determined on the basis of the medium/long-term energy scenario the Group considered to be the most likely, formulated on the basis of independent expert assumptions consistent with growth expectations for energy demand, installed power, the demand for combined cycle and the system\u2019s expected reserve margin. This scenario alters the one used in the previous exercise, affecting future Clean spark spread values. The estimated cash flows were discounted using a WACC coming to 5.93% (as against 5.21% WACC used in 2022), calculated in the same manner as illustrated for the cash generating units in Note 25 \u201cImpairment tests on assets\u201d. The outcome of the test resulted in a write-down of the investment in Set Spa amounting to 5.9 million euro and confirmed a highly critical scenario for Tamarete Energia Srl, as the conditions for the recovery of the amounts invested did not emerge. Two sensitivity scenarios were also hypothesised: \u25aa an initial sensitivity analysis was developed assuming a CSS reduced by 1 euro/MWh, with a consequent reduction in the cash flows produced over the life of the plants. \u25aa a second analysis hypothesized discounting all cash flows using a WACC increased by 25 bps. The first scenario would result in a further write-down of the investment in Set Spa amounting to 1.4 million euro, while in the second scenario the value of the investment would be essentially equivalent to its current book value. At the end of the valuation process, the carrying amount of financial assets, shareholdings and receivables attributable to Set Spa respectively came to 22.6 million euro and 14.1 million euro, while the financial assets attributable to Tamarete Energia Srl were written down in full. ", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-519": { "value": "The changes in joint ventures and associated companies as compared to 31 December 2022 take into account the pro-quota losses and profits reported by the respective companies (including the other components of the comprehensive income statement) as well as the possible reduction of the value for any dividends that were distributed and for depreciations due to the impairment test. Changes in consolidated shareholdings using the net equity method are as follows: Associated companies and joint ventures Opening value Investments and disinvestments Profit for the year Dividends paid out Changes in the scope of consolidation Write-downs and other changes Terminal value 31 Dec 22 Joint ventures Enomondo Srl 17.6 \u2010 3.1 (2.2) \u2010 0.3 18.8 Total joint ventures 17.6 \u2010 3.1 (2.2) \u2010 0.3 18.8 Associated companies Aimag Spa 51.7 \u2010 2.3 (2.8) \u2010 \u2010 51.2 Set Spa 28.5 \u2010 (0.6) \u2010 \u2010 \u2010 27.9 Sgr Servizi Spa 25.2 \u2010 2.4 (2.0) \u2010 (0.1) 25.5 ASM SET Srl 18.9 \u2010 1.5 (1.4) \u2010 (0.1) 18.9 SEA - Servizi Ecologici Ambientali Srl 8.7 \u2010 1.3 (1.0) \u2010 0.1 9.1 Total associated companies 133.0 \u2010 6.9 (7.2) \u2010 (0.1) 132.6 Total 150.6 \u2010 10.0 (9.4) \u2010 0.2 151.4 31 Dec 23 Joint ventures Enomondo Srl 18.8 \u2010 2.2 (2.2) \u2010 (0.2) 18.6 Total joint ventures 18.8 \u2010 2.2 (2.2) \u2010 (0.2) 18.6 Associated companies Aimag Spa 51.2 \u2010 1.4 (1.7) \u2010 \u2010 50.9 Set Spa 27.9 \u2010 0.6 \u2010 \u2010 (5.9) 22.6 Sgr Servizi Spa 25.5 \u2010 3.3 (2.1) \u2010 0.1 26.8 ASM SET Srl 18.9 \u2010 1.5 (1.3) \u2010 \u2010 19.1 SEA - Servizi Ecologici Ambientali Srl 9.1 \u2010 1.3 (1.4) \u2010 \u2010 9.0 Total associated companies 132.6 \u2010 8.1 (6.5) \u2010 (5.8) 128.4 Total 151.4 \u2010 10.3 (8.7) \u2010 (6.0) 147.0 The result for the year, essentially in line with the previous year, was positively influenced by the higher results achieved by Sgr Servizi Spa, which operates in the business of gas and electricity commodity sales to end customers, offset by the drop in the results of the companies Aimag Spa and Enomondo Srl. \u201cWrite-downs and other changes\u201d mainly include the results of the impairment test conducted on the associated company Set Spa. For more details on the assumptions and results of the impairment tests to which the carrying values of the investments in affiliates that represent vehicles through which the Group holds shares in the production of electricity generation plants (Set Spa and Tamarete Energia Srl) were subjected, see the information in Note 27 \u201cImpairment tests on shareholdings\u201d below. ", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-60": { "value": "Investments in companies not included in the scope of consolidation underwent the following changes: Fair value hierarchy Opening value Investments and disinvestments Fair value valuations Other changes Terminal value 31 Dec 22 Ascopiave Spa 1 39.9 \u2010 (12.3) \u2010 27.6 Calenia Energia Spa 3 1.7 \u2010 \u2010 \u2010 1.7 Veneta Sanitaria Finanza di Progetto Spa 3 3.6 \u2010 \u2010 \u2010 3.6 Other minor companies 3 2.7 3.2 \u2010 0.1 6.0 Total 47.9 3.2 (12.3) 0.1 38.9 31 Dec 23 Ascopiave Spa 1 27.6 \u2010 (1.7) \u2010 25.9 Calenia Energia Spa 3 1.7 \u2010 12.7 \u2010 14.4 Veneta Sanitaria Finanza di Progetto Spa 3 3.6 \u2010 \u2010 \u2010 3.6 Other minor companies 3 6.0 \u2010 \u2010 (1.3) 4.7 Total 38.9 \u2010 11.0 (1.3) 48.6 In the case of shareholdings with a level 1 fair value hierarchy, the value adjustment, recorded in the components of the comprehensive income statement, makes it possible to align the book value of the shares with the market prices at the end of the year. In the case of investments with a level 3 hierarchy, the results obtained from the application of valuation techniques based on internal estimates, in the absence of observable market parameters, led to the recognition among the components of the comprehensive income statement of a positive adjustment to the carrying value of the investment in Calenia Energia Spa. Other shareholdings", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-505": { "value": "Below are presented the main aggregate values of the joint venture Enomondo Srl as well as companies with significant influence (Aimag Spa, ASM SET Srl, SEA Srl, Set Spa, Sgr Servizi Spa and Tamarete Energia Srl): Assets Joint ventures Associated companies Total Non-current assets Tangible assets 33.0 401.3 434.3 Rights of use 0.4 0.4 Intangible assets 58.6 58.6 Goodwill 101.5 101.5 Shareholdings 7.3 7.3 Financial assets 0.5 13.2 13.7 Deferred tax assets 0.5 4.0 4.5 Total non-current assets 34.0 586.3 620.3 Current assets Inventories 0.7 7.0 7.7 Trade receivables 7.3 279.7 287.0 Contract work in progress 0.4 0.4 Current tax assets 0.2 2.9 3.1 Other current assets 4.5 80.3 84.8 Derivative instruments 0.3 0.3 Cash and cash equivalents 11.6 28.9 40.5 Total current assets 24.6 399.2 423.8 Total assets 58.6 985.5 1,044.1 Investee data Net equity and liabilities Joint ventures Associated companies Total Share capital and reserves Share capital 14.0 88.0 102.0 Reserves 18.9 286.5 305.4 Profit (loss) for the period 4.4 27.0 31.4 Group net equity 37.3 401.5 438.8 Non-controlling interests 14.6 14.6 Total net equity 37.3 416.1 453.4 Non-current liabilities Non-current financial liabilities 7.7 202.3 210.0 Non-current lease liabilities 0.3 0.3 Post-employment and other benefits 6.2 6.2 Provisions for risks and charges 0.2 41.5 41.7 Deferred tax liabilities 0.1 0.6 0.7 Derivative financial instruments 0.1 0.1 Total non-current liabilities 8.0 251.0 259.0 Current liabilities Current financial liabilities 3.7 100.8 104.5 Current lease liabilities 0.1 0.1 Trade payables 6.3 207.4 213.7 Current tax liabilities (0.1) (0.1) Other current liabilities 3.3 10.2 13.5 Total current liabilities 13.3 318.4 331.7 Total liabilities 21.3 569.4 590.7 Total net equity and total liabilities 58.6 985.5 1,044.1 Income statement Joint ventures Associated companies Total Revenues 28.4 773.0 801.4 Other operating revenues 1.3 4.2 5.5 Raw and other materials (1.8) (520.2) (522.0) Service costs (16.6) (108.3) (124.9) Personnel costs (0.3) (35.4) (35.7) Amortisation, provisions and depreciation (5.0) (56.5) (61.5) Other operating expenses (0.2) (6.4) (6.6) Operating profit 5.8 50.4 56.2 Financial income 0.3 8.2 8.5 Financial expenses (0.6) (18.9) (19.5) Total financial operations (0.3) (10.7) (11.0) Other non-operating revenues (expenses) 0.3 0.3 Earnings before taxes 5.5 40.0 45.5 Taxes for the period (1.1) (12.5) (13.6) Net profit for the period 4.4 27.5 31.9 ", "dimensions": { "concept": "ifrs-full:DisclosureOfJointVenturesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-484": { "value": "Below are presented the main aggregate values of the joint venture Enomondo Srl as well as companies with significant influence (Aimag Spa, ASM SET Srl, SEA Srl, Set Spa, Sgr Servizi Spa and Tamarete Energia Srl): Assets Joint ventures Associated companies Total Non-current assets Tangible assets 33.0 401.3 434.3 Rights of use 0.4 0.4 Intangible assets 58.6 58.6 Goodwill 101.5 101.5 Shareholdings 7.3 7.3 Financial assets 0.5 13.2 13.7 Deferred tax assets 0.5 4.0 4.5 Total non-current assets 34.0 586.3 620.3 Current assets Inventories 0.7 7.0 7.7 Trade receivables 7.3 279.7 287.0 Contract work in progress 0.4 0.4 Current tax assets 0.2 2.9 3.1 Other current assets 4.5 80.3 84.8 Derivative instruments 0.3 0.3 Cash and cash equivalents 11.6 28.9 40.5 Total current assets 24.6 399.2 423.8 Total assets 58.6 985.5 1,044.1 Investee data Net equity and liabilities Joint ventures Associated companies Total Share capital and reserves Share capital 14.0 88.0 102.0 Reserves 18.9 286.5 305.4 Profit (loss) for the period 4.4 27.0 31.4 Group net equity 37.3 401.5 438.8 Non-controlling interests 14.6 14.6 Total net equity 37.3 416.1 453.4 Non-current liabilities Non-current financial liabilities 7.7 202.3 210.0 Non-current lease liabilities 0.3 0.3 Post-employment and other benefits 6.2 6.2 Provisions for risks and charges 0.2 41.5 41.7 Deferred tax liabilities 0.1 0.6 0.7 Derivative financial instruments 0.1 0.1 Total non-current liabilities 8.0 251.0 259.0 Current liabilities Current financial liabilities 3.7 100.8 104.5 Current lease liabilities 0.1 0.1 Trade payables 6.3 207.4 213.7 Current tax liabilities (0.1) (0.1) Other current liabilities 3.3 10.2 13.5 Total current liabilities 13.3 318.4 331.7 Total liabilities 21.3 569.4 590.7 Total net equity and total liabilities 58.6 985.5 1,044.1 Income statement Joint ventures Associated companies Total Revenues 28.4 773.0 801.4 Other operating revenues 1.3 4.2 5.5 Raw and other materials (1.8) (520.2) (522.0) Service costs (16.6) (108.3) (124.9) Personnel costs (0.3) (35.4) (35.7) Amortisation, provisions and depreciation (5.0) (56.5) (61.5) Other operating expenses (0.2) (6.4) (6.6) Operating profit 5.8 50.4 56.2 Financial income 0.3 8.2 8.5 Financial expenses (0.6) (18.9) (19.5) Total financial operations (0.3) (10.7) (11.0) Other non-operating revenues (expenses) 0.3 0.3 Earnings before taxes 5.5 40.0 45.5 Taxes for the period (1.1) (12.5) (13.6) Net profit for the period 4.4 27.5 31.9 ", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-432": { "value": "Derivatives and related instruments The derivative instruments used by the Group are divided into two types based on the underlying assets hedged: interest and exchange rates with reference to financing transactions, and commodities with reference to the commercial purchase and sale of gas and electricity. All commodity derivatives are classified as current assets and liabilities by virtue of the high level of liquidity and the operational time span that characterise these instruments. 29 Derivative instruments At 31 December 2023, the net exposure of interest and exchange rate derivatives was negative and more significant the previous year. The net exposure of commodity derivatives, which was significantly lower than in the previous year, mainly reflects the sharp decline in energy commodity price volatility compared to the peaks seen in 2022. 31 Dec 23 31 Dec 22 Change Fair value assets Fair value liabilities Net effect Fair value assets Fair value liabilities Net effect Net effect Interest/exchange rate derivatives Loans 0.3 \u2010 0.3 0.5 \u2010 0.5 (0.2) Foreign currency loans 0.9 21.6 (20.7) 0.5 6.3 (5.8) (14.9) Total interest/exchange rate derivatives 1.2 21.6 (20.4) 1.0 6.3 (5.4) (15.0) Commodity derivatives Commercial portfolio 409.5 336.9 72.6 1,531.0 1,244.2 286.8 (214.1) Trading portfolio 67.6 99.1 (31.5) 91.2 103.4 (12.2) (19.3) Total commodity derivatives 477.1 436.0 41.1 1,622.2 1,347.6 274.6 (233.5) Total derivatives 478.3 457.6 20.7 1,623.2 1,353.9 269.2 (248.5) of which non-current 0.3 \u2010 1.0 6.3 of which current 478.0 457.6 1,622.2 1,347.6 The financial management policy foresees the use of hedging instruments to effectively offset changes in the fair value, cash flows of the hedged instrument or, more specifically, changes in interest and exchange rate fluctuations that affect the sources of funds used. At 31 December 2023, net exposure in terms of fair value concerning current and non-current interest and exchange rate derivatives, in the form of interest rate swaps (IRS) and cross currency swaps (CCS), was negative and the change from the previous year was mainly due to the significant depreciation of the yen against the euro and the increase in interest rates, only partially offset by the cashflows generated during the period. 2.02.07 The operational management of commodities, on the other hand, is carried out through a process that identifies objectives, strategies and responsibilities for each existing operation. Contracts, both financial and physical in nature, are classified into the commercial or trading portfolios according to the purpose of the contracts. The Group\u2019s internal organisational model make it possible to identify the nature of the operation (commercial or trading) and produce the information required for a formal identification of the purpose of derivatives. The centralised management of hedging transactions allows every possible synergy to be introduced for covering electricity and gas requirements and is supplemented with exchange rate transactions, as well as being realised through the exclusive use of swap contracts or other authorised derivatives. All other derivatives or similar instruments that are not intended to hedge the Group\u2019s requirements are classified in the trading portfolio. In 2023, commodity derivatives showed a significantly lower net positive exposure than in the previous year, mainly linked to the significant decrease in energy commodity prices. Interest rate derivatives Interest rate and foreign exchange derivative instruments held as of 31 December 2023, subscribed in order to hedge loans, can be classed into the following categories: 31 Dec 23 31 Dec 22 Type Fair value hierarchy Notional Fair value assets Fair value liabilities Notional Fair value assets Fair value liabilities Cash flow hedges 2 5.9 mn 0.3 \u2010 8.3 mn 0.5 \u2010 Fair value hedges 2 149.8 mn 0.9 21.6 149.8 mn 0.5 6.3 Total fair value 1.2 21.6 1.0 6.3 31 Dec 23 31 Dec 22 Type Fair value hierarchy Income Expenses Net effect Income Expenses Net effect Cash flow hedges 2 0.2 \u2010 0.2 0.1 (0.1) \u2010 Fair value hedges 2 4.9 (23.8) (18.9) 18.2 (21.4) (3.2) Total income (expenses) 5.1 (23.8) (18.7) 18.3 (21.5) (3.2) The change in the fair value of derivatives classified as cash flow hedges is mainly due to the realisation of cash flows during the period, that is, the reduction in the notional amount of the derivative. In the current financial year, there were no significant ineffective amounts relating to the residual financial instruments. The effect on the statement of comprehensive income for 2023 is an expense amounting to 0.2 million euro. Derivatives designated as hedges of interest rate and exchange rate risks and of the fair value of foreign currency financial liabilities (fair value hedges), in the form of interest rate swaps (IRS) and cross currency swaps (CCS), are related to a bond denominated in Japanese yen, expiring in August 2024, with a remaining notional amount of 20 billion yen equal to 149.8 million euro (converted at the original exchange rate being hedged). The change in fair value is due to the exchange rate, as the Japanese yen depreciated significantly against the euro during 2023, and the increase in the interest rate curve, only partially offset by the generation of cashflows for the period. Cash flow hedge Fair value hedge The table below provides a breakdown of financial income and expense associated with derivatives designated as fair value hedges and related underlying liabilities, as adjusted for the income and losses attributable to the hedged risk: Fair value hedges 31 Dec 23 31 Dec 22 Income Expenses Net effect Income Expenses Net effect Assessment of derivatives \u2010 (14.6) (14.6) 13.2 (12.6) 0.6 Accrued interest 0.5 (0.7) (0.2) 0.5 (0.6) (0.1) Realised cash flows 4.4 (8.5) (4.1) 4.4 (8.1) (3.6) Economic effect of derivatives Fair value hedges 4.9 (23.8) (18.9) 18.2 (21.4) (3.1) Underlying amounts hedged 31 Dec 23 31 Dec 22 Income Expenses Net effect Income Expenses Net effect Assessment of financial liabilities 15.6 \u2010 15.6 \u2010 (0.6) (0.6) Sensitivity Analysis - Financial operations Assuming an instant change of 10% in the euro/yen exchange rate, given the same interest rates, the potential decrease in fair value of the derivative financial instruments in place at 31 December 2023 would amount to approximately 12 million euro. Likewise, assuming an instant reduction of the same amount, the potential fair value increase would be approximately 14.7 million euro. Given that exchange rate derivatives related to borrowing transactions are treated as fair value hedges, any change in these fair values would not have any effect on the income statement, other than for the credit adjustment part, as any such change would be offset by a movement in the opposite direction of the hedged liability. The assumptions on interest rate changes would have no significant effect on the fair value of outstanding derivative financial instruments on interest and exchange rates. Furthermore, these changes in fair value of financial instruments accounted for as cash flow hedges would have no effect on the income statement if it were not for their potential ineffective portion, which moreover is not significant. In the event of an increase or decrease in fair value, there would be a non-significant increase or decrease in net equity. As to derivatives designated as fair value hedges, any change in fair value would not have any effect on the income statement, other than for the credit adjustment part, as any such change would be essentially offset by a movement in the opposite direction of the hedged liability. Commodity derivatives Commercial portfolio The commercial portfolio includes commodity derivative instruments, both financial and physical, entered into to hedge mismatches between purchase and sale formulas, which are classed into the following categories: Operations management Type 31 Dec 23 31 Dec 22 Fair value hierarchy Notional Fair value assets Fair value liabilities Notional Fair value assets Fair value liabilities Gas formulas 3 13,984,372 MWh 210.0 19,827,928 MWh 974.7 Electricity formulas 2 2,690,293 MWh 199.2 5,293,822 MWh 556.3 Other commodities 3 7,649 Ton 0.3 Exchange 2 935,000 USD 0.0 Gas formulas 3 13,108,766 MWh 189.2 18,691,234 MWh 901.6 Electricity formulas 2 3,186,649 MWh 147.4 3,165,429 MWh 341.1 Exchange 2 19,620,000 USD 0.3 62,353,000 USD 1.5 Total fair value 409.5 336.9 1,531.0 1,244.2 Type 31 Dec 23 31 Dec 22 Income Expenses Net effect Income Expenses Net effect Assessment of derivatives 0.2 \u2010 0.2 24.3 (23.0) 1.3 Realised cash flows 2,372.2 (2,036.1) 336.1 4,564.8 (4,579.5) (14.7) Economic effect of derivatives 2,372.4 (2,036.1) 336.3 4,589.1 (4,602.5) (13.4) The main objectives of these contracts are to replicate the cash flows of the formulas on sale in the market and to cover the spread between benchmark markets (TTF and PSV). In order to assess the impact that fluctuations in the market price of the underlying asset have on the financial derivatives attributable to the commercial portfolio, the PaR (Profit at Risk) tool is used, that is the change in the value of the portfolio of derivative financial instruments within pre-established probability hypotheses as a result of a shift in market indexes. The significant decrease in net fair value is due both to a decrease in the price of natural gas during the year and the same trend in the PUN, the latter being closely correlated to the trend in gas prices, and to the decrease in notional amounts outstanding at year-end. The overall effect of these instruments on the statement of comprehensive income is broken down as follows: Commodity derivatives commercial portfolio 31 Dec 23 31 Dec 22 Positive components Negative components Net effect Positive components Negative components Net effect Changes to expected cash flows 47.2 \u2010 47.2 214.7 \u2010 214.7 Reserve transferred to the income statement 2,036.1 (2,372.2) (336.1) 4,579.5 (4,564.8) 14.6 Derivatives effect on statement of comprehensive income cash flow hedge 2,083.3 (2,372.2) (288.9) 4,794.2 (4,564.8) 229.3 The amount of the reserve transferred during the year to the income statement also includes the effects of derivatives for which the hedging relation had been discontinued with respect to open items that had not yet reached maturity. The components recognised in the statement of comprehensive income will be transferred back to the income statement at the maturity dates of the corresponding hedged items. The effect on the income statement of the realisation of derivative or similar contracts, whether physical or financial, can be broken down as follows: Physical contracts treated as derivatives Financial derivative contracts Overall effect Sales revenues 2,080.9 Income 291.3 2,372.2 Purchasing costs (1,928.4) Expenses (107.7) (2,036.1) Effect of realising derivative cash flow hedges 152.5 183.6 336.1 Sensitivity analysis - Commercial portfolio Assuming an instant increase of 30 euro/MWh of the TTF, with no change in the national standard price curve, the potential decrease in the fair value of derivative financial instruments held as at 31 December 2023 would amount to approximately 4.5 million euro. On the contrary, an instant fall in the same amount would bring about a potential increase in the fair value of the instruments of approximately 4.5 million euro. Assuming an instant +30 euro/MWh change in the national standard price curve, with no change in the TTF price, the potential increase in the fair value of derivative financial instruments of the commercial portfolio held at 31 December 2023 would amount to approximately 9.7 million euro. On the contrary, an instant change of -30 euro/MWh would bring about a potential decrease in the fair value of the instruments of approximately 9.7 million euro. In the organizational model described above, these changes in fair value would mainly affect derivative instruments accounted for as hedges thus the opposite variation of net equity would be recorded in the income statement. Effects on statement of comprehensive income Effects on income statement Trading portfolio The trading portfolio includes derivatives or similar instruments that are not intended to cover the Group\u2019s needs and are entered into for speculative purpose. These instruments can be broken down into the following types: Operations management Type 31-Dec-23 31-Dec-22 Fair value hierarchy Notional Fair value assets Fair value liabilities Notional Fair value assets Fair value liabilities Electricity formulas 2 3,311,730 MWh 67.6 663,755 MWh 82.7 Gas formulas 3 204,228 MWh 8.5 Electricity formulas 2 4,507,848 MWh 99.1 1,274,824 MWh 96.9 Gas formulas 3 67,292 MWh 5.7 Exchanges 2 3,839 Bbl 0.1 Other commodities 2 3,404 Ton 0.7 Totale fair value 67.6 99,1 91.2 103,4 Type 31 Dec 23 31 Dec 22 Income Expenses Net effect Income Expenses Net effect Assessment of derivatives 170.1 (189.4) (19.3) 163.7 (170.5) (6.8) Realised cash flows 36.0 (59.1) (23.1) 146.4 (51.3) 95.1 Economic effect of derivatives 206.1 (248.5) (42.4) 310.1 (221.8) 88.3 In order to assess the impact that fluctuations in market prices of the underlying asset have on the derivatives attributable to the trading portfolio, the VaR (Value at Risk) instrument is used, that is the negative change in the value of the portfolio of derivative instruments within pre-established probability hypotheses as a result of an unfavourable shift in market indexes. The effect on the income statement of exchanges realised on derivative or similar contracts, whether physical or financial, can be broken down as follows: Contracts treated as derivatives Financial derivative contracts Overall effect Sales revenues 13.1 Income 22.9 36.0 Purchasing costs (60.3) Expenses 1.2 (59.1) Effect of realising derivatives (47.2) 24.1 (23.1) The following table shows the economic results of trading activities at 31 December 2023, including the effects of energy commodity contracts: Trading portfolio Fair value 31 Dec 2023 Fair value 31 Dec 2022 Delta Fair value Realised 2023 Amounts entered in the income statement 31 Dec 23 Gas, crude oil and other commodity formulas \u2010 2.0 (2.0) 3.1 1.1 Electricity formulas (31.5) (14.2) (17.3) (26.2) (43.5) Total trading portfolio (31.5) (12.2) (19.3) (23.1) (42.4) Sensitivity analysis - Trading portfolio Assuming an instant +30 euro/MWh change in the national standard price curve, with equal TTF price, the potential increase in the fair value of derivative financial instruments of the trading portfolio held at 31 December 2023 would amount to approximately 7.5 million euro. On the contrary, an instant change of -30 euro/MWh would bring about a potential decrease in the fair value of the instruments of approximately 7.5 million euro. ", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-485": { "value": "The change in the fair value of derivatives classified as cash flow hedges is mainly due to the realisation of cash flows during the period, that is, the reduction in the notional amount of the derivative. In the current financial year, there were no significant ineffective amounts relating to the residual financial instruments. The effect on the statement of comprehensive income for 2023 is an expense amounting to 0.2 million euro. Derivatives designated as hedges of interest rate and exchange rate risks and of the fair value of foreign currency financial liabilities (fair value hedges), in the form of interest rate swaps (IRS) and cross currency swaps (CCS), are related to a bond denominated in Japanese yen, expiring in August 2024, with a remaining notional amount of 20 billion yen equal to 149.8 million euro (converted at the original exchange rate being hedged). The change in fair value is due to the exchange rate, as the Japanese yen depreciated significantly against the euro during 2023, and the increase in the interest rate curve, only partially offset by the generation of cashflows for the period. Cash flow hedge Fair value hedge The table below provides a breakdown of financial income and expense associated with derivatives designated as fair value hedges and related underlying liabilities, as adjusted for the income and losses attributable to the hedged risk: Fair value hedges 31 Dec 23 31 Dec 22 Income Expenses Net effect Income Expenses Net effect Assessment of derivatives \u2010 (14.6) (14.6) 13.2 (12.6) 0.6 Accrued interest 0.5 (0.7) (0.2) 0.5 (0.6) (0.1) Realised cash flows 4.4 (8.5) (4.1) 4.4 (8.1) (3.6) Economic effect of derivatives Fair value hedges 4.9 (23.8) (18.9) 18.2 (21.4) (3.1) Underlying amounts hedged 31 Dec 23 31 Dec 22 Income Expenses Net effect Income Expenses Net effect Assessment of financial liabilities 15.6 \u2010 15.6 \u2010 (0.6) (0.6) Commercial portfolio The commercial portfolio includes commodity derivative instruments, both financial and physical, entered into to hedge mismatches between purchase and sale formulas, which are classed into the following categories: Operations management Type 31 Dec 23 31 Dec 22 Fair value hierarchy Notional Fair value assets Fair value liabilities Notional Fair value assets Fair value liabilities Gas formulas 3 13,984,372 MWh 210.0 19,827,928 MWh 974.7 Electricity formulas 2 2,690,293 MWh 199.2 5,293,822 MWh 556.3 Other commodities 3 7,649 Ton 0.3 Exchange 2 935,000 USD 0.0 Gas formulas 3 13,108,766 MWh 189.2 18,691,234 MWh 901.6 Electricity formulas 2 3,186,649 MWh 147.4 3,165,429 MWh 341.1 Exchange 2 19,620,000 USD 0.3 62,353,000 USD 1.5 Total fair value 409.5 336.9 1,531.0 1,244.2 Type 31 Dec 23 31 Dec 22 Income Expenses Net effect Income Expenses Net effect Assessment of derivatives 0.2 \u2010 0.2 24.3 (23.0) 1.3 Realised cash flows 2,372.2 (2,036.1) 336.1 4,564.8 (4,579.5) (14.7) Economic effect of derivatives 2,372.4 (2,036.1) 336.3 4,589.1 (4,602.5) (13.4) The main objectives of these contracts are to replicate the cash flows of the formulas on sale in the market and to cover the spread between benchmark markets (TTF and PSV). In order to assess the impact that fluctuations in the market price of the underlying asset have on the financial derivatives attributable to the commercial portfolio, the PaR (Profit at Risk) tool is used, that is the change in the value of the portfolio of derivative financial instruments within pre-established probability hypotheses as a result of a shift in market indexes. The significant decrease in net fair value is due both to a decrease in the price of natural gas during the year and the same trend in the PUN, the latter being closely correlated to the trend in gas prices, and to the decrease in notional amounts outstanding at year-end. The overall effect of these instruments on the statement of comprehensive income is broken down as follows: Commodity derivatives commercial portfolio 31 Dec 23 31 Dec 22 Positive components Negative components Net effect Positive components Negative components Net effect Changes to expected cash flows 47.2 \u2010 47.2 214.7 \u2010 214.7 Reserve transferred to the income statement 2,036.1 (2,372.2) (336.1) 4,579.5 (4,564.8) 14.6 Derivatives effect on statement of comprehensive income cash flow hedge 2,083.3 (2,372.2) (288.9) 4,794.2 (4,564.8) 229.3 The amount of the reserve transferred during the year to the income statement also includes the effects of derivatives for which the hedging relation had been discontinued with respect to open items that had not yet reached maturity. The components recognised in the statement of comprehensive income will be transferred back to the income statement at the maturity dates of the corresponding hedged items. The effect on the income statement of the realisation of derivative or similar contracts, whether physical or financial, can be broken down as follows: Physical contracts treated as derivatives Financial derivative contracts Overall effect Sales revenues 2,080.9 Income 291.3 2,372.2 Purchasing costs (1,928.4) Expenses (107.7) (2,036.1) Effect of realising derivative cash flow hedges 152.5 183.6 336.1
Effects on
statement of
comprehensive
income
Effects on
income
statement
", "dimensions": { "concept": "ifrs-full:DisclosureOfHedgeAccountingExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-506": { "value": "Trading portfolio The trading portfolio includes derivatives or similar instruments that are not intended to cover the Group\u2019s needs and are entered into for speculative purpose. These instruments can be broken down into the following types: Operations management Type 31-Dec-23 31-Dec-22 Fair value hierarchy Notional Fair value assets Fair value liabilities Notional Fair value assets Fair value liabilities Electricity formulas 2 3,311,730 MWh 67.6 663,755 MWh 82.7 Gas formulas 3 204,228 MWh 8.5 Electricity formulas 2 4,507,848 MWh 99.1 1,274,824 MWh 96.9 Gas formulas 3 67,292 MWh 5.7 Exchanges 2 3,839 Bbl 0.1 Other commodities 2 3,404 Ton 0.7 Totale fair value 67.6 99,1 91.2 103,4 Type 31 Dec 23 31 Dec 22 Income Expenses Net effect Income Expenses Net effect Assessment of derivatives 170.1 (189.4) (19.3) 163.7 (170.5) (6.8) Realised cash flows 36.0 (59.1) (23.1) 146.4 (51.3) 95.1 Economic effect of derivatives 206.1 (248.5) (42.4) 310.1 (221.8) 88.3 In order to assess the impact that fluctuations in market prices of the underlying asset have on the derivatives attributable to the trading portfolio, the VaR (Value at Risk) instrument is used, that is the negative change in the value of the portfolio of derivative instruments within pre-established probability hypotheses as a result of an unfavourable shift in market indexes. The effect on the income statement of exchanges realised on derivative or similar contracts, whether physical or financial, can be broken down as follows: Contracts treated as derivatives Financial derivative contracts Overall effect Sales revenues 13.1 Income 22.9 36.0 Purchasing costs (60.3) Expenses 1.2 (59.1) Effect of realising derivatives (47.2) 24.1 (23.1) The following table shows the economic results of trading activities at 31 December 2023, including the effects of energy commodity contracts: Trading portfolio Fair value 31 Dec 2023 Fair value 31 Dec 2022 Delta Fair value Realised 2023 Amounts entered in the income statement 31 Dec 23 Gas, crude oil and other commodity formulas \u2010 2.0 (2.0) 3.1 1.1 Electricity formulas (31.5) (14.2) (17.3) (26.2) (43.5) Total trading portfolio (31.5) (12.2) (19.3) (23.1) (42.4) Sensitivity analysis - Trading portfolio Assuming an instant +30 euro/MWh change in the national standard price curve, with equal TTF price, the potential increase in the fair value of derivative financial instruments of the trading portfolio held at 31 December 2023 would amount to approximately 7.5 million euro. On the contrary, an instant change of -30 euro/MWh would bring about a potential decrease in the fair value of the instruments of approximately 7.5 million euro.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialLiabilitiesHeldForTradingExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-520": { "value": "Trading portfolio The trading portfolio includes derivatives or similar instruments that are not intended to cover the Group\u2019s needs and are entered into for speculative purpose. These instruments can be broken down into the following types: Operations management Type 31-Dec-23 31-Dec-22 Fair value hierarchy Notional Fair value assets Fair value liabilities Notional Fair value assets Fair value liabilities Electricity formulas 2 3,311,730 MWh 67.6 663,755 MWh 82.7 Gas formulas 3 204,228 MWh 8.5 Electricity formulas 2 4,507,848 MWh 99.1 1,274,824 MWh 96.9 Gas formulas 3 67,292 MWh 5.7 Exchanges 2 3,839 Bbl 0.1 Other commodities 2 3,404 Ton 0.7 Totale fair value 67.6 99,1 91.2 103,4 Type 31 Dec 23 31 Dec 22 Income Expenses Net effect Income Expenses Net effect Assessment of derivatives 170.1 (189.4) (19.3) 163.7 (170.5) (6.8) Realised cash flows 36.0 (59.1) (23.1) 146.4 (51.3) 95.1 Economic effect of derivatives 206.1 (248.5) (42.4) 310.1 (221.8) 88.3 In order to assess the impact that fluctuations in market prices of the underlying asset have on the derivatives attributable to the trading portfolio, the VaR (Value at Risk) instrument is used, that is the negative change in the value of the portfolio of derivative instruments within pre-established probability hypotheses as a result of an unfavourable shift in market indexes. The effect on the income statement of exchanges realised on derivative or similar contracts, whether physical or financial, can be broken down as follows: Contracts treated as derivatives Financial derivative contracts Overall effect Sales revenues 13.1 Income 22.9 36.0 Purchasing costs (60.3) Expenses 1.2 (59.1) Effect of realising derivatives (47.2) 24.1 (23.1) The following table shows the economic results of trading activities at 31 December 2023, including the effects of energy commodity contracts: Trading portfolio Fair value 31 Dec 2023 Fair value 31 Dec 2022 Delta Fair value Realised 2023 Amounts entered in the income statement 31 Dec 23 Gas, crude oil and other commodity formulas \u2010 2.0 (2.0) 3.1 1.1 Electricity formulas (31.5) (14.2) (17.3) (26.2) (43.5) Total trading portfolio (31.5) (12.2) (19.3) (23.1) (42.4) Sensitivity analysis - Trading portfolio Assuming an instant +30 euro/MWh change in the national standard price curve, with equal TTF price, the potential increase in the fair value of derivative financial instruments of the trading portfolio held at 31 December 2023 would amount to approximately 7.5 million euro. On the contrary, an instant change of -30 euro/MWh would bring about a potential decrease in the fair value of the instruments of approximately 7.5 million euro.", "dimensions": { "concept": "ifrs-full:DisclosureOfTradingIncomeExpenseExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-486": { "value": "Trading portfolio The trading portfolio includes derivatives or similar instruments that are not intended to cover the Group\u2019s needs and are entered into for speculative purpose. These instruments can be broken down into the following types: Operations management Type 31-Dec-23 31-Dec-22 Fair value hierarchy Notional Fair value assets Fair value liabilities Notional Fair value assets Fair value liabilities Electricity formulas 2 3,311,730 MWh 67.6 663,755 MWh 82.7 Gas formulas 3 204,228 MWh 8.5 Electricity formulas 2 4,507,848 MWh 99.1 1,274,824 MWh 96.9 Gas formulas 3 67,292 MWh 5.7 Exchanges 2 3,839 Bbl 0.1 Other commodities 2 3,404 Ton 0.7 Totale fair value 67.6 99,1 91.2 103,4 Type 31 Dec 23 31 Dec 22 Income Expenses Net effect Income Expenses Net effect Assessment of derivatives 170.1 (189.4) (19.3) 163.7 (170.5) (6.8) Realised cash flows 36.0 (59.1) (23.1) 146.4 (51.3) 95.1 Economic effect of derivatives 206.1 (248.5) (42.4) 310.1 (221.8) 88.3 In order to assess the impact that fluctuations in market prices of the underlying asset have on the derivatives attributable to the trading portfolio, the VaR (Value at Risk) instrument is used, that is the negative change in the value of the portfolio of derivative instruments within pre-established probability hypotheses as a result of an unfavourable shift in market indexes. The effect on the income statement of exchanges realised on derivative or similar contracts, whether physical or financial, can be broken down as follows: Contracts treated as derivatives Financial derivative contracts Overall effect Sales revenues 13.1 Income 22.9 36.0 Purchasing costs (60.3) Expenses 1.2 (59.1) Effect of realising derivatives (47.2) 24.1 (23.1) The following table shows the economic results of trading activities at 31 December 2023, including the effects of energy commodity contracts: Trading portfolio Fair value 31 Dec 2023 Fair value 31 Dec 2022 Delta Fair value Realised 2023 Amounts entered in the income statement 31 Dec 23 Gas, crude oil and other commodity formulas \u2010 2.0 (2.0) 3.1 1.1 Electricity formulas (31.5) (14.2) (17.3) (26.2) (43.5) Total trading portfolio (31.5) (12.2) (19.3) (23.1) (42.4) Sensitivity analysis - Trading portfolio Assuming an instant +30 euro/MWh change in the national standard price curve, with equal TTF price, the potential increase in the fair value of derivative financial instruments of the trading portfolio held at 31 December 2023 would amount to approximately 7.5 million euro. On the contrary, an instant change of -30 euro/MWh would bring about a potential decrease in the fair value of the instruments of approximately 7.5 million euro.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsHeldForTradingExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-462": { "value": "Trading portfolio The trading portfolio includes derivatives or similar instruments that are not intended to cover the Group\u2019s needs and are entered into for speculative purpose. These instruments can be broken down into the following types: Operations management Type 31-Dec-23 31-Dec-22 Fair value hierarchy Notional Fair value assets Fair value liabilities Notional Fair value assets Fair value liabilities Electricity formulas 2 3,311,730 MWh 67.6 663,755 MWh 82.7 Gas formulas 3 204,228 MWh 8.5 Electricity formulas 2 4,507,848 MWh 99.1 1,274,824 MWh 96.9 Gas formulas 3 67,292 MWh 5.7 Exchanges 2 3,839 Bbl 0.1 Other commodities 2 3,404 Ton 0.7 Totale fair value 67.6 99,1 91.2 103,4 Type 31 Dec 23 31 Dec 22 Income Expenses Net effect Income Expenses Net effect Assessment of derivatives 170.1 (189.4) (19.3) 163.7 (170.5) (6.8) Realised cash flows 36.0 (59.1) (23.1) 146.4 (51.3) 95.1 Economic effect of derivatives 206.1 (248.5) (42.4) 310.1 (221.8) 88.3 In order to assess the impact that fluctuations in market prices of the underlying asset have on the derivatives attributable to the trading portfolio, the VaR (Value at Risk) instrument is used, that is the negative change in the value of the portfolio of derivative instruments within pre-established probability hypotheses as a result of an unfavourable shift in market indexes. The effect on the income statement of exchanges realised on derivative or similar contracts, whether physical or financial, can be broken down as follows: Contracts treated as derivatives Financial derivative contracts Overall effect Sales revenues 13.1 Income 22.9 36.0 Purchasing costs (60.3) Expenses 1.2 (59.1) Effect of realising derivatives (47.2) 24.1 (23.1)
The following table shows the economic results of trading activities at 31 December 2023, including the
effects of energy commodity contracts:
Trading portfolio
Fair value
31 Dec 2023
Fair value
31 Dec 2022
Delta
Fair value
Realised
2023
Amounts entered
in the income
statement
31 Dec 23
Gas, crude oil and other commodity
formulas
\u2010
2.0
(2.0)
3.1
1.1
Electricity formulas
(31.5)
(14.2)
(17.3)
(26.2)
(43.5)
Total trading portfolio
(31.5)
(12.2)
(19.3)
(23.1)
(42.4)
Sensitivity analysis - Trading portfolio Assuming an instant +30 euro/MWh change in the national standard price curve, with equal TTF price, the potential increase in the fair value of derivative financial instruments of the trading portfolio held at 31 December 2023 would amount to approximately 7.5 million euro. On the contrary, an instant change of -30 euro/MWh would bring about a potential decrease in the fair value of the instruments of approximately 7.5 million euro.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialAssetsHeldForTradingExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-61": { "value": "30 Post-employment and other benefits This entry includes provisions for severance pay and other contractual benefits, net of advances paid out and payments made to the social security institutions pursuant to current regulations. The calculation is made using actuarial techniques and discounting future liabilities to the balance sheet date. These liabilities comprise the employee\u2019s matured receivables at the date they will presumably leave the company. Opening value Service cost Financial expenses Actuarial profit (losses) Uses Changes in the scope of consolida tion Terminal value 31 Dec 22 Post-employment 93.7 1.4 0.2 (5.1) (11.3) 0.5 79.4 Other benefits 11.7 \u2010 0.1 2.0 (1.2) \u2010 12.6 Total 105.4 1.4 0.3 (3.1) (12.5) 0.5 92.0 31 Dec 23 Post-employment 79.4 1.0 2.5 1.5 (9.7) 1.1 75.8 Other benefits 12.6 \u2010 0.5 0.5 (1.3) \u2010 12.3 Total 92.0 1.0 3.0 2.0 (11.0) 1.1 88.1 \u201cOther benefits\u201d mainly comprises the following: \u25aa the item gas discount, which represents annual indemnities provided to Federgasacqua employees, hired prior to January 1980, which may be transferred to their heirs; \u25aa Premungas, a supplementary pension fund for employee members of Federgasacqua hired prior to January 1980. This fund, closed with effect from January 1997, undergoes changes on a quarterly basis solely to settle payments made to eligible retirees; \u25aa the item tariff reduction, set up to cover the charges deriving from the acknowledgement to retired staff of the electricity business unit of tariff concessions for electricity consumption. The item \u201cService Cost\u201d regards companies with a small number of employees for whom the employee severance indemnity fund continues to represent a defined benefit plan. \u201cFinancial charges\u201d are calculated by applying a specific discount rate for each company, determined on the basis of the average financial life of the bond. The significant increase in expenses is due to the increased interest rate used for actuarial valuations due to the changed economic scenario. \u201cActuarial profit (losses)\u201d reflects the re-measurement of the liabilities for employee benefits arising from changes in actuarial assumptions. These effects are recorded directly in the other items of the comprehensive income statement. \u201cChanges in scope of consolidation\u201d includes the post-employment provision acquired following the business combinations carried out during the period. The table below outlines the main assumptions used in the actuarial estimate of employee benefits, subdivided by geographical area: Central area North-east area Technical actuarial yearly rate 2.95% 2.97% Overall increase of salary yearly rate 2.00% 2.00% Yearly frequency of exit from work for reasons other than death 1.70% 2.49% Yearly average frequency of use of severance pay provision 2.23% 2.43% In interpreting these assumptions, account is taken of the following: \u25aa with regard to the inflation rate, the inflation assumption was inferred by adopting the Extended National Consumer Price index of 2.90% for 2024 and 2% for the following years; \u25aa for probabilities of death, ISTAT 2022 tables were consulted; \u25aa the actuarial valuations took into account the new starting dates for pension treatments provided for by Decree-Law No. 201 of 6 December 2011, converted, with amendments, by Law No. 214 of 22 December 2011, as well as legislation involving adjusting pension system access requirements to increases in life expectancy pursuant to Article 12 of Decree-Law No. 78 of 31 May 2010, converted, with amendments, by Law No. 122 of 30 July 2010; \u25aa for the probability of leaving employment for reasons other than death, an average yearly exit rate of 1.7% was hypothesized, since the analysis differentiated by professional level and gender did not produce statistically significant results; \u25aa to take into account the phenomenon of an early end of employment, the incidence and amount of average anticipated severance pay were hypothesized. The frequency of advance payments as well as the average percentage of severance pay requested as an advance were drawn from corporate data. The rate of severance pay requested as an advance was hypothesized at 70% of severance pay or the maximum amount set by current regulations. Actuarial projections were made on the basis of the Euro Composite AA yield curve at 31 December 2023.", "dimensions": { "concept": "ifrs-full:DisclosureOfDefinedBenefitPlansExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-62": { "value": "Sensitivity Analysis - Obligations of defined-benefit plans Assuming a 50 bps increase in the internal rate of return compared to the discount rate actually applied to value the liabilities at 31 December 2023, all other actuarial assumptions being equal, the potential decrease of the present value of the obligations of the existing defined-benefit plans (DBO) would amount to approximately 1.8 million euro. Likewise, assuming a reduction of this rate of 50 bps, there would be an increase in the present value of the liabilities of approximately 1.9 million euro. Assuming a 50 bps increase in the in the rate of inflation compared to that actually applied to value the liabilities at 31 December 2023, all other actuarial assumptions being equal, the potential increase of the present value of the obligations of the existing defined-benefit plans (DBO) would amount to approximately 1.1 million euro. Likewise, assuming a reduction of this rate of 50 bps, there would be a decrease in the present value of the liabilities of approximately 1.1 million euro. Changes in the remaining actuarial assumptions would not produce significant effects on the present value of the liabilities of the defined-benefit plans reported in the financial statement. ", "dimensions": { "concept": "ifrs-full:DisclosureOfSensitivityAnalysisForActuarialAssumptionsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-487": { "value": "31 Provisions for risks and charges Opening value Provisions Financial expenses Uses Other movements Changes in the scope of consolidation Terminal value 31 Dec 22 Provision for third-party asset restoration 207.5 6.3 4.1 \u2010 \u2010 \u2010 217.9 Provision for closure and post- closure landfill expenses 182.6 6.0 8.0 (13.5) 3.2 \u2010 186.3 Provision for personnel legal cases and disputes 10.7 2.4 \u2010 (1.3) (1.0) 0.1 10.9 Provisions for waste disposal 8.1 9.3 \u2010 (7.6) (0.1) \u2010 9.7 Provision for plants dismantling 6.0 \u2010 0.1 \u2010 \u2010 \u2010 6.1 Other provisions for risks and charges 113.1 44.0 \u2010 (5.6) (16.8) \u2010 134.7 Total 528.0 68.0 12.2 (28.0) (14.7) 0.1 565.6 31 Dec 23 Provision for third-party asset restoration 217.9 6.4 4.4 \u2010 0.1 \u2010 228.8 Provision for closure and post- closure landfill expenses 186.3 6.6 0.3 (12.0) 3.9 \u2010 185.1 Provision for personnel legal cases and disputes 10.9 8.1 \u2010 (3.0) (1.0) \u2010 15.0 Provisions for waste disposal 9.7 8.3 \u2010 (9.4) (0.1) \u2010 8.5 Provision for plants dismantling 6.1 0.1 0.1 \u2010 \u2010 \u2010 6.3 Other provisions for risks and charges 134.7 59.0 \u2010 (3.3) (16.5) 0.2 174.1 Total 565.6 88.5 4.8 (27.7) (13.6) 0.2 617.8 The \u201cProvision for third-party asset restoration\u201d includes provisions made in relation to legal and contractual requirements for the Group companies as lessees of the distribution networks of the entity that owns the assets. The allocations are made on the basis of depreciation rates held to be representative of the remaining useful life of the assets in question in order to compensate the owner companies for the wear and tear of the assets used for business activities. In the event that the concession system is not yet undergoing an extension, pending the setting of tenders for the area, this provision reflects the present value of the disbursements that will be determined in future periods (generally at the expiry of the agreements signed with the area authorities, in the case of the water service, and at the end of the transitional period provided for by current legislation, in the case of gas distribution). The increases in this provision comprise the sum total of the provisions for the year, including those discounted to present value, and the financial charges for the period associated with the cash flows discounted to present value. Note that since most of the concessions are undergoing an extension, the discounting process and the resulting financial charges only refer to concessions that are still fully in force. The \u201cProvision for closure and post-closure landfill expenses\u201d represents the amount set aside to cover the costs which will have to be incurred for the management of the closure and post-closure period pertaining to the landfills currently managed. The future outlays, calculated for each landfill by means of a specific appraisal, have been discounted to present value. The increases in the provision comprise the financial component derived from the discounting process and provisions due to changes in the assumptions about future outlays, following the change in expert estimates on closed landfills. Financial expenses decreased significantly compared to the previous year, mainly due to updates in the parameters used to reflect current market conditions (in particular, the reference WACC increased by more than 1%) and to a lesser extent due to the revised assumptions on the distribution over time of future disbursements. Uses are made up of actual disbursements that occurred during the year, while \u201cOther movements\u201d mainly includes estimated closure and post-closure costs in relation to newly constructed landfills and the changes in the estimated closure and post-closure costs of active landfills, which required the recording of an adjustment having the same amount as the value of tangible assets (landfill asset), totalling 3.7 million euro for 2023. The \u201cProvision for personnel legal cases and disputes\u201d reflects the outcomes of lawsuits and disputes brought by employees. The \u201cProvision for waste disposal\u201d reports the estimated costs of disposal of the waste already stored at the Group\u2019s plants. The provisions reflect the estimated costs of contributions for 2023 not yet processed at the end of the financial period, while the uses represent the costs incurred over the period for processing waste that was residual at 31 December 2022. \u201cProvision for plants dismantling\u201d includes the amounts allocated for the future dismantling of the plants for cases in which this is mandatory. \u201cOther provisions for risks and charges\u201d comprises provisions made against sundry risks. Below, there is a description of the main items: Liabilities Type Amount (mn\u20ac) Risks arising from the activity of energy efficiency upgrading of buildings carried out on behalf of end customers, particularly apartment blocks Likely 23.8 The amount of the WTE and cogeneration plants\u2019 green certificates, calculated according to the difference between auxiliary services resulting from total self- consumption and services estimated on the basis of the benchmark percentage, was not recognised; Likely 14.0 Outstanding bonds (guarantee on financial exposure given by AcegasApsAmga Spa) in case of abandonment of the operations run by the foreign subsidiary AresGas (Bulgaria). Contingent 11.3 The higher cost of the electricity used in the water service provision was not recognised, due to the volatility of the energy market, which resulted in price values for 2022 that were higher than the allowed maximum limit provided for by the tariff system. Likely 9.3 Risk of non-reimbursement by some provincial offices of the Customs Agency, relating to surcharges on electricity reimbursed to end users following the ruling of the Court of Cassation in line with European Directive 2008/118/EC. Likely 9.0 Reimbursement of a portion of the sewerage and purification tariffs for the water service Likely 6.1 Higher expenses that may be incurred in connection with extraordinary maintenance on the Ponte San Nicol\u00f2 (Padua) landfill Contingent 5.0 Potential litigations arising from the risk of disputes in relation to the gas distribution unit of the Veneto and Friuli Venezia-Giulia regions, sold at the end of 2019 Likely 3.5 The liabilities classified as contingent were recognised as part of the business combination in the year in which it occurred. Provisions amounted to 59 million euro, increasing from the previous year mainly for regulatory and contractual execution risks. Out of the amount of \u201cOther movements\u201d, coming to 16.5 million euro, 14.7 million euro is due to the release from provisions recorded in previous years, whose valuation proved to be in excess of the actual liability. The \u201cChange in the scope of consolidation\u201d include the provisions of the companies acquired during 2023. For detailed information on risk provisions for tax litigations, see Note 12 \u201cTaxes\u201d. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-463": { "value": "32 Inventories 31 Dec 23 31 Dec 22 Change Contract work in progress 433.1 449.4 (16.3) Gas stocks 114.6 468.6 (354.0) Raw materials and stocks 70.2 57.6 12.6 Materials earmarked for sale and finished products 13.7 19.5 (5.8) Total 631.6 995.1 (363.5) The item \u201cContract work in progress\u201d includes long-term contracts for plant construction work, mainly in relation to the following businesses: 31 Dec 23 31 Dec 22 Change Energy services and building upgrading 364.1 386.6 (22.5) Treatment and disposal 23.7 4.4 19.3 Water services 22.5 27.3 (4.8) Public lighting 21.1 23.7 (2.6) Other minor items 1.7 7.4 (5.7) Total 433.1 449.4 (16.3) The item Energy services and building upgrading mainly includes activities for increasing the energy efficiency of buildings, especially apartment blocks. The increase in works related to the treatment and disposal sector is due to orders for the reclamation of industrial sites, handling and civil works done by A.C.R Spa, which became part of the scope of consolidation in 2023. \u201cGas stocks\u201d, already shown net of the relative depreciation provision, represent the stocks of natural gas held for sale. The change compared to the end of the previous year is mainly due to: \u25aa the decrease in wholesale prices recorded in 2023, which led to a lower average book cost; \u25aa the lower volumes in storage at the end of the period, due to the lower storage capacity purchased for the 2023-2024 autumn-winter season. As illustrated in the Director\u2019s report, in paragraph 1.04 \u201cOverview of operating and financial performance and definition of alternative performance measures\u201d, in determining the average cost of inventories, all purchases of natural gas made during the storage injection period are taken into consideration, without distinction as to their end purpose, unlike what is done managerially, in order to monitor this business more precisely. The sharp decrease in prices and the criterion of a mass valuation of contracts led to a book value of the stock that is higher than what can be identified as its net sales value, in light of the forward sales contracts already signed by the Group at date referred to by the statements. For these reasons, the value of these inventories was reduced by a 27.4 million euro write-down. In particular, the risk management approach adopted by the Group calls for appropriate hedging transactions, such as forward sales, on the value of gas in storage. Following changes in forecasts of disbursement flows, these transactions can be redefined in order to ensure the effectiveness of the hedge itself. This redefinition was taken into account in defining the net sales value, thus taking into account the value of forward prices at the expected stages of disbursement, which occurred not only in the first quarter of 2024 but are also expected for the last quarter of the same year. \u201cRaw materials and stocks\u201d, already presented net of an associated obsolescence provision, mainly include: 31 Dec 23 31 Dec 22 Change Spare materials and equipment 61.3 49.8 11.5 Plastic materials 8.8 7.4 1.4 Other fuels 0.1 0.4 (0.3) Total 70.2 57.6 12.6 \u201cMaterials earmarked for sale and finished products\u201d, already shown net of the respective provision for depreciation, mainly consist of: 31 Dec 23 31 Dec 22 Change Plastic products 8.4 12.2 (3.8) Material for photovoltaic systems 4.9 6.7 (1.8) Telecommunications equipment 0.4 0.6 (0.2) Total 13.7 19.5 (5.8", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-433": { "value": "
33 Trade receivables
31 Dec 23
31 Dec 22
Change
Receivables from customers
3,066.5
2,051.1
1,015.4
Receivables from customers for bills and invoices not yet issued
1,147.0
2,375.9
(1,228.9)
Provision for bad debts
(626.7)
(552.0)
(74.7)
Total
3,586.8
3,875.0
(288.2)
Trade receivables comprise estimated consumption, for the portion pertaining to the period, relating to
bills and invoices which will be issued after 31 December 2023, as well as receivables for revenues
coming due during the period, referring to the water sector which will be billed in the following period, in
accordance with the billing methods for final customers established by the respective Authority.
The change in the stock of receivables managed compared to the previous year is due to various
phenomena that had opposing effects:
\u25aa the decrease in market prices of gas and electricity commodities, which led to a corresponding decrease in the value of sales to end customers and the resulting receivables still to be collected at the date of the financial statement; \u25aa a decrease in the value of trading transactions on wholesale markets carried out at the end of the year that are expected to be settled in the first few months of 2024; \u25aa a decrease in sales yet to be invoiced at year-end due to weather conditions, since late 2023 saw milder temperatures than the previous year; \u25aa an increase in invoices issued involving energy efficiency services provided to apartment buildings. At year-end, in particular, the Group proceeded to invoice the progress of the works, almost entirely completed, for the works falling under the 110% super-bonus, in order to guarantee, as required by tax regulations, the benefit consisting in a deduction of the works at the rate originally envisaged. These trade receivables, measured at fair value at the time of their initial recognition, will be recognized as tax credits once the submission of the necessary documentation to the Revenue Agency is completed in early 2024, since the mechanism that included discounts directly in invoices was used in the contractual relationship with the customer. The value of trade receivables reported in the financial statements at 31 December 2023 represents the Group\u2019s maximum exposure to credit risk. Changes in the provision for bad debts is as follows: Opening balance Provisions Changes in the scope of consolidation Uses and other movements Closing balance 2022 financial year 444.6 133.9 1.8 (28.3) 552.0 2023 financial year 552.0 158.0 1.7 (85.0) 626.7 The recording of the provision is made on the basis of analytical valuations in relation to specific receivables, supplemented by assessments made based on future-oriented analyses of the receivables regarding the general body of customers (in relation to the age of the receivables, the type of recovery action undertaken and the status of the debtor), as described in the section \u201cRisk management\u201d in paragraph 2.02.01 \u201cIntroduction\u201d. The change in the provision compared to the previous year is mainly due to the credits relating to environmental services and the energy sector. In particular, specific analyses were carried out with reference to receivables due from customers impacted by the flooding events, municipal hygiene customers and energy customers acquired in areas not previously served, which show, based on the first available final data, lower levels of reliability and payment regularity compared to those of the Group\u2019s historical customers. The higher utilisations and other movements for the period are mainly due the disposals of non- performing receivables made during the year, which led to the complete derecognition of their value through the use of the provision created in previous years. The following table shows receivables from all customer clusters on the basis of bills issued, organized by degree of past-due: 31 Dec 23 % inc. 31 Dec 22 % inc. Change Not yet due 1,231.2 40% 824.2 40% 407.0 Due 0-30 days 424.7 14% 179.5 9% 245.2 Due 31-180 days 395.1 13% 287.3 14% 107.8 Due 181-360 days 233.6 8% 151.2 7% 82.4 Due beyond 360 days 781.8 25% 608.9 30% 172.9 Total 3,066.5 2,051.1 1,015.4 Analysis of overdue receivables", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-63": { "value": "The value of trade receivables reported in the financial statements at 31 December 2023 represents the Group\u2019s maximum exposure to credit risk. Changes in the provision for bad debts is as follows: Opening balance Provisions Changes in the scope of consolidation Uses and other movements Closing balance 2022 financial year 444.6 133.9 1.8 (28.3) 552.0 2023 financial year 552.0 158.0 1.7 (85.0) 626.7 The recording of the provision is made on the basis of analytical valuations in relation to specific receivables, supplemented by assessments made based on future-oriented analyses of the receivables regarding the general body of customers (in relation to the age of the receivables, the type of recovery action undertaken and the status of the debtor), as described in the section \u201cRisk management\u201d in paragraph 2.02.01 \u201cIntroduction\u201d. The change in the provision compared to the previous year is mainly due to the credits relating to environmental services and the energy sector. In particular, specific analyses were carried out with reference to receivables due from customers impacted by the flooding events, municipal hygiene customers and energy customers acquired in areas not previously served, which show, based on the first available final data, lower levels of reliability and payment regularity compared to those of the Group\u2019s historical customers. The higher utilisations and other movements for the period are mainly due the disposals of non- performing receivables made during the year, which led to the complete derecognition of their value through the use of the provision created in previous years.", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-454": { "value": "34 Trade payables 31 Dec 23 31 Dec 22 Change Payables to suppliers 935.2 890.3 44.9 Payables to suppliers for invoices not yet received 1,702.0 2,202.8 (500.8) Total 2,637.2 3,093.1 (455.9) Changes in trade payables compared to the previous year mainly involve the following factors: \u25aa a decrease in the wholesale prices of gas and electricity commodities, which led to a decrease in costs for purchasing raw materials and an ensuing lower exposure to suppliers, particularly with regard to the trading transactions on wholesale markets carried out at year-end; \u25aa the increase in the volume of energy efficiency upgrading of buildings carried out on behalf of end customers, particularly apartment buildings, which led to a subsequent increase in payables to suppliers and professionals carrying out the works. ", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-507": { "value": "35 Other current assets 31 Dec 23 31 Dec 22 Change Tax credits and benefits 97.3 79.8 17.5 Fund for energy and waste management services for equalisation and continuity income 85.3 119.6 (34.3) VAT, excise and additional taxes 75.7 86.6 (10.9) Energy efficiency certificates and emissions trading 64.3 40.9 23.4 Security deposits 39.8 59.8 (20.0) Prepaid costs 34.7 29.5 5.2 Receivables from electricity and gas sector companies \u2010 76.1 (76.1) Other receivables 112.2 150.2 (38.2) Total 509.3 642.5 (133.2) \u201cTax credits and benefits\u201d mainly include: \u25aa tax credits arising from the application of the invoice discount to end customers, stated at their market value, in relation to subsidised energy efficiency measures, amounting to 88.3 million euro (44.1 million euro at 31 December 2022). These measures are mainly related to building renovation activities on apartment buildings; \u25aa credits for investments in capital goods, including those related to Industry 4.0, totalling 9 million euro (5.8 million euro at 31 December 2022), which will be used to offset taxes and contributions in subsequent years on the basis of the annual limits provided for. At 31 December 2022, this item also included receivables arising from the government\u2019s regulatory interventions relating to electricity and gas costs, amounting to roughly 23 million euro, which were used as compensation during 2023. \u201cFund for energy and waste management services for equalisation and continuity income\u201d consisted of continuity income amounting to 30.3 million euro (83.3 million euro at 31 December 2022) and equalisation credits amounting to 55 million euro (36.3 million euro at 31 December 2022). Continuity income decreased by 53 million euro compared to the previous year, mainly due to two factors: \u25aa collection of 34.5 million euro related to the recognition of costs incurred for operating in the default and last resort gas supply markets, based on ARERA\u2019s resolution 44/2022/R/Gas and subsequent amendments and supplements; \u25aa a decrease in receivables for system charges and gas and electricity social bonuses. This trend was mainly due to the regulatory changes introduced by the government that reduced the concessions to users established for previous years to deal with the rise in bills, reintroducing the distribution components, albeit with lower amounts per unit than in years prior to 2022, and lower prices per unit for social bonuses. Also note the reduced time gap for collection from the Cassa per i Servizi Energetici e Ambientali compared to the previous year. Equalisation receivables increased by 18.7 million euro compared to the previous year, with a diversified trend among the various regulated sectors, in particular due to the volumes distributed by the gas business (down compared to the previous year) and the increase in regulated revenues pertaining to the Group, factors that led to a greater use of the equalisation mechanism for 2023. \u201cVAT, excise and additional taxes\u201d includes payables for VAT amounting to 10.6 million euro (18 million euro at 31 December 2022), and excise and additional taxes in the amount of 65.1 million euro (68.6 million euro at 31 December 2022). With regard to excise duties and additional taxes, the procedures governing the financial relations with the tax authorities should be taken into account: as a matter of fact, advance payments made during the year are calculated on the basis of the quantities of gas and electricity billed in the previous year, while the actual debt is generated on the volumes sold in the period. These methods can generate credit or debit positions with differences that may be significant even between one period and another. The change compared to 31 December 2022 is due to a 7.4 million euro decrease in receivables for value added tax and a 3.5 million euro increase in receivables for excise and additional taxes. For a better understanding of the Group\u2019s net exposure to value added tax, see the comments to Note 36 \u201cOther current liabilities\u201d. The reduction in credits for excise duties and surcharges was, instead, caused by two opposing effects: \u25aa on the one hand, the account paid in 2023 for excise duties and gas surcharges was based, as required by current legislation, on the volumes invoiced during the previous year. The corresponding accrued liability, instead, was caused by the volumes invoiced in 2023, which were lower than in 2022, resulting in an increase in the credit for excises and additional taxes amounting to 27.6 million euro; \u25aa on the other, the trend in volumes of electricity sold in 2023, higher than in 2022, led to a debit in net exposure, resulting in a 31.1 million euro decrease in the electricity excise tax receivable. \u201cEnergy efficiency certificates and emissions trading\u201d, includes the following: 31 Dec 23 31 Dec 22 Change White certificates 51.5 15.0 36.5 Grey certificate 7.6 20.8 (13.2) Green certificates 5.1 5.1 \u2010 Total 64.3 40.9 23.4 \u25aa The portfolio of white certificates includes the valuation of both the certificates calculated on the basis of the energy efficiency targets set by the GSE for gas and electricity distribution companies, net of the disposals that took place in the period, amounting to 49.7 million euro (13.1 million euro at 31 December 2022), and the certificates originating from the energy efficiency measures implemented by the Group, amounting to 1.8 million euro (1.9 million euro at 31 December 2022). The increase, with essentially the same valuation of the contribution compared to the previous year, is attributable to the different ways in which obligations were fulfilled in 2023, the lower amount of disposals realised at the end of the period and to the higher targets assigned to the Group for the obligation year in question; \u25aa The portfolio of grey certificates reflects the valuation of both securities held by the Group for 6.3 million euro (10.1 million euro at 31 December 2022) and the exposure for forward contracts to buy and sell greenhouse gas emission allowances for 1.3 million euro (10.7 million euro at 31 December 2022). The decrease compared to the previous year was mainly related to an effect involving volume due to fewer securities in the portfolio; \u25aa At 31 December 2023, the green certificate portfolio included securities recognised on an accrual basis prior to 2016 in relation to the electricity production of the waste-to-energy plant in Ferrara. These securities are the subject of a complaint by the GSE concerning the methodology for calculating the self-consumption of auxiliary services. \u201cSecurity deposits\u201d mainly include deposits paid to guarantee participation in foreign platforms for trading commodity contracts and auctions in the electricity market, as well as to guarantee operations in the wholesale electricity and gas markets, amounting to 29.2 million euro. The decrease with respect to the previous year is due to the lower prices and less volatility in energy commodities, to which the amount of deposits required to operate in these markets is directly related. \u201cPrepaid costs\u201d mainly comprise future accruals in respect of: 31 Dec 23 31 Dec 22 Change Outsourced services and processing 14.5 14.6 (0.1) Insurance, bank sureties and commissions 5.4 5.0 0.4 Rents payables and concession fees for network services 3.0 2.7 0.3 Other minor items 11.8 7.2 4.6 Total 34.7 29.5 5.2 \u201cReceivables from electricity and gas sector companies\u201d in the previous year included receivables from distribution companies that arose following the credits recognised to end customers for social bonuses and the Ug2c component, which was negative, resulting in a reversal of the typical trade balance. These items, which at 31 December 2022 resulted from the government\u2019s interventions against the rise in bills, were completely offset during 2023 by the significant reduction in the subsidies introduced in previous years. The item \u201cOther receivables\u201d includes: 31 Dec 23 31 Dec 22 Change Nonrecurring subsidies 22.6 22.6 \u2010 Commission payments to agents 13.8 12.0 1.8 Receivables from asset companies 6.2 6.0 0.2 Incentives from renewable sources 0.7 10.6 (9.9) Other minor items 68.9 99.0 (30.1) Total 112.2 150.2 (38.0) \u25aa nonrecurring subsidies include the amount certain Group companies paid, yet deemed not due, during 2022 in respect of the \u201cNonrecurring extra-profits subsidy\u201d, established for 2022 by Article 37 of Legislative Decree no. 21/2022. These amounts were paid to the State Treasury on the due dates, despite significant doubts as to their application, in order to avoid penalties and interest. The subsequent 2023 Budget Law, which in paragraphs 120 and 121 of Article 1 changed the subjective scope and the taxable base of the contribution for 2022, made it possible to exclude one Group company from the scope of application, however failed to clear the application doubts in respect of a second impacted company. In both cases, the Group has already initiated procedures with the tax authorities to recover the amounts, as illustrated in paragraph 2.02.03 \u201cTaxation\u201d; \u25aa commission payments to agents, whose increase is linked to the rise in commercial activities for acquiring new customers in the free market energy sector; \u25aa receivables from asset companies include receivables from companies that own the networks and related assets used by the Group to provide utility services. \u25aa incentives from renewable sources consist of receivables from the GSE arising from the incentive mechanism for electricity generation, which replaced the certificate system as of 2016. Receivables pertaining to the year in question, against the collection of the majority of the amounts open as of 31 December 2022, are practically null, since there was a reduction in the price of incentives (GRIN), which is inversely proportional to the previous year\u2019s energy price (PUN). ", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-488": { "value": "35 Other current assets 31 Dec 23 31 Dec 22 Change Tax credits and benefits 97.3 79.8 17.5 Fund for energy and waste management services for equalisation and continuity income 85.3 119.6 (34.3) VAT, excise and additional taxes 75.7 86.6 (10.9) Energy efficiency certificates and emissions trading 64.3 40.9 23.4 Security deposits 39.8 59.8 (20.0) Prepaid costs 34.7 29.5 5.2 Receivables from electricity and gas sector companies \u2010 76.1 (76.1) Other receivables 112.2 150.2 (38.2) Total 509.3 642.5 (133.2) \u201cTax credits and benefits\u201d mainly include: \u25aa tax credits arising from the application of the invoice discount to end customers, stated at their market value, in relation to subsidised energy efficiency measures, amounting to 88.3 million euro (44.1 million euro at 31 December 2022). These measures are mainly related to building renovation activities on apartment buildings; \u25aa credits for investments in capital goods, including those related to Industry 4.0, totalling 9 million euro (5.8 million euro at 31 December 2022), which will be used to offset taxes and contributions in subsequent years on the basis of the annual limits provided for. At 31 December 2022, this item also included receivables arising from the government\u2019s regulatory interventions relating to electricity and gas costs, amounting to roughly 23 million euro, which were used as compensation during 2023. \u201cFund for energy and waste management services for equalisation and continuity income\u201d consisted of continuity income amounting to 30.3 million euro (83.3 million euro at 31 December 2022) and equalisation credits amounting to 55 million euro (36.3 million euro at 31 December 2022). Continuity income decreased by 53 million euro compared to the previous year, mainly due to two factors: \u25aa collection of 34.5 million euro related to the recognition of costs incurred for operating in the default and last resort gas supply markets, based on ARERA\u2019s resolution 44/2022/R/Gas and subsequent amendments and supplements; \u25aa a decrease in receivables for system charges and gas and electricity social bonuses. This trend was mainly due to the regulatory changes introduced by the government that reduced the concessions to users established for previous years to deal with the rise in bills, reintroducing the distribution components, albeit with lower amounts per unit than in years prior to 2022, and lower prices per unit for social bonuses. Also note the reduced time gap for collection from the Cassa per i Servizi Energetici e Ambientali compared to the previous year. Equalisation receivables increased by 18.7 million euro compared to the previous year, with a diversified trend among the various regulated sectors, in particular due to the volumes distributed by the gas business (down compared to the previous year) and the increase in regulated revenues pertaining to the Group, factors that led to a greater use of the equalisation mechanism for 2023. \u201cVAT, excise and additional taxes\u201d includes payables for VAT amounting to 10.6 million euro (18 million euro at 31 December 2022), and excise and additional taxes in the amount of 65.1 million euro (68.6 million euro at 31 December 2022). With regard to excise duties and additional taxes, the procedures governing the financial relations with the tax authorities should be taken into account: as a matter of fact, advance payments made during the year are calculated on the basis of the quantities of gas and electricity billed in the previous year, while the actual debt is generated on the volumes sold in the period. These methods can generate credit or debit positions with differences that may be significant even between one period and another. The change compared to 31 December 2022 is due to a 7.4 million euro decrease in receivables for value added tax and a 3.5 million euro increase in receivables for excise and additional taxes. For a better understanding of the Group\u2019s net exposure to value added tax, see the comments to Note 36 \u201cOther current liabilities\u201d. The reduction in credits for excise duties and surcharges was, instead, caused by two opposing effects: \u25aa on the one hand, the account paid in 2023 for excise duties and gas surcharges was based, as required by current legislation, on the volumes invoiced during the previous year. The corresponding accrued liability, instead, was caused by the volumes invoiced in 2023, which were lower than in 2022, resulting in an increase in the credit for excises and additional taxes amounting to 27.6 million euro; \u25aa on the other, the trend in volumes of electricity sold in 2023, higher than in 2022, led to a debit in net exposure, resulting in a 31.1 million euro decrease in the electricity excise tax receivable. \u201cEnergy efficiency certificates and emissions trading\u201d, includes the following: 31 Dec 23 31 Dec 22 Change White certificates 51.5 15.0 36.5 Grey certificate 7.6 20.8 (13.2) Green certificates 5.1 5.1 \u2010 Total 64.3 40.9 23.4 \u25aa The portfolio of white certificates includes the valuation of both the certificates calculated on the basis of the energy efficiency targets set by the GSE for gas and electricity distribution companies, net of the disposals that took place in the period, amounting to 49.7 million euro (13.1 million euro at 31 December 2022), and the certificates originating from the energy efficiency measures implemented by the Group, amounting to 1.8 million euro (1.9 million euro at 31 December 2022). The increase, with essentially the same valuation of the contribution compared to the previous year, is attributable to the different ways in which obligations were fulfilled in 2023, the lower amount of disposals realised at the end of the period and to the higher targets assigned to the Group for the obligation year in question; \u25aa The portfolio of grey certificates reflects the valuation of both securities held by the Group for 6.3 million euro (10.1 million euro at 31 December 2022) and the exposure for forward contracts to buy and sell greenhouse gas emission allowances for 1.3 million euro (10.7 million euro at 31 December 2022). The decrease compared to the previous year was mainly related to an effect involving volume due to fewer securities in the portfolio; \u25aa At 31 December 2023, the green certificate portfolio included securities recognised on an accrual basis prior to 2016 in relation to the electricity production of the waste-to-energy plant in Ferrara. These securities are the subject of a complaint by the GSE concerning the methodology for calculating the self-consumption of auxiliary services. \u201cSecurity deposits\u201d mainly include deposits paid to guarantee participation in foreign platforms for trading commodity contracts and auctions in the electricity market, as well as to guarantee operations in the wholesale electricity and gas markets, amounting to 29.2 million euro. The decrease with respect to the previous year is due to the lower prices and less volatility in energy commodities, to which the amount of deposits required to operate in these markets is directly related. \u201cPrepaid costs\u201d mainly comprise future accruals in respect of: 31 Dec 23 31 Dec 22 Change Outsourced services and processing 14.5 14.6 (0.1) Insurance, bank sureties and commissions 5.4 5.0 0.4 Rents payables and concession fees for network services 3.0 2.7 0.3 Other minor items 11.8 7.2 4.6 Total 34.7 29.5 5.2 \u201cReceivables from electricity and gas sector companies\u201d in the previous year included receivables from distribution companies that arose following the credits recognised to end customers for social bonuses and the Ug2c component, which was negative, resulting in a reversal of the typical trade balance. These items, which at 31 December 2022 resulted from the government\u2019s interventions against the rise in bills, were completely offset during 2023 by the significant reduction in the subsidies introduced in previous years. The item \u201cOther receivables\u201d includes: 31 Dec 23 31 Dec 22 Change Nonrecurring subsidies 22.6 22.6 \u2010 Commission payments to agents 13.8 12.0 1.8 Receivables from asset companies 6.2 6.0 0.2 Incentives from renewable sources 0.7 10.6 (9.9) Other minor items 68.9 99.0 (30.1) Total 112.2 150.2 (38.0) \u25aa nonrecurring subsidies include the amount certain Group companies paid, yet deemed not due, during 2022 in respect of the \u201cNonrecurring extra-profits subsidy\u201d, established for 2022 by Article 37 of Legislative Decree no. 21/2022. These amounts were paid to the State Treasury on the due dates, despite significant doubts as to their application, in order to avoid penalties and interest. The subsequent 2023 Budget Law, which in paragraphs 120 and 121 of Article 1 changed the subjective scope and the taxable base of the contribution for 2022, made it possible to exclude one Group company from the scope of application, however failed to clear the application doubts in respect of a second impacted company. In both cases, the Group has already initiated procedures with the tax authorities to recover the amounts, as illustrated in paragraph 2.02.03 \u201cTaxation\u201d; \u25aa commission payments to agents, whose increase is linked to the rise in commercial activities for acquiring new customers in the free market energy sector; \u25aa receivables from asset companies include receivables from companies that own the networks and related assets used by the Group to provide utility services. \u25aa incentives from renewable sources consist of receivables from the GSE arising from the incentive mechanism for electricity generation, which replaced the certificate system as of 2016. Receivables pertaining to the year in question, against the collection of the majority of the amounts open as of 31 December 2022, are practically null, since there was a reduction in the price of incentives (GRIN), which is inversely proportional to the previous year\u2019s energy price (PUN). ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-521": { "value": "36 Other current liabilities 31 Dec 23 31 Dec 22 Change Payables for advances to the fund for energy and waste management services 422.8 441.8 (19.0) Advances for works 365.1 106.7 258.4 Plant investment grants 262.5 239.5 23.0 Security deposits from customers 199.9 383.3 (183.4) Fund for energy and waste management service components and equalisation 119.0 99.5 19.5 VAT, excise and additional taxes 118.4 83.0 35.4 Personnel and employee withholding 89.8 82.8 7.0 Payables to social security institutions 78.9 69.4 9.5 Energy efficiency certificates and emissions trading 49.5 51.6 (2.1) Prepaid revenues and other expenses 29,7 32,4 (2.7) Payables to electricity and gas sector companies \u2010 34.7 (34,7) Other payables 131.2 95.3 35.9 Total 1,866.8 1,720.0 146.8 \u201cPayables for advances to the fund for energy and waste management services\u201d comprises non-interest- bearing advances granted by the fund for energy and waste management services, as follows: \u25aa 236.7 million euro (243.3 million euro at 31 December 2022) for advances in compliance with the integration mechanism set forth by resolution 370/2012/R/Eel and 456/2013/R/Eel by ARERA, for overdue and unpaid receivables from customers managed under the safeguarded system. The most recent data reaches the end of the 2021 thermal year; \u25aa 153.3 million euro (182.2 million euro at 31 December 2022) in compliance with the reintegration mechanisms provided for by Law 239 of 23 August 2004 and ARERA\u2019s TIVG, against the charges for arrears in last resort services in the natural gas sector (FUI, FTD and FDD), incurred up to the 2021-2022 thermal year; \u25aa 14 million euro (12.9 million euro at 31 December 2022) in compliance with Resolution 32/2021/R/Eel (formerly Resolution 445/2020/R/Eel), relating to the procedures for accessing the reimbursement mechanism for general system charges not collected from end customers and already paid to distribution companies for 2016-2022. The scope of application is limited to the sale of electricity on the free market, the safeguarded market (disconnectable) and the gradual protection service (disconnectable). \u25aa 11 million euro in compliance with Resolution 44/2022/R/Gas, supplemented by the subsequent Resolution 372/2022, which introduced a revenue equalisation, reported by the Group in January 2023, aimed at offsetting part of the unforeseeable costs incurred in supplying the default last resort and FUI markets, especially due to the entry of a larger number of customers than expected. \u201cAdvances for works\u201d includes advances received from municipalities and apartment buildings for works in progress relating to public lighting and energy efficiency upgrades of buildings, respectively, which will be completed in the following years. The significant increase is in line with the higher energy efficiency works carried out by the Group during the year, which were invoiced on a work-progress billing basis and were nearing completion as at 31 December. \u201cPlant investment grants\u201d decreases in proportion to the amount of depreciation calculated on the fixed assets in question and increases as a result of new investments subject to grants. This item includes specifically, the following grants received by the Group: 31 Dec 23 31 Dec 22 Change New water system investment fund 102.6 87.1 15.5 Purification and sewerage systems 40.7 32.0 8.7 Purification plant in Servola (Trieste) 30.7 33.0 (2.3) Construction of rolling basins e underwater pipes in the area of Rimini. 18.4 20.6 (2.2) Other minor items 70.1 66.8 3.3 Total 262.5 239.5 23.0 \u201cSecurity deposits from customers\u201d reflect the amounts requested from customers for gas, water and electricity provision contracts. The decrease seen during the year is due to both the repayment of part of the security deposits for the 2022-2023 winter season and lower energy commodity prices, which led to a reduction in the nominal value of the deposits for supplies. \u201cFund for energy and waste management service components and equalisation\u201d, reflects the payables towards the Cassa per i Servizi Energetici e Ambientali for certain system components of the gas, electricity and water services, amounting to 111.3 million euro (84.1 million euro at 31 December 2022) and for equalisation of the electricity sales service amounting to 7.7 million euro (15.4 million euro at 31 December 2022). The increase compared to the previous year in payables for system components reflects both the gradual reduction in concessions in favour of end users introduced by the government starting in late 2021 to deal with the rise in utility bills, thus bringing the end-of-period exposure back to amounts closer to those seen in years prior to 2022, and the increase in the debit position for specific components concerning the last resort markets served by the Group. Equalisation payables decreased by 7.7 million euro compared to the previous year and refer mainly to the electricity sales business. \u201cVAT, excise and additional taxes\u201d includes payables for VAT in the amount of 71.7 million euro (0.9 million euro at 31 December 2022), and excise and additional taxes in the amount of 46.7 million euro (82.1 million euro at 31 December 2022). As outlined in Note 35, \u201cOther current assets\u201d, this increase must be understood taking into account the factors that regulate financial relations with the Inland Revenue Office, which can generate credit/debit positions with differences that can be significant even between one financial period and another. With regard to value added tax, during the previous year an advance payment of 90.3 million euro was made at the end of the period, related to Group VAT, while for 2023, based on the previous years\u2019 calculation, no advance payment was due. The significant payable balance for VAT was also affected by high end-of-period invoicing for energy efficiency works for apartment building customers, especially in relation to interventions benefitting from the 110% super-bonus incentive. With regard to excise and additional taxes, the advance payment in 2022 was made, as required by the regulations in force, on the basis of the volumes invoiced in the previous year. The advance payment, instead, was made on the basis of the volumes invoiced in 2023. This resulted, as detailed in Note 35 \u201cOther current assets\u201d, in a credit position for the natural gas sales business and a debit position for the electricity sales business. \u201cPersonnel and employee withholding\u201d includes for the most part the vacation time accrued and not used, as well as the productivity bonuses accounted for by department, plus withholding taxes to be paid to the State treasury as tax substitute for employees. \u201cPayables to social security institutions\u201d relate to contributions owed to these institutions for the December salaries, performance bonuses and additional monthly payments under national collective agreements. \u201cEnergy efficiency certificates and emissions trading\u201d includes: 31 Dec 23 31 Dec 22 Change White certificates 27.1 17.9 9.2 Guarantee of origin certificates 12.7 11.2 1.5 Grey certificate 9.7 22.5 (12.8) Total 49.5 51.6 (2.1) \u25aa White certificates include the valuation of the exposure in relation to the redelivery obligations towards the respective Authorities for energy efficiency certificates not yet in the portfolio. The change with respect to 31 December 2022, in a market context that showed a drop in market prices, is mainly due to the higher number of certificates still to be annulled and referring to the years for which the Group has not yet completely fulfilled its assigned obligation. \u25aa Guarantee of origin (GO) certificates relate to the obligation to certify electricity generated from renewable energy sources against sales made to customers whose contracts require this type of procurement. The increase in the liability is mainly a consequence of the increase in reference prices. \u25aa Grey certificates reflect the valuation of both the obligation to redeliver certificates calculated on the basis of current regulations, amounting to 8.7 million euro (10.7 million euro at 31 December 2022) and the forward sales contracts for greenhouse gas emission quotas, amounting to 1 million euro (11.8 million euro at 31 December 2022). The change compared to the previous year was mainly due to lower volumes of forward contracts and a slight decrease in market prices. The item \u201cAnticipated revenues and other expenses\u201d mainly comprises portions of revenues due in the following financial period. This item includes in particular portions of tax credits for investments in new capital goods accruing in future financial years, amounting to 10.1 million euro. \u201cPayables to electricity and gas sector companies\u201d in the previous financial year included the payable items recorded by the Group\u2019s distribution companies towards third party sales companies. These positions, created at 31 December 2022 by the government\u2019s interventions to deal with the rise in utility bills, were completely offset during 2023 due to the significant reduction of the concessions introduced in previous years. The item \u201cOther payables\u201d mainly comprises the following: 31 Dec 23 31 Dec 22 Change Arrears payments for electricity gas and other sectors 27.4 9.5 17.9 Environmental damage contributions 14.1 11.3 2.8 Flood contributions 10.0 \u2010 10.0 Insurance deductibles 8.7 9.8 (1.1) Tariff concessions to users 3.5 11.5 (8.0) Other minor items 67.5 53.2 14.3 Total 131.2 95.3 35.9 Specifically: \u25aa Arrears payables in the electricity, gas and other sectors mainly represent the amounts, charged to end users who were in arrears for the last three monthly payments, prior to their transition to the Hera Group. These amounts must be retroceded to previous suppliers. The indemnity is applied only to certain specific categories of users, identified by ARERA Resolution no. 593/2017/R and its subsequent amendments and additions. The rise compared to the previous year was mainly due to the increased customer base, concerning in particular the expanded scope of operations in the safeguarded market and the lot awarded in tenders for gradual protection services for micro- businesses, as well as more careful monitoring by outgoing sellers in requesting the fee when due to them; \u25aa environmental damage contributions represent the payments to be made to municipalities, on the basis of specific agreements, as compensation for activities that impact on the environment for waste delivered to plants in their municipal territories. The amount of these contributions is related to the amount of waste disposed of annually; \u25aa flood contributions represent the amounts received to cover the costs that will be incurred by the Group in the following year concerning the restoration of the damage caused by the May 2023 flood emergency that affected certain areas in which the Group provides public utility services; \u25aa insurance deductibles include amounts that the Group must repay directly to damaged third parties or insurance companies; ", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-508": { "value": "36 Other current liabilities 31 Dec 23 31 Dec 22 Change Payables for advances to the fund for energy and waste management services 422.8 441.8 (19.0) Advances for works 365.1 106.7 258.4 Plant investment grants 262.5 239.5 23.0 Security deposits from customers 199.9 383.3 (183.4) Fund for energy and waste management service components and equalisation 119.0 99.5 19.5 VAT, excise and additional taxes 118.4 83.0 35.4 Personnel and employee withholding 89.8 82.8 7.0 Payables to social security institutions 78.9 69.4 9.5 Energy efficiency certificates and emissions trading 49.5 51.6 (2.1) Prepaid revenues and other expenses 29,7 32,4 (2.7) Payables to electricity and gas sector companies \u2010 34.7 (34,7) Other payables 131.2 95.3 35.9 Total 1,866.8 1,720.0 146.8 \u201cPayables for advances to the fund for energy and waste management services\u201d comprises non-interest- bearing advances granted by the fund for energy and waste management services, as follows: \u25aa 236.7 million euro (243.3 million euro at 31 December 2022) for advances in compliance with the integration mechanism set forth by resolution 370/2012/R/Eel and 456/2013/R/Eel by ARERA, for overdue and unpaid receivables from customers managed under the safeguarded system. The most recent data reaches the end of the 2021 thermal year; \u25aa 153.3 million euro (182.2 million euro at 31 December 2022) in compliance with the reintegration mechanisms provided for by Law 239 of 23 August 2004 and ARERA\u2019s TIVG, against the charges for arrears in last resort services in the natural gas sector (FUI, FTD and FDD), incurred up to the 2021-2022 thermal year; \u25aa 14 million euro (12.9 million euro at 31 December 2022) in compliance with Resolution 32/2021/R/Eel (formerly Resolution 445/2020/R/Eel), relating to the procedures for accessing the reimbursement mechanism for general system charges not collected from end customers and already paid to distribution companies for 2016-2022. The scope of application is limited to the sale of electricity on the free market, the safeguarded market (disconnectable) and the gradual protection service (disconnectable). \u25aa 11 million euro in compliance with Resolution 44/2022/R/Gas, supplemented by the subsequent Resolution 372/2022, which introduced a revenue equalisation, reported by the Group in January 2023, aimed at offsetting part of the unforeseeable costs incurred in supplying the default last resort and FUI markets, especially due to the entry of a larger number of customers than expected. \u201cAdvances for works\u201d includes advances received from municipalities and apartment buildings for works in progress relating to public lighting and energy efficiency upgrades of buildings, respectively, which will be completed in the following years. The significant increase is in line with the higher energy efficiency works carried out by the Group during the year, which were invoiced on a work-progress billing basis and were nearing completion as at 31 December. \u201cPlant investment grants\u201d decreases in proportion to the amount of depreciation calculated on the fixed assets in question and increases as a result of new investments subject to grants. This item includes specifically, the following grants received by the Group: 31 Dec 23 31 Dec 22 Change New water system investment fund 102.6 87.1 15.5 Purification and sewerage systems 40.7 32.0 8.7 Purification plant in Servola (Trieste) 30.7 33.0 (2.3) Construction of rolling basins e underwater pipes in the area of Rimini. 18.4 20.6 (2.2) Other minor items 70.1 66.8 3.3 Total 262.5 239.5 23.0 \u201cSecurity deposits from customers\u201d reflect the amounts requested from customers for gas, water and electricity provision contracts. The decrease seen during the year is due to both the repayment of part of the security deposits for the 2022-2023 winter season and lower energy commodity prices, which led to a reduction in the nominal value of the deposits for supplies. \u201cFund for energy and waste management service components and equalisation\u201d, reflects the payables towards the Cassa per i Servizi Energetici e Ambientali for certain system components of the gas, electricity and water services, amounting to 111.3 million euro (84.1 million euro at 31 December 2022) and for equalisation of the electricity sales service amounting to 7.7 million euro (15.4 million euro at 31 December 2022). The increase compared to the previous year in payables for system components reflects both the gradual reduction in concessions in favour of end users introduced by the government starting in late 2021 to deal with the rise in utility bills, thus bringing the end-of-period exposure back to amounts closer to those seen in years prior to 2022, and the increase in the debit position for specific components concerning the last resort markets served by the Group. Equalisation payables decreased by 7.7 million euro compared to the previous year and refer mainly to the electricity sales business. \u201cVAT, excise and additional taxes\u201d includes payables for VAT in the amount of 71.7 million euro (0.9 million euro at 31 December 2022), and excise and additional taxes in the amount of 46.7 million euro (82.1 million euro at 31 December 2022). As outlined in Note 35, \u201cOther current assets\u201d, this increase must be understood taking into account the factors that regulate financial relations with the Inland Revenue Office, which can generate credit/debit positions with differences that can be significant even between one financial period and another. With regard to value added tax, during the previous year an advance payment of 90.3 million euro was made at the end of the period, related to Group VAT, while for 2023, based on the previous years\u2019 calculation, no advance payment was due. The significant payable balance for VAT was also affected by high end-of-period invoicing for energy efficiency works for apartment building customers, especially in relation to interventions benefitting from the 110% super-bonus incentive. With regard to excise and additional taxes, the advance payment in 2022 was made, as required by the regulations in force, on the basis of the volumes invoiced in the previous year. The advance payment, instead, was made on the basis of the volumes invoiced in 2023. This resulted, as detailed in Note 35 \u201cOther current assets\u201d, in a credit position for the natural gas sales business and a debit position for the electricity sales business. \u201cPersonnel and employee withholding\u201d includes for the most part the vacation time accrued and not used, as well as the productivity bonuses accounted for by department, plus withholding taxes to be paid to the State treasury as tax substitute for employees. \u201cPayables to social security institutions\u201d relate to contributions owed to these institutions for the December salaries, performance bonuses and additional monthly payments under national collective agreements. \u201cEnergy efficiency certificates and emissions trading\u201d includes: 31 Dec 23 31 Dec 22 Change White certificates 27.1 17.9 9.2 Guarantee of origin certificates 12.7 11.2 1.5 Grey certificate 9.7 22.5 (12.8) Total 49.5 51.6 (2.1) \u25aa White certificates include the valuation of the exposure in relation to the redelivery obligations towards the respective Authorities for energy efficiency certificates not yet in the portfolio. The change with respect to 31 December 2022, in a market context that showed a drop in market prices, is mainly due to the higher number of certificates still to be annulled and referring to the years for which the Group has not yet completely fulfilled its assigned obligation. \u25aa Guarantee of origin (GO) certificates relate to the obligation to certify electricity generated from renewable energy sources against sales made to customers whose contracts require this type of procurement. The increase in the liability is mainly a consequence of the increase in reference prices. \u25aa Grey certificates reflect the valuation of both the obligation to redeliver certificates calculated on the basis of current regulations, amounting to 8.7 million euro (10.7 million euro at 31 December 2022) and the forward sales contracts for greenhouse gas emission quotas, amounting to 1 million euro (11.8 million euro at 31 December 2022). The change compared to the previous year was mainly due to lower volumes of forward contracts and a slight decrease in market prices. The item \u201cAnticipated revenues and other expenses\u201d mainly comprises portions of revenues due in the following financial period. This item includes in particular portions of tax credits for investments in new capital goods accruing in future financial years, amounting to 10.1 million euro. \u201cPayables to electricity and gas sector companies\u201d in the previous financial year included the payable items recorded by the Group\u2019s distribution companies towards third party sales companies. These positions, created at 31 December 2022 by the government\u2019s interventions to deal with the rise in utility bills, were completely offset during 2023 due to the significant reduction of the concessions introduced in previous years. The item \u201cOther payables\u201d mainly comprises the following: 31 Dec 23 31 Dec 22 Change Arrears payments for electricity gas and other sectors 27.4 9.5 17.9 Environmental damage contributions 14.1 11.3 2.8 Flood contributions 10.0 \u2010 10.0 Insurance deductibles 8.7 9.8 (1.1) Tariff concessions to users 3.5 11.5 (8.0) Other minor items 67.5 53.2 14.3 Total 131.2 95.3 35.9 Specifically: \u25aa Arrears payables in the electricity, gas and other sectors mainly represent the amounts, charged to end users who were in arrears for the last three monthly payments, prior to their transition to the Hera Group. These amounts must be retroceded to previous suppliers. The indemnity is applied only to certain specific categories of users, identified by ARERA Resolution no. 593/2017/R and its subsequent amendments and additions. The rise compared to the previous year was mainly due to the increased customer base, concerning in particular the expanded scope of operations in the safeguarded market and the lot awarded in tenders for gradual protection services for micro- businesses, as well as more careful monitoring by outgoing sellers in requesting the fee when due to them; \u25aa environmental damage contributions represent the payments to be made to municipalities, on the basis of specific agreements, as compensation for activities that impact on the environment for waste delivered to plants in their municipal territories. The amount of these contributions is related to the amount of waste disposed of annually; \u25aa flood contributions represent the amounts received to cover the costs that will be incurred by the Group in the following year concerning the restoration of the damage caused by the May 2023 flood emergency that affected certain areas in which the Group provides public utility services; \u25aa insurance deductibles include amounts that the Group must repay directly to damaged third parties or insurance companies; ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-464": { "value": "36 Other current liabilities 31 Dec 23 31 Dec 22 Change Payables for advances to the fund for energy and waste management services 422.8 441.8 (19.0) Advances for works 365.1 106.7 258.4 Plant investment grants 262.5 239.5 23.0 Security deposits from customers 199.9 383.3 (183.4) Fund for energy and waste management service components and equalisation 119.0 99.5 19.5 VAT, excise and additional taxes 118.4 83.0 35.4 Personnel and employee withholding 89.8 82.8 7.0 Payables to social security institutions 78.9 69.4 9.5 Energy efficiency certificates and emissions trading 49.5 51.6 (2.1) Prepaid revenues and other expenses 29,7 32,4 (2.7) Payables to electricity and gas sector companies \u2010 34.7 (34,7) Other payables 131.2 95.3 35.9 Total 1,866.8 1,720.0 146.8 \u201cPayables for advances to the fund for energy and waste management services\u201d comprises non-interest- bearing advances granted by the fund for energy and waste management services, as follows: \u25aa 236.7 million euro (243.3 million euro at 31 December 2022) for advances in compliance with the integration mechanism set forth by resolution 370/2012/R/Eel and 456/2013/R/Eel by ARERA, for overdue and unpaid receivables from customers managed under the safeguarded system. The most recent data reaches the end of the 2021 thermal year; \u25aa 153.3 million euro (182.2 million euro at 31 December 2022) in compliance with the reintegration mechanisms provided for by Law 239 of 23 August 2004 and ARERA\u2019s TIVG, against the charges for arrears in last resort services in the natural gas sector (FUI, FTD and FDD), incurred up to the 2021-2022 thermal year; \u25aa 14 million euro (12.9 million euro at 31 December 2022) in compliance with Resolution 32/2021/R/Eel (formerly Resolution 445/2020/R/Eel), relating to the procedures for accessing the reimbursement mechanism for general system charges not collected from end customers and already paid to distribution companies for 2016-2022. The scope of application is limited to the sale of electricity on the free market, the safeguarded market (disconnectable) and the gradual protection service (disconnectable). \u25aa 11 million euro in compliance with Resolution 44/2022/R/Gas, supplemented by the subsequent Resolution 372/2022, which introduced a revenue equalisation, reported by the Group in January 2023, aimed at offsetting part of the unforeseeable costs incurred in supplying the default last resort and FUI markets, especially due to the entry of a larger number of customers than expected. \u201cAdvances for works\u201d includes advances received from municipalities and apartment buildings for works in progress relating to public lighting and energy efficiency upgrades of buildings, respectively, which will be completed in the following years. The significant increase is in line with the higher energy efficiency works carried out by the Group during the year, which were invoiced on a work-progress billing basis and were nearing completion as at 31 December. \u201cPlant investment grants\u201d decreases in proportion to the amount of depreciation calculated on the fixed assets in question and increases as a result of new investments subject to grants. This item includes specifically, the following grants received by the Group: 31 Dec 23 31 Dec 22 Change New water system investment fund 102.6 87.1 15.5 Purification and sewerage systems 40.7 32.0 8.7 Purification plant in Servola (Trieste) 30.7 33.0 (2.3) Construction of rolling basins e underwater pipes in the area of Rimini. 18.4 20.6 (2.2) Other minor items 70.1 66.8 3.3 Total 262.5 239.5 23.0 \u201cSecurity deposits from customers\u201d reflect the amounts requested from customers for gas, water and electricity provision contracts. The decrease seen during the year is due to both the repayment of part of the security deposits for the 2022-2023 winter season and lower energy commodity prices, which led to a reduction in the nominal value of the deposits for supplies. \u201cFund for energy and waste management service components and equalisation\u201d, reflects the payables towards the Cassa per i Servizi Energetici e Ambientali for certain system components of the gas, electricity and water services, amounting to 111.3 million euro (84.1 million euro at 31 December 2022) and for equalisation of the electricity sales service amounting to 7.7 million euro (15.4 million euro at 31 December 2022). The increase compared to the previous year in payables for system components reflects both the gradual reduction in concessions in favour of end users introduced by the government starting in late 2021 to deal with the rise in utility bills, thus bringing the end-of-period exposure back to amounts closer to those seen in years prior to 2022, and the increase in the debit position for specific components concerning the last resort markets served by the Group. Equalisation payables decreased by 7.7 million euro compared to the previous year and refer mainly to the electricity sales business. \u201cVAT, excise and additional taxes\u201d includes payables for VAT in the amount of 71.7 million euro (0.9 million euro at 31 December 2022), and excise and additional taxes in the amount of 46.7 million euro (82.1 million euro at 31 December 2022). As outlined in Note 35, \u201cOther current assets\u201d, this increase must be understood taking into account the factors that regulate financial relations with the Inland Revenue Office, which can generate credit/debit positions with differences that can be significant even between one financial period and another. With regard to value added tax, during the previous year an advance payment of 90.3 million euro was made at the end of the period, related to Group VAT, while for 2023, based on the previous years\u2019 calculation, no advance payment was due. The significant payable balance for VAT was also affected by high end-of-period invoicing for energy efficiency works for apartment building customers, especially in relation to interventions benefitting from the 110% super-bonus incentive. With regard to excise and additional taxes, the advance payment in 2022 was made, as required by the regulations in force, on the basis of the volumes invoiced in the previous year. The advance payment, instead, was made on the basis of the volumes invoiced in 2023. This resulted, as detailed in Note 35 \u201cOther current assets\u201d, in a credit position for the natural gas sales business and a debit position for the electricity sales business. \u201cPersonnel and employee withholding\u201d includes for the most part the vacation time accrued and not used, as well as the productivity bonuses accounted for by department, plus withholding taxes to be paid to the State treasury as tax substitute for employees. \u201cPayables to social security institutions\u201d relate to contributions owed to these institutions for the December salaries, performance bonuses and additional monthly payments under national collective agreements. \u201cEnergy efficiency certificates and emissions trading\u201d includes: 31 Dec 23 31 Dec 22 Change White certificates 27.1 17.9 9.2 Guarantee of origin certificates 12.7 11.2 1.5 Grey certificate 9.7 22.5 (12.8) Total 49.5 51.6 (2.1) \u25aa White certificates include the valuation of the exposure in relation to the redelivery obligations towards the respective Authorities for energy efficiency certificates not yet in the portfolio. The change with respect to 31 December 2022, in a market context that showed a drop in market prices, is mainly due to the higher number of certificates still to be annulled and referring to the years for which the Group has not yet completely fulfilled its assigned obligation. \u25aa Guarantee of origin (GO) certificates relate to the obligation to certify electricity generated from renewable energy sources against sales made to customers whose contracts require this type of procurement. The increase in the liability is mainly a consequence of the increase in reference prices. \u25aa Grey certificates reflect the valuation of both the obligation to redeliver certificates calculated on the basis of current regulations, amounting to 8.7 million euro (10.7 million euro at 31 December 2022) and the forward sales contracts for greenhouse gas emission quotas, amounting to 1 million euro (11.8 million euro at 31 December 2022). The change compared to the previous year was mainly due to lower volumes of forward contracts and a slight decrease in market prices. The item \u201cAnticipated revenues and other expenses\u201d mainly comprises portions of revenues due in the following financial period. This item includes in particular portions of tax credits for investments in new capital goods accruing in future financial years, amounting to 10.1 million euro. \u201cPayables to electricity and gas sector companies\u201d in the previous financial year included the payable items recorded by the Group\u2019s distribution companies towards third party sales companies. These positions, created at 31 December 2022 by the government\u2019s interventions to deal with the rise in utility bills, were completely offset during 2023 due to the significant reduction of the concessions introduced in previous years. The item \u201cOther payables\u201d mainly comprises the following: 31 Dec 23 31 Dec 22 Change Arrears payments for electricity gas and other sectors 27.4 9.5 17.9 Environmental damage contributions 14.1 11.3 2.8 Flood contributions 10.0 \u2010 10.0 Insurance deductibles 8.7 9.8 (1.1) Tariff concessions to users 3.5 11.5 (8.0) Other minor items 67.5 53.2 14.3 Total 131.2 95.3 35.9 Specifically: \u25aa Arrears payables in the electricity, gas and other sectors mainly represent the amounts, charged to end users who were in arrears for the last three monthly payments, prior to their transition to the Hera Group. These amounts must be retroceded to previous suppliers. The indemnity is applied only to certain specific categories of users, identified by ARERA Resolution no. 593/2017/R and its subsequent amendments and additions. The rise compared to the previous year was mainly due to the increased customer base, concerning in particular the expanded scope of operations in the safeguarded market and the lot awarded in tenders for gradual protection services for micro- businesses, as well as more careful monitoring by outgoing sellers in requesting the fee when due to them; \u25aa environmental damage contributions represent the payments to be made to municipalities, on the basis of specific agreements, as compensation for activities that impact on the environment for waste delivered to plants in their municipal territories. The amount of these contributions is related to the amount of waste disposed of annually; \u25aa flood contributions represent the amounts received to cover the costs that will be incurred by the Group in the following year concerning the restoration of the damage caused by the May 2023 flood emergency that affected certain areas in which the Group provides public utility services; \u25aa insurance deductibles include amounts that the Group must repay directly to damaged third parties or insurance companies; ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-489": { "value": "\u201cSecurity deposits from customers\u201d reflect the amounts requested from customers for gas, water and electricity provision contracts. The decrease seen during the year is due to both the repayment of part of the security deposits for the 2022-2023 winter season and lower energy commodity prices, which led to a reduction in the nominal value of the deposits for supplies. ", "dimensions": { "concept": "ifrs-full:DisclosureOfDepositsFromCustomersExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-64": { "value": "Business combinations (supplementary information) Business combinations have been accounted for on the basis of assessments conducted by management in respect of analyses of the fair value of assets and liabilities and contingent liabilities, in line with information concerning facts and events available at the date of acquisition. The evaluation process of all operations ended on 31 December 2023. The table below shows the assets and liabilities acquired as part of business combinations carried out during the year, recognised at their fair value. A.C.R. Spa Asco TLC Spa F.lli Franchini Srl \u201cPagnanini\u201d business unit Total business combinations Non-current assets Tangible assets 11.0 10.5 0.2 0.3 22.0 Rights of use 6.4 0.3 0.3 7.0 Intangible assets 57.2 9.8 3.5 70.5 Deferred tax assets 0.2 0.2 Current assets Inventory and work in progress 33.6 1.2 18.2 53.0 Trade receivables 31.6 1.8 4.1 37.5 Financial assets 0.1 0.1 Current tax assets 0.1 0.1 Other current assets 6.8 1.1 1.3 9.2 Cash 15.3 2.3 3.0 20.6 Non-current liabilities Financial liabilities (1.9) (1.9) Lease liabilities (5.7) (0.2) (0.2) (6.1) Post-employment (0.3) (0.6) (0.2) (1.1) Provisions for risks and charges (0.1) (0.1) (0.2) Deferred tax liabilities (16.0) (2.8) (1.0) (19.8) Current liabilities Financial liabilities (11.8) (0.9) (12.7) Lease liabilities (0.7) (0.1) (0.1) (0.9) Trade payables (36.1) (0.9) (20.6) (57.6) Current tax liabilities (1.9) (0.3) (2.2) Other current liabilities (7.6) (1.8) (0.6) (10.0) Total net assets acquired 81.7 20.9 4.8 0.3 107.7 Equivalent fair value and stake held 76.1 14.9 9.5 0.3 100.8 Non-controlling interests 32.7 24.1 56.8 Minority shareholders\u2019 put option 10.7 10.7 Total value of the combination 108.8 39.0 20.2 0.3 168.3 (Goodwill) / Profit (27.1) (18.1) (15.4) \u2010 (60.6) The evaluation process resulted in the following adjustments to the carrying amounts recorded in the financial statement of the acquired entity, as well as the following considerations in relation to the amount transferred: A.C.R. Spa Asco TLC Spa F.lli Franchini Srl \u201cPagnanini\u201d business unit Total business combination Book value of net assets acquired 40.5 14.3 2.3 0.3 57.4 Adjustments for fair value valuation Intangible assets 57.1 9.3 3.5 69.9 Deferred tax assets (liabilities) (15.9) (2.7) (1.0) (19.6) Fair value of net assets acquired 81.7 20.9 4.8 0.3 107.7 Cash outlay 72.6 14.9 9.0 0.3 96.8 Non-controlling interests 32.7 24.1 56.8 Deferred/contingent consideration 3.5 11.2 14.7 Equivalent fair value 108.8 39.0 20.2 0.3 168.3 The managements\u2019 evaluation of the fair value of the identifiable assets acquired and liabilities incurred, which also considered the recoverable value of the assets, led to the following amendments being identified: \u25aa A.C.R Spa \u2013 a customer list of 57.1 million euro was recorded, established on the basis of both the characteristics of the reference context and using the incremental cash flow method (MEEM). The depreciation period, set at 23 years, was determined on the basis of the churn rate established by analysing the historical series of the turnover of the clients; \u25aa Asco TLC \u2013 a customer list of 9.3 million euro was recorded, established on the basis of both the characteristics of the reference context and using the incremental cash flow method (MEEM). The depreciation period, set at ten years, was determined on the basis of the churn rate established by analysing the historical series of the turnover of the clients; \u25aa F.lli Franchini srl \u2013 the following were recorded: \u2013 a trademark of 1.5 million euro, established on the basis of the characteristics of the reference context, using the relief from royalties method. The amortisation period, set at five years, was determined on the basis of the expected commercial use of the trademark; \u2013 an order portfolio of 1.2 million euro, established on the basis of orders already contracted at the date control was acquired, discounting cash flows net of taxes. The two-year amortisation period was determined on the basis of the expected completion of the orders at the date of the transaction; \u2013 a customer list of 0.8 million euro, established on the basis of both the characteristics of the reference context and using the incremental cash flow method (MEEM). The depreciation period, set at four years, was determined on the basis of the average duration of the contracts under assessment. The effects reported above resulted, where applicable, in the recognition of deferred tax liabilities determined on the basis of the applicable nominal tax rate. Concerning the A.C.R. Spa transaction, at the date of acquisition, \u201cMinority interests\u201d, corresponding to third-party shareholdings (40% of the share capital), were recognised under equity. The valuation of the interests was carried out in proportion to the fair value portion of the assets and liabilities acquired in the Adjustments for fair value assessment business combination. The goodwill recognised in the consolidated financial statements is thus recognised only for the difference between the acquisition sum and the fair value of the net assets acquired. In addition, based on the contractual agreements between the parties, a potential payment (earn-out) to be made to the sellers upon the occurrence of certain conditions, estimated at a total of 3.5 million euro, was recognised. The acquisition of Asco TLC Spa was a business combination achieved in several stages. In fact, on 14 March 2023, the Group acquired, through its subsidiary Acantho Spa, 36.8% of the share capital of Asco TLC Spa. On 1 October 2023, based on pre-existing agreements, the deed of merger by incorporation of Asco TLC Spa into Acantho Spa was signed, with legal effects as of the same date. This transaction entailed the acquisition of control of the business by the Hera Group. The value of the equity investment previously held by the Group was aligned with the book value recorded and consequently no effects were recognised in the income statement for the year. Minority interests at the date of acquisition were measured at fair value and therefore the goodwill recognised also includes the portion attributable to minority shareholders. Concerning the acquisition of F.lli Franchini Srl, a reciprocal option to buy and sell the minority shareholding was negotiated with the counterparty. The existence of such rights held by the minority shareholders led to the need to classify the options in the consolidated financial statements under financial liabilities, as illustrated in Note 19 \u201cFinancial liabilities\u201d. In accordance with its own accounting policies, the Group did not include the minority shares in the consolidated financial statements, considering the shareholding to be fully owned. The valuation of the options identified at the time of acquisition, therefore, totalled 10.7 million euro. In addition, a potential consideration (earn-out) to be paid upon the occurrence of certain conditions, estimated at a total of 0.5 million euro, was recognised on the basis of contractual agreements between the parties. See note 28 \u201cCashflows from investing activities\u201d for an analysis of the cashflows associated with the combination operations described above. ", "dimensions": { "concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-65": { "value": "Accounting standards, amendments and interpretations applicable from 1 January 2023 With reference to the areas pertaining to the Group, the following accounting standards and amendments to accounting standards issued by the International Accounting Standards Board (IASB) and transposed by the European Union through an EU Regulation are mandatory as of 1 January 2023:", "dimensions": { "concept": "ifrs-full:DescriptionOfInitialApplicationOfStandardsOrInterpretations", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-66": { "value": "Amendments to IAS 1 \u2013 Disclosure of financial statements and accounting policies. Document issued by the IASB on 12 February 2021, applicable from 1 January 2023 with early application allowed. The amendments require entities to disclose their material accounting policies rather than their significant accounting policies and provide guidance to explain the application of the materiality process. Amendments to IAS 8 \u2013 Accounting policies, changes in accounting estimates and errors. Document issued by the IASB on 12 February 2021, applicable from 1 January 2023 with early application allowed. The amendments additionally clarify that companies should distinguish between changes to accounting policies and changes to accounting estimates. Amendments to IAS 12 \u2013 Deferred taxes related to assets and liabilities arising from a single transaction. Document issued by IASB on 7 May 2021, applicable from 1 January 2023 with early application allowed. The amendments clarify how companies should account for deferred tax on transactions such as leases and contracts with decommissioning obligations that may generate assets and liabilities of equal amounts, for which the exemption for reporting deferred taxation does not apply when assets and liabilities are recognised for the first time. The amendments aim at reducing the differences in deferred tax reporting between different types of contracts. Amendments to IAS 12 \u2013 Income taxes: International tax reform \u2013 Pillar 2 Model Rules. Document issued by the IASB on 23 May 2023, immediate application of the temporary exception and application of the disclosure requirements from 1 January 2023. This document introduces: \u25aa a temporary exception in recording deferred assets and liabilities related to the application of the Pillar 2 indications; \u25aa specific disclosure requirements with respect to the Group\u2019s estimated exposure to Pillar 2 taxes, if any, as of the 2023 financial statements. These amendments clarify, correct or remove redundant statements or formulations in the text of the relevant standards. With reference to the application of these amendments, there were no observable effects on the Group\u2019s financial statements. Where required, especially with reference to Pillar 2, the disclosure was adjusted by consistently updating the explanatory notes. Following the introduction of the amendments to IAS 1, appropriate simplifications were made in the presentation of the accounting principles and policies adopted by the Group. Accounting standards, amendments and interpretations endorsed by the European Union which are not yet applicable and have not been adopted early by the Group With reference to the areas that are significant for the Group, the following accounting standard amendments will be mandatory from the following financial year onwards, having also already been endorsed by the EU: Amendments to IAS 1 \u2013 Presentation of financial statements: reporting liabilities as current or non- current. Document issued by IASB on 23 January 2020 and updated on 15 July 2020, applicable from 1 January 2024 with early application allowed. The amendments clarify the requirements to be considered in determining whether payables and other liabilities with uncertain settlement date should be classified as current or non-current in the statement of financial position (including payables that can be settled by conversion into equity instruments). Amendments to IFRS 16 \u2013 Lease Liabilities in a Sale and Leaseback Transaction. Document issued by IASB on 22 September 2022, applicable from 1 January 2024 with early application allowed. The amendments provide that in the valuation of lease liabilities in a sale and leaseback transaction, the seller-lessee shall determine the lease payments in such a way as not to recognise any amount of gain or loss related to the right of use retained by the lessee. Amendments to IAS 1 \u2013 Presentation of financial statements: non-current liabilities subject to covenant. Document issued by IASB on 31 October 2022, applicable from 1 January 2024 with early application allowed. The amendments aim to improve the information disclosed by an entity when the right to defer settlement of a liability is subject to compliance with covenants within 12 months after the reporting period. These amendments clarify, correct or remove redundant statements or formulations in the text of the relevant standards. The directors are currently assessing possible effects deriving from the introduction of these amendments into the Group\u2019s consolidated financial statement. Accounting standards, amendments and interpretations that have not yet been endorsed by the European Union The following standards, amendments and updates of IFRSs (already approved by IASB) and interpretations that are relevant for the Group are currently being endorsed by the relevant bodies of the European Union: Amendments to IAS 7 \u2013 Statement of cashflows and IFRS 7 \u2013 Financial instruments: Financing arrangements with suppliers and disclosures in the explanatory notes. Document issued by IASB on 25 May 2023, applicable from 1 January 2024 with early application permitted. The amendments require an entity to provide additional disclosures on reverse factoring arrangements that enable users of financial statements to evaluate how financing arrangements with suppliers may affect the entity\u2019s liabilities and cash flows and to understand the effect of those arrangements on the entity\u2019s exposure to liquidity risk. Amendments to IAS 21 \u2013 Effects of changes in foreign exchange rates: Lack of convertibility. Document issued by the IASB on 15 May 2023, applicable from 1 January 2025 with early application allowed. The amendments require an entity to apply a methodology consistently over time to determine whether one currency can be converted into another and, when this is not possible, to define the method of determining the exchange rate to be used and the disclosures to be made in the explanatory notes. With reference to the new amendments described above, the directors are currently evaluating what possible effects introducing them might have on the Group\u2019s consolidated financial statements.", "dimensions": { "concept": "ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-523": { "value": "Classification of financial assets and liabilities pursuant to IFRS 7 The table below illustrates the composition of the Group\u2019s assets, using the current and non-current distinction. The fair value of other investments and derivative financial instruments is discussed in Notes 26 and 29, respectively. 31 Dec 23 Hierarchy Fair value Fair value to income statements Fair value to statement of comprehensive income Depreciated cost Total Non-current financial assets 2 2.0 160.8 162.8 Non-current assets \u2010 2.0 160.8 162.8 Trade receivables 3 1.2 3,585.6 3,586.8 Current financial assets 90.9 90.9 Other assets 2 9.4 12.2 499.1 520.7 Current assets 9.4 13.4 4,175.6 4,198.4 31 Dec 22 Hierarchy Fair value Fair value to income statements Fair value to statement of comprehensive income Depreciated cost Total Non-current financial assets 2 2.0 149.8 151.8 Non-current assets \u2010 2.0 149.8 151.8 Trade receivables 3 168.6 3,706.4 3,875.0 Current financial assets 2 77.7 77.7 Other assets 2 22.6 8.3 657.6 688.5 Current assets 22.6 176.9 4,441.7 4,641.2 With respect to \u201cNon-current financial assets\u201d reference should be made to Note 18. With respect to \u201cCurrent assets\u201d reference should be made to Notes 13, 18, 33 and 35. The table below illustrates the composition of the Group\u2019s liabilities, using the current and non-current distinction. Details of the fair value of derivatives are provided instead in Note 29. 31 Dec 23 Hierarchy Fair value Fair value to income statements Hedged elements (fair value hedge) Depreciated cost Total Non-current financial liabilities 2/3 330.5 128.6 3,962.6 4,421.7 Non-current lease liabilities 56.8 56.8 Non-current liabilities 330.5 128.6 4,019.4 4,478.5 Trade payables 2,637.2 2,637.2 Current financial liabilities 3 13.7 877.1 890.8 Current lease liabilities 24.5 24.5 Other liabilities 2 22.5 1,954.5 1,977.0 Current liabilities 36.2 \u2010 5,493.3 5,529.5 31 Dec 22 Hierarchy Fair value Fair value to income statements Hedged elements (fair value hedge) Depreciated cost Total Non-current financial liabilities 2/3 499.5 144.4 5,046.0 5,689.9 Non-current lease liabilities 55.1 55.1 Non-current liabilities 499.5 144.4 5,101.1 5,745.0 Trade payables 3,093.1 3,093.1 Current financial liabilities 3 13.9 636.2 650.1 Current lease liabilities 21.3 21.3 Other liabilities 2 33.7 1,703.4 1,737.1 Current liabilities 47.6 \u2010 5,454.0 5,501.6 With regard to \u201cNon-current financial liabilities\u201d, the fair value hierarchy for hedged items is Level 2, while for items measured at fair value through profit or loss it is Level 3. With respect to \u201cNon-current liabilities\u201d reference is made to Notes 19 and 22. With respect to \u201cNon-current liabilities\u201d reference is made to Notes 13, 19, 22, 34 and 36. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-522": { "value": "Classification of financial assets and liabilities pursuant to IFRS 7 The table below illustrates the composition of the Group\u2019s assets, using the current and non-current distinction. The fair value of other investments and derivative financial instruments is discussed in Notes 26 and 29, respectively. 31 Dec 23 Hierarchy Fair value Fair value to income statements Fair value to statement of comprehensive income Depreciated cost Total Non-current financial assets 2 2.0 160.8 162.8 Non-current assets \u2010 2.0 160.8 162.8 Trade receivables 3 1.2 3,585.6 3,586.8 Current financial assets 90.9 90.9 Other assets 2 9.4 12.2 499.1 520.7 Current assets 9.4 13.4 4,175.6 4,198.4 31 Dec 22 Hierarchy Fair value Fair value to income statements Fair value to statement of comprehensive income Depreciated cost Total Non-current financial assets 2 2.0 149.8 151.8 Non-current assets \u2010 2.0 149.8 151.8 Trade receivables 3 168.6 3,706.4 3,875.0 Current financial assets 2 77.7 77.7 Other assets 2 22.6 8.3 657.6 688.5 Current assets 22.6 176.9 4,441.7 4,641.2 With respect to \u201cNon-current financial assets\u201d reference should be made to Note 18. With respect to \u201cCurrent assets\u201d reference should be made to Notes 13, 18, 33 and 35. The table below illustrates the composition of the Group\u2019s liabilities, using the current and non-current distinction. Details of the fair value of derivatives are provided instead in Note 29. 31 Dec 23 Hierarchy Fair value Fair value to income statements Hedged elements (fair value hedge) Depreciated cost Total Non-current financial liabilities 2/3 330.5 128.6 3,962.6 4,421.7 Non-current lease liabilities 56.8 56.8 Non-current liabilities 330.5 128.6 4,019.4 4,478.5 Trade payables 2,637.2 2,637.2 Current financial liabilities 3 13.7 877.1 890.8 Current lease liabilities 24.5 24.5 Other liabilities 2 22.5 1,954.5 1,977.0 Current liabilities 36.2 \u2010 5,493.3 5,529.5 31 Dec 22 Hierarchy Fair value Fair value to income statements Hedged elements (fair value hedge) Depreciated cost Total Non-current financial liabilities 2/3 499.5 144.4 5,046.0 5,689.9 Non-current lease liabilities 55.1 55.1 Non-current liabilities 499.5 144.4 5,101.1 5,745.0 Trade payables 3,093.1 3,093.1 Current financial liabilities 3 13.9 636.2 650.1 Current lease liabilities 21.3 21.3 Other liabilities 2 33.7 1,703.4 1,737.1 Current liabilities 47.6 \u2010 5,454.0 5,501.6 With regard to \u201cNon-current financial liabilities\u201d, the fair value hierarchy for hedged items is Level 2, while for items measured at fair value through profit or loss it is Level 3. With respect to \u201cNon-current liabilities\u201d reference is made to Notes 19 and 22. With respect to \u201cNon-current liabilities\u201d reference is made to Notes 13, 19, 22, 34 and 36. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-509": { "value": "Classification of financial assets and liabilities pursuant to IFRS 7 The table below illustrates the composition of the Group\u2019s assets, using the current and non-current distinction. The fair value of other investments and derivative financial instruments is discussed in Notes 26 and 29, respectively. 31 Dec 23 Hierarchy Fair value Fair value to income statements Fair value to statement of comprehensive income Depreciated cost Total Non-current financial assets 2 2.0 160.8 162.8 Non-current assets \u2010 2.0 160.8 162.8 Trade receivables 3 1.2 3,585.6 3,586.8 Current financial assets 90.9 90.9 Other assets 2 9.4 12.2 499.1 520.7 Current assets 9.4 13.4 4,175.6 4,198.4 31 Dec 22 Hierarchy Fair value Fair value to income statements Fair value to statement of comprehensive income Depreciated cost Total Non-current financial assets 2 2.0 149.8 151.8 Non-current assets \u2010 2.0 149.8 151.8 Trade receivables 3 168.6 3,706.4 3,875.0 Current financial assets 2 77.7 77.7 Other assets 2 22.6 8.3 657.6 688.5 Current assets 22.6 176.9 4,441.7 4,641.2 With respect to \u201cNon-current financial assets\u201d reference should be made to Note 18. With respect to \u201cCurrent assets\u201d reference should be made to Notes 13, 18, 33 and 35. The table below illustrates the composition of the Group\u2019s liabilities, using the current and non-current distinction. Details of the fair value of derivatives are provided instead in Note 29. 31 Dec 23 Hierarchy Fair value Fair value to income statements Hedged elements (fair value hedge) Depreciated cost Total Non-current financial liabilities 2/3 330.5 128.6 3,962.6 4,421.7 Non-current lease liabilities 56.8 56.8 Non-current liabilities 330.5 128.6 4,019.4 4,478.5 Trade payables 2,637.2 2,637.2 Current financial liabilities 3 13.7 877.1 890.8 Current lease liabilities 24.5 24.5 Other liabilities 2 22.5 1,954.5 1,977.0 Current liabilities 36.2 \u2010 5,493.3 5,529.5 31 Dec 22 Hierarchy Fair value Fair value to income statements Hedged elements (fair value hedge) Depreciated cost Total Non-current financial liabilities 2/3 499.5 144.4 5,046.0 5,689.9 Non-current lease liabilities 55.1 55.1 Non-current liabilities 499.5 144.4 5,101.1 5,745.0 Trade payables 3,093.1 3,093.1 Current financial liabilities 3 13.9 636.2 650.1 Current lease liabilities 21.3 21.3 Other liabilities 2 33.7 1,703.4 1,737.1 Current liabilities 47.6 \u2010 5,454.0 5,501.6 With regard to \u201cNon-current financial liabilities\u201d, the fair value hierarchy for hedged items is Level 2, while for items measured at fair value through profit or loss it is Level 3. With respect to \u201cNon-current liabilities\u201d reference is made to Notes 19 and 22. With respect to \u201cNon-current liabilities\u201d reference is made to Notes 13, 19, 22, 34 and 36. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-490": { "value": "Classification of financial assets and liabilities pursuant to IFRS 7 The table below illustrates the composition of the Group\u2019s assets, using the current and non-current distinction. The fair value of other investments and derivative financial instruments is discussed in Notes 26 and 29, respectively. 31 Dec 23 Hierarchy Fair value Fair value to income statements Fair value to statement of comprehensive income Depreciated cost Total Non-current financial assets 2 2.0 160.8 162.8 Non-current assets \u2010 2.0 160.8 162.8 Trade receivables 3 1.2 3,585.6 3,586.8 Current financial assets 90.9 90.9 Other assets 2 9.4 12.2 499.1 520.7 Current assets 9.4 13.4 4,175.6 4,198.4 31 Dec 22 Hierarchy Fair value Fair value to income statements Fair value to statement of comprehensive income Depreciated cost Total Non-current financial assets 2 2.0 149.8 151.8 Non-current assets \u2010 2.0 149.8 151.8 Trade receivables 3 168.6 3,706.4 3,875.0 Current financial assets 2 77.7 77.7 Other assets 2 22.6 8.3 657.6 688.5 Current assets 22.6 176.9 4,441.7 4,641.2 With respect to \u201cNon-current financial assets\u201d reference should be made to Note 18. With respect to \u201cCurrent assets\u201d reference should be made to Notes 13, 18, 33 and 35. The table below illustrates the composition of the Group\u2019s liabilities, using the current and non-current distinction. Details of the fair value of derivatives are provided instead in Note 29. 31 Dec 23 Hierarchy Fair value Fair value to income statements Hedged elements (fair value hedge) Depreciated cost Total Non-current financial liabilities 2/3 330.5 128.6 3,962.6 4,421.7 Non-current lease liabilities 56.8 56.8 Non-current liabilities 330.5 128.6 4,019.4 4,478.5 Trade payables 2,637.2 2,637.2 Current financial liabilities 3 13.7 877.1 890.8 Current lease liabilities 24.5 24.5 Other liabilities 2 22.5 1,954.5 1,977.0 Current liabilities 36.2 \u2010 5,493.3 5,529.5 31 Dec 22 Hierarchy Fair value Fair value to income statements Hedged elements (fair value hedge) Depreciated cost Total Non-current financial liabilities 2/3 499.5 144.4 5,046.0 5,689.9 Non-current lease liabilities 55.1 55.1 Non-current liabilities 499.5 144.4 5,101.1 5,745.0 Trade payables 3,093.1 3,093.1 Current financial liabilities 3 13.9 636.2 650.1 Current lease liabilities 21.3 21.3 Other liabilities 2 33.7 1,703.4 1,737.1 Current liabilities 47.6 \u2010 5,454.0 5,501.6 With regard to \u201cNon-current financial liabilities\u201d, the fair value hierarchy for hedged items is Level 2, while for items measured at fair value through profit or loss it is Level 3. With respect to \u201cNon-current liabilities\u201d reference is made to Notes 19 and 22. With respect to \u201cNon-current liabilities\u201d reference is made to Notes 13, 19, 22, 34 and 36. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsDesignatedAtFairValueThroughProfitOrLossExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-67": { "value": "Reporting by operating sector Reporting by operational sectors is based on the approach management uses to monitor the performance of the Group by homogeneous business areas. The net costs and assets for business support functions, in keeping with the internal control model, are entirely associated to operational businesses. At 31 December 2023, the Hera Group was organized into the following business lines: \u25aa Gas: includes services in distributing and selling methane gas as well as district heating and energy services; \u25aa Electricity: includes generating, distributing and selling electricity; \u25aa Water Cycle: includes aqueduct, purification and sewage services; \u25aa Waste management: includes waste collection, treatment, recycling and disposal services; \u25aa Other services: includes public lighting, telecommunications and other minor services. The following are assets and liabilities by business line for the 2022 and 2023 financial years: 31 Dec 23 Gas Electricity Water cycle Waste management Other services Total Current year Assets (tangible and intangible) 2,043.2 753.0 2,466.6 1,464.7 142.1 6,869.6 Goodwill 493.5 88.9 42.7 260.6 23.0 908.7 Shareholdings 96.6 42.4 16.0 40.5 \u2010 195.5 Not attributed fixed assets 145.3 Net non-current assets 2,633.3 884.3 2,525.3 1,765.8 165.1 8,119.1 Attributed net working capital 460.9 (177.8) (56.4) 14.7 (17.7) 223.7 Non attributed net working capital (57.7) Net working capital 460.9 (177.8) (56.4) 14.7 (17.7) 166.0 Other provisions (216.7) (41.2) (153.3) (289.1) (5.6) (705.9) Net invested capital 2,877.5 665.3 2,315.6 1,491.4 141.8 7,579.2 31 Dec 22 Gas Electricity Water cycle Waste management Other services Total Previous year Assets (tangible and intangible) 2,038.8 655.4 2,320.2 1,348.5 123.1 6,486.0 Goodwill 493.5 73.5 42.7 233.5 4.9 848.1 Shareholdings 99.6 29.8 18.7 42.2 \u2010 190.3 Not attributed fixed assets 24.7 Net non-current assets 2,631.9 758.7 2,381.6 1,624.2 128.0 7,549.1 Attributed net working capital 804.8 80.3 (247.8) 59.3 2.9 699.5 Non attributed net working capital 303.5 Net working capital 804.8 80.3 (247.8) 59.3 2.9 1,003.0 Other provisions (191.4) (35.8) (148.1) (278.5) (3.8) (657.6) Net invested capital 3,245.3 803.2 1,985.7 1,405.0 127.1 7,894.5 The following are the main result measures by business line for the 2022 and 2023 financial years: 2023 Gas Electricity Water cycle Waste management Other services Structure Total Current year Direct revenues 8,421.2 4,483.3 999.2 1,555.3 139.5 (33.5) 15,565.1 Infra-cycle revenues 120.0 234.4 5.4 137.3 51.9 165.0 714.2 Total direct revenues 8,541.3 4,717.7 1,004.6 1,692.6 191.5 131.6 16,279.3 Indirect revenues 15.8 6.2 63.3 45.3 0.9 (131.6) \u2010 Total revenues 8,557.1 4,724.0 1,067.9 1,737.9 192.4 \u2010 16,279.3 Ebitda 609.9 309.2 271.4 353.4 43.8 \u2010 1,587.7 Direct amortisations and provisions 211.3 119.1 109.4 200.2 24.2 89.4 753.7 Indirect amortisations and provisions 10.0 4.8 41.4 32.6 0.6 (89.4) \u2010 Total amortisations and provisions 221.3 123.9 150.8 232.9 24.8 \u2010 753.7 Operating results 388.6 185.3 120.6 120.6 19.0 \u2010 834.0 2022 Gas Electricity Water cycle Waste management Other services Structure Total Previous year Direct revenues 13,282.8 4,720.7 996.5 1,433.3 145.4 51.5 20,630.2 Infra-cycle revenues 181.9 316.3 4.5 108.0 50.1 63.0 723.7 Total direct revenues 13,464.7 5,037.1 1,000.9 1,541.2 195.5 114.5 21,354.0 Indirect revenues 18.9 5.7 51.7 37.5 0.7 (114.5) \u2010 Total revenues 13,483.6 5,042.7 1,052.6 1,578.8 196.2 \u2010 21,354.0 Ebitda 491.1 71.6 261.9 338.0 38.4 \u2010 1,200.9 Direct amortisations and provisions 205.5 87.7 125.6 149.2 22.2 76.9 667.1 Indirect amortisations and provisions 8.8 3.1 34.5 30.1 0.5 (76.9) \u2010 Total amortisations and provisions 214.3 90.8 160.1 179.3 22.6 \u2010 667.1 Operating results 276.8 (19.2) 101.8 158.7 15.7 \u2010 533.8 As extensively described in the Directors\u2019 Report, Ebitda for the gas segment was adjusted for managerial purposes to comment on its performance for the period. The value containing the adjustment on gas inventory valuation is shown in chapter 1.07, \u201cAnalysis by Business Area,\u201d which provides a reference for understanding business dynamics. ", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-491": { "value": "Reporting by operational sectors is based on the approach management uses to monitor the performance of the Group by homogeneous business areas. The net costs and assets for business support functions, in keeping with the internal control model, are entirely associated to operational businesses. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-434": { "value": "FINANCIAL STATEMENT FORMATS AS PER CONSOB RESOLUTION 15519/2006 In accordance with the relevant Group policies, the economic, equity and financial reports in effect at 31 December 2023 and the associated period of comparison with related parties are as follows. Procedure for the operations with related parties is available on the website of the Hera Group at the following link: https://www.gruppohera.it/gruppo/governance/sistema-di-governance/politiche-e-procedure Note that during the 2023 financial year, there were no transactions with related parties for which it was necessary to include in the financial statements the disclosures required by the regulation adopted on the matter by Consob Resolution No. 17221 of 12 March 2010 and subsequent amendments and supplements.
2.03
Income statement as per Consob resolution 15519/ 2006 notes 2023 of which related parties 2022 of which related parties A B C D Total % A B C D Total % Revenues 1 14,897.3 \u2010 78.0 319.5 15.0 412.5 2.8% 20,082.0 \u2010 129.1 315.6 23.6 468.3 2.3% Other operating revenues 2 667.8 \u2010 0.3 8.2 \u2010 8.5 1.3% 548.2 \u2010 0.3 3.2 \u2010 3.5 0.6% Raw and other materials 3 (9,672.2) \u2010 (54.5) \u2010 (46.0) (100.5) 1.0% (16,730.0) \u2010 (100.2) \u2010 (45.0) (145.2) 0.9% Service costs 4 (3,655.9) \u2010 (13.9) (25.2) (35.0) (74.1) 2.0% (2,105.8) \u2010 (11.9) (23.3) (33.2) (68.4) 3.2% Personnel costs 5 (641.1) \u2010 \u2010 \u2010 \u2010 \u2010 (601.1) \u2010 \u2010 \u2010 \u2010 \u2010 Other operating expenses 6 (90.3) \u2010 (0.1) (2.4) (0.9) (3.4) 3.8% (74.9) \u2010 \u2010 (2.3) (0.9) (3.2) 4.3% Capitalised costs 7 82.1 \u2010 \u2010 \u2010 \u2010 \u2010 82.5 \u2010 \u2010 \u2010 \u2010 \u2010 Amortisation, provisions and depreciation 8 (753.7) \u2010 \u2010 \u2010 \u2010 \u2010 (667.1) \u2010 \u2010 \u2010 \u2010 \u2010 Operating profit 834.0 \u2010 9.8 300.1 (66.9) 243.0 533.8 \u2010 17.3 293.2 (55.5) 255.0 Share of profits (losses) pertaining to joint ventures and associated companies 9 10.3 \u2010 10.3 \u2010 \u2010 10.3 100.0% 10.0 \u2010 10.0 \u2010 \u2010 10.0 100.0% Financial income 10 157.1 \u2010 7.8 0.5 0.4 8.7 5.5% 82.2 \u2010 1.6 0.6 0.4 2.6 3.2% Financial expenses 11 (345.0) \u2010 (5.9) (0.2) \u2010 (6.1) 1.8% (217.2) \u2010 \u2010 (0.3) \u2010 (0.3) 0.1% Financial operations (177.6) \u2010 12.2 0.3 0.4 12.9 (125.0) \u2010 11.6 0.3 0.4 12.3 Earnings before taxes 656.4 \u2010 22.0 300.4 (66.5) 255.9 408.8 \u2010 28.9 293.5 (55.1) 267.3 Taxes 12 (173.2) \u2010 \u2010 \u2010 \u2010 \u2010 (103.5) \u2010 \u2010 \u2010 \u2010 \u2010 Net profit for the period 483.2 \u2010 22.0 300.4 (66.5) 255.9 305.3 \u2010 28.9 293.5 (55.1) 267.3 Attributable to: Parent company shareholders 441.4 255.2 Non-controlling interests 41.8 50.1 Earnings per share basic 17 0.305 0.175 diluted 17 0.305 0.175 Column headings related parties: A non-consolidated subsidiaries, B Associated and jointly controlled companies, C Related companies with significant influence (shareholder municipalities), D Other related parties 2.03.01 Statement of financial position as per Consob resolution 15519/ 2006 notes 31 Dec 23 of which related parties 31 Dec 22 of which related parties A B C D Total % A B C D Total % ASSETS Non-current assets Tangible assets 21,25 2,059.3 \u2010 \u2010 \u2010 \u2010 \u2010 1,984.4 \u2010 \u2010 \u2010 \u2010 \u2010 Rights of use 22,25 90.6 \u2010 \u2010 \u2010 \u2010 \u2010 84.2 \u2010 \u2010 \u2010 \u2010 \u2010 Intangible assets 23,25 4,719.6 \u2010 \u2010 \u2010 \u2010 \u2010 4,417.4 \u2010 \u2010 \u2010 \u2010 \u2010 Goodwill 24,25 908.7 \u2010 \u2010 \u2010 \u2010 \u2010 848.1 \u2010 \u2010 \u2010 \u2010 \u2010 Shareholdings 26,27 195.6 \u2010 150.7 \u2010 14.7 165.4 84.6% 190.3 \u2010 156.3 \u2010 2.0 158.3 83.2% Non-current financial assets 18 162.8 \u2010 11.0 10.6 21.2 42.8 26.3% 151.8 \u2010 14.3 12.1 25.3 51.7 34,1% Deferred tax assets 14 302.3 \u2010 \u2010 \u2010 \u2010 \u2010 240.4 \u2010 \u2010 \u2010 \u2010 \u2010 Derivative financial instruments 29 0.3 \u2010 \u2010 \u2010 \u2010 \u2010 1.0 \u2010 \u2010 \u2010 \u2010 \u2010 Total non-current assets 8,439.2 \u2010 161.7 10.6 35.9 208.2 7,917.6 \u2010 170.6 12.1 27.3 210.0 Current assets Inventories 32 631.6 \u2010 \u2010 \u2010 \u2010 \u2010 995.1 \u2010 \u2010 \u2010 \u2010 \u2010 Trade receivables 33 3,586.8 \u2010 10.3 81.8 18.9 111.0 3.1% 3,875.0 \u2010 24.9 85.3 24.8 135.0 3.5% Current financial assets 18 90.9 \u2010 7.0 3.7 1.3 12.0 13.2% 77.7 \u2010 9.2 3.7 1.4 14.3 18.4% Current tax assets 13 11.4 \u2010 \u2010 \u2010 \u2010 \u2010 46.0 \u2010 \u2010 \u2010 \u2010 \u2010 Other current assets 35 509.3 \u2010 3.1 (3.9) 4.0 3.2 0.6% 642.5 \u2010 2.9 (2.3) 3.9 4.5 0,7% Derivative financial instruments 29 478.0 \u2010 \u2010 \u2010 \u2010 \u2010 1,622.2 \u2010 \u2010 \u2010 \u2010 \u2010 Cash and cash equivalents 18 1,332.8 \u2010 \u2010 \u2010 \u2010 \u2010 1,942.4 \u2010 \u2010 \u2010 \u2010 \u2010 Total current assets 6,640.8 \u2010 20.4 81.6 24.2 126.2 9,200.9 \u2010 37.0 86.7 30.1 153.8 TOTAL ASSETS 15,080.0 \u2010 182.1 92.2 60.1 334.4 17,118.5 \u2010 207.6 98.8 57.4 363.8 Column headings related parties: A non-consolidated subsidiaries, B Associated and jointly controlled companies, C Related companies with significant influence (shareholder municipalities), D Other related parties 2.03.02
notes
31 Dec 23
of which related parties
31 Dec 22
of which related parties
A
B
C
D
Total
%
A
B
C
D
Total
%
NET EQUITY AND LIABILITIES
Share capital and reserves
Share capital
15
1,443.0
\u2010
\u2010
\u2010
\u2010
\u2010
1,450.3
\u2010
\u2010
\u2010
\u2010
\u2010
Reserves
15
1,553.8
\u2010
\u2010
\u2010
\u2010
\u2010
1,692.8
\u2010
\u2010
\u2010
\u2010
\u2010
Profit (loss) for the period
15
441.4
\u2010
\u2010
\u2010
\u2010
\u2010
255.2
\u2010
\u2010
\u2010
\u2010
\u2010
Group net equity
3,438.2
\u2010
\u2010
\u2010
\u2010
\u2010
3,398.4
\u2010
\u2010
\u2010
\u2010
\u2010
Non-controlling interests
16
313.4
\u2010
\u2010
\u2010
\u2010
\u2010
246.3
\u2010
\u2010
\u2010
\u2010
\u2010
Total net equity
3,751.6
\u2010
\u2010
\u2010
\u2010
\u2010
3,644.7
\u2010
\u2010
\u2010
\u2010
\u2010
Non-current liabilities
Non-current financial liabilities
19
4,421.7
\u2010
\u2010
1.2
\u2010
1.2
0.0%
5,689.9
\u2010
\u2010
1.5
\u2010
1.5
0.0%
Non-current lease liabilities
22
56.8
\u2010
\u2010
2.7
0.2
2.9
5.1%
55.1
\u2010
\u2010
3.7
0.3
4.0
7.3%
Post-employment and other benefits
30
88.1
\u2010
\u2010
\u2010
\u2010
\u2010
92.0
\u2010
\u2010
\u2010
\u2010
\u2010
Provisions for risks and charges
31
617.8
\u2010
1.0
\u2010
\u2010
1.0
0.2%
565.6
\u2010
3.8
\u2010
\u2010
3.8
0,7%
Deferred tax liabilities
14
156.9
\u2010
\u2010
\u2010
\u2010
\u2010
215.7
\u2010
\u2010
\u2010
\u2010
\u2010
Derivative financial instruments
29
\u2010
\u2010
\u2010
\u2010
\u2010
\u2010
6.3
\u2010
\u2010
\u2010
\u2010
\u2010
Total non-current liabilities
5,341.3
\u2010
1.0
3.9
0.2
5.1
6,624.6
\u2010
3.8
5.2
0.3
9.3
Current liabilities
Current financial liabilities
19
890.8
\u2010
0.1
0.8
\u2010
0.9
0.1%
650.1
\u2010
5.2
0.5
\u2010
5.7
0.9%
Current lease liabilities
22
24.5
\u2010
0.0
1.3
0.1
1.4
5.9%
21.3
\u2010
0.0
1.4
0.1
1.5
7.2%
Trade payables
34
2,637.2
\u2010
12.9
18.6
23.4
54.9
2.1%
3,093.1
\u2010
33.8
22.8
33.3
89.9
2.9%
Current tax liabilities
13
110.2
\u2010
\u2010
\u2010
\u2010
\u2010
17.1
\u2010
\u2010
\u2010
\u2010
\u2010
Other current liabilities
36
1,866.8
\u2010
0.3
6.3
0.6
7.2
0.4%
1,720.0
\u2010
1.5
6.5
0.1
8.1
0.5%
Derivative financial instruments
29
457.6
\u2010
\u2010
\u2010
\u2010
\u2010
1,347.6
\u2010
\u2010
\u2010
\u2010
\u2010
Total current liabilities
5,987.1
\u2010
13.3
27.0
24.1
64.4
6,849.2
\u2010
40.5
31.2
33.5
105.2
TOTAL LIABILITIES
11,328.4
\u2010
14.3
30.9
24.3
69.5
13,473.8
\u2010
44.3
36.4
33.8
114.5
TOTAL NET EQUITY AND LIABILITIES
15,080.0
\u2010
14.3
30.9
24.3
69.5
17,118.5
\u2010
44.3
36.4
33.8
114.5
Column headings related parties: A non-consolidated subsidiaries, B Associated and jointly controlled companies, C Related companies with significant influence (shareholder municipalities), D Other related parties
Cash flow statement as per Consob resolution 15519/2006 31 Dec 23 of which related parties Earnings before taxes 656.4 Adjustments to reconcile net profit to the cashflow from operating activities Amortisation and impairment of assets 526.2 Allocation to provisions 227.5 Effects from valuation using the net equity method (10.3) Financial (income) expenses 187.9 (Capital gains) losses and other non-monetary elements (8.4) Change in provision for risks and charges (27.7) Change in provision for employee and post-employment benefits (11.0) Total cash flow before changes in net working capital 1,540.6 (Increase) decrease in inventories 395.1 (Increase) decrease in trade receivables (81.9) 24.0 Increase (decrease) in trade payables (513.7) (35.0) Increase/decrease in other current assets/liabilities 429.7 0.4 Changes in working capital 229.2 Dividends collected 15.1 8.8 Interest income and other financial income collected 77.8 2.2 Interest expenses, net charges on derivatives and other paid financial charges (193.4) (0.2) Taxes paid (96.6) Cash flow from operating activities (a) 1,572.7 Investments in tangible assets (242.7) Investments in intangible assets (573.1) Investments in subsidiary companies and business units net of cash holdings (76.2) Sale price of tangible and intangible assets 2.6 (Increase) decrease in other investment activities 30.1 14.8 Cash flow from (for) investing activities (b) (859.3) New issue of long-term bonds 614.9 Repayments of non-current financial liabilities (750.0) Repayments and other net changes in financial liabilities (908.5) (5.1) Repayments of leasing liabilities (22.4) (1.4) Acquisition of Interests in consolidated companies (0.1) Increase minority shareholding 1.9 Dividends paid out to Hera shareholders and non-controlling interests (239.1) (71.0) Changes in treasury shares (19.7) Cash flow from (for) financing activities (c) (1,323.0) Increase (decrease) in cash holdings (a+b+c) (609.6) Cash and cash equivalents at the beginning of the period 1,942.4 Cash and cash equivalents at the end of the period 1,332.8 2.03.03 Net financial debt pursuant to Consob notice DEM/6064293 of 2006 31 Dec 23 31 Dec 22 A B C D A B C D A Cash 1,332.8 \u2010 \u2010 \u2010 \u2010 1,942.4 \u2010 \u2010 \u2010 \u2010 B Cash equivalents \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 C Other current financial assets 90.9 \u2010 7.0 3.7 1.3 77.7 \u2010 9.2 3.7 1.4 D Liquidity (A+B+C) 1,423.7 2,020.1 of which related parties \u2010 7.0 3.7 1.3 \u2010 9.2 3.7 1.4 E Current financial debt (411.9) \u2010 (0.1) (0.7) \u2010 (563.0) \u2010 \u2010 (0.5) \u2010 F Current portion of non-current financial debt (524.1) \u2010 \u2010 (1.4) (0.1) (108.4) \u2010 (5.2) (1.4) (0.1) G Current financial indebtedness (E+F) (936.0) (671.4) of which related parties \u2010 (0.1) (2.1) (0.1) \u2010 (5.2) (1.9) (0.1) H Net current financial indebtedness (G+D) 487.7 1,348.7 of which related parties \u2010 6.9 1.6 1.2 \u2010 4.0 1.8 1.3 I Non-current financial debt (1,087.0) \u2010 \u2010 (3.9) (0.2) (2,553.0) \u2010 \u2010 (5.2) (0.3) J Debt instruments (3,391.2) \u2010 \u2010 \u2010 \u2010 (3,197.3) \u2010 \u2010 \u2010 \u2010 K Non-current trade and other payables \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 \u2010 L Non-current financial indebtedness (I+J+K) (4,478.2) (5,750.3) of which related parties \u2010 \u2010 (3.9) (0.2) \u2010 \u2010 (5.2) (0.3) M Total financial indebtedness (H+L) ESMA guidelines 32 - 382 - 1138 (3,990.5) (4,401.6) of which related parties \u2010 6.9 (2.3) 1.0 \u2010 4.0 (3.4) 1.0 Non-current financial receivables 162.8 151.8 of which related parties \u2010 11.0 10.6 21.2 \u2010 14.3 12.1 25.3 Net financial debt (3,827.7) (4,249.8) of which related parties \u2010 17.9 8.3 22.2 \u2010 18.3 8.7 26.3 2.03.04 List of related parties The values reported in the table at 31 December 2023 refer to the related parties listed below: Group A - Non-consolidated subsidiaries - - Group B- Affiliated and jointly controlled companies Adria Link Srl Aimag Spa ASM SET Srl Aurora Srl Enomondo Srl H.E.P.T. Co. Ltd Natura Srl in liquidation Oikothen Scarl in liquidation SEA - Servizi Ecologici Ambientali Srl Set Spa Sgr Servizi Spa Sinergie Italiane Srl in liquidation (ceased) Tamarete Energia Srl Tre Monti Srl Group C - Related parties with significant influence Municipality of Bologna Municipality of Casalecchio di Reno Municipality of Cesena Municipality of Ferrara Municipality of Imola Municipality of Modena Municipality of Padua Municipality of Ravenna Municipality of Rimini Municipality of Trieste CON.AMI Ferrara Tua Spa Ravenna Holding Spa Rimini Holding Spa Group D - Other related parties Acosea Impianti Srl Dragone Impianti Spa Acqeduct Aloe Spa Amir Spa - Asset Aspes Spa Calenia Energia Spa Fiorano Gestioni Patrimoniali Srl Formigine Patrimonio Srl Maranello Patrimonio Srl Romagna Acque Spa Sassuolo Gestioni Patrimoniali Srl Serramazzoni Patrimonio Srl Societ\u00e0 Italiana Servizi Spa - Sis Spa asset
2.03.05
Te.Am Societ\u00e0 Teramo Ambiente Srl Team Srl - Assets Unica Reti Spa - Asset Statutory auditors, strategic managers, family members of strategic managers and entities linked to strategic managers Explanatory notes to relations with related parties Service management In most of the areas it serves and in almost all shareholding municipalities in the provinces of Modena, Bologna, Ferrara, Forl\u00ec-Cesena, Ravenna, Rimini, Padua, Udine, Trieste, Gorizia and Pesaro, the Hera Group holds the concession for the local public services of economic interest (distribution of natural gas through local gas pipelines, integrated water service and environmental services, including sweeping, waste collection, transport, recovery and disposal). The electricity distribution service is carried out in the areas of Modena and Imola, and in the municipalities of Trieste and Gorizia. Other public utilities (including urban district heating, energy services and public lighting) are carried out in a free market regime or through specific agreements with the local authorities concerned. Through specific relations with the local authorities and/or local agencies, the Hera Group is also responsible for waste treatment and disposal services, not included in urban hygiene activities. Water sector The water services managed by the Hera Group are carried out in the areas served in the Emilia- Romagna, Veneto, Friuli-Venezia Giulia and Marche regions. It is carried out on the basis of conventions with the relevant local agencies, with a variable duration, which is usually twenty years. The Hera Group\u2019s mandate for managing integrated water services refers to activities of water collection and drinking water treatment and distribution for civil and industrial applications as well as sewerage and sewage treatment. The agreements signed with the local area authorities also require the operator to carry out the planning and construction of new networks and plants aimed at providing the service. The conventions regulate the economic aspects of the contractual agreement, as well as the modes of managing the service, and the performance and quality standards. Responsibility for tariff matters is delegated to the national Authority ARERA; the current 2020-2023 regulatory system is the third tariff period. Regulations for the 2020-2023 period are in continuity with the previous 2016-2019 period, with the introduction of some new elements such as the incentivisation of energy and environmental sustainability actions, as well as contractual and technical quality standard levels. Each operator is granted a revenue (VRG) independently of the trends in volumes distributed, which is established on the basis of operating costs (efficient and exogenous) and capital costs in relation to the investments made, as well as, for the Rimini area, the outcome of the tender procedure that led to the new concession contract signed for the period 2022 -2039. For the purpose of carrying out the service, the operator uses networks, facilities and other equipment owned by the company itself, municipalities and asset companies. These assets, part of the inaccessible water stores, or granted or leased to the provider, must be returned to the municipalities, asset companies or local area authorities at the end of the concession to be made available to the incoming provider. Any work carried out by the Hera Group for the water service must be returned to the above mentioned entities following payment or the residual value of the assets in question. Hera\u2019s relations with users are regulated by provisioning regulations as well as Service Charters drafted on the basis of templates approved by local area authorities in compliance with provisions set out by ARERA regarding the quality of the service and the resource.
2.03.06
Waste management sector The municipal waste service managed by the Hera Group in the area it serves is provided on the basis of agreements with local authorities and comprises the exclusive management of the collection, transportation, sweeping and cleaning of streets, preparations for waste recovery or disposal and other minor services. The agreements entered into with the relevant local authorities regulate the economic aspects of the contractual agreement, as well as the modes of organising and managing the service, and the performance and quality standards. Starting from 2020, responsibility for the regulation of the municipal waste service was given to ARERA, which defined an initial regulatory two-year period 2020- 2021 concerning integrated waste management only (ARERA Resolution 443/2019) and a subsequent update for the period 2022-2025 starting from which the fees for access to treatment plants qualified as minimum plants by the regional authority was also regulated (ARERA Resolution 363/2021). Therefore, the annual fee for the management of this service was determined with reference to the aforementioned national regulation, taking into account, to supplement the results, the competitive procedures concluded for the recently assigned areas (Ravenna and Cesena, Bologna, Modena and Saccolongo). Following the recent rulings of the State Council on administrative disputes concerning minimum plants, the beginning of national regulation for this type of plant was postponed from 2022 to 2024 (ARERA Resolution 7/2024). For 2022-2023, the tariff assumptions already made by the local authorities, as included in the economic and financial plans, were confirmed. The municipal waste management service is billed by the Hera Group to the individual municipalities in the case of the Tari regime or to the individual users in the case of the application of the punctual correspondent tariff. In order to operate municipal waste treatment plants, the Hera Group is required to obtain provincial authorisations. In accordance with the principle of continuity in public services, pursuant to the existing agreements, operators are required to continue providing the service even in those areas where the concession has already expired, until the start of the new assignments. Energy sector The duration of licenses for the distribution of natural gas via local gas pipelines, initially set for periods ranging between ten and thirty years by the original agreements stipulated with the municipalities, was revised by Italian decree 164/2000 (so-called Letta Decree, transposing Directive 98/30/EC) and by subsequent reforms of the energy market. Inrete Distribution Energy Spa, an Hera Group company that took over natural gas and electricity distribution from Hera Spa, takes advantage of longer residual terms established for operators that have promoted partial privatizations and mergers. The duration of distribution concessions is unchanged with respect to that foreseen in the company\u2019s stock exchange listing. The agreements associated with the distribution licenses regarding the distribution of natural gas or other similar gases for heating, domestic, handicraft and industry uses, and for other general uses. Rates for the distribution of gas are fixed under current regulations and by periodical resolutions issued by the agency in charge of this sector (Arera). The area in which Inrete Distribuzione Energia Spa provides gas distribution services is divided into rate zones in which a uniform distribution rate is applied to different categories of customers. The tariff regulations in force at the time these annual financial statements were approved are ARERA resolution 736/2022/R/gas of 29 December 2022 (update of tariffs for gas distribution and metering services, for 2023), which replaced the 620/2021/R/gas of 28 December 2021 and which serve to approve the mandatory tariffs for natural gas distribution, metering and marketing services for 2023. The tariff rates valid as from 1 January 2023 are shown in Table 1 attached to the aforementioned resolution. The tariffs for the 2023 financial year are part of the so-called 2020-2025 tariff period. As of 1 January 2020, in fact, the Regulation of gas distribution and metering service tariffs for the period 2020- 2025 (Rtdg 2020-2025), approved by resolution 570/2019/R/gas and updated by resolution 737/2022/R/gas, came into force. Pursuant to Article 43 of the RTDG 2020-2025, the mandatory natural gas distribution and metering tariffs are broken down into different rate areas: \u25aa northwest area, which includes the regions of Valle d\u2019Aosta, Piedmont and Liguria; \u25aa northeast area, including the regions of Lombardy, Trentino - Alto Adige, Veneto, Friuli - Venezia Giulia, and Emilia - Romagna; \u25aa central area, comprising the regions of Tuscany, Umbria and the Marche; \u25aa central-south-eastern area, including the regions of Abruzzo, Molise, Apulia and Basilicata; \u25aa central-southwestern area, including the Lazio and Campania regions; \u25aa southern area, including the regions of Calabria and Sicily; \u25aa Sardinia area, including the region of Sardinia. The value of the tariff components GS, RE, RS and UG1 referred to in paragraph 42.3, sections c), d), e), f) of the Rtdg 2020-2025 is subject to quarterly updating. For 2023, as of 1 January 2023, the values already valid in Q4 2021 were confirmed - resolution 735/2022/R/com and Table 8 attached thereto and Table 7 attached to resolution 396/2021/R/com; as of 1 April 2023, these values were amended in accordance with resolution 134/2023/R/com; as of 1 July 2023, Resolution 297/2023/R/com was applied and as of 1 October, resolution 429/2023/R/com came into force. Beginning on 1 October 2021, the values are those of Table 7 attached to resolution 396/2021/R/com. With regard to electricity, the contracts (lasting thirty years and renewable pursuant to the current regulations) govern power distribution activities comprising, inter alia, the management of distribution networks and the operation of associated plants, ordinary and extraordinary maintenance, the planning and identification of development projects, and metering. The contract may be suspended or terminated, on the judgement of the national Authority, if defaults and violations occur on the part of the concessionary company that seriously affect the performance of the distribution and metering of electricity. The distribution company is obliged to apply to its customers (so called Distribution Users) the rates set by current regulations and resolutions adopted by the sector Authority. The rate regulations in effect at the time the annual financial statements were approved is that of the Authority\u2019s resolution 654/2015/R/Eel of 23 December 2015 (Rate regulations for electricity transmission, distribution and metering, for the regulatory period 2016-2023), which replaced the previous Authority resolution Arg/elt no. 199/2011 and subsequent amendments and additions (Official directives for the provision of electricity transmission, distribution and metering services for the regulatory period 2012-2015 and provisions on economic conditions for the provision of connection services), in force until 31 December 2015. With this resolution, the Authority issued the provisions on the tariff regulation of electricity transmission, distribution and measurement services for the 2016-2023 regulatory period, defining an eight-year regulatory period made up of two four-year semi-periods, also providing for an intra-period update between the first and second semi-periods. The mandatory rate for distribution services covers the costs of transporting electricity along distribution networks. It is applied to all end customers, with the exception of low-voltage household customers. The rate has a trinomial structure and is expressed in hundredths of a euro per sampling point per year (fixed component), euro cents per KW per year (power component) and euro cents per kWh consumed (energy component). The compulsory tariff for the distribution service is periodically updated by the national Authority Arera by means of an appropriate provision, therefore, on 27 December 2019, resolution 568/2019/R/Eel was issued, approving the tariff regulation of electricity transmission, distribution and measurement services for the 2020-2023 regulatory semi-period. For household customers in 2023, the update of tariffs for the delivery of electricity transmission, distribution and metering services has been established by resolution 721/2022/R/eel of 27 December 2022. For non-household customers, the tariff update for 2023 for the distribution and metering services as well as the economic conditions for the provision of the connection service was established by resolution 720/2022/R/eel of 27 December 2022. ", "dimensions": { "concept": "ifrs-full:DisclosureOfTransactionsBetweenRelatedPartiesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-68": { "value": "List of related parties The values reported in the table at 31 December 2023 refer to the related parties listed below: Group A - Non-consolidated subsidiaries - - Group B- Affiliated and jointly controlled companies Adria Link Srl Aimag Spa ASM SET Srl Aurora Srl Enomondo Srl H.E.P.T. Co. Ltd Natura Srl in liquidation Oikothen Scarl in liquidation SEA - Servizi Ecologici Ambientali Srl Set Spa Sgr Servizi Spa Sinergie Italiane Srl in liquidation (ceased) Tamarete Energia Srl Tre Monti Srl Group C - Related parties with significant influence Municipality of Bologna Municipality of Casalecchio di Reno Municipality of Cesena Municipality of Ferrara Municipality of Imola Municipality of Modena Municipality of Padua Municipality of Ravenna Municipality of Rimini Municipality of Trieste CON.AMI Ferrara Tua Spa Ravenna Holding Spa Rimini Holding Spa Group D - Other related parties Acosea Impianti Srl Dragone Impianti Spa Acqeduct Aloe Spa Amir Spa - Asset Aspes Spa Calenia Energia Spa Fiorano Gestioni Patrimoniali Srl Formigine Patrimonio Srl Maranello Patrimonio Srl Romagna Acque Spa Sassuolo Gestioni Patrimoniali Srl Serramazzoni Patrimonio Srl Societ\u00e0 Italiana Servizi Spa - Sis Spa asset 2.03.05 Te.Am Societ\u00e0 Teramo Ambiente Srl Team Srl - Assets Unica Reti Spa - Asset Statutory auditors, strategic managers, family members of strategic managers and entities linked to strategic managers ", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-69": { "value": "Subsidiaries Registered name Registered office Share capital (euro) (*) Consolidated percentage Total interest direct indirect A.C.R. di Reggiani Albertino Spa Mirandola (MO) 390,000 60.00% 60.00% Acantho Spa Imola (BO) 23,573,079 70.16% 70.16% AcegasApsAmga Spa Trieste 284,677,324 100.00% 100.00% Aliplast Spa Istrana (TV) 5,000,000 75.00% 75.00% Aliplast France Recyclage Sas La Wantzenau (France) 1,025,000 75.00% 75.00% Aliplast Iberia Slu Calle Castilla -Leon (Spain) 815,000 75.00% 75.00% Aliplast Polska Spzoo Zgierz (Poland) 1,200,000 PLN 75.00% 75.00% Aresenergy Eood Varna (Bulgaria) 50,000 Lev 100.00% 100.00% AresGas Ead Sofia (Bulgaria) 22,572,241 Lev 100.00% 100.00% Ares Trading Eood Varna (Bulgaria) 50,000 Lev 100.00% 100.00% Asa Scpa Castelmaggiore (BO) 1,820,000 38.25% 38.25% Atlas Utilities Ead Varna (Bulgaria) 50,000 Lev 100.00% 100.00% Biorg Srl Bologna 10,000,000 75.00% 75.00% Black Sea Gas Company Eood Varna (Bulgaria) 5,000 Lev 100.00% 100.00% EstEnergy Spa Trieste 299,925,761 100.00% 100.00% Etra Energia Srl Cittadella (PD) 100,000 51.00% 51.00% F.lli Franchini Srl Rimini 1,100,000 100.00% 100.00% Feronia Srl Finale Emilia (MO) 100,000 75.00% 75.00% Frullo Energia Ambiente Srl Bologna 17,139,100 38.25% 38.25% Green Factory Srl Pesaro 500,000 46.70% 46.70% Herambiente Spa Bologna 271,648,000 75.00% 75.00% Herambiente Servizi Industriali Srl Bologna 5,000,000 75.00% 75.00% Hera Comm Spa Imola (BO) 53,595,899 100.00% 100.00% Hera Comm Marche Srl Urbino (PU) 1,977,332 100.00% 100.00% Hera Luce Srl Cesena 1,000,000 100.00% 100.00% Hera Servizi Energia Spa Udine 13,216,899 84.50% 84.50% Heratech Srl Bologna 2,000,000 100.00% 100.00% Hera Trading Srl Trieste 22,600,000 100.00% 100.00% HestAmbiente Srl Trieste 1,010,000 82.50% 82.50% Horowatt Srl Cesena 50,000 50,00% 50,00% Inrete Distribuzione Energia Spa Bologna 10,091,815 100.00% 100.00% Macero Maceratese Srl Macerata (MC) 1,032,912 46.70% 46.70% Marche Multiservizi Spa Pesaro 16,388,535 46.70% 46.70% Marche Multiservizi Falconara Srl Falconara Marittima (AN) 100,000 46.70% 46.70% Primagas Ad Varna (Bulgaria) 1,149,860 Lev 97.34% 97.34% Recycla Spa Maniago (PN) 90,000 75.00% 75.00% Tiepolo Srl Bologna 1,305,000 100.00% 100.00% Tri-Generazione Scarl Padua 100,000 71.83% 71.83% Uniflotte Srl Bologna 2,254,177 97.00% 97.00% Vallortigara Servizi Ambientali Spa Torrebelvicino (VI) 330,000 75.00% 75.00% Wolmann Spa Bologna 400,000 100.00% 100.00% (*) unless otherwise specified Summary of key figures of the financial statements of subsidiaries pursuant to Article 2429, last paragraph, of the Civil Code. thousand euro A.C.R. Spa Acantho Spa AcegasApsAmga Spa* Aliplast Spa Aliplast France Recyclage Sas ASSETS Fixed assets 33,932 81,259 1,109,019 71,396 3,282 Circulating assets 96,874 36,059 195,482 70,507 2,610 Total assets 130,805 117,318 1,304,501 141,903 5,892 LIABILITIES Share capital 390 27,094 284,677 5,000 1,025 Reserves 37,963 13,750 274,643 34,236 903 Net profit / (loss) 12,420 6,601 24,769 10,118 404 Provisions 124 117 34,070 698 \u2010 Severance pay provision 619 1,217 10,363 613 \u2010 Payables 79,289 68,539 675,979 91,238 3,560 Total liabilities 130,805 117,318 1,304,501 141,903 5,892 INCOME STATEMENT Production value 159,838 91,383 399,176 155,147 6,684 Production costs (142,485) (80,693) (368,529) (141,024) (6,103) Financial income / (expenses) (510) (962) (977) (1,563) (44) Extraordinary income / (expenses) - - - - - Taxes for the year (4,422) (3,127) (4,901) (2,442) (133) Net profit / (loss) 12,420 6,601 24,769 10,118 404 thousand euro Aliplast Iberia Slu Aliplast Polska Spzoo Ares Trading Eood Aresenergy Eood AresGas Ead ASSETS Fixed assets 694 321 \u2010 8 83,687 Circulating assets 944 1,472 726 637 5,155 Total assets 1,638 1,793 726 645 88,842 LIABILITIES Share capital 815 277 26 26 11,541 Reserves 176 924 457 (152) 18,076 Net profit / (loss) 86 173 180 60 1,465 Provisions \u2010 \u2010 \u2010 \u2010 265 Severance pay provision \u2010 \u2010 \u2010 \u2010 25 Payables 561 419 63 711 57,470 Total liabilities 1,638 1,793 726 645 88,842 INCOME STATEMENT Production value 2,397 4,900 1,642 1,912 46,375 Production costs (2,282) (4,677) (1,437) (1,836) (43,256) Financial income / (expenses) - (5) (5) (16) (1,503) Extraordinary income / (expenses) - - - - - Taxes for the year (29) (45) (20) \u2010 (151) Net profit / (loss) 86 173 180 60 1,465 thousand euro Asa Scpa Atlas Utilities Ead Biorg Srl Black Sea Gas Company Eood EstEnergy Spa* ASSETS Fixed assets 2,734 \u2010 30,944 1,255 513,087 Circulating assets 16,366 37 3,862 4,656 325,002 Total assets 19,100 37 34,806 5,911 838,089 LIABILITIES \u2010 Share capital 1,820 26 10,000 3 299,926 Reserves 622 (2,388) (1,433) 4,152 205,374 Net profit / (loss) \u2010 2,399 (2,938) 662 11,323 Provisions 15,382 \u2010 363 \u2010 6,532 Severance pay provision 97 \u2010 34 \u2010 2,107 Payables 1,179 \u2010 28,780 1,094 312,827 Total liabilities 19,100 37 34,806 5,911 838,089 INCOME STATEMENT \u2010 Production value 5,537 8 5,481 5,450 1,139,635 Production costs (5,828) (10) (8,585) (4,693) (1,114,772) Financial income / (expenses) 305 2,401 (709) (23) (7,077) Extraordinary income / (expenses) \u2010 \u2010 \u2010 \u2010 \u2010 Taxes for the year (14) \u2010 875 (72) (6.463) Net profit / (loss) \u2010 2,399 (2,938) 662 11,323 thousand euro Etra Energia Srl* F.lli Franchini Srl Feronia Srl Frullo Energia Ambiente Srl* Green Factory Srl ASSETS Fixed assets 154 318 9,574 45,788 3,876 Circulating assets 4,506 35,730 3,218 33,104 383 Total assets 4,660 36,047 12,792 78,891 4,259 LIABILITIES Share capital 100 1,100 100 17,139 500 Reserves 1,570 1,205 2,648 29,953 (55) Net profit / (loss) 663 1,673 (601) 16,410 (8) Provisions \u2010 108 4,141 3,110 \u2010 Severance pay provision 58 333 \u2010 1,500 \u2010 Payables 2,269 31,629 6,504 10,779 3,822 Total liabilities 4,660 36,047 12,792 78,891 4,259 INCOME STATEMENT Production value 10,518 22,627 386 44,935 4 Production costs (9,567) (20,232) (1,206) (22,639) (12) Financial income / (expenses) (33) (87) (9) 116 \u2010 Extraordinary income / (expenses) \u2010 \u2010 \u2010 \u2010 \u2010 Taxes for the year (255) (635) 228 (6,001) \u2010 Net profit / (loss) 663 1,673 (601) 16,410 (8) thousand euro Hera Comm Marche Srl* Hera Comm Spa* Hera Luce Srl* Hera Servizi Energia Spa Hera Trading Srl* ASSETS Fixed assets 16,586 208,512 131,789 122,161 114 Circulating assets 17,938 2,168,888 59,471 1,614,454 1,984,453 Total assets 34,525 2,377,400 191,260 1,736,615 1,984,568 LIABILITIES Share capital 1,977 53,596 1,000 13.217 22,600 Reserves 6,760 272,086 60,772 75,407 65,397 Net profit /(loss) 5,396 127,814 9,644 2,195 118,300 Provisions \u2010 17,599 1,112 24,016 \u2010 Severance pay provision 661 3,566 647 1,752 689 Payables 19,729 1,902,739 118,085 1,620,028 1,777,581 Total liabilities 34,525 2,377,400 191,260 1,736,615 1,984,568 INCOME STATEMENT Production value 106,404 5,794,258 96,426 1,070,626 9,802,633 Production costs (97,937) (5,647,725) (88,668) (985,124) (9,641,366) Financial income / (expenses) (1,106) 23,255 2,526 (81,910) 4,195 Extraordinary income / (expenses) \u2010 \u2010 \u2010 \u2010 \u2010 Taxes for the year (1,965) (41,974) (640) (1,397) (47,162) Net profit / (loss) 5,396 127,814 9,644 2,195 118,300 thousand euro Herambiente Servizi Industriali Srl* Herambiente Spa* Heratech Srl* HestAmbiente Srl* Horowatt Srl ASSETS Fixed assets 229,466 1,029,349 72 101,989 7 Circulating assets 59,856 498,890 72,036 33,282 47 Total assets 289,321 1,528,239 72,108 135,271 54 LIABILITIES Share capital 5,000 271,600 1,981 1,010 50 Reserves 20,223 92,789 6,448 25,497 Net profit / (loss) 23,416 73,234 (5,115) 21,570 (9) Provisions 4,673 177,008 383 6,159 Severance pay provision 2,460 5,983 3,759 481 Payables 233,549 907,625 64,651 80,554 13 Total liabilities 289,321 1,528,239 72,108 135,271 54 INCOME STATEMENT Production value 159,655 556,294 137,834 92,398 \u2010 Production costs (159,857) (506,213) (144,043) (60,907) (9) Financial income/ (expenses) 6,017 33,299 (609) (1,977) \u2010 Extraordinary income/ (expenses) 16,146 \u2010 \u2010 \u2010 \u2010 Taxes for the year 1,455 (10,146) 1,704 (7,944) \u2010 Net profit / (loss) 23,416 73,234 (5,115) 21,570 (9) Thousand euro Inrete Distribuzione Energia Spa Macero Maceratese Srl Marche Multiservizi Spa Marche Multiservizi Falconara Srl Primagas Ad ASSETS Fixed assets 1,387,510 5,820 267,087 2,668 2,717 Circulating assets 210,113 7,892 74,113 2,637 361 Total assets 1,597,624 13,712 341,200 5,305 3,078 LIABILITIES Share capital 9,901 1,033 16,389 100 588 Reserves 563,983 5,815 112,706 695 800 Net profit / (loss) 34,117 811 12,066 267 349 Provisions 137,235 232 36,602 206 35 Severance pay provision 7,732 507 4,880 711 \u2010 Payables 844,655 5,313 158,558 3,326 1,306 Total liabilities 1,597,624 13,712 341,200 5,305 3,078 INCOME STATEMENT Production value 393,937 16,350 139,621 8,386 4,329 Production costs (329,353) (15,193) (121,986) (7,978) (3,914) Financial income / (expenses) (18,588) (43) (1,505) (25) 8 Extraordinary income / (expenses) \u2010 \u2010 \u2010 \u2010 (31) Taxes of the year (11,879) (302) (4,064) (116) (43) Net profit / (loss) 34,117 811 12,066 267 349 thousand euro Recycla Spa Tiepolo Srl Tri-Generazione Scarl* Uniflotte Srl* Vallortigara Servizi Ambientali Spa ASSETS Fixed assets 15,397 600 \u2010 141,271 13,847 Circulating assets 7,022 1,986 657 32,927 14,137 Total assets 22,419 2,586 657 174,198 27,984 LIABILITIES Share capital 90 1,305 100 2.254 330 Reserves 6,483 7 289 28,014 13,592 Net profit / (loss) 3,153 (28) \u2010 5,066 2,256 Provisions 776 \u2010 \u2010 690 380 Severance pay provision 1,146 \u2010 \u2010 1,503 809 Payables 10,771 1,302 268 136,671 10,617 Total liabilities 22,419 2,586 657 174,198 27,984 INCOME STATEMENT Production value 23,716 1 810 113,337 27,680 Production costs (19,363) (42) (815) (103,772) (24,675) Financial income / (expenses) (101) \u2010 5 (3,057) (56) Extraordinary income / (expenses) \u2010 \u2010 \u2010 \u2010 \u2010 Taxes for the year (1,100) 13 \u2010 (1,442) (693) Net profit / (loss) 3,153 (28) \u2010 5,066 2,256 thousand euro Wolmann Spa ASSETS Fixed assets 87 Circulating assets 12,185 Total assets 12,272 LIABILITIES \u2010 Share capital 145 Reserves 443 Net profit / (loss) 611 Provisions 61 Severance pay provision 144 Payables 10,868 Total liabilities 12,272 INCOME STATEMENT \u2010 Production value 22,180 Production costs (20,250) Financial income / (expenses) (1,011) Extraordinary income / (expenses) \u2010 Taxes for the year (307) Net profit / (loss) 611 *The company applies the international accounting standards, therefore the values stated comply with them. ", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-70": { "value": "OUTLINE OF ARTICLE149 DUODECIES OF THE CONSOB ISSUER\u2019S REGULATION thousand euro 2023 Services provided to certify the financial statements 1,200 Provision of other services for the issue of an attestation by the independent auditor company 468 Provision of other services by the independent auditor 63 Total 1,731 2.06", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "it", "entity": "scheme:8156009414FD99443B48", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } } } }