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LETTER FROM THE CHAIRMAN OF THE BOARD

Presidente del Consiglio di Amministrazione Tomaso Tommasi di Vignano

This Sustainability Report sums up three years' work and the results of the commitment of many.

From the time of its birth, Hera's intention was to present this document alongside its Annual Report in order to provide for integration between information of an economic nature and social and environmental concerns. It also provides an opportunity for in-depth examination of the fundamentals of the idea of development proposed in Hera's strategy.

The efforts made over the last few years provide increasingly clear evidence not only of the validity of the project is but also our ability to provide concrete results. The founding of a large group with strong links with the area in which it is operational, industrial management of the services provided, an approach to organisation based on Local Operating Companies, and specialisation by division with regard to the services we provide to our customer base are the key features of the strategic idea underpinning Hera. This idea has already generated wealth and wellbeing for the area - and will continue to do so. This is clearly reflected in the considerable local investments made by the group (investments which will continue in the years to come), with particular attention paid to water and waste management services.

In 2005, integration took place with Meta Modena. The company is even larger and the economic results have improved. The findings of our second consumer satisfaction survey corroborated the findings of the previous survey and were encouraging, although there is room for improvement in the future. Lastly, on the economic front, our results prove that economic development is only possible if the legitimate demands of corporate stakeholders are met.

We see these results as the starting line - no more than that - in our push forward toward fresh, and even more ambitious, objectives, while maintaining the corporate management traditions of local public services which are so deeply rooted and consolidated within the Emilia Romagna region.



    Tomaso Tommasi di Vignano

Chairman of the Board of Directors