Contents Letter from the Chairman of the Board..................................................................................................................... 4 Letter from the Chief Executive Officer ................................................................................................................... 5 The Report .................................................................................................................................................. 6 Reading this Report .................................................................................................................................................. 6 Drawing up this report .............................................................................................................................................. 8 About us .................................................................................................................................................... 11 Hera today............................................................................................................................................................... 11 History .................................................................................................................................................................... 11 Services managed ................................................................................................................................................... 12 Mission and Values................................................................................................................................................. 13 Managing sustainability.......................................................................................................................................... 14 The instruments of governance............................................................................................................................... 21 Governing Corporate Social Responsibility............................................................................................................ 28 Dialogue with stakeholders...................................................................................................................... 35 Hera’s stakeholders................................................................................................................................................. 35 Dialogue and involvement initiatives ..................................................................................................................... 36 Dialogue on the Sustainability Report .................................................................................................................... 38 Results and Value Added......................................................................................................................... 40 Operating results..................................................................................................................................................... 40 Allocation of value added ....................................................................................................................................... 46 Workforce ................................................................................................................................................. 50 Objectives and performance ................................................................................................................................... 50 Breakdown.............................................................................................................................................................. 51 Turnover ................................................................................................................................................................. 54 Diversity and equal opportunities ........................................................................................................................... 57 Training and professional development.................................................................................................................. 60 Pay, salaries and bonuses........................................................................................................................................ 65 Health and safety .................................................................................................................................................... 69 Industrial relations .................................................................................................................................................. 72 Internal communication .......................................................................................................................................... 74 Cultural associations............................................................................................................................................... 76 Internal climate survey............................................................................................................................................ 76 Others dialogue and envolvement inititatives ......................................................................................................... 81 Customers ................................................................................................................................................. 83 Objectives and performance ................................................................................................................................... 83 Breakdown.............................................................................................................................................................. 84 Tariffs and billing ................................................................................................................................................... 86 Service quality ........................................................................................................................................................ 97 Quality of drinking water........................................................................................................................................ 99 Service security and continuity............................................................................................................................. 103 Customer relations................................................................................................................................................ 109 Customer satisfaction survey ................................................................................................................................ 114 Other customer listening, dialogue and involvement initiatives ........................................................................... 117 Shareholders ........................................................................................................................................... 119 Objectives and performance ................................................................................................................................. 119 Breakdown............................................................................................................................................................ 119 Corporate Governance and safeguards for shareholders....................................................................................... 122 Distribution of dividends ...................................................................................................................................... 123 Stock exchange share performance....................................................................................................................... 123 Relations with investors and financial analysts..................................................................................................... 125 Financial Institutions ............................................................................................................................. 127 Suppliers.................................................................................................................................................. 130 Objectives and performance ................................................................................................................................. 130 Breakdown............................................................................................................................................................ 131 Operations within local communities.................................................................................................................... 133 Qualification and selection of suppliers................................................................................................................ 135 Contract management ........................................................................................................................................... 139 Supplier relations.................................................................................................................................................. 141 Public Administration............................................................................................................................ 143 Breakdown...........................................................................................................................................................