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Operations within local communities

Once again in 2011, the positive impact generated by the Hera Group on the local areas and communities where it operates, continued. An indication of this positive impact is that 61% of Hera suppliers were made up of businesses with commercial headquarters in the area covered by Hera. The decrease in the overall number of suppliers with respect to 2010 is attributable to the additional rationalisation of the archive of qualified suppliers which followed the criteria indicated below: checking of effective use in the previous three years, failure to conclude the qualification process, transfer of activities previously seen to by the Group (such as the winter road network service).

Suppliers (breakdown by geographic area)
No.200920102011% on
2011
Bologna TOS area1,3331,13191715.0%
Ferrara TOS area4363532994.9%
Forli-Cesena TOS area7716715278.6%
Imola-Faenza TOS area5284863916.4%
Modena TOS area1,6131,07574312.2%
Ravenna TOS area6165434206.9%
Rimini TOS area7055574297.0%
Total area6,0024,8163,72660.9%
Other provinces of Emilia-Romagna3532631963.2%
Other Italian regions2,8502,5672,10934.5%
Other European Union nations6063540.9%
Other4240290.5%
Total9,3077,7496,114100%

The countries outside the European Union were purchases were made are Switzerland, the Republic of San Marino, Norway and the United States.

 
Value of supplies (breakdown by geographic area) - millions of euro

In 2011, the Hera Group issued job orders worth almost Euro 386 million equating to 65.5% of the total, to businesses based in the same area as that covered by Hera, slightly increasing the positive repercussion ratio with respect to last year. In 2010, by contrast, the reduction in percentage value of the supplies in the local area, dropping from 68.3% to 64.2%, was partly due to the December 2009 acquisition by Aimeri (a Milan-based company) of the waste management division of Manutencoop (a Bologna-based supplier of Hera in waste management services).

 
Value of supplies (breakdown by geographic area)

Creation of indirect employment by the Hera Group

The Hera Group's direct impact on employment is in the first instance gaugeable on the basis of the number of its employees. The company employs a workforce of 6,484 individuals in the local area under permanent employment contracts. All the information relating to employees is contained in the section "Workforce".
In order to globally assess the social repercussions on the country, it is however useful to consider the employment maintained care of suppliers who procure sundry goods and services or support certain stages of the company process. Therefore, indirect employment can be estimated as that portion of the workforce of the suppliers which carries out activities for Hera businesses: the individuals indirectly employed by the company are estimated at approximately 4,150. The figure was obtained by analysing the financial statements of the Group's leading 100 suppliers which cover 60% of the volume purchased in 2011. In order to estimate the number of employees of the suppliers involved in activities requested by Hera, the ratio between the value commissioned by Hera in 2011 and the total sales turnover of the supplier was considered; this percentage was then multiplied by the number of total employees declared in the suppliers' financial statements. In certain cases, the data relating to employees involved in activities requested by Hera were provided directly by the suppliers.