snam.it

1Q 2015 Consolidated Results

May 14th, 2015

Outline

2

Antonio Paccioretti

Chief Financial Officer

Carlo Malacarne

Chief Executive Officer

• Revenues 929 Up 2.4%

• Ebitda 717 Down 2.0%

• Net profit 325 Up 11.3%

[ € mn ]

Solid Results

Sound Growth &

Cash Flow

generation

Portfolio

management

• Capex 225

• Operating Cash Flow 653

• Net debt 13,217

• ACAM GAS acquisition completed on April 1st

1Q 2015 Highlights

[ € mn ]

3

Income Statement

4

[ € mn ] 1 Q 2014 1 Q 2015 Change

Revenues 907 929 +22

Operating expenses - 175 - 212 - 37

EBITDA 732 717 - 15

Depreciation & amortisation - 190 - 207 - 17

EBIT 542 510 - 32

Net interest income (expenses) - 101 - 95 +6

Net income from associates 22 41 +19

EBT 463 456 - 7

Income taxes - 171 - 131 +40

NET PROFIT 292 325 +33

Revenues

5

[ € mn ] 1 Q 2014 1 Q 2015 Change

Regulated revenues 882 898 +16

Transport 465 470 +5

Distribution 236 260 +24

Storage 142 123 -19

LNG 5 5

Pass-through revenues 34 40 +6

Other revenues 25 31 +6

TOTAL REVENUES 907 929 +22

Operating Expenses

6

[ € mn ] 1 Q 2014 1 Q 2015 Change

Regulated activities 172 189 +17

Controllable fixed costs 117 131 +14

Variable costs 4 4

Other costs 17 14 -3

Pass-through costs 34 40 +6

Non regulated activities 3 23 +20

TOTAL COSTS 175 212 +37

7

EBIT Analysis

[ € mn ]

-32 € mn

-5.9%

542510

10

(14)

(17)

(11)

300

400

500

600

EBIT1 Q 2014

Regulatedrevenues

Controllablefixed costs

Depreciation& amortisation

Other EBIT1 Q 2015

8

Net Profit Analysis

[ € mn ]

292325

619

40

(32)

0

50

100

150

200

250

300

350

Net profit1 Q 2014

EBIT Net interestincome

(expenses)

Net incomefrom associates

Incometaxes

Net profit1 Q 2015

+33 € mn

+11.3%

9

Financial structure as of March 31, 2015 Bond Maturity Profile as of March 31, 2015 1Q 2015 main actions

Bond issuances

• 8.2y fixed rate bond: €250 mn;

Institutional lenders financing:

• New EIB financing for €200 mn;

• Cancellation of relatively expensive EIB

financing for €300 mn;

Treasury management optimization

13.2

3.2

10.7

1.8

1.2

16.8

0

2

4

6

8

10

12

14

16

18

Net debt 1Q 2015

Total committed credit facilities and bonds

Pool banking facilities

Bilateral banking facilities

Debt capital market

Institutional lenders financing

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

€ bn € bn

Main Financial Actions and Results

10

Cash Flow from Operation and Net Investments

Net profit Change in working capital

325

Depreciation & other items

150

653

Cash flow from

operation

Net capex

4.5% stake reduction

in TIGF

-284

84

-200

Net investments

[ € mn ]

FREE CASH FLOW 1Q 2015 + €453 mn

Cash flow from operation

[ € mn ]

Net investments

178

Balance Sheet

11

[ € mn] Dec, 31

2014

Mar, 31

2015Change

Net invested capital 20,824 20,751 -73

Fixed capital 21,813 21,930 +117

Tangible fixed assets 15,335 15,472 +137

Intangible fixed assets 5,076 5,076 -

Equity-accounted and other investments 1,402 1,382 -20

Net working capital -864 -1,056 -192

Receivables 2,190 2,300 +110

Liabilities -3,054 -3,356 -302

Provisions for employee benefits -141 -139 +2

Assets held for sale and directly related liabilities 16 16 -

Net financial debt 13,652 13,217 -435

Shareholders' equity 7,172 7,534 +362

12

Q & A S e s s i o n

13

A n n e x e s

14.9 14.6

4.5 4.4

4.5 5.0

0.4 0.5

1Q 2014 1Q 2015

12.1 13.8

4.5

4.4

4.5

5.0 0.4

0.5

1Q 2014 1Q 2015

14

Residential

& commercial

Industrial(*)

Thermoelectric

Other Sectors

Gas consumption

+0.8% 24.5 24.3

Gas injected into the network

(*) Includes: NGV, Agriculture and Non-Energy Use

Source: National Transport Network Balance

Italian Gas Market in 1Q 2015

Weather adjusted

+10.5% 23.7

21.5

1Q 2014 1Q 2015

-1.9%

16.0 16.3

Operational Data

15

1Q 2014 1Q 2015 Δ %

Transport Gas injected into the network (bcm)

16.3

16.0 -1.9

Gas pipeline network (km in operation)

32,299

32,338 +0.1

Storage Storage capacity (bcm)

•Modulation (*)

•Strategic

15.9

11.4

4.5

15.9

11.4

4.5

-

-

-

Gas moved through storage system (bcm)

•Injection

•Withdrawal

4.84

0.08

4.76

7.16

0.01

7.15

+47.9

-87.5

+50.2

Distribution Gas distributed (bcm) 3.30 3.48 +5.6

Active Gas Metering at redelivery points (# mln)

5.92 6.41 +8.3

(*) Available capacity

16

Snam’s Chief Financial Officer, Antonio Paccioretti, in his position as manager responsible for the preparation of financial reports, certifies

pursuant to paragraph 2, article 154-bis of the Legislative Decree n. 58/1998, that data and information disclosures herewith set forth

correspond to the company’s evidence and accounting books and entries.

This presentation contains forward-looking statements regarding future events and the future results of Snam that are based on current

expectations, estimates, forecasts, and projections about the industries in which Snam perates and the beliefs and assumptions of the

management of Snam.

In particular, among other statements, certain statements with regard to management objectives, trends in results of operations, margins, costs,

return on equity, risk management are forward-looking in nature.

Words such as ‘expects’, ‘anticipates’, ‘targets’, ‘goals’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’, ‘estimates’, variations of such words, and

similar expressions are intended to identify such forward-looking statements.

These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict

because they relate to events and depend on circumstances that will occur in the future.

Therefore, Snam’s actual results may differ materially and adversely from those expressed or implied in any forward-looking statements.

Factors that might cause or contribute to such differences include, but are not limited to, economic conditions globally, political, economic and

regulatory developments in Italy and internationally.

Any forward-looking statements made by or on behalf of Snam speak only as of the date they are made. Snam does not undertake to update

forward-looking statements to reflect any changes in Snam’s expectations with regard thereto or any changes in events, conditions or

circumstances on which any such statement is based.

The reader should, however, consult any further disclosures Snam may make in documents it files with the Italian Securities and Exchange

Commission and with the Italian Stock Exchange.

Disclaimer

snam.it

1Q 2015 Consolidated Results

May 14th, 2015