snam.it

2014 1Q Consolidated ResultsMay 6th, 2014

Agenda

2

Highlights and Operational Performance

1Q Consolidated Results

3

Highlights and Operational Performance

Carlo MalacarneChief Executive Officer

• Ebit 542 Up 2.1%

• Net income 292 Up 20.7%

• Net debt 13,120

• Capex 229

4

[ €m ]

SolidResults

Business Development

• MoU with Fluxys to combine international assets in Europe

• Swap agreement in AES Torino to focus on distribution assets

1Q 2014 Highlights

Integrated management of international assets with Fluxys paves the way for the creationof a leader in the European gas infrastructure sector

Snam-Fluxys MoU: international assets integrationin the North- South and East-West gas corridors

5

To exploit European gas market opportunities

To optimize the value of domestic asset throughintegrated management with international assets

To maximize gas volumes transported through ourassets in the North-South and East – West gascorridors, attracting new gas flows and linking newgas sources

To leverage financial strength and business scalein order to exploit further potential internationaldevelopment

To offer new integrated and cross border servicesin transport, storage and regasification

Main targets

TENP

Transitgas

TIGF

TAG*

Snam and Fluxys domestic networks

IUKBBL

Snam and Fluxys international pipelines

NEL

* In case of a positive completion of the acquisition from CdP

14.9 14.9

4.4 4.3

6.0 4.7

0.40.4

1Q 2013 1Q 2014 1Q 2013 1Q 2014

6

Residential & commercial

Industrial(*)

Thermoelectric

Other Sectors

Gas Consumption (Weather adj.)

-5.5%

24.325.7

Gas injected into the network

-12.7%

16.318.7

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

Source: Italian Ministry of Economic Development and SRG estimates

Italian Gas Market in 1Q 2014

7

2014 1Q Consolidated Results

Antonio PacciorettiChief Financial Officer

Income Statement

8

€m 1Q 2013 1Q 2014 Change

Revenues 896 907 +11

Operating expenses - 179 - 175 +4

EBITDA 717 732 +15

Depreciation & amortisation - 186 - 190 - 4

EBIT 531 542 +11

Net interest income (expenses) - 125 - 101 +24

Net income from associates 15 22 +7

EBT 421 463 +42

Income taxes - 179 - 171 +8

NET PROFIT 242 292 +50

Revenues

9

€m 1Q 2013 1Q 2014 Change

Regulated revenues 883 882 - 1

Transport 466 465 -1

Distribution 248 236 -12

Storage 136 142 +6

LNG 6 5 -1

Pass-through revenues 27 34 +7

Other revenues 13 25 +12

TOTAL REVENUES 896 907 +11

Operating expenses

10

€m 1Q 2013 1Q 2014 Change

Regulated activities 166 172 +6

Controllable fixed costs 117 117 -

Variable costs 3 4 +1

Other costs 19 17 -2

Pass-through costs 27 34 +7

Non regulated activities 13 3 - 10

TOTAL COSTS 179 175 - 4

€m 1Q 2013 1Q 2014 Change

Cost breakdown by activity*:

Transport 51 56 +5

LNG 3 4 +1

Storage 14 15 +1

Distribution 78 67 -11

(*) net of pass-through costs

EBIT analysis

11

€m

+2.1%

2,0602,111

531 542

23

(8)-

(4)

0

100

200

300

400

500

600

700

1Q 2013 Regulatedrevenues

Controllable fixedcosts

Depreciation &amortisation

Other 1Q 2014

Net Profit analysis

12

+20.7%

€m

242292

1124 7 8

0

100

200

300

400

Net profit1Q 2013

EBIT Net interestincome

(expenses)

Net incomefrom associates

Incometaxes

Net profit1Q 2014

13

Existing debt as at 31 March 2014 (bln €) Bond Maturity Profile (bln €) as at 31 Mar. 2014 1Q 2014 main actions

€ bln

Pool banking facilites

Bilateral banking facilities

Debt Capital Market

Institutional lenders financing

Bond issuances (fixed and variable rate):

• 10y Bond: 600 m€;

• 2y Bond FRN: 150 m€;

Reduction of undrawn credit facilities

and bilateral facilities renegotiation

Institutional lenders financing:

• «single signature» for 300 m€ of

existing EIB financing;

Snam debt structure

13.1

3.2

9.4

3.0

1.216.9

0

2

4

6

8

10

12

14

16

18

1Q 2014 Net Debt Total committed credit facilities & bonds0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2014 2015 2016 2017 2018 2019 2020 2021 2022 beyond2022

€ bln

-100

100

200

300

400

500

600

Cash flow

14

Netprofit

Change inworkingcapital

Net investments

Depreciation& other

non monetary items

Change in Net Debt1Q 2014

36

292

169

206

-291

€m

Cash Flowfrom

operation

497

Balance Sheet

15

€m Dec, 31 2013

Mar, 31 2014 Change

Net invested capital 19,320 19,410 +90

Fixed capital 20,583 20,700 +117

Tangible fixed assets 14,847 14,951 +104

Intangible fixed assets 4,710 4,716 +6

Equity-accounted and other investments 1,026 1,033 +7

Net working capital -1,155 -1,181 -26

Receivables 2,708 2,602 -106

Liabilities -3,863 -3,783 +80

Provisions for employee benefits -124 -125 -1

Assets held for sale and directly related liabilities 16 16

Net financial debt 13,326 13,120 - 206

Shareholders' equity 5,994 6,290 +296

16

Q & A S e s s i o n

17

A n n e x e s

9

1743

69

2719

4

50

39

1320

2395

43

13

51

7

1330

57

14

71

50

107

Capital Expenditure*

18

Transportand LNG

Storage

Distribution

1Q 20141Q 2013 Expansion & new entry points:

+3% for 10 – 15 yrs

Regional & national development:+2% for 7 – 10 yrs

Safety: +1% for 5 yrs

Maintenance: Base remuneration 6.4%

Development of new fields: +4% for 16 yrs

Expansion of existing fields:+4% for 8 yrs

Maintenance: Base remuneration 6.7%

Substitution of cast iron pipes:+2% for 8 yrs

Metering: 8% allowed return

Other investments: Base remuneration 7.6%

[ €m ]

(*) Gross of subsidies. In 1Q 2013 and 1Q 2014 capex for € 2 million and € 1 million respectively was carried out by Snam S.p.A.

Expansion of existing fields+ 4% for 8 yrs

Development of new fields + 4% for 16 yrs

Others 6.7%

Metering7.2% remuneration

Distribution6.9% remuneration

Remuneration for new investments7.3%

Remuneration for new investments6.7%

Regional & national develop.+ 1% for 7 – 10 yrs

Import & export capacity develop.+ 2% for 10 yrs

Others 7.3%

Operational Data

19

1Q 2013 1Q 2014 ∆ %

Transport Gas injected into the network (bcm) 18.7 16.3 -12.7

Gas pipeline network (km in operation) 32,244 32,299 +0.2

Storage Storage capacity (bcm)•Modulation (*)

•Strategic

15.711.24.5

15.911.44.5

+1.3+1.8

-

Gas moved through storage system (bcm)•Injection•Withdrawal

6.970.016.96

4.840.084.76

-30.6n.m

-31.6

Distribution Gas distributed (bcm) 3.54 3.30 -6.9

Active Gas Metering at redelivery points (# mln) 5.91 5.92 +0.2

(*) Available capacity

20

Snam’s Chief Financial Officer, Antonio Paccioretti, in his position as manager responsible for the preparation of financial reports, certifiespursuant to paragraph 2, article 154-bis of the Legislative Decree n. 58/1998, that data and information disclosures herewith set forth correspondto 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 currentexpectations, estimates, forecasts, and projections about the industries in which Snam perates and the beliefs and assumptions of themanagement 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, andsimilar 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 becausethey 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. Factorsthat might cause or contribute to such differences include, but are not limited to, economic conditions globally, political, economic and regulatorydevelopments 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 updateforward-looking statements to reflect any changes in Snam’s expectations with regard thereto or any changes in events, conditions orcircumstances 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 ExchangeCommission and with the Italian Stock Exchange.

Disclaimer

snam.it

2014 1Q Consolidated ResultsMay 6th, 2014