January 2015

Performance of the main stock indices

Source: Snam on the Bloomberg data

The financial markets pag. 1 The utility sector pag. 2

Snam shares and its peers pag. 3

The oil markets

In January, oil prices closed down, -9.4% for

the US crude benchmark WTI (closing at

$48.2/barrel) and -8.9% for Brent (closing at

$50.8/barrel). The increase in US oil exports,

Saudi Arabia's decision to reduce official

sales prices to European countries and in-

creases in US crude stocks all contributed

towards this downward trend.

Snam S.p.A. Investor Relations

The financial markets

January closed on a positive note for the

majority of stock markets, with rises of 6.4%

for the European DJ Stoxx50, 7.8% for the

Italian stock exchange and 4.5% for the DJ

EuroStoxx Utilities sector index. The excep-

tion was the US S&P500, which closed down

(-3.1%). Stock markets, particularly those in

Europe, benefited from expectations and the

subsequent announcement of the ECB's

launch of a quantitative easing program,

which involves the purchase of government

bonds as well as bonds issued by European

agencies and institutions. A further element

of support came from positive signs on the

progress of the economic situation in the

Eurozone. The main US stock market was

instead negatively impacted in the latter half

of the month by the slowdown in the US

economy's growth trend and lower than

expected quarterly corporate data.

From a macroeconomic perspective, the US

(with reference to December’s data, on a

monthly basis) saw a decline in orders for

durable goods (-3.4%), industrial production

(-0.1%) and retail sales (-0.9%), while positi-

ve indications came from the real estate

sector and sales of new houses (+11.6%)

and existing homes (+2.4%). The consumer

confidence index also registered a positive

performance, as measured by the Conferen-

ce Board (at 102.9 points in January, from

93.1 the previous month). According to preli-

minary estimates, US GDP showed a

slowdown in the 4th quarter of 2014 (+2.6%

QoQ annualised) compared to the previous

quarter (+5.0%). In the Eurozone, industrial

production was up (+0.2% in November, on

a monthly basis, at an aggregate level) and

positive signs came from leading indicators

on the prospects of economic trends. The

ECB confirmed the official reference rate at

its current level (0.05%).

5.6%

18.6%

12.1%

11.9%‐3.1%

7.8%

4.5%

6.4%

-5% 0% 5% 10% 15% 20%

DJ Stoxx 50

S&P 500

DJ Euro Stoxx Utilities

FTSE MIB

January ‘15

1 year rolling

The Snam stock closed up

A predominantly positive trend for stock markets, driven by the ECB's extraordinary monetary policy measures

Oil prices closed down

January registered positive performance

across sectors, with the exception of the

banking sector, which, despite the ECB's

announcement of the launch of the Quantita-

tive Easing program, was negatively impact-

ed by increasingly strict capital constraints

announced by the Central Bank in the first

half of the month (new minimum capital re-

quirements). The best performance was

seen by the automotive sector, whose recov-

ery is confirmed by the growth in registra-

tions in 2014 (+5.4%) and positive estimates

for 2015 (+2.5/3%), as well as by the real

estate sector, which continues to benefit

from low interest rates.

The utility sector also registered positive

performance, boosted in particular by com-

panies in the French water sector.

In January, the utility sector recorded a

growth of 4.5%, driven by companies in the

French water sector (others: Veolia Environ-

nement +10% and Suez Environnement

+13%), which are amongst the most expo-

sed to the economic cycle as they are parti-

cularly active in the business of industrial

waste disposal.

Regulated operators also continued to bene-

fit from the low interest rates. Among them,

companies in the English water sector

(United Utilities +12% and Severn Trent

+7%) were boosted by the announcement of

new dividend policies, which increased visi-

bility for the next five years.

The Utility sector in the Stock Market

Source: Snam on the Bloomberg data

Main sector performance, January 2015

Sector and subsector performance, January 2015

4.1%

9.8%

4.4%

4.5%

-5% 0% 5% 10% 15%

Defensive Utilities

DJ Utility

Energy Utilities

Others

The utility sector also registered positive performance, boosted in particular by companies in the French water sector

The Utility sector performance

Financial Markets Review January 2015 Snam S.p.A. Investor Relations

DJ Ut i l i t y; 4,5%

DJ Insur ance; 9,2%

DJ T el ecom; 10,0%

DJ Heal th Car e; 9,9%

DJ M edi a; 8,9%

DJ Real Estate; 13,9%

DJ T r avel &Lei sur e; 8,1%

DJ Chemi cal s ; 10,6%

DJ Food&Bev; 11,3%

DJ Const&M ater ; 6,9%

DJ Inds Good; 6,8%

DJ Oi l &Gas; 2,7%

DJ Per s&Househol ds; 10,6%

DJ Autopar ts; 14,5%

DJ T ech; 4,7%

DJ Fi nanci al Ser vi ces; 7,3%

DJ Retai l ; 8,7%

DJ Banks; -0,7%

DJ Basi c Resour ces; 1,4%

-5% 0% 5% 10% 15% 20%

5.8%

3.2%

7.3%

3.2%

1.9%

7.3%

12.1%

4.5%

7.8%

6.4%

-5% 0% 5% 10% 15%

The Snam shares and its peers in the Stock Markets

The Snam stock closed the month of Janua-

ry up by 5.8%, at €4.34 per share, outperfor-

ming the utility sector.

The stock was boosted by market expecta-

tions for the ECB's announcement of the

new quantitative easing program which took

place on 22 January, the success of the

reopening of Snam’s bond on the basis of

the further decline in interest rates, as well

as the agreement for the sale of a 10% stake

in TIGF to Credit Agricole.

The stock's average daily trading volume in

January totaled 10.7 million units, up from

10.1 million in December.

Crédit Agricole Assurances in-to the share capital of TIGF

Snam’s Board of Directors, which met on 26

January under the chairmanship of Lorenzo

Bini Smaghi, has appointed, upon the propo-

sal of the Appointment Committee and with

resolution approved by the Board of Statuto-

ry Auditors, Yunpeng He as non-

independent and non-executive director of

Snam, in place of Roberta Melfa.

The new Director, designated by the main

shareholder CDP RETI, in accordance with

the shareholders' agreement signed subse-

quent to State Grid Europe Limited taking a

stake in CDP RETI, will remain in office until

the next Shareholders’ meeting.

Yunpeng He graduated in Electric System

and Automation from Tianjin University and

is deputy Director of the European Office of

State Grid Corporation of China and Director

of CDP RETI and Terna.

Corporate News

Snam and its peers, January 2015

Source: Snam on the Bloomberg data

FTSE MIB

Stoxx 50

DJ Utility

United Utilities

NG

Severn Trent

REE

Enagas

Snam

Terna

On January 28 Snam, GIC, and EDF Invest

entered into an agreement with Crédit Agrico-

le Assurances for its entry into the share

capital of TIGF with a 10% stake.

Upon completion of the transaction, Snam,

GIC, and EDF Invest will receive slightly abo-

ve €180m and together with Crédit Agricole

Assurances will hold respectively 40.5%,

31.5%, 18.0% and 10.0% of the share capital

of TIGF indirectly.

The completion of the transaction, which is

subject to customary closing conditions, is

expected to take place by the end of the first

quarter 2015.

On January 21 Snam successfully launched

TAP of existing fixed rate bond with maturity

April 2023.

The transaction allows the Company to raise

additional euro 250 million, as part of its

EMTN Programme (Euro Medium Term

Notes) . The deal was approximately 4 times

oversubscribed, with high quality of orders

and wide geographical diversification of

investors.

The bond, issued with a re-offer price of

101.341 and a re-offer yield of 1.327%, will

be listed on the Luxembourg Stock Exchan-

ge.

Financial Markets Review January 2015 Snam S.p.A. Investor Relations

Snam SpA

Piazza Santa Barbara 7 - 20097 S. Donato Milanese (Mi) Italy

www.snam.it — investor.relations@snam.it

tel: +39 02 37037272- fax: +39 02 37037803

Tap of April 2023 existing bond successfully launched

Agenda

March 11/12 Consolidated financial statement and draft financial statements at December 31, 2014. Dividend proposal for 2014. Report on corporate governance and ownership structure 2014. Report on Remuneration 2015. Sustainability Report 2014. Call of Shareholders’ Meeting. Strategic Plan 2015-2018.

Board of Directors appoints Yunpeng He as Director