Snam — Earnings Release 2023

Mar 14, 2024

FY 2023 Consolidated Results

Opening remarks

energy to inspire the world

Financial Highlights

• €2.4 bn EBITDA Adj. (+8.0% yoy)
• €1.17 bn Net income Adj.¹ ahead of guidance
• €2.2 bn investments (+14.0% yoy)
• Dividend proposal of €0.2820/share on FY 2023 results
• Ample financial flexibility and credit ratings confirmed

Regulation and Policy Associates' Portfolio

• WACC uplift approved, to kick in 2024
• Base Ross applied on transport from 2024
• Finalization of the EU Gas Package to be published soon
• Italian Energy decree on CCS lay the foundation to set the regulatory framework Biomethane impairment and write down (- € 186m).

Gas Market

• 2023 Italian gas demand stood at 61.9 bcm (-10.0% YoY 2 )
• Average TTF price at € 40/MWh in 2023 (-41% yoy) with high volatility
• North volumes decline offset by LNG (+15% yoy) and lower demand (-10%) issuance of a bond exchangeable to Italgas shares • SeaCorridor starting to contribute FY 2023

- Active portfolio management: successful De Nora ABB and

• Positive regulatory review for Desfa and Terega completed

• 5 projects included in PCI list

• Net profit Reported at €1,135m (+69.2% y-o-y). Adjustments are mainly related to: De Nora capital gain (+€76m), Capital gain on De Nora contribution related to Nucera IPO (+€28m), ADNOC discount rate effect (+€65m), 2. Non weather adjusted.

Sound progress on the delivery of our strategy

Business focus

Gas infrastructure Energy transition

• Transport:
• Adriatic Line fully approved and €0.4 bn RePower EU funds recognized Output based incentives on fully depreciated assets >320 requests of connection of biomethane plants • Storage level at ~ 58% at the end of February 2024 • FSRUs
  -
  -
• Storage:
  • Overpressure authorized on 2 storage facilities

  • Reverse flow service offered to the system

• Piombino: in operation since mid 2023, and capacity fully booked
• Ravenna: vessel acquisition closed, onshore and offshore works started and the capacity auction to be launched in coming weeks
• Energy efficiency
  • Strong delivery on deep renovation pipeline
• €1.2 bn backlog at Dec. 23 and >€500 m FY order intake Biomethane
• • 41MW of capacity
  • Tariffs reviewed for inflation (8 plants bid in tariffs auctions)
• Decarbonization projects
  • South H2 Corridor and Ravenna CCS included in the PCI list
  • Modena H2 Valley received around €20m of grants
  • CCS Pilot phase of Ravenna project on track
  • Market sound on H2 and CCS launched (Feb 2024)
  • IPCEI Hy2Infra award for Puglia's H2 Valley (Feb 2024)

Improving sustainability performance

energy to inspire the world

Performance Emissions

80% Sustainable Finance New Framework launched in Feb-24 Strong performance across ESG scorecard KPIs

NEW FRONTIERS

• Commitments: Net Zero on all emissions by 2050 & net positive impact on biodiversity by 2027
• Climate Change risk assessment carried out
• Climate commitment and advocacy position document published

ESG RATINGS

• •	Climate Change risk assessment carried out Climate commitment and advocacy position document published	Scope 1 - Emissions from combustion Scope 1 - Natural gas emissions
ESG RATINGS CDP MSCI	A list AA	-57% vs 2015 -21% vs 2022 UNEP gold standard
Sustainalytics S&P DJSI	Leader in Gas Utility sector (Score 12.9) 3° in gas utilities sector (Score: 82/100)	Trajectory in line with Paris Agreement
1. On regulated perimeter. Piombino 2. SeaCorridor	FSRU emissions will be accounted in the target perimeter starting from 2024, the first year of full operation. In 2023 it consider HFC emissions (2018 = 0; 2022 = 1; 2023 = 0.6) acquisition concluded in 2023 but included in the 2022 baseline; FSRU emissionfrom	has emitted fuel & energy related (equal to 3 ktonCO2eq) not included in 2023 target perimeter	28 kton (july-december). Total Scope 1&2 values

-57% vs 2015 -21% vs 2022 UNEP gold standard 0 400 800 1200 1600 2022 2023 Scope 2 Scope 1 - Emissions from combustion Scope 1 - Natural gas emissions Scope 1+2 (ktons) 1 Scope 3 (ktons) 1 Net Zero Assessement by Moodys on emissions targets: 1,451 1,305 0 400 800 1200 1600 2022 2023 Associates Supply Chain Others 1,434 1,382 SeaCorridor2 -10% -4%

Trajectory in line with Paris Agreement

FY 2023 gas demand and flows

FY 2023 Financial results

energy to inspire the world

Guidance

€1.14 bn

Guidance

€15.5 bn

Solid results, ahead of guidance, in a volatile environment

1. Including organic Capex and FSRUs and energy transition acquisitions

FY 2023 Investments breakdown and alignment

Investments mix and EU Taxonomy alignment

29% taxonomy aligned, 44% green and decarb

Investments alignment to SDGs

- (including FSRUs)

• consumption and production
• Not aligned

investments 61% SDGs aligned

-

Adj. Net Income analysis

€m

International associates contribution

energy to inspire the world

energy to inspire the world

Net Debt evolution and financial structure

5.2

4.7

1,6 1,5

EIB loans Banking facilities Bonds ESG Commercial Papers

1.1 5.8

Net Debt / Fixed Assets1

Cost of debt at 2% and sound financial flexibility

8.4

1. Including book value of equity participations. 2. Shaded area consistent with thresholds for current rating positioning by Moody's and S&P (inferred)

Closing remarks and 2024 Guidance

energy
to inspire the world

	FY 2023	Guidance FY 2024
Investments	€2.2 bn • € 2.0 bn Gas Infrastructure • € 0.2 bn Energy Transition	€2.9 bn € 2.7 bn Gas Infrastructure • • € 0.2 bn Energy Transition	Capex acceleration mainly driven by Adriatic Line project
Tariff RAB	€22.4 bn	€23.8 bn	+6% RAB yoy thanks to new investments
Ebitda	€2.4 bn	~ €2.7 bn	WACC uplift, deflator impact, RAB growth and Ross effect on transport
Net income	€1.17 bn	~ €1.18 bn	EBITDA positive performance partially counterbalanced by higher D&A and financial expenses and lower associates
Net debt	€15.3 bn	~ € 17.6 bn	Increase in Net Debt driven by Capex acceleration
DPS	€0.2820/share	Min +3.0% yoy	In line with the improved policy

energy to inspire the world

Q&A Session

Annexes

Alignment

energy to inspire the world

Taxonomy eligibility and alignement - CapEx, OpEx, Revenues

Eligibility

• Transport of CH4: 100% eligible • Storage of CH4: excluded • Biomethane: 100% eligible • Buildings: 100% eligible • Mobility: Excluded • Energy Efficiency: 100% eligible • H2&CCS: 100% eligible Revenues • Transport of CH4 : • H2-ready replacements 100% aligned • Maintenance excluded • Methane leakage reduction 100% aligned • investments to reduce emissions 100% aligned • Connection of biomethane plants 100% aligned • Biomethane: depending on screening technical criteria of plants • Buildings: alignment depending on energy efficiency criteria • Energy Efficiency: cogeneration excluded, remainder 100% aligned • H2&CCS:100% aligned • Transport of CH4 : pro-quota of yearly demand • Storage of CH4: excluded • LNG: excluded • Biomethane: 100% eligible • Mobility: excluded • Energy Efficiency: 100% eligible • H2&CCS: 100% eligible • Transport of CH4: revenues aligned pro-quota on yearly demand • Biomethane: depending on screening technical criteria of plants • Energy Efficiency: cogeneration excluded • H2&CCS: 100% aligned • Only Opex for R&D and maintaining the assets • Same interpretation as Capex • Same interpretation as Capex 26% 89% 47% 55% 29% 28% 21% 20% 75% 37% 63% 39% Capex Opex FY 2022 FY 2023

energy to inspire the world

Sustainability Scorecard – Full Year 2023

	Environment					Social			Governance
		Performance 2023	Target 2023			Performance 2023	Target 2023			2023
1	% reduction of NG emissions vs 2015	-56.67%	-48.6%	9	% participation in welfare initiative	57.9%	54%	17	Average annual customers satisfaction rate in terms of
2	% NG recovered from maintenance activities (avg. last 5y)	60%	>40%	10	% employee	84%	70-75%		service quality % of reliability levels on gas
3	MWh of electricity production	980	>860		engagement index		< minimum	18	supply	99.9%1
4	by photovoltaic plants Production of biomethane (Mscm)	24.4	39	11	IpFG (Combined Frequency and Severity Index)	0.47	last 3 years (0.55)	19	% of third parties on which reputational due diligence
5	Reduction of CO2 equivalent	57	72	15 12	% of women in executive and middle-management roles	25.9%	25%		checks done
6	from energy efficiency (Kton) Cumulated number of installed CNG and LNG stations	91	100	13	% of women in succession planning	33%	26%	20	% of ESG Financing on the
7	Available LNG capacity for - SSLNG market1 (ktpa)	-	-	14	% of local suppliers involved out of total contractualized suppliers	73%	50%
8	% of vegetation restoration of the natural and semi-natural areas involved in the construction of	99.9%	>99%	15	Introduction of ESG criteria in scoring models (% of spending on assigned contracts)	35%	30%
	pipelines routing			16	% employees hours devoted to Snam Foundation initiatives supporting local communities	5,970	4,800
	1. SSLNG capacity will be in place in 2025 as planned

Target 2023			Performance 2023	Target 2023
	17	Average annual customers satisfaction rate in terms of service quality	8.1	8.1
< minimum	18	% of reliability levels on gas supply	99.9%1	99.9%
last 3 years (0.55)	19	% of third parties on which reputational due diligence checks done	100%	100%
	20	% of ESG Financing on the total Committed Funding	>80%	75%

Sustainability Scorecard - Reviewed scorecard with new targets

	KPIs	2023 Actual	2024 Budget	2027 Target		KPIs	2023 Actual	2024 Budget	2027 Target
Green	• Avoided CO2 emissions (ktCO2e)1	102.9	105	500		• Employees engagement index (%)	84	>80	>80
transition	H2 readiness length of network certified (km) •	1,513	1,900	3,000		• Women in exec. and middle-mgmt. roles (%)	25.9	26	27.5
	• Gas Transportation operational availability2 (%)	>99	>99	>99	People	• IpFG (Combined Frequency and Severity Index)	0.47	< min. 3y5	< min. 3y5
Multi molecule	Production of biomethane (Mscm) •	24.4	20	160		• Gender pay gap (%)6	-	-	+/- 5
infrastruct.	Invest. related to the CCS Ravenna Project Phase 1+2 (€M)3 •	65	120	370		Participation in welfare initiatives (%) •	57.9	75	80
						• Training hours delivered to employees (h/capita)	37	36	40
	• Reduction of total natural gas emissions (%)	-56.67	-57.5	-64.5
Carbon	Introd. ESG criteria in scoring models (% of contracts) •	35	35	65	Local	• Benefits for local communities over reg. revenues (%)	0.4	~1	~1
Neutrality	• RES4 on total electricity consumption (%)	63	52-55	100	Communit.	• Value released at local communities (€M)	1,451 8.1	>1,000 >8.1	>1,000 >8.17
	Tot. procurem. spending on suppliers w/ decarb. plan (%) •	23	25	35		Avg customer satis. rate in terms of service quality (1-10) •
	Zero Net Conversion by 2024 •		X			• Investments in Innovation over revenues (%)	3.3	3	3
Biodiversity	• Net Positive impact by 2027	X		Transform. Transform.	• Start-ups accelerated after PoC (#)8	11 (22)	15(25)	27(30)
& Regener.	Vegetation restored in areas of pipes constr. (%) •	99.9	99.9	99.9	innovation Innovation	Process digitalized and processes with AI (% of total) •	100/10	100/12	100/20
						• Projects covered by Security by Design cyber approach (%)	New KPI	100	100
	ESG Finance over total funding available (%) •	81		85		CapEx SDG-aligned (% of total) •	61
Financial	• CapEx EU Taxonomy-aligned (% of total)	29				Scope 1 and 2 CO2 emissions reduction (% v. 2022)9 •	-10		-25
& CO2	Revenues EU Taxonomy-aligned (% of total) •	26

• Italian territory covered by cyber resilience field tested scenarios (100% of Italian territory covered)

1. Emissions avoided to 3rd parties thanks to the Group's activities and investments in the infrastructure; in a first phase, the emissions avoided from bio-methane activities and energy efficiency interventions are considered 2. Previously called "Reliability levels on gas supply" 3. Cumulated figure 2023-2027 4. Renewable Energy Source computed on regulated perimeter 5. Snam targets to have an index lower than the minimum of the latest 3 years

2. For equivalent organizational positions 7. The target indicated refers to a spontaneous initiative by Snam to measure service quality through the annual survey, using a scale of values from 1 to 10; however, we are expecting a change in the service quality assessment methodology in the coming years. In this case, the annual target will have to be modified accordingly 8. KPI represents both the number of startup accelerated and the number of Proofs of Concept (PoC) 9. Reduction computed on regulated perimeter

Income Statement

€ mn	FY 2022	FY 2023	Change	Change %
Revenues	3.515	4.288	773	22.0%
Operating expenses	(1,278)	(1,871)	(593)	46.4%
EBITDA ADJUSTED	2,237	2,417	180	8.0%
Depreciation & amortisation	(873)	(940)	(67)	7.7%
EBIT ADJUSTED	1,364	1,477	113	8.3%
Net interest income (expenses)	(123)	(221)	(98)	79.7%
Net income from associates	308	315	7	2.3%
EBT ADJUSTED	1,549	1,571	22	1.4%
Income taxes	(385)	(393)	(8)	2.1%
NET PROFIT BEFORE THIRD PARTIES	1,164	1,178	14	1.2%
Third Parties Net Profit	(1)	(10)	(9)	-
NET PROFIT ADJUSTED	1,163	1,168	5	0.4%
EBITDA REPORTED	2,218	2,397	179	8.1%
EBIT REPORTED	1,328	1,271	(57)	(4.3%)
NET PROFIT REPORTED	671	1,135	464	69.2%

Revenues

€ mn	FY 2022	FY 2023	Change	Change %
Regulated revenues	2,719	3,104	385	14.2%
Transport	2,162	2,474	312	14.4%
Storage	515	553	38	7.4%
LNG	42	77	35	83.3%
Non regulated revenues	101	79	(22)	(21.8%)
Total Gas Infrastructure Businesses revenues	2,820	3,183	363	12.9%
Energy Transition Businesses revenues	695	1,105	410	59.0%
TOTAL REVENUES	3,515	4,288	773	22.0%

Operating Costs

€ mn	FY 2022	FY 2023	Change	Change %
Gas Infrastructure Businesses costs	607	826	219	36.1%
Variable costs	152	269	117	77.0%
Fixed costs	305	324	19	6.2%
Other costs	150	233	83	55.3%
Energy Transition Businesses costs	671	1,045	374	55.7%
TOTAL COSTS	1,278	1,871	593	46.4%

Balance Sheet

€ mn	2022	2023	Change	Change %
Net invested capital	19,447	22,950	3,503	18.0%
Fixed capital	21,562	23,002	1,440	6.7%
Tangible fixed assets	18,222	19,304	1,082	5.9%
Intangible fixed assets	1,321	1,449	128	9.7%
Equity-accounted investments	2,313	3,019	706	30.5%
Other Financial assets	175	163	(12)	(6.9%)
Net payables for investments	(469)	(933)	(464)	98.9%
Net working capital	(2,155)	(24)	2,131	98.9%
Receivables	8,020	8,181	161	2.0%
Liabilities	(10,175)	(8,205)	1,970	(19.4%)
Provisions for employee benefits	(27)	(28)	(1)	3.7%
Asset and liabilities held for sale	67	-	(67)	-
Net financial debt	11,923	15,270	3,347	28.1%
Shareholders' equity	7,524	7,680	156	2.1%

Alternative performance indicators reconciliation

€m	2022	2023	Change	Change %
EBITDA	2,218	2,397	179	8.1
Exclusion of items:	19	20	1	5.3
- Provisions for risks and charges	10	12	2	20.0
- Capital losses on writeoff of assets under
development	0	8	8
- Impairment losses on current assets	3	0	(3)
- Indemnities for termination of employment	6	0	(6)
Adj. EBITDA	2,237	2,417	180	8.0
EBIT	1,328	1,271	(57)	(4.3)
Exclusion of special items:	36	206	170
- Special items from EBITDA	19	20	1	5.3
- Impairment losses on non-current assets	17	186	169
Adj. EBIT	1,364	1,477	113	8.3
Net profit	672	1,145	473	70.4
Exclusion of special items:	492	33	(459)	(93.3)
- Special items from EBIT	36	206	170
- Profit (loss) from equity-accounted investments	519	(93)	(612)
- Gain on sale of Industrie De Nora shares	(73)	(76)	(3)	4.1
- Financial expense on liability management	17	0	(17)
- Taxation of special items	(7)	(4)	3	(42.9)
Adj. Net profit before third parties	1,164	1,178	14	1.2
Non-controlling interests	1	10	9
Adj. Net profit	1,163	1,168

		International associates contribution		to inspire the world	energy
Company	%		FY 2022	FY 2023	Delta
SeaCorridor	49.90%	Acquisition completed in Jan 2023 • • Strategic route for Italy with approx. 23 bcm imported (first Italian import source)	-	€ 46 m	+ € 46 m
Desfa	35.64%1	• Sound performance supported by auction premia on LNG imports and on exports to Bulgaria Energy costs passthrough starting from July '22 •	€ 28 m	€ 52 m	+ € 24 m
TAP	20.00%	• Higher revenues thanks to inflation-indexed tariffs First phase of the market test triggering a +1.2 bcm/y expansion from 2026 •	€ 60 m	€ 65 m	+ € 5 m
Terega	40.50%	• Flat y-o-y performance thanks higher volumes and more remunerative products from storage offsetting regulatory dynamics • Sponsor of PCI labeled H2 Med corridor	€ 48 m	€ 48 m	-
Adnoc	5.88%1	• Business performance in line with 2022 and expectations	€ 31 m	€ 30 m	- € 1 m
Interconnector	23.68%	Sound operating performance; y-o-y comparison mainly affected by +€31m revaluation • in 2022 Positive booking evolution supports M/L term earnings visibility •	€ 49 m	€ 11 m	- € 38 m
TAG	84.47%2	• Results affected by the long-term contracts expiry and lower volumes to Italy partly offset by higher reverse flow bookings Strategic role for gas security of supply and energy transition unchanged •	€ 58m	- € 46 m	- € 104 m
GCA	19.60%1	• Benefitting from previous years energy costs recovery y-o-y comparison affected by the impairment in 2022 (€25m) •	- € 29 m	€ 19 m	+ € 48 m
EMG	25.00%	Improvement driven by capex phasing and lower D&A •	€ 1 m	€ 4 m	+ € 3 m
		TAG lower contribution mitigated by a diversified portfolio	€ 246 m	€ 229 m	- € 17m

1. Indirect participation 2. 89.22% financial rights

Investments detailed by business

€m	FY 2022	FY 2023
Transport(1)	1,015	1,147
Storage	173	225
LNG(2)	423	606
Energy Transition(3)	315	216
Total	1,926	2,194

29% taxonomy aligned and 61% SDGs aligned in 2023

1. Including corporate capex 2. Including greenture (SSLNG and mobility) investments and FSRUs acquisitions 3. Including Biomethane acquisitions

Maturities profile and Ratings overview

Maturities profile (€bn, amount drawn)1

Ratings overview

Gas injection details

bcm	FY 2022	FY 2023	Change (bcm)	Change (%)
National production	3.1	2.8	-0.3	-9.7%
Pipelines	58.1	45.0	-13.1	-22.5%
Gela	2.6	2.5	-0.1	-3.8%
Mazara del Vallo	23.6	23.0	-0.5	-2.1%
Passo Gries	7.6	6.6	-1.0	-13.2%
Tarvisio	14.0	2.8	-11.1	-79.3%
Gorizia	0.0	0.0	0.0	-
Melendugno	10.3	10.0	-0.3	-2.9%
LNG	14.2	16.3	2.1	14.8%
Adriatic LNG	8.3	8.8	0.5	6.0%
OLT	3.7	3.8	0.1	2.7%
Panigaglia	2.2	2.6	0.4	18.2%
Piombino	-	1.1	1.1	-
Total injection	75.4	64.1	-11.3	-15.0%

Disclaimer

energy to inspire the world

Luca Oglialoro, 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 accounting 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 operates 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.

energy to inspire the world