COMPANY PROFILE

Snam is Europe's leading operator in natural gas transport and storage, with an infrastructure enabling the energy transition. It ranks among the top ten Italian listed companies by market capitalization.

Snam operates a pipeline network of approximately 41,000 km spanning from Italy, Austria, France, Greece and the United Kingdom and the company manages 3.5% of the world's gas storage capacity. It is also one of the main operators in LNG (Liquified Natural Gas) regasification.

With its 80 years of experience in the management and development of networks and plants, Snam guarantees security of supply and promotes the energy transition across territories, through investments in green gases (biomethane, hydrogen) and energy efficiency.

Snam has set itself a net zero target on Scope 1 and 2 CO2 equivalent emissions by 2040 as well as a target for indirect Scope 3 (subsidiaries, suppliers) emissions reduction by 2030.

www.snam.it

2022 Half-Year Financial Report

gas utility turbines in Europe. Established in 1941 as

building and managing sustainable

National Methane Pipelines Company, for over 75 years, it has been

Corporate bodies

Chairwoman Chairman

Monica De Virgiliis (1) (2) (3) Stefano Gnocchi (6)

Chief Executive Officer Standing auditors

Massimo Bergami (1) (3) Alternate auditors

Laura Cavatorta (3) (4) Federica Albizzati (6)

Augusta Iannini (1) (3) Maria Gimigliano (5)

Piero Manzoni (3) (4) Federico Sambolino (5)

Rita Rolli (3) (4)

Qinjing Shen (1)

Alessandro Tonetti (1)

CONTROL, RISK AND RELATEDPARTIES TRANSACTIONS COMMITTEE ()**

Piero Manzoni - Chairman Rita Rolli - Chairwoman

ENVIRONMENTAL, SOCIAL & GOVERNANCE AND ENERGY TRANSITION SCENARIOS COMMITEE () AUDITING FIRM (*)

Laura Cavatorta - Chairwoman Deloitte & Touche S.p.A.

Massimo Bergami

Qinjing Shen

Rita Rolli

(*) Appointed by the Shareholders' Meeting of 27 April 2022 - in office until the date of the Shareholders' Meeting to be convened in 2025 to approve the financial statements for the year ending 31 December 2024.

(**) Established by the Board of Directors on 27 April 2022.
(***) Appointed by the Shareholders' Meeting of 23 October 2019 for the period covering the years 2020 2028.
(1) Directors nominated in the list submitted by the shareholder CDP Reti S.p.A.
(2) Appointed Chair of the Board of Directors on the proposal of the Shareholder CDP Reti S.p.A.
(3) Independent Directors pursuant to the TUF and the Corporate Governance Code.
(4) Directors nominated in the list submitted jointly by Institutional Investors.
(5) Candidate standing auditors on the list presented by shareholder CDP Reti S.p.A.
(6) Directors that were candidates on a list submitted jointly by Institutional Investors.

**BOARD OF DIRECTORS () BOARD OF STATUTORY AUDITORS ()**

Stefano Venier (1) Gianfranco Chinellato (5) Directors Ines Gandini (5)

APPOINTMENTS AND COMPENSATION COMMITTEE ()**

Augusta Iannini Massimo Bergami Laura Cavatorta Alessandro Tonetti

Group structure at 30 June 2022

The changes in the consolidation area of the Snam Group at 30 June 20221 compared to 30 June and 31 December 2021 concerned:

(i) the acquisition by Renerwaste S.r.l., on 28 February 2022, of 85% of Renerwaste Cupello S.r.l., a company active in the development and subsequent management of a plant for the production of biomethane from Organic Fraction of Municipal Solid Waste (OFMSW);
(ii) the acquisition by Renerwaste S.r.l., on 3 March 2022, of 100% of three companies, respectively Biowaste CH4 Foligno S.r.l. and Biowaste CH4 Anzio S.r.l., owners of two plants for the production of biomethane from OFMSW, and Biowaste CH4 Group S.r.l., a company that provides services to the plants;
(iii) the entry of Iniziative Biometano S.p.A. into the scope of consolidation, on 11 April 2022, due to the increase of its equity investment from 50% to 51% of the share capital following the exercise of a call option provided for within the contractual agreements between the shareholders, resulting in the acquisition of control instead of joint control;
(iv) the acquisition by Snam FSRU Italia S.r.l. (previously Asset Company 11 S.r.l.), on 31 May 2022, of 100% of the share capital of Golar LNG NB 13 Corporation, a company that owns, as its sole asset, the storage and regasification vessel (FSRU) "Golar Tundra". With a storage capacity of about 170,000 cubic metres of liquefied natural gas and a continuous regasification capacity of 5 billion cubic metres per year, the new liquefied natural gas import terminal, which is expected to be operational in spring 2023, will contribute to Italy's energy security and diversification.

The Group structure at 30 June 2022 is shown below:

¹ More information is provided in the annex "Snam S.p.A. investments at 30 June 2022" to the notes to the condensed half-year consolidated financial statements (Italian version).

General Contents

INTERIM MANAGEMENT REPORT ..................................................................... 9

CONDENSED HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS...... 68

Disclaimer

This Report contains forward-looking statements, in particular in the "Outlook" section related to: evolution of gas natural demand, investment plans, future operating performance, execution of projects. The forward-looking statements have by their nature a component of riskiness and uncertainty because they depend on the occurrence of future events and developments. The actual results may therefore differ from those announced in relation to different factors, including: the evolution of demand, supply and prices of natural gas, actual operating performance, general macroeconomic conditions, geopolitical factors such as international tensions, the impact of regulations regarding energy and environmental issues, the success in development and application of new technologies, changes in expectations of stakeholders and other changes in business conditions.

Snam, Snam Group, Group (or group) means Snam S.p.A. and the companies included in the consolidation area.

Group Structure at 30 June 2022 9

Interim Management Report

Performance in the first half of 2022 11
Results 12
Operating performance 16
Snam share performance 18
Main events 19
Operating performance by business segment 21
Natural gas transportation 22
Liquefied Natural Gas (LNG) regasification 25
Natural Gas Storage 26
Financial review and other information 30
Financial review 31
Other information 53
Risk and uncertainty factors 54
Outlook 66

Performance in the first half of 2022

Results

In order to allow a better assessment of the economic and financial performance, this Report presents the reclassified financial statements and some alternative performance measures (Non-GAAP measures), mainly represented by the adjusted results. More specifically, EBITDA, EBIT and adjusted net profit are obtained by excluding the special items (respectively gross and net of the related taxes) from the operating profit and the reported net profit, as per the scheme of the Income Statement.

The income components classified as special items in the first half of 2022 relate to: (i) the gain from the sale of shares in Industrie De Nora S.p.A. for the purpose of listing the company on the stock exchange, and other income related to capital increases of the same company not subscribed by Snam (72 million euros in total, net of ancillary charges and related taxation), transactions downstream of which Snam holds 25.88% of the company's share capital (35.63% prior to the IPO); (ii) financial expense arising from the repurchase of bonds on the market as part of the liability management transaction completed in January 2022 (17 million euros; 13 million euros, net of the related tax effect); (iii) impairment of current and non-current assets (13 million euros in total); (iv) severance indemnity paid to the outgoing CEO, following the termination of employment as CEO and General Manager of Snam S.p.A. (6 million euros, net of related taxes); (v) costs incurred following the continuation of the state of emergency related to the Covid-19 pandemic, mainly concerning purchases of personal protective equipment for internal use and costs for sanitation and cleaning services, for a total amount of 2 million euros net of related taxes.

ADJUSTED RESULTS2 3

The adjusted gross operating margin (EBITDA) for the first half of 2022 amounted to 1,155 million euros, substantially in line (-8 million euros; -0.7%) compared to the corresponding value in the first half of 2021. The expected reduction in WACC (-64 million euros, of which 50 million euros related to transportation) was absorbed by the effects of the increase in the RAB base (+24 million euros, including the effect of lower input-based incentives) and higher revenues from output-based services (+19 million euros) as well as the positive performance of the new energy transition business (+13 million euros) driven by the deep renovation sector. The EBITDA of the regulated businesses was also positively impacted by one-off effects, partly absorbed by the dynamics of the provisions for risks and charges, due to utilisations made in the first half of 2021 for disputes that had come to an end.

Adjusted EBITDA

1,155 million euros; -0.7%

² For the definition of these indicators and the reconciliation with the related reported results, in line with the guidelines of document 2015/ESMA1415 "ESMA Guidelines on Alternative Performance Measures" of 5 October 2015 and subsequent additions, please refer to the chapter "Commentary on economic-financial results - Non GAAP measures".

³ An analysis of EBITDA and EBIT by business segment is provided in the chapter "Operating performance by business segment".

Adjusted Operating income (EBIT), in the first half of 2022, amounted to 728 million euros, down by 34 million euros (-4.5%) compared with the corresponding first half of the 2021 figure, due to the aforementioned change in EBITDA and greater amortisation, depreciation and impairment losses (-26 million euros, 6.5%) resulting primarily from the commissioning of new assets.

The Group adjusted net profit in the first half of 2022 amounted to 646 million euros, an increase of 11 million euros (+1.7%) compared to the corresponding figure from the first half of 2021 (635 million euros). The increase was mainly due to the positive contribution of the investee companies (+37 million euros; or 26.6%) and, in particular, of Interconnector Limited (+18 million euros) as a result of the increased capacity booking for export, favoured by the current market conditions and in particular by the strong availability of liquefied natural gas in the United Kingdom, which resulted in a more competitive price. This effect was partly absorbed by the aforementioned reduction in operating profit, against the backdrop of lower income taxes and net financial expenses substantially in line with the first half of 2021 (-1 million euros; -2%). The increase in the average cost of gross debt from 0.8% in the first half of 2021 to about 1% in 2022 was absorbed by the one-off proceeds related to the partial repayment of the Shareholders Loan by OLT.

The positive net cash flow from operating activities (2,318 million euros), mainly attributable to the dynamics of working capital related to balancing activities, together with the proceeds from the repayment of the financial receivable by the subsidiary OLT, against the simultaneous refinancing on the market, and from the divestment of an equity investment in Industrie De Nora to support the company's stock exchange listing, resulted in a free cash flow of 1,749 million euros. Net financial debt, including the equity cash flow (844 million euros), deriving essentially from the payment of the 2021 dividend to shareholders4, and non-monetary changes mainly related to the settlement of the convertible bond through the allocation of Snam shares in portfolio, decreased by 1,199 million euros compared to 31 December 2021, to 12,822 million euros (14,021 million euros at 31 December 2021).

Free Cash Flow +1,749 million euros

Group adjusted Net Profit

646 million euros; +1.7%

4 The total dividend from 2021 profits amounted to 872 million euros, of which 345 million euros as an interim payment and 527 million euros as the balance. The amounts still to be paid at 30 June 2022 are attributable to the deferred collection as requested by some shareholders.

Technical investments

537 million euros

Technical investments in the first half of 2022 amount to 537 million euros, down 29 million euros (-5.1%) and relate essentially to the natural gas transportation (430 million euros; 458 million euros in the first half of 2021) and storage (60 million euros; 68 million euros in the first half of 2021) segments.

During the first half of 2022, 7 accidents were recorded (6 accidents in the first half of 2021), of which 2 occurred to Snam employees (1 in regulated core business and 1 in new business) and 5 accidents occurred to contract suppliers (1 in regulated core business and 4 in new business). With regard to the accident indices, the frequency index is 1.04, up compare to the first half of 2021, and the severity index is 0.03, due to the small number of accidents recorded during the half-year.

Key income statement figures

	First half
(million euros)	2021	2022	Change	% change
Core business revenues	1,370	1,394	24	1.8
New business revenues	157	286	129	82.2
Total revenues	1,527	1,680	153	10.0
Total revenues net of energy costs	1,454	1,595	141	9.7
Operating costs (a)	364	525	161	44.2
Gross operating margin (EBITDA) (a)	1,163	1,155	(8)	(0.7)
Operating profit (EBIT) (a)	762	728	(34)	(4.5)
Net profit (a) (b)	635	646	11	1.7
Special items	243	40	(203)	(83.5)
Reported net profit (b)	878	686	(192)	(21.9)

(a) Figures are stated in the adjusted configuration.

(b) Attributable to Snam's shareholders

Key balance sheet and cash flow figures

	First half
(million euros)	2021	2022	Change	% change
Technical investments	566	537	(29)	(5.1)
Net invested capital at period-end	21,076	20,682	(394)	(1.9)
Equity (including Non-controlling interests)	6,928	7,860	932	13.5
Snam Shareholders' equity	6,902	7,806	904	13.1
Net financial debt	14,148	12,822	(1,326)	(9.4)
Free Cash Flow	(467)	1,749	2,216

Key share and income figures

		First half
		2021	2022	Change	% change
Number of shares of share capital	(million)	3,360.9	3,360.9
Number of shares outstanding at period-end	(million)	3,270.2	3,351.7	81.5	2.5
Average number of shares outstanding during the period	(million)	3,270.2	3,320.3	50.1	1.5
Period-end official price per share	(€)	4.875	4.999	0.124	2.5
Net profit per share (*)	(€)	0.268	0.207	(0.061)	(22.9)
Adjusted net profit per share (*)	(€)	0.194	0.195	0.001	0.3

(*) Calculated considering the average number of shares outstanding during the period.

Operating performance

In conformity with IFRS 8 "Operating segments", the operating business segments were defined on the basis of the internal reporting used by the Company's management for allocating resources to the different segments and for analysing the respective performances. The reportable business segments are the regulated activities of Transmission, Storage and Regasification. "Other segments", which are not reported separately, include activities relating to the new Energy Transition businesses (sustainable mobility, energy efficiency and biogas/biomethane) as well as the activities of Snam Global Solutions.

Key operating figures

	First half
	2021	2022	Change	% change
Natural gas transportation (a)
Natural gas injected into the National Gas Transportation Network (billion cubic metres) (b)	38.51	39.11	0.60	1.6
Gas demand (b)	39.97	39.20	(0.77)	(1.9)
Liquefied Natural Gas (LNG) regasification (a)
Regasified LNG volumes (billion cubic metres)	0.76	0.88	0.12	15.8
Natural gas storage (a)
Available storage capacity (billion cubic metres) (c)	12.02	12.00	(0.02)	(0.2)
Natural gas moved through the storage system (billion cubic metres)	11.5	10.5	(1.0)	(8.7)
Employees in service at period-end (number) (d)	3,357	3,526	169	5.0
of which:
- Transport Segment	1,838	1,845	7	0.4
- Regasification Segment	68	67	(1)	(1.5)
- Storage Segment	63	70	7	11.1
- Other segments	436	568	132	30.3
- Corporate and other	952	976	24	2.5
Accident indices - Employees and contractors
Total number of injuries	6	7	1	16.7
Frequency index (e)	0.98	1.04	0.06
Severity index (f)	0.05	0.03	(0.02)

(a) With regard to the first half of 2022, gas volumes are expressed in standard cubic metres (SCM) with an average higher heating value (HHV) of about 38.1 MJ/SCM (10.573 kWh/SCM) for transportation and regasification activities and approximately 39.6 MJ/SCM (10.919 kWh/SCM) natural gas storage for the 2022-2023 thermal year.

(b) The data for the first half of 2022 is current as at 08 July 2022. The corresponding 2021 value has been definitively updated.

(c) Working gas capacity for modulation, mining and balancing services. The available capacity at 30 June 2020 is that declared to the Electricity, Gas and Water Authority at the start of the 2022- 2023 thermal year.

(d) Fully consolidated companies. The change reflects the entry of new resources due to the change in the scope of consolidation (77 resources) and the strengthening of the new energy transition business.

(e) Frequency index: number of accidents at work resulting in absence of at least one day, per one million of hours worked.

(f) Severity index: number of work days lost (calendar days), related to accidents at work resulting in absence of at least one day, per one thousand hours worked.

Natural gas transportation

The volume of gas injected into the network in the first half of 2022 totalled 39.11 billion cubic metres, up from the first half of 2021 (+0.60 billion cubic metres; +1.6%) due to higher volumes that reflected an increase in gas injected for export, notably at the Tarvisio entry point. Gas demand in the first half of 2022, amounting to 39.20 billion cubic metres, recorded a decrease compared to the corresponding period of 2021 (-0.77 billion cubic metres; -1.9%), attributable to the contraction in consumption in the residential and tertiary sector (-1.06 billion cubic metres; -6.1%), mainly due to the milder temperatures compared to the first half of 2021, particularly in April and May, as well as the drop in consumption in the industrial sector (- 0.32 billion cubic metres; -4.6%), due to high raw material prices and procurement difficulties. These effects were partly absorbed by the growth in consumption in the thermoelectric sector (+0.87 billion cubic metres; +6.0%), due to the drop in hydroelectric production caused by the extreme drought, and partly absorbed by the lower use of natural gas in electricity generation due to higher prices.

Adjusted for the climate impact, gas demand was 38.78 billion cubic metres, a decrease of 0.11 billion cubic metres (-0.3%), compared with the corresponding value for the first half of 2021 (38.89 billion cubic metres) in line with the trend of strengthening energy efficiency measures.

Natural gas storage

The volumes of gas moved in the storage system in the first half of 2022 amounted to 10.5 billion cubic metres, a decrease of 1.0 billion cubic metres, equal to 8.5%, compared with the first half of 2021. The reduction is attributable to lower injections into storage due to higher gas prices, as well as lower withdrawal from storage as a result of milder temperatures in the first half of the year compared to the corresponding period in 2021.

Total storage capacity at 30 June 2022, including strategic storage, was 16.5 billion cubic metres (unchanged from 30 June 2021), of which 4.5 billion cubic metres related to strategic storage (unchanged from the 2021-2022 thermal year) 5and 12.0 billion cubic metres relating to available capacity. At 30 June 2022, the available allocated capacity for the thermal year 2022- 2023 was 57.6%. At 25 July 2022, Snam, in its role as purchaser of last resort to support the filling of storage, has purchased and injected into storage approximately 2 billion cubic metres of gas, of which approximately 760 million cubic metres for the operation of the infrastructure, bringing the filling percentage to approximately 71% of the total capacity, in line with the progressive achievement of the objective of filling at least 90% of the national storage capacity established by the Ministry of Ecological Transition with Decree no. 253 of 22 June 2022. Due to the current regulatory framework, the service of last resort does not generate any economic or financial impact for Snam.

⁵ With a press release dated 10 January 2022, the Ministry of Ecological Transition confirmed for the thermal year 2022-2023 (01 April 2020-31 March 2023) the volume of strategic gas storage equal to 4.62 billion cubic metres, of which 4.5 billion are attributable to Stogit.

Liquefied Natural Gas (LNG) regasification

In the first half of 2022, 0.88 billion cubic metres of LNG were regasified at the Panigaglia (La Spezia) LNG terminal (0.76 billion cubic metres in the first half of 2021; +15.8%) and 21 methane tankers were unloaded, in line with the tankers allocated (18 tankers unloaded in the first half of 2021, compared to the 20 tankers allocated). Starting in April 2022, there was an increase in the volumes regasified by LNG Italy and a consequent increase in tanker unloading compared to the first quarter of 2022, which had been affected by price dynamics and, in particular, by the greater inflow of Algerian liquefied gas to France and Spain compared to Italy.

Snam share performance

The Snam share price ended the first half 2022 at a price of 4.999 euros, down 5.68% from the 5.30 euros recorded at the end of 2021.

The average share price during the half-year was 5.103 euros, with a high of 5.558 euros at the end of May.

In the first half of the year, the stock market suffered from the volatility triggered by the conflict in Ukraine, which caused great uncertainty worldwide. In this context, accompanied by a growing inflationary drive and a consequent prospect of interest rate increases by central banks, the Snam stock showed greater resilience than the market, outperforming both the FTSE MIB and the Stoxx Europe 600 Utilities.

Significant volumes were traded in the second half of March in connection with the presentation of the FY 2021 results, accompanied by an upward trend in the stock. The decline in June was affected, among other things, by the payment of the balance of the dividend.

SNAM - Snam, FTSE MIB and STOXX Europe 600 Utility price comparison (1 January 2022 - 30 June 2022)

Main events

Security of supply and energy diversification

Floating regasifiers - FSRU

In order to promote greater security and diversification of Italy's energy supplies, on 31 May 2022 Snam finalised the purchase from Golar LNG Limited of 100% of the share capital of Golar LNG NB 13 Corporation, a company that owns the Floating Storage and Regasification Unit (FSRU) "Golar Tundra" as its sole asset, for a consideration of 350 million dollars (approximately 329 million euros). Golar Tundra, with a storage capacity of 170,000 cubic metres and an annual regasification capacity of 5 billion cubic metres of gas, will be positioned in central-northern Italy, close to the points of greatest gas consumption, in order to ensure the maximisation of regasification capacity. The FSRU is expected to commence operations in the spring of 2023, following the conclusion of the authorization and regulatory process and the completion of the works required for connection to the transport network.

In addition, on 18 May 2022, Snam and Golar LNG Limited signed a contract for the sale by Golar to Snam of the LNG carrier "Golar Arctic", subject to conversion into an FSRU, to be installed in the port area of Portovesme, in Sardinia, as envisaged by the project for the energy supply of the island. The contract has a total value of 269 million euros and includes the purchase of the ship and the investment required for its conversion into an FSRU with a storage capacity of up to 140,000 cubic metres. Following full conversion, the FSRU will be sold to the Snam Group. The start of the ship conversion activities and the consequent fulfilments are subject to the issuance by Snam of a Notice-to-Proceed (NTP), after which the delivery of the FSRU can take place within about two years.

Lastly, on 06 July 2022, Snam and BW LNG signed a contract for the acquisition by Snam Group of 100% of the share capital of FSRU I Limited, which upon closing will own the floating storage and regasification unit "BW Singapore" as its sole asset. Built in 2015, BW Singapore has a maximum storage capacity of about 170,000 cubic metres of liquefied natural gas (LNG) and a nominal continuous regasification capacity of about 5 billion cubic metres per year.

The FSRU will be available to Snam on the date of the closing of the deal, which is expected by the end of

The FSRU, which is currently bound by a charter agreement with a third party until November 2023, is expected to be located in the Upper Adriatic, near the coast of Ravenna and to commence operations in the third quarter of 2024, following the conclusion of the authorisation and regulatory process and the completion of the works required for mooring and connection to the transport network.

MoU with Enagás for a feasibility study for a Spain-Italy gas pipeline

On 11 May 2022, Snam signed a Memorandum of Understanding with Enagás to jointly commission a technical feasibility study for the possible construction of an offshore gas pipeline between Spain and Italy, to further diversify supplies to Italy and Europe.

Urgent provisions for the allocation of storage capacity and the role of Snam as system operator

Measures of the Ministry of Ecological Transition - MiTe and ARERA resolutions

As a result of the ongoing conflict situation between Russia and Ukraine and rising gas prices, the Ministry of Ecological Transition - MiTe issued Decree no. 18 of 14 March 2022 containing, among other things, provisions for the security of the national natural gas system and for the promotion of additional gas volumes in the national system, with the aim of "bringing storage filling to at least 90% of the available national storage capacity", in line with what was decided at European level.

With subsequent Decree no. 138 of 1 April 2022, the MiTe established that Snam Rete Gas shall procure and inject into storage in April 2022 the volumes of gas for the operation of the system for the period November 2022 - March 2023, as well as for the management of the technical consumption of the storage companies, in accordance with the procedures defined by the Regulatory Authority - ARERA, which ensure Snam Rete Gas the economic neutrality of the filling operations. These modalities were defined by the Authority with Resolution 165/2022/R/gas.

Subsequently, with Decree no. 253 of 22 June 2022, the MiTe issued further provisions on the security of the national natural gas system aimed at achieving the technical filling level of 5,400 million standard cubic

metres by the end of June necessary to not jeopardise the target of 90% filling at the end of the injection campaign. In particular, the Decree provided for Snam Rete Gas to offer a filling service of last resort by acquiring quantities of gas for injection at the storage infrastructure that are complementary to the quantities injected by market operators, in accordance with modalities defined by ARERA that provide for the recognition of the overall costs actually incurred, with the safeguarding of the Snam Rete Gas economicfinancial balance.

These modalities have been defined by ARERA with Resolution 274/2022/R/Gas, published on 24 June 2022, which provides that (i) the difference between the cost of purchasing and selling (in the coming winter) gas will be settled and that the financial expenses actually incurred in relation to procurement costs will be recognised, and (ii) the Cassa will provide Snam Rete Gas with resources of up to 2 billion euros as a priority for the performance of the filling service.

Snam for the energy transition

Main acquisitions in biomethane

Following agreements signed in December 2021 for the purchase from Asja Ambiente Italia S.p.A. of a portfolio of plants and development projects in the field of OFMSW (organic fraction of municipal solid waste) treatment and biomethane production, on 3 March 2022, Snam completed the acquisition of 100% of the capital of Biowaste CH4 Anzio S.r.l. and Biowaste CH4 Foligno S.r.l, owners of plants for the production of biomethane from OFMSW in Anzio and Foligno, as well as 100% of the share capital of Biowaste CH4 Group S.r.l., a company that provides services to the plants through its personnel.

Inauguration of the first biomethane plant from OFMSW in Sicily

On 17 May 2022, Snam inaugurated in Caltanissetta the first biomethane plant from OFMSW in Sicily, a circular economy project that aims to be the leader of other similar initiatives on the island, with the objective of contributing to the decarbonisation of the Region and the country.

The new plant will be able to recover about 36,000 tonnes/year of OFMSW from neighbouring municipalities, and will contribute to improving the efficiency of the waste system in the Province and the Region, favouring the reduction of the environmental impact, through a reduced recourse to landfills and the transport of waste outside the Region, and a consequent reduction of costs for the municipality and citizens.

Sustainable finance

In January 2022, Snam issued its first dual-tranche Sustainability-Linked bond for 1.5 billion euros, whose economic performance is linked to the achievement of certain sustainability targets. These issues are aimed at financing investments in environmental sustainability and energy transition.

It should be noted that the January 2022 issue was associated with a Liability Management exercise that led to the repurchase of Snam bonds for a nominal value of 350 million euros, in order to proactively manage future debt maturities and accelerate the shift towards instruments linked to sustainability issues.

In the first months of the year, the 400 million euros convertible bond, maturing in March 2022, was converted for about 96% of its nominal value into Snam shares, while the remainder was repaid in cash.

In addition, in the second quarter of 2022, Snam finalised Revolving Credit Facilities (RCF) with major relationship banks for a total of 900 million euros, with environmental and social KPIs in line with the existing Sustainable Loan for a total of 3.2 billion euros. Lastly, the Euro Commercial Paper programme was utilised at 30 June 2022 for about 2.5 billion euros. All issues are Environmental, Social and Governance (ESG) in nature.

At 30 June 2022, the Snam sustainable finance weight was around 70%, up from 60% at the end of 2021 and in line with the target of exceeding 80% by 2025.

I.P.O. Industrie De Nora

The Industrie De Nora IPO was successfully completed on 30 June 2022, one of the most significant transactions of the year at European level, despite the difficult market context.

Snam accompanied the company in the listing process, maintaining a strategic share (25.88% of the capital) to support its future development.

Significant events after the end of the first half of the year

No significant events occurred after 30 June 2022, other than those reported in the preceding paragraphs.

Interim Management Report - Performance in the first half of 2022 21

Operating performance by business segment

Natural gas transportation

The natural gas transportation segment information includes figures for Snam Rete Gas, Infrastrutture Trasporto Gas and Enura.

Key performance indicators

	First half
(million euros)	2021	2022	Change	% change
Regulated revenues (a) (b)	1,084	1,076	(8)	(0.7)
Other non-regulated revenues	23	64	41
Total revenues (a) (b)	1,107	1,140	33	3.0
EBITDA	919	923	4	0.4
Amortisation, depreciation and impairment losses	326	345	19	5.8
EBIT	593	578	(15)	(2.5)
Technical investments	458	430	(28)	(6.1)
- of which with a greater return	69	50	(19)	(27.5)
- of which with a basic return (c)	389	380	(9)	(2.3)
Natural gas injected in the National Gas Transportation Network (billions of cubic metres) (d)	38.51	39.11	0.60	1.6
Gas transportation network (kilometres in use)	32,680	32,763	83	0.3
- of which National Network	9,649	9,668	19	0.2
- of which regional network	23,031	23,095	64	0.3
Employees in service at the period end (number)	1,838	1,845	7	0.4

(a) Before consolidation adjustments.

(b) Net of revenues which, in accordance with tariff regulations, are offset by costs (pass-through item) relating to the modulation service amounting to 34 million euros in the first half of 2022 (27 million euros in the first half of 2021).

(d) The data for the first half of 2022 is current as at 08 July 2022. The corresponding figure for 2021 has been updated definitively and is consistent with that published by the Ministry of Economic Development. Gas volumes are expressed in standard cubic metres (Scm) with an average higher heating value (HHV) of 38.1 MJ/Scm (10.573 kWh/Scm).