Snam — Investor Presentation 2015

May 14, 2015

snam.it

1Q 2015 Consolidated Results

May 14th, 2015

Outline

Antonio Paccioretti Chief Financial Officer

Carlo Malacarne Chief Executive Officer

929	75	Up 2.4%
717	$\sqrt{2}$	Down 2.0%
325		Up 11.3%
225
653
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1Q 2015 Highlights

Income Statement

[ € 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

[ € 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

[ € mn ]

TOTAL COSTS	175	212	+37
Non regulated activities	3	23	+20
Pass-through costs	34	40	+6
Other costs	17	14	-3
Variable costs	4	4
Controllable fixed costs	117	131	+14
Regulated activities	172	189	+17
[ € mn ]	1 Q 2014	1 Q 2015

7

EBIT Analysis

8

Net Profit Analysis

[ € mn ]

	€ bn
 Bond issuances • 8.2y fixed rate bond: €250 mn;	18 16 14		16.8 1.2 1.8
 Institutional lenders financing: • New EIB financing for €200 mn; • Cancellation of relatively expensive EIB	12 10 8 6	13.2	10.7
financing for €300 mn;  Treasury management optimization	4 2 0		3.2
		Net debt 1Q 2015 Pool banking facilities	Total committed credit facilities and bonds Debt capital market
		Bilateral banking facilities	Institutional lenders financing

Main Financial Actions and Results

Cash Flow from Operation and Net Investments

[ € mn ]

Cash flow from operation

Net investments

Balance Sheet

[ € mn]

[ € mn]	Dec, 31 2014	Mar, 31 2015	Change
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

Q & A S e s s i o n

A n n e x e s

Gas injected into the network

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

Source: National Transport Network Balance

Italian Gas Market in 1Q 2015

Operational Data

		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)	15.9	15.9	-
	•Modulation (*)	11.4	11.4	-
	•Strategic	4.5	4.5	-
	Gas moved through storage system (bcm)	4.84	7.16	+47.9
	•Injection	0.08	0.01	-87.5
	•Withdrawal	4.76	7.15	+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

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