energy to inspire the world

Snam 2030 vision and 2021-2025 plan

29 November 2021

Snam has reshaped its business over the last six years

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Pro-forma adjusted.

€4.7bn of cash returned to shareholders through dividends and buybacks

Key developments

Snam is ready to deliver

Global leader in H2-ready transport network

~ 33,000Km of network ~2,700Km of dedicated 100% H2 network by 2030 Acquisition of TMPC/TTPC pipelines from Eni

17bcm of storage capacity (16% EU market share, 3.4% global market share) Tests confirm compatibility with H2 storage First acquisition abroad with dCarbonX signing

Global leader in energy storage

Green Energy Projects

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~200 people in H2, Biomethane and Mobility Partnerships with industry leaders

Value creation through planned IPO

Purpose included in the by-laws Net-zero by 2040 scopes 1&2 New scope 3 target Strong focus on ESG

14th Consecutive year of projects delivered on time and on budget

Unparalleled execution capabilities

Ability to work in partnership Successful partnerships across different countries and types of investors

Disciplined investment approach >70% TSR 2016-2021

Snam's assets and competences are essential to delivering the energy transition

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2030 vision: Networks, Storage and Integrated projects

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2021 – 2025 Strategic Plan

Closing remarks

The COP26 consensus: green gases are on the cusp of a revolution

Green gas needed to get to zero

• Net-zero commitments from countries with ca 90% of global emissions
Electrification to reach around 50% of final energy mix
• Green gases required to decarbonize hard-to-abate sectors; up to 1/3 of energy mix by 2050

Technology costs falling

Cost decline of hydrogen to accelerate to reach \$0.5/kg by 2050 (BNEF)
Supportive global policies and incentives for deployment at scale

Capex supercycle coming

Molecules accounting for major share of \$150tn global capex needs by 2050
\$130tn capital committed by financial institutions to net zero
\$5tn avg. annual capex 2020-50, more than double vs current level

Pivotal role of infrastructure

Green gas infrastructure as enabler of energy transition
Integrated approach to optimize energy supply, achieve higher returns

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Snam ideally positioned in the green gas supercycle

Future integrated energy system

Infrastructure is the new (green) oil

Today's energy system

Linear and one-directional, organized in silos Energy flows between users and producers optimized through integrated infrastructure

From a vertical energy system to an integrated one

Source : EU strategy on sector integration.

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Getting to net zero will drive a capex supercycle

Source: Elaboration of BNEF New Energy Outlook 2021 data.

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Hydrogen cost reductions are faster than expected

Levelized cost of green hydrogen production falling fast

Hydrogen projects building momentum*

500	Large-scale projects
> 90GW	Global electrolyser production capacity announced (x2 since Jan 2021)
\$155Bn	Direct investments announced
45GW	H2 green catapult target at 2026 for electrolyser

1. November 2021 BNEF levelized cost update.

Source: Snam analysis.

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* Source: Hydrogen Council, BNEF, Snam.
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There is growing policy support for hydrogen

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New Government coalition target (2) Reflects Infrastructure Bill only, proposed Build Back Better Act includes additional incentives.

EU gas package to create a framework for internal H2 market

Pipelines will be required to carry hydrogen to create an efficient system

Archetype	Delivered cost in 2030, €/kg	Production	Transport & Storage	Security of supply
Centralized H2 pipeline	Production Storage and transport 2 - 4	Low-cost RES Economies of scale for H2 production	Existing natural gas pipelines can be repurposed Optimized storage requirements	Large scale production and storage sites spread over large areas Enables import from different routes
Decentralized Local storage	Local storage 4 -	High cost RES: small, low productivity RES 101 No economies of scale for H2 production	High cost of decentralized storage to balance seasonality	Requires local and non optimal backup solutions
Grid Decentralized connected Grid connected	6 -	Grid power needs 100% green resources 92 No economies of scale for H2 production	High transport cost due to electricity grid fees	Depends only on electricity network
energy Strictly Confidential	to inspire the world 1. 2. Source: Snam team analysis.	Lower bound considering daily storage to manage intermittency – Lower bound considering 60% power from grid and 40% from RES –	Upper bound considering monthly storage. Upper bound considering 100% power from grid.	10

Renewables, decarbonisation of heat to drive increased storage needs Decarbonising seasonal energy uses will drive the

Today's fossil fuel storage will need to be replaced

need for new long-term storage capacity

, TW

Annual power and gas demand profile1

Global storage capacity today, TWh

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energy to inspire the world 2020 2030 (IEA - APS) 2050 (IEA - APS) Median Global average flexibility needs 3,5x by 2050 2 4 0 3 1 5 Jan Feb Jun Jul Aug Oct Mar May Dec Apr Sep Nov Gas Electricity 3,0TW 0,5TW 1. UK gas and power demand profiles (for illustrative purposes). Maximum variation 0 50 100 150 200 250 300 0 2.500 5.000 7.500 10.000 12.500 15.000 17.500 20.000 Storage Capacity Oil Gas Coal Power

Source: National grid UK; Snam team analysis.

Intermittent renewables to drive the need for increased short-term flexibility

Maximum variation range in EU daily power demand GW

Green gasses can leverage efficient energy storage

Green molecules provide competitive solutions for storage

Levelized cost of storage for different technologies1 , €/MWh

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H2 PowerToPower costs half vs batteries for weekly cycles

Source: BNEF, Snam team analysis.

Snam focus on integrated green energy projects, networks and storage by 2050 (US\$ - up to)

Global investments within Snam areas of focus

Networks required for both H2 and CO2 transport
Storage need increased to provide flexibility
Integrated green energy projects mitigating risk and providing higher returns

Snam 2021-2030: we will focus on three key areas of growth

Well placed to access ample investment opportunities Ability to select the most attractive projects

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Snam 2021-2030: significant opportunities to accelerate growth

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Long term RAB growth

RAB evolution

Transport+LNG Storage H2 network

Strategic role of gas infrastructure supports the longevity of the assets
Continued investment in the integrity and resilience of our assets; 10,000km of fully amortised network remaining in 2030
Investment cycle on H2 ready storage renovation
Repurposing of a portion of the network to transport H2
Enhanced support to 2040 RAB growth

Visible long term RAB growth and hydrogen upside

Snam pipelines are verified for H2 transport Energy networks

100% of Snam network verified for H2 transport Setting standards for H2 transport

(km, cumulated)

Snam network verified according to ASME regulation

≈ 99% of the network

is ready1 to transport 100% H2

70% with no or limited reductions on max operating pressure.

Future revisions of the technical standards are expected to overcome limitations

First example in EU of network H2 readiness certification

H2GAR

H2 Gas test results, analysis, studies

Assets Readiness

Co-operation with other European TSOs to share

Collaborations with universities and institutions

Collaboration with fire department and universities to develop technical standards for H2 transport

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Strictly Confidential 1. Based on Option A of ASME B31.12.

storage

Storage: tests confirm the possibility to store H2 in depleted fields Energy

Test Results

Mineralogical Analysis

Exposure of reservoir & cap-rock samples to gas mixture with increasing H2 blend samples representative of Stogit fields

Diffusivity Tests

Gas diffusion measurements for cap rock

Microbiological Analysis

Microbiological reservoir characterization based on bio-chemical kinetics

Test on Well Specimens

Testing on wells material

No risk of dissolution / alteration of reservoir & cap rock minerals in 100% H2 environment

Confirmed gas-tightness of reservoir for blends up to 100% H2

Tests with multi-reactor

Ongoing tests in a reactor on microbiological activity with up to 50% H2 blending (up to 100% in 2022) at reservoir pressure & temperature conditions

Development of a pilot test in Snam storage sites to confirm test results in the long-term behavior

No risk of H2S production or methanation in the reservoirs by microbial activity

No impact on cements up to 100% H2 and to elastomeric up to 20% H2*

Tests confirm it is possible to store H2 in our natural gas depleted fields

* Ongoing test on 100% H2

10Y view: Maintain and modernize our "H2-ready" network

Energy transport

Replacement	Replace ca 3.000km of transport pipelines Application of H2-ready standards	Capex breakdown
Maintenance	Maintain the performance of assets and increase system resilience (Sestri-Levante Recco, Genova, Livorno-Piombino connections)	7% 10% 24%	€12bn Cumulated capex 2021-2030
Net zero investments	Reduce carbon footprint (6 dual fuel compression stations and investments to reduce methane leakage)	15%	Regulated Return expected
Digitalization	Increase service quality through digitalization (asset digitalization, IoT, telco infra)	44%
Development	Support new demand (Sardinia methanization, CNG/biomethane plants connections)

Maintain reliability and resilience, reduce carbon footprint, replace aging asserts and boost digitalization

10Y view: deliver first section of H2 backbone

Energy networks

Unlocking lowest-cost H2 supply for Italy through existing infrastructure

Acquisition of 49.9% of Eni stake in TTPC & TMPC
Co-control governance model
Parallel H2-ready pipelines
Equity consideration ca 385€m
EPS accretive
Closing expected by H2 2022, subject to regulatory approval

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1. SMR with gas price 30 €/MWh and CO2 price 70 €/ton (Source: EEX, ICE)
2. 1. Optimized PV with tracking located in Tunisia and Sicily (Source: Hydrogen Council)
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Best-in-Class platform in storage with expansion potential in the new energy paradigm • Sizeable investment opportunities • Scarcity value of industrial

(e.g. salt caverns)

10Y view: existing CH4 storage performance enhancement

Energy storage

Energy storage
	Replacement	Replace and upgrade, workover on Ripalta, Sabbioncello, Fiume Treste, Sergnano, Minerbio and Settala	Capex breakdown	€3bn
Regulated storage	Development	Fiume Treste and Alfonsine CH4 expansion and new wells (Sergnano, Ripalta, and Cortemaggiore) delivering	24% 27%	Cumulated capex 2021-2030 in regulated storage
		higher performance and "H2 readiness"		Regulated Return expected
	Net zero investments	Reduce carbon footprint (6 dual fuel compression stations)	13% 36%
	Maintenance	Maintain safety standards

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10Y view: Stogit 2.0 - expansion in new energy storage

Energy storage

Underground Gas Storage	Develop capacity in areas with growing gas demand aiming at providing flexibility to the system and limit volatility
Underground Hydrogen Storage	Leverage on core know how to expand in salt caverns Focusing on depleted and acquifers assets whose reservoirs can withstand repurposing to H2
Carbon Capture and Storage	Repurpose existing onshore and offshore depleted fields
BESS in the context of Integrated Projects	Expand in RES/BESS maximizing integration with hydrogen

Ongoing Projects

GeoEnergy company specialized in development of offshore subsurface resources enabling energy transition
Snam assumed an equity interest in dCarbonX
Snam will provide financial and technical support for H2 storage and carbon sequestration projects in Ireland and the UK

€2bn

Cumulated capex 2021-2030 in new energy storage

≥High single digit

Returns expected

Pycasso Pyrenean Carbon Abolition Through Sustainable CCS

Snam and Teréga have signed an MoU to cooperate on CCS/CCUS initiatives in France and together will soon sign an agreement with Pole Avenia and high standing partners • Pycasso is a territory project to develop CO2
transportation and storage infrastructures to reduce emissions of industries in South Western France and Northern Spain

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Significant existing pipeline including both greenfield and brownfield projects

Snam has built a strong position in H2

Key Snam
Differentiating
Factors

Production Midstream Applications • Tech leadership in H2 pipelines and storage through: • Dedicated pilot projects and tests • Thorough understanding of alternative storage solutions • Partnerships with other pipeline • Leadership in H2 applications in HTA sector: • Early offtakes in Ceramics, Steel, Glass, Paper • Collaboration with sector-specific tech providers • Tech leadership in green solutions through: • Partnerships with De Nora and ITM • Innovation centers with top universities and Hyaccelerator • Leadership in FCH JU projects
- partnerships with world-class technology providers
& logistic operators
-
-
Selected as direct partner in the first two waves of IPCEI: Industry (decarbonization of steel and ceramics) and supporting the De Nora Gigafactory
H2 trains and airport supply
H2 refueling stations and H2 solutions for local public transport

H2 ecosystem

10Y view: Integrated projects: hydrogen and biomethane

H2 Italy Move from small to large, replicable projects, optimise LCOH and reduce risk through integration
- Support the development of H2 valleys as enablers of sizeable demand

plants

H2 Abroad • Development of country-specific H2 strategies focusing on areas with competitive cost production, favorable logistics and offtaking, also considering export potential

• Develop the portfolio via greenfield projects and acquisition of biogas and biomethane

• Complete mobility infrastructure footprint

for bio-CH4 and H2

Middle East North Africa

€3bn

Capex 2021-2030

> High single digit

Return expected also leveraging on Grants (PNRR/IPCEI)

150MW Biomethane production capacity targeted by 2030

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Leverage on biomethane &

mobility

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platform

Leverage on established presence to expand in larger integrated projects with partners

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2030 vision: Networks, Storage and Integrated projects

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2021 – 2025 Strategic Plan

Closing remarks

Our 2021-2025 plan: focus on H2 readiness and new integrated projects Capex

		2021-25	KPIs
Energy network multi-molecule (CH4, bioCH4, H2, CO2)	• Net zero investments • Replacement of more than 1,300 km pipelines • Dual fuel compression stations • Technological innovation and network digitalization	€5.6bn (vs €5.8bn previous plan)	>2.5% RAB
Energy storage multi-molecule (CH4, bioCH4, H2, CO2)	• Storage wells refurbishment • Dual fuel compression stations • Maintain safety standards and comply with regulations	€1.2bn (vs €0.9bn previous plan)	growth to 2025
Green Energy Projects BU H2	• Hydrogen: mobility, feedstock, thermal • Biomethane: Develop biomethane capacity and complete CNG-LCNG-SSNLG footprint • Energy efficiency: Pipeline of projects	€1.3bn (2) (vs €0.7bn previous plan)	€150m of EBITDA by 2025	~€180m of run rate EBITDA from plan capex (1)

Solid €8.1bn investment plan 2021-2025, with growing investments in energy transition

1. Full contribution to EBITDA of investments carried out in 2021-25.
1. Net of ca €200m of grants o/w ca €100 m in H2 and ca €100 m in biomethane.

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Increased alignment of capex to EU taxonomy

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(*) Replacement, development and maintenance done using H2 ready procurement standard.

Italian RAB capex

1 Dual fuel transport compression station

2 Dual fuel storage station

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Pipes to be replaced over the plan period

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ENERGY NETWORK ENERGY STORAGE

Key development activities:

Sardinia project
3 Dual fuel compression stations 1

Replacement

About 1.300 km of transport pipelines replaced during the plan period (Ravenna – Chieti; Rimini - San Sepolcro; S.Salvo – Biccari)

New connections:

205 CNG and 75 biomethane connections to the grid
115 other connections to the grid
Key development activities: ³ Dual fuel storage stations New/Refurbished CH4/H2 wells (storage flexibility and peak volume increase)

Replacement

• Upgrading gas processing and monitoring equipment at F. Treste, Sabbioncello, Settala, Ripalta; minerbio and Sergnano plants

Maintenance

Maintain safety standards and comply with regulations

Replacement cycle ramp up Investment cycle to increase performance and refurbish assets

Green energy projects

infrastructure

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Commitment to a solid financial structure and continuous growth in sustainable finance Expected value

Strong liquidity profile with undrawn committed lines covering 3 years of bond maturities
Financial structure defined via an Asset and Liability Management model:
- ~¾ fix rate and >5Y M/LT maturity
Cost of debt expected flat over plan horizon at ca. 1.1% (10bps lower than previous plan)
Fully committed to current credit rating metrics (Baa2 for Moody's, BBB+ for S&P, BBB+ for Fitch)
Upwards revision by Fitch of debt capacity Guidelines for EU Energy Networks given unprecedented investments to accommodate green gases and hydrogen growth
ESG Sustainable Finance >80% of total committed funding in 2025, leveraging on a new Sustainable Finance Framework
2022 net debt expected at €14.8bn
Climate Action e • Net debt/fixed assets <70% over the whole plan horizon
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Shaded Area consistent with credit metrics inferred from current rating by Moody's and S&P

Paper

Long-standing history of successful partnerships

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Investment	Geography	Strategic value and levers		Investment year & stake	Invested Capital €m
Gas pipelines	UAE	H2 integrated projects opportunities in UAE with local and international partners	2020	12.3%	221	Integrated
	Tunisia	H2-ready pipelines	2021	49.9% of Eni stake	385	projects enablers
	France	Ideally positioned for H2 transition, leveraging on favorable geographical position	2013	40.5%	597
	Greece	• Strategic position along the	2018	35.6%	121
	Greece Albania Italy	southern gas corridor • Opportunities from H2 development & decarbonization	2015	20%	1301	Transition opportunities
	Austria	• Further cost optimization and investment discipline • Portfolio optimization	2014	84.5%	519	& costs / portfolio optimization
	Austria	leveraging on Verbund • Evolution toward a multi molecules network	2016	19.6%	135
	UK-Belgium	Connecting gas markets of the UK and continental Europe	2012	23.7%	153

Unlocking value from De Nora

Supporting De Nora in the next phase of its growth

• Approx. €0.45bn invested (35.6% stake)

De Nora, an italian maker of component for green hydrogen, continues to show strong growth while increasing its H2 backlog • Successful partnership with TkUCE of which De Nora has a
FY 2021 expected revenues > €600m up >20% vs 2020
Key player in the H2 ecosystem thanks to its credibility and track record
34% stake
Evaluating an IPO in the near future, potentially in 2022 depending on markets evolution One-of-a-kind asset with significant global growth potential

Global leader in key component of hydrogen technology

Adds significant edge to Snam's origination opportunities

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Capital allocation policy

Committed to current credit rating metrics and risk profile
Accretive returns: risk adjusted returns at least in line with Italian regulated assets
Consistent with our ESG strategy
Unlocking industrial opportunities
Regulated or contractualised business model

No growth for growth's sake

ESG targets: new Scope 3 objective

Investments to reduce carbon footprint included in 2021-2030 capex plan
10% of top management LT remuneration based on methane emission targets
New sustainable finance framework linked to CO2e targets

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Ambitious targets across ESG pillars to 2025

		2022	2025
1	% reduction of NG emissions vs 2015	-40%	-55%	10	% participation in
2	% NG recovered from maintenance activities (avg. last 5y)	>40%	>40%	11	% employee
3	MWh of electricity production by photovoltaic plants	>860	>860	12
4	% retrofit and methane fuelled cars out of total car fleet	55%	88%	13
5	Production of biomethane (Mscm)	33.1	229	14
6	Reduction of CO2 equivalent from energy efficiency (Kton)	24	73
7	Cumulated number of installed CNG and LNG stations	85	175	15
8	Available LNG capacity for SSLNG market (mln m3)	0	250	16
	% of vegetation restoration of the
9	natural and semi-natural areas involved in the construction of pipelines routing	>99%	>99%	18

				Social				Governance
				2022	2025			2022	2025
		10	% participation in welfare initiative	52%	56%	19	% of BoD time dedicated to ESG matters in strategy
>40%	>40%	11	% employee engagement index	NMD	NMD		meetings and induction sections
>860	>860	12	IpFG (Combined Frequency and Severity Index)	< average last 5 years	< average last 5 years	20	Average annual customers satisfaction rate in terms of service quality
55%	88%	13	% of women in executive and middle-management roles	25%	27%	21	% of reliability levels on gas
33.1	229	14	% of women in succession	26%	27%		supply % of third parties on which
24	73		plannning			22	reputational due diligence checks done
85	175	15	% of spending to local suppliers on total procurement	40%	50%
0	250	16	# of local suppliers involved on total suppliers	45%	55%	23	% of ESG Financing on the total Committed Funding
		17	Introduction of ESG criteria in scoring models (% on spending)	10%	30%
>99%	>99%	18	% employees hours devoted to Snam Foundation initiatives supporting local communities	4,600	5,100

2022	2025			2022	2025
		19	% of BoD time dedicated to ESG matters in strategy	NMD	NMD
NMD	NMD		meetings and induction sections
< average last 5 years	< average last 5 years	20	Average annual customers satisfaction rate in terms of service quality	7.95	NMD
		21	% of reliability levels on gas supply	99.9%	99,9%
		22	% of third parties on which reputational due diligence	100%	100%
			checks done
45%	55%	23	% of ESG Financing on the total Committed Funding	65%	80%

energy to inspire the world ESG representing 20% of short and long term management remuneration

Strictly Confidential NMD = New Methodology Under Development

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2030 vision: Networks, Storage and Integrated projects

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2021 – 2025 Strategic Plan

Closing remarks

Strong and accelerating growth

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Main assumptions: 2022 cut in regulated return impact of ca €120m on EBITDA and €85m at net income. Average deflator 1.2%.

2022 guidance and targets

			2021-25 Plan
Investments	€1.5bn • € 1.2bn capex regulated • € 0.3bn green energy projects	€8.1bn	2021-2025
Tariff RAB	€21.4bn	>2.5%	CAGR 2021-2025
Net income	Broadly in line with 2021 guidance adjusted for WACC impact (1)	Ca 3%	CAGR 2022-2025
Net debt	€14.8bn	< 70%	Net debt / fixed asset (2)