Snam — Investor Presentation 2022

May 12, 2022

1

energy to inspire the world

2022 1Q Consolidated results Milan, May 12th, 2022

Key Highlights

SCENARIO

• Q1 2022 gas demand at 25.5 bcm (+1.3% vs LY) and strong volumes toward export (ca 0.9bcm) • High gas prices (PSV ytd >100€/MWh or 2x 2021
• average)

Macro and regulation

• FY 2021 RAB deflator at 2.1%
• Mark to market suggests flat WACC in 2025 vs current levels
• ARERA gave mandate to Snam to define and certify an asset health methodology by year-end to define output based incentives on fully depreciated assets • RePower EU established a roadmap to increase EU's

Policy:

security of supply, with specific resources

SNAM GROUP CONTRIBUTING TO THE SECURITY OF SUPPLY

• TAP working at full regime key to sources diversification; market testing to expand capacity on-going
• Storage facilities ca 42% full
• 0.74bcm of gas stored in April to anticipate the infilling and leave more flexibility to incoming months
• Working to procure 2 FRSUs (one in advanced negotiations) and to identify suitable locations
• Presence along all the key gas routes

KEY QUARTERLY HIGHLIGHTS

• EBITDA +5.2% yoy fully offsetting the impact of WACC reduction on Q1 • Adj. net profit up 3.8% yoy thanks to
• strong performance of associates
• Net debt at €12.6bn impacted by temporary positive working capital effect. Sustainable financing reached approx. 65% of total available funding • Executed part of Asja deal (Anzio and Foligno biomethane plants) • Working with DeNora to apply for funds

Continue progress on business activity:

- Group capex of €223m (-3.5% vs LY) due to phasing to be recovered during the year

• for the realization of a Gigafactory (IPCEI /PNRR)

Snam working for European market integration and security

a more integrated gas market, with potential dedicated funding

1Q 2022 results: EBITDA analysis

1Q 2022 results: Net profit analysis

€ mn

Italian demand and supply in Q1 2022 Italian gas demand Q1 2022

• Buildings consumption decline -1.1% (weather adjusted -2.1% as effect of rising energy efficiencies)
• Industry demand decline 6.5% mainly driven by high gas prices
• • Thermoelectric demand boost by higher electricity demand (+3%), historically low hydroelectric production and import

Gas supply in Q1 2022

			Gas supply in Q1 2022
			bcm	Q1 2021	Q1 2022	Change (bcm)	Change (%)
+1.3%			National production(*)	0,88	0,77	-0,11	-12,5%
	25,529		Pipelines	15,03	15,68	0,65	4,4%
			Gela	0,89	0,50	-0,39	-43,8%
			Mazara del Vallo	5,80	5,63	-0,17	-2,9%
		-1.1%	Passo Gries	0,49	1,72	1,23	251,0%
			Tarvisio	6,89	5,52	-1,37	-19,9%
			Gorizia	0,00	0,01	0,01	Nm
		-6.5%	Melendugno	0,96	2,30	1,34	139,6%
			GNL(*)	2,31	3,01	0,70	30,3%
	8,639	+10.4%	Adriatic LNG	1,72	1,91	0,19	11,0%
	299		OLT	0,29	0,97	0,68	234,5%
	Q1 2022		Panigaglia	0,30	0,13	-0,17	-56,7%
			Passo Gries	Tarvisio Rovigo Adriatic LNG	•	Lower import of Russian gas from Tarvisio	was offset by
			Panigaglia			rising import from Azerbaijan through TAP

• Lower import of Russian gas rising import from Azerbaijan through TAP
• Significant increase of volumes from OLT

Solid financial structure and rising role of sustainable finance

Key Highlights

• M/L term debt maturity: ~6Y with maturities well spread over time
• ~¾ Fix-Floating in line with our target
• Sustainable Finance achieving ca. 65% on total committed funding furtherly increased in early January '22 thanks to Inaugural sustainability linked bond for 1.5bn€
• • Proactive management of maturities through a Liability Management exercise for 350m€ (avg. coupon 1.6% and tenor ca. 3 years) • 400m€ convertibile bond expired on 20th March; ca. 96% converted in equity (ca. 80m of treasury shares delivered)
• Secured a new 3yr ESG RCF for 300m€
• Treasury management optimization exploiting supportive market conditions
• 1. Excluding uncommitted lines and Commercial Paper

Total MLT committed credit facilities and bonds (bn€)

Bond maturity Profile as of 31 March 2021 (bn€)

Income Statement

[ € mn ]	2021 1Q	2022 1Q	Change	Change %
Revenues	717	838	121	16,9%
Operating expenses	(158)	(250)	(92)	58,2%
EBITDA	559	588	29	5,2%
Depreciation & amortisation	(200)	(212)	(12)	6,0%
EBIT	359	376	17	4,7%
Net interest income (expenses)	(25)	(29)	(4)	16,0%
Net income from associates	69	79	10	14,5%
EBT	403	426	23	5,7%
Income taxes	(90)	(100)	(10)	11,1%
NET PROFIT BEFORE THIRD PARTIES	313	326	13	4,2%
Third Parties Net Profit	-	(1)	(1)	-
NET PROFIT	313	325	12	3,8%
EBITDA REPORTED	559	588	29	5,2%
EBIT REPORTED	359	376	17	4,7%
NET PROFIT REPORTED	313	312	(1)	(0,3%)

Revenues

[ € mn ]	2021 1Q	2022 1Q	Change	Change %
Regulated revenues	647	661	14	2,2%
Transport	521	539	18	3,5%
Storage	120	116	(4)	(3,3%)
LNG	6	6	-	-
Non regulated revenues	6	50	44	-
Total core business revenues	653	711	58	8,9%
New business revenues	64	127	63	98,4%
TOTAL REVENUES	717	838	121	16,9%

Operating Expenses

[ € mn ]	2021 1Q	2022 1Q	Change	Change %
Core business costs	92	127	35	38,0%
Variable costs	24	32	8	33,3%
Fixed costs	71	78	7	9,9%
Other costs	(3)	17	20	-
New business costs	66	123	57	86,4%
TOTAL COSTS	158	250	92	58,2%

Balance Sheet

[ € mn ]	2021	2022 1Q	Change	Change %
Net invested capital	21.261	20.589	(672)	(3,2%)
Fixed capital	21.296	21.456	160	0,8%
Tangible fixed assets	17.567	17.525	(42)	(0,2%)
Intangible fixed assets	1.167	1.201	34	2,9%
Equity-accounted investments	2.560	2.684	124	4,8%
Other Financial assets	403	399	(4)	(1,0%)
Net payables for investments	(401)	(353)	48	(12,0%)
Net working capital	1	(830)	(831)	-
Receivables	3.756	3.643	(113)	(3,0%)
Liabilities	(3.755)	(4.473)	(718)	19,1%
Provisions for employee benefits	(36)	(37)	(1)	2,8%
Non current assets held for sale	-	-	-	-
Net financial debt	14.021	12.620	(1.401)	(10,0%)
Shareholders' equity	7.240	7.969	729	10,1%

Disclaimer

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 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.