snam.it

2013 Full Year ResultsMilan, February 28th, 2014

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Snam’s Chief Financial Officer, Antonio Paccioretti, in his position as manager responsible for the preparation of financial reports, certifiespursuant to paragraph 2, article 154-bis of the Legislative Decree n. 58/1998, that data and information disclosures herewith set forthcorrespond 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 currentexpectations, estimates, forecasts, and projections about the industries in which Snam perates and the beliefs and assumptions of themanagement 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, andsimilar 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 predictbecause 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 andregulatory 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 updateforward-looking statements to reflect any changes in Snam’s expectations with regard thereto or any changes in events, conditions orcircumstances 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 ExchangeCommission and with the Italian Stock Exchange.

Disclaimer

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Highlights and operational performance

2013 Consolidated Results

Agenda

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Highlights and operational performance

Carlo MalacarneChief Executive Officer

• Revenues 3,529 Down 2.5%

• Ebitda 2,803 Down 0.5%

• Ebit Adj. 2,060 Down 2.4%

• Net profit 917 Up 17.7%

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[ €m ]

Solid Results

Sound Growth & Cash Flow generation

Operational & Financial Efficiency

• 1,290 capex

• 597 Equity Interest acquisition of 45% in TIGF

• Oper. Cash Flow 1,698

• Net debt 13,326

• Strict control of operating costs: controllable fixed costs flat in real terms versus 2012

• Optimization of the debt structure with a competitive cost of debt

Positive Outcomes in 2013, an eventfull year

New RegulatoryFramework • Approved Transport, Distribution & LNG Regulatory Framework

[ €m ]

Up 76.7%

31.0 30.8

16.6 16.3

25.3 21.2

2.01.8

2012 2013 2012 2013

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Residential & commercial

Industrial(*)

Thermoelectric

Other Sectors

Gas Consumption

-6.5%

70.174.9

Gas injected into the network

-8.9%

69.075.8

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

Source Italian Ministry of Economic Development and SRG estimates

Italian Gas Market in 2013

7* Calculated on the basis of Snam official closing price of December 30th 2013: € 4.04/share

Robust shareholders return with an attractive yield

FY 2013 0.25 €/share

Paid on October 24th 2013

2013 Interim Dividend 0.10 €/share

YIELD 6.2%*

2013 Final Dividend 0.15 €/share

Payable from May 22nd 2014

Delivering Shareholders Return

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2013 FY Consolidated Results

Antonio PacciorettiChief Financial Officer

Income Statement

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(*) do not include the effect of IFRIC 12.

€m 2012 2013 Change

Revenues (*) 3,621 3,529 - 92

Operating expenses (*) - 804 - 726 +78

EBITDA 2,817 2,803 - 14

Depreciation & amortisation - 706 - 769 - 63

EBIT 2,111 2,034 - 77

EBIT adjusted 2,111 2,060 - 51

Net interest income (expenses) - 794 - 472 +322

Net income from associates 55 45 - 10

EBT 1,372 1,607 +235

Income taxes - 593 - 690 - 97

NET PROFIT 779 917 +138

NET PROFIT adjusted 992 934 - 58

Revenues

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€m 2012 2013 Change

Regulated revenues 3,477 3,491 +14

Transport 1,813 1,878 +65

Distribution 1,155 1,008 -147

Storage 393 444 +51

LNG 23 22 -1

Pass-through revenues 93 139 +46

Other revenues 144 38 - 106

TOTAL REVENUES 3,621 3,529 - 92

Operating expenses

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€m 2012 2013 Change

Regulated activities 686 682 - 4

Controllable fixed costs 453 460 +7

Variable costs 4 18 +14

Other costs 136 65 -71

Pass-through costs 93 139 +46

Non regulated activities 118 44 - 74

TOTAL COSTS 804 726 - 78

€m 2012 2013 Change

Transport 328 173 -155

LNG 14 12 -2

Storage 66 68 +2

Distribution 295 313 +18

Corporate 8 21 +13

Pass-through costs 93 139 +46

TOTAL COSTS 804 726 - 78

111

25 26(143) (7)

(63)

1.500

1.600

1.700

1.800

1.900

2.000

2.100

2.200

2.300

2012 Regulatedrevenues

One-offDistributiontariff 2012

Controllablefixed costs

Depreciation &amortisation

Other Adj. onearly

retirementplan

2013

EBIT adjusted analysis

12

€m

-2.4% vs 2012

+4.7% vs 2012net of one-off

distribution tariff 2012

2,0602,111

Net Profit analysis

13

+17.7%

779917

25

213

(77) (13) (10)

0

100

200

300

400

500

600

700

800

900

1.000

Net profit2012

EBIT Net interestincome

(expenses)

Net incomefrom

associates

Netincometaxes

Adj. onunwinding of

IRS

Net profit2013

€m

14

Existing debt as at 31 Dec 2013 (bln €)

Bilateral banking facilities

Debt Capital Market

Institutional lenders financing

Bond Maturity Profile (bln €) as at 31 Dec 20132013 Actions

Further disintermediation of the banking system via DCM for a total amount of ca. 2.7 bln €

Pool banking & bilateral facilities renegotiation for over 5 billion €

EIB project related financing for a total amount of 0.65 billion €

Pool banking facilities

0

0,2

0,4

0,6

0,8

1

1,2

1,4

1,6

1,8

2014 2015 2016 2017 2018 2019 2020 2021 2022 beyond2022

Snam debt structure

-1.200

-800

-400

400

800

1.200

1.600

2.000

Cash flow

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Netprofit

Change inworkingcapital

Net technical

investments

Depreciation& other

non monetary items

Change in Net Debt

2013

53

917

728

-836-928

-1,191

FreeCash Flow

-92

Cash flow from Shareholders’

equityand other

Financialinvestments

-599

€m Cash Flowfrom

operation

1,698

Balance Sheet

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€mDec, 31

2012Dec, 31

2013 Change

Net invested capital 18,314 19,320 +1,006

Fixed capital 19,567 20,583 +1,016

Tangible fixed assets 14,499 14,847 +348

Intangible fixed assets 4,593 4,710 +117

Equity-accounted and other investments 475 1,026 +551

Net working capital -1,139 -1,155 -16

Receivables 2,441 2,708 +267

Liabilities -3,580 -3,863 -283

Provisions for employee benefits -129 -124 +5

Assets held for sale and directly related liabilities 15 16 +1

Net financial debt 12,398 13,326 +928

Shareholders' equity 5,916 5,994 +78

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Q & A S e s s i o n

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A n n e x e s

Operational Data

2012 2013 ∆ %

Transport Gas injected into the network (bcm) 75.8 69.0 -8.9

Gas pipeline network (km in operation) 32,245 32,306 +0.2

Storage Storage capacity (bcm)•Modulation (*)

•Strategic

15.711.24.5

15.911.44.5

+1.3+1.8

--

Gas moved through storage system (bcm)•Injection•Withdrawal

15.638.437.20

18.428.929.50

+17.9+5.8

+31.9

Distribution Gas distributed (bcm) 7.46 7.35 -1.5

Active Gas Metering at redelivery points (# mln) 5.91 5.93 +0.4

19(*) Available capacity

20

52

83223

15462

35

277

92149

159

340

86

131

146

95

99

39

2012 2013

50

79230

Distribution**

Storage

Transportand LNG**

€m

703

358

251

677

233

359

Expansion & new entry points:3% higher remuneration for 10 – 15 yrs Regional & national development:

2% higher remuneration for 7 – 10 yrs Safety: 1% higher remuneration for 5 yrs Maintenance: Base return: 6.4%

Development of new fields: 4% higher remuneration for 16 yrs

Expansion of existing fields:4% higher remuneration for 8 yrs

Maintenance: Base return: 6.7%

Substitution of cast iron pipes:2% higher remuneration for 8 yrs

Metering: 8% allowed return

Other investments: Base return: 7.6%

Capital Expenditure*

* Gross of subsidies. In 2012 and in 2013 capex for € 7 million was carried out by Snam S.p.A.

** The remuneration is based on the rules of the regulatory framework expired at December 31st, 2013

RAB methodology Re-valued historical cost Re-valued historical cost

Parametric method for central assets

Re-valued historical cost

WACC real pre-tax

6.3%* +1% covering the time lag on

investments since 1 January 2014

6.9% (distribution)* 7.2% (metering)*

7.3%* +1% covering the time lag on

investments since 1 January 2014

INCENTIVES on new investments

1% for 7-10 years (for investments on development of regional or national network)

2% for 10 years (for investments on development of entry capacity)

Incentives on the quality of the service

+2% for 16 years on upgrades > 30% of existing capacity and for the construction of new terminals

EFFICIENCY X-factor1

2.4% on opex 1.7% on opex (distribution)** 0% on opex (metering)**

X factor on opex differentiated by LNG terminal

GAS DEMAND Exposure <1% of revenues No exposure No exposure

Assumed useful life of the network

50 yr pipelines 20 yr pressure reduction stations

50 yr pipelines 40 yr connections 20 yr stations 15 yr meters

50 yr pipelines 25 yr LNG plant 20 yr meters

EXPIRY December 2017 December 2019 December 2017

A clear regulatory framework

1 Applied only on opex

Transport Distribution Regasification

* With review of the risk-free component starting from January 2016 ** With review starting from January 2017

snam.it

2013 Full Year ResultsMilan, February 28th, 2014