2014 Full Year Results & Strategy Update

snam.it

2014 Full Year Results &Strategy Update

Milan, March 12th, 2015

Highlights and Operational Performance

2014 Consolidated Results

Outline

2015-2018 Strategy & Targets

2

2014 Highlights and Operational Performance

Carlo MalacarneChief Executive Officer

3

• Revenues 3,566 Up 1.0%

• Ebitda 2,776 Down 1.0%

• Net profit 1,198 Up 30.6%

Solid Results

Sound Growth & Cash Flow generation

Skillful implementation of international development

2014: Another Year of Positive Outcomes

• TAG acquisition completed and value enhancing management of TIGF asset

Robustshareholder

remuneration• Dividend proposal FY 2014*: €25 cents

• Total Investments 1,820 • Capex 1,313

• Financial investments 507

• Operating Cash Flow 1,529

• Net debt 13,652

[ € mn ]

4

[ € mn ]

* Payable from May 20th 2015

5

2014 FY Consolidated ResultsAntonio PacciorettiChief Financial Officer

6

Income Statement

[ € mn ] 2013 2014 Change

Revenues 3,529 3,566 +37

Operating expenses - 726 - 790 - 64

EBITDA 2,803 2,776 - 27

Depreciation & amortisation - 769 - 803 - 34

EBIT 2,034 1,973 - 61

Net interest income (expenses) - 472 - 397 +75

Net income from associates 45 131 +86

EBT 1,607 1,707 +100

Income taxes - 690 - 509 +181

NET PROFIT 917 1,198 +281

NET PROFIT adjusted 934 1,078 +144

7

Revenues

[ € mn ]2013 2014 Change

Regulated revenues 3,491 3,506 +15

Transport 1,878 1,895 +17

Distribution 1,008 1,017 +9

Storage 444 458 +14

LNG 22 19 -3

Pass-through revenues 139 117 -22

Other revenues 38 60 +22

TOTAL REVENUES 3,529 3,566 +37

8

Operating Expenses

(*) net of pass-through costs.

€m 2013 2014 Change

Regulated activities 682 750 +68

Controllable fixed costs 460 471 +11

Variable costs 18 8 -10

Other costs 65 154 +89

Pass-through costs 139 117 -22

Non regulated activities 44 40 - 4

TOTAL COSTS 726 790 +64

€m 2013 2014 Change

Cost breakdown by business(*):

Transport 173 215 +42

LNG 12 17 +5

Storage 68 95 +27

Distribution 313 316 +3

[ € mn ]

[ € mn ]

9

EBIT Analysis

2,0341,973

3716

26

(11)(34)

(95)

1.500

1.600

1.700

1.800

1.900

2.000

2.100

2.200

EBIT2013

Regulatedrevenues

Controllablefixed costs

Depreciation& amortisation

Other 2013 earlyretirement plan

2014 one-offrisk fund

provisions

EBIT2014

[ € mn ]

One-off items

+0.4% net of one‐off items

‐3.0% reported

10

Income from Associates

2013 2014 Var.

Distribution in Italy 59 98 +39

AES Torino 36 20 -16

Toscana Energia 19 23 +4

Other equity interests 4 3 -1

Restatement of equity interest (AES Torino) - 52 +52

International activities -14 33 +47

Interconnector UK 12 9 -3

TIGF -27 24 +51

INCOME FROM ASSOCIATES 45 131 +86

2013 2014 Var.

Distribution in Italy 65 49 -17

International activities 5 50 +45

DIVIDENDS RECEIVED 70 99 +29

[ € mn ]

[ € mn ]

11

Net Profit Analysis

[ € mn ]

917 934

1,078

1,198

17 75

86

70

120

(87)

500

600

700

800

900

1.000

1.100

1.200

1.300

Net profit2013

Earlyretirement

plan

Adj. Net profit2013

Adj. EBIT Net interestincome

(expenses)

Net incomefrom

associates

Incometaxes

Adj. Net profit2014

Robin HoodTax: deferredtax adjustment

Net profit2014

Adjusted Net Profit

+€281 mn; +30.6% reported

+€144 mn; +15.4% adjusted

Main Financial Actions and Results in 2014

12

Debt capital market Pool banking facilities

Bilateral banking facilities

Institutional lenders financing

• New recourse to Debt Capital Market (€1.75 billion)

• Pool and bilateral banking facilities renegotiation (approx. €5 billion)

• Disintermediation of certain EIB financing (approx. €0.3 billion)

• Treasury management optimization

1 Nominal value

• Significant cost of debt reduction

• Fixed/variable rate debt: 69%/31%

BOND AND DRAWN COMMITTED FACILITIES - MATURITY PROFILE (€ bn)

as of 31 December 2014

FINANCIAL STRUCTURE (€ bn) as of 31 December 2014

• Average tenor of M/L term debt: approx. 5 years

• No banking refinancing until 2017

• Strong liquidity profile covering 24 months maturities

2014 Actions Results consistent with last year’s guidance

0

2

4

6

8

10

12

14

16

18

Net Debt 2014 Total committedcredit facilities and

bonds1

3.2

10.4

1.81.316.7

13.65

0,0

0,5

1,0

1,5

2,0

2,5

13

Cash Flow from Operation and Net Investments

Net profit Change inworkingcapital

1,198

Depreciation& other

not monetary items

-275

606

1,529

Cash flowfrom

operation

Netcapex

Capitalincrease

-1,229

TAGacquisition

502-505

1,232

Net investments

[ € mn ]

FREE CASH FLOW 2014+€297 mn

Cash flow from operation

[ € mn ]

Net investments

14

Net financial Debt – 2014 vs. 2013

2013 Net investments

13,652

2014

13,326

Cash flowfrom operation

1,232-1,529

505

118

Cash flow from Shareholders’

equity(dividends)

AES debtconsolidation

and other

[ € mn ] +326

15

Balance Sheet

€m Dec, 31 2013

Dec, 31 2014 Change

Net invested capital 19,320 20,824 +1,504

Fixed capital 20,583 21,813 +1,230

Tangible fixed assets 14,847 15,335 +488

Intangible fixed assets 4,710 5,076 +366

Equity-accounted and other investments 1,026 1,402 +376

Net working capital -1,155 -864 +291

Receivables 2,708 2,190 -518

Liabilities -3,863 -3,054 +809

Provisions for employee benefits -124 -141 -17

Assets held for sale and directly related liabilities 16 16 -

Net financial debt 13,326 13,652 +326

Shareholders' equity 5,994 7,172 +1,178

[ € mn]

2015-2018 Retaining Focus on Sustainable Remuneration

Carlo MalacarneChief Executive Officer

16

17

A robust Strategy with a low-risk Profile

Delivering sustainable returns and sound growth

Italy: aiming at high-quality investment opportunitiesEurope: focusing on two strategic gas corridors and

providing country risk diversification

Progressing from asset owner to market facilitatorKeeping up with cost control actions

Driving value creation for all stakeholders

Managing capex to meet business environment requirements Maintaining a solid and efficient capital structure

M&A providing returns’ accretion

Selective portfolio

management

Operationalmanagement

Financial discipline

Attractive and sustainable

returns

Snam Business Development

Business Environment

Outline

18

Key European Gas Market Trends

19Increasing import dependence and supply diversification needs

Source: World Oil & Gas Review 2014. North Sea include Norway and Netherlands, North Africa Libya and Algeria, Caspian Sea Azerbaijan and Turkmenistan

Gas demand in EU

0

200

400

600

2013 2015E 2020E 2025E 2030E

Domestic production

Net import

[bcm]

CAGR 13 – 30: +1%

Source: OECD/IEA World Energy Outlook 2014; EU Commission Energy – EU Road Map

Gas supply reserves and flows

Northern Europe 65% of additional

import needs in 2020

Southern Europe 35% of additional

import needs in 2020

North Africa6.1 TCM

Gas Reserves

Russia49.5 TCM Gas Reserves

North Sea3.7 TCM Gas Reserves

Caspian Sea11.3 TCM Gas Reserves

Infrastructure operators can contribute incremental interconnections and enhance the flexibility of storage & transport systems

• Competition in the market has generated a surge in liquidity that eased a shift from «take or pay» to «spot» contracts

• «Spot» contracts open up to commercial opportunities resulting in the need for flexibility in transport and storage products offering

• Changing business environment reinforces security of supply issue

20

Seeking a New Equilibrium between Flexibility and Security of Supply

2013 storage capacity1 (bn cubic meters)

1 GSE map (July 2014) and GLE map (June 2014)

22.3

16.6

8.2

5.4

12.9

4.9

4.1

…creates opportunities for infrastructure operators to provide new dedicated investments and services

21

The shifting Market Scenario…

Gas demand

New services & activities

Competition & new contract terms

Gas supply

InfrastructureOperators

730

430

224

2000 2005 2013 >2018E

22

Italian Distribution Business moving towards Consolidation

Further concentration to comeStreamlining of Italian operators

• Process supported by new legislative framework

• Concession areas reduced from 6,700 to 177

• Concessions to be awarded by tender offer with standardized rules and with 12 years’ duration

• Tender process to start in 2H15*

• To incentivize efficiency and service quality

Creating a new pool of opportunities for Italgas:portfolio optimization, enlarged activity base and higher margins

* As set by “Milleproroghe” Decree

Source: Italian Regulatory Authority for Electricity Gas and Water, 2014 Annual Report

Snam Business Development

Business Environment

Outline

23

• Capex in Italy• Operational Management• European Developments• Financial Discipline• Attractive Returns

Snam Investment Priorities in Italy:in line with market trends and consistent with EU and Italian legislation

24

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

• Finalize capacity increase for:• Modulation services and peak

demand control• Supporting gas swaps in Europe

• Optimize utilization of regasification plant offering integrated services

• Develop new balancing services to enhance flexibility

• Selected projects to meet new flexibility requirements and supply source diversification

• Facilitate technical and commercial swap among different supply sources

• Development of reverse flow capacity to create conditions for gas transit to European markets

• Fostering interconnections across Europe

Storage Distribution

• Development of new distribution network or new connections

• Further improvement of service quality also through smart metering project

• Concession portfolio optimization and profitability improvement opportunities

• Exploit market consolidation opportunities

Exploit regulatory framework opportunities to boost revenues

Transport & LNG

2014E 2015E 2016E 2017E 2018E

RAB with higher remunerationRAB with base remuneration

Consolidated Capex Plan in Italy 2015 – 2018

25*Gross of subsides1 Total RAB evolution calculated assuming an average annual inflation rate of 1% in 2015 − 20182 On the basis of the current approved regulatory frameworks

CAGR 1%

Disciplined programme to fuel sustainable growth in the asset base

2015 2016-2018

€3.8 bn

€1.3 bn

€5.1 bn*

3.05 0.50 1.55

Transport & LNG Storage Distribution

[ € bn ]

75%

Capex by remuneration type2

~30% ~70%

Base remuneration Higher remuneration

Capex by business unit

Consolidated RAB1Capex in Italy

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

1/3 on average

Transport: main projects

29%

14%57%

26

2015 2016 – 2018

€ ~2.4 bn€ ~0.7 bn

1 Remuneration scheme based on the current regulatory framework

Remuneration for new investments1:base rate +1%

Regional & national develop.+ 1% for 7 – 10 yrs

Import & export capacity develop.+ 2% for 10 yrs

Main projects• Length: ~430 km

• Installed power capacity: ~30 MW

New pipelinesNew compressor stations

South – North developments

North gas market and reverse flow capacity developments

Capacity at entry points from South• +8 Bcm

Main projects• Po Valley Infrastructure (~450 km )

• Empowerment/construction of compressor stations (~100 MW)

Passo Gries Tarvisio

Investment ’tails’ to complete main development projects

€ ~1.7 bn

2019 – 2021

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

Gas Flow Trends in Italy

Snam to play an increasing role in the gas transit 27

24

Max Export Capacity

46

Max Export Capacity

>2020

[Mscm/d]

~370

IN OPERATION AT THE END OF 2014

[Mscm/d]

EXPECTED EXPORT CAPACITY IN 2018

TARGET CAPACITY DEVELOPMENTDERIVING FROM CAPEX BEYOND 2018

Import transport capacity to accommodate more diversified gas flows

Italian export capacity

347

2014

0

10

20

30

40

50

60

70

80

90

Domestic production

Net import

Gas DemandCAGR 14 – 25:

~1%

ImportCAGR 14 – 25:

~2%

Italian gas flows

Source: Italian Ministry of Economic Development and Snam estimates on weather adjusted data

[bcm]

Transit

Biomethane

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

Storage: investments to ensure gas system liquidity

28

1 Remuneration scheme based on the current regulatory framework

Further investments backed by appropriate return opportunities

Retention for 8 years of 20% of new capacity

auction revenues, if above the reference revenues

2015 2016 – 2018

€ ~0.3 bn€ ~0.2 bn

Remuneration for new investments1: base rate

+

281304

2014 2018E 2014 2018E

[ Mscm/d ]

+ 11%+ 8%

[ bcm ]

11.412.6

Peak capacity Modulation capacity

• Complete capacity development required by legislative Decree 13/2010

• Strengthen European interconnection projects offering more flexibility to the system

• Support development of new services via integrated management of transport and storage capacities

• Favour capacity utilization for security purposes at European level

Key investment priorities

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

Distribution: selected investments…

291 Remuneration scheme based on the current regulatory framework

Metering:7.2% remuneration1

Distribution:6.9% remuneration1

71%

29%

2015 2016 – 2018

€ ~1.1 bn€ ~0.4 bn• Replacement of existing

pipes

• New connections and development of new distribution network

• Smart metering project

2014 2018E

6.4 ~6.6

+ 3%

Consolidated redelivery points (mn) Key investment priorities

…to optimize revenue growth

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

30

Italgas holds a Leading Position…

25%

34%37%

4%

2015 2016 2017 2018 2019

0%

96% 2016-2018

* Snam estimates

…to unlock further value and catch growth opportunities

Concession area renewal schedule* Italgas positioning

Italgas to seek additional value through tender process

• Optimization of concession portfolio

• Proactive approach to tender process leveraging financial and operational efficiencies and potential partnerships

• Best practice at operating level

• Economies of scale leading to further operational cost efficiencies

Italgas, NPG and AESAssociates

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

31

New Services to enhance Snam’s Role as System Operator

Several incentive schemes already identified…

New Service Areas New Revenue Stream

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

… subject to regulatory approval and market needs

• New flexibility resources (Import and LNG)

• Day-ahead balancing session

• Demand forecasts and information provision

• Intensive cooperation with market operator

• Spot and futures markets

• European Capacity Platform

Mar

ket L

iqui

dity

Regulatory period2014 2017

EU HarmonizedServices

MarketBased

PhysicalDelivery

• Capacity bundled services (hub to hub)

• Oversubscription and buyback

• Short-cycle storage services

GasExchanges

Balancing Regime

Capacity Products

TO SUPPORT REVENUE STREAM

32

Operational Efficiency: proven track record of controlling cost…

…to sustain profitability

TRANSPORTControllable fixed costs/

network Km

DISTRIBUTION Controllable fixed costs/

n. redelivery points

STORAGEControllable fixed costs/

m3 working gas

Flat in real terms at constant perimeter

Optimal efficiency level in a growing business(€ mn controllable fixed costs, nominal value)

497 480 465 456 453 460 471

2008 2009 2010 2011 2012 2013 2014

Network Km +2.7%

Working gas +32.6%

Active redelivery points +12.9%

KPI 2014-2018 CAGR*

Nominal value:approx. -5%

Real value:approx. -15%

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

33

European Development: focus on North-South and East-West corridors

Management of existing asset base to further improve returns

Key pillars

• Optimize the return on current asset base in a broader European context

• Integrated management of the North-South corridor, coordinating capex and commercial initiatives within Snam-FluxysStrategic Alliance

• Completion of the East-West corridor

Snam’s geographic footprint

International assets

Domestic pipelines

LNG Terminals

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

• Key position along the East-West energy corridor• Diversification of regulatory and country risk• Development opportunities

• Value creation from French gas areas unification with additional incentivized investments

• Storage increased competitiveness• De-bottlenecking of the Spanish gas grid

TIGF: a priority asset

Development opportunities for further value creation34

• Yearly EPS accretion around 2% over 2015-2018 plan

• Cash investment-payback of more than 80% by 2023

• Equity IRR: low double-digit

Strategic rationale Expected contribution since the acquisition

PEG NORTH

PEG SOUTH +

TIGF

PEG FRANCE

MIDCAT

Reverse FlowGascogne

MidiFID projects

Upcoming projects

2015: common TIGF-GRTgazSouth PEG

2018: merger of North and South PEGs

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

35

TAG: a perfect fit for Snam’s strategy

• The largest import pipeline bringing Russian gas from Austrian/Slovak border to Italy

• Diversification of regulatory and country risk

• Integrating the East-West gas corridor

• Strategic opportunity to establish reverse flow capability to Southern Germany and Eastern Europe

Strategic rational Expected contribution since the acquisition

• Full visibility on revenues:

• Regulated business, remuneration set on capacity booked basis

• Capacity booked through long-term firm transportation contracts till 2022

• Yearly EPS accretion between 2-3% over 2015-2018 period combined with strengthening of Snam’s financial structure

• Cash investment-payback of around 90% by 2023

• Equity IRR: low double-digits

Austrian/Italian Border OP Border

Slovakian/Austrian Border IP Border

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

Net income from Associates

3636

* Excluding the non recurring item related to the restatement of equity interest in AES Torino; 2014 reported figure: €131 mn

Growth fuelled by International Assets

2014 2015E 2018E

€79* mn€ ~100 mn

€ ~130 mn

Net incomefrom Associates

Growthsupported

by TAG and TIGF

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

Balance Sheet Solidity and Financial Structure Efficiency…

37

Snam estimates

Snam’s key credit metrics 2013 2014

FFO/ Net Debt ~12% ~13%

Net Debt/(RAB+associates) ~53% ~52%

YE 2013 YE 2014Available committed funding approx. €4 bn1 approx. €3 bn1

Average M/L term debt approx. 5 years approx. 5 years

A solid investment grade profile

2012 2013 2014Fixed‐floating rate debtbreakdown

49%‐51% 64%‐36% 69%‐31%

1 Net of the outstanding debt of approx. €1 billion of uncommitted facilities.

Significant fixed rate debt portion

Focused and proactive management of maturities and commitment to safe liquidity profile

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

… to support a Sustainable Path

38

• From refinancing risk to cost savings opportunities

• Open and deep financial markets with favorable interest

rates and credit spreads

• Managing future refinancing exercises exploiting all

potential opportunities

• Treasury management optimization

* Assuming a tenor in line with expiring bonds. Based on current Snam yield curve

…to support Snam’s equity story

• Based on a consistent business model and

• An attractive and sustainable return…

• ….backed by a strong balance sheet

further significant reduction of cost of debt

• Financial flexibility restored…• Considerable financial expenses reduction

• Equity-based acquisition of TAG

• Cancellation of the Robin Hood Tax from 2015

• Selective investments in accordance with the

evolution of gas market needs

Fixed rate bond roll-over (2015-18) – Potential benefits

[ Coupon % ]

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

0,00%

0,50%

1,00%

1,50%

2,00%

2,50%

3,00%

3,50%

4,00%

4,50%

5,00%

Nov-2015 (€0.75 bn - 3Y) Jul-16 (€1.00 bn - 4Y) Jun-17 (€1.25 bn -average 4Y)

Mar-18 (€1.50 bn - 5.5Y)

Expiring bond Potential new bond*

∆= ~140 bps

∆= ~360 bps

∆= ~160 bps

∆= ~290 bps

39

In Summary

• Strong balance sheet

• Sound results further fuelled by International assets

• Constantly pursuing operational and financial efficiency

• Restored financial flexibility

• Focus on customer service improvement

• Robust business model to ensure attractive and sustainable shareholder returns

Focused approach to support dividend policy

FY 2015 DPS guidance confirmed:

€ 25 cents

CAPEX IN ITALY

OPERATIONALMANAGEMENT

EUROPEANDEVELOPMENTS

FINANCIAL DISCIPLINE

ATTRACTIVERETURNS

40

Q & A S e s s i o n

41

A n n e x e s

42

Italian Gas Market in 2014

31.1 30.9

16.5 16.3

20.6 17.7

1.92.1

1 2 2013 2014

Residential & commercial

Industrial(*)

Thermoelectric

Other Sectors

Gas Consumption (Weather adj.): -4.5%

67.070.1

Gas injected into the network: -9.7%

62.369.0

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

Source Italian Ministry of Economic Development and Snam’s estimates

2013 2014

43

Operational Data

2013 2014 ∆ %

Transport Gas injected into the network (bcm) 69.0 62.3 -9.7

Gas pipeline network (km in operation) 32,306 32,339 +0.1

Storage Storage capacity (bcm)• Modulation (*)

• Strategic

15.911.44.5

15.911.44.5

------

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

18.428.929.50

15.708.137.57

-14.8-8.9

-20.3

Distribution Gas distributed (bcm) 7.35 6.50 -11.6

Active Gas Metering at redelivery points (# mn) 5.93 6.41 +8.1

(*) Available capacity

44

Disclaimer

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.

snam.it

2014 Full Year Results &Strategy Update

Milan, March 12th, 2015