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Financial Markets Review (September 2015)
1. September 2015
Performance of the main stock indices
Source: Snam on the Bloomberg data
The financial markets pag. 1
The sectors performance pag. 2
Snam shares and its peers pag. 3
The oil markets
Oil prices were down in September, both for
the US crude benchmark WTI (-8.4%, clo-
sing the month at $45.1/barrel) and the Brent
(-8.1% at $47.1/barrel), due to the ongoing
weakening fundamentals (excess supply and
high levels of stockpiles), despite signs of
the market settling (slight decrease in the
production of shale oil in the US).
Snam S.p.A. Investor Relations
The financial markets
There was a general decline across the
indices in September, with falls of -2.6% on
the US S&P 500, -4.1% on the Stoxx Europe
600 Index, -2.9% on the Italian FTSE MIB,
and -2.4% on the Stoxx Europe 600 Utilities
index. The indices were penalized in particu-
lar by the consequences of the Volkswagen
situation. There were also concerns at the
start of the month about signs of economic
slowdown in China and other emerging
countries (Brazil), as well as worse-than-
expected data on the US labour market (173
thousand new jobs in August, compared to
the expected 217 thousand).
Regarding the US (August data on a monthly
basis), there was a decline in industrial pro-
duction (-0.4%) and an increase in retail
sales (+0.2%). The estimate for US GDP in
Q2 2015 has been revised upwards (to
+3.9% on an annualized quarterly basis,
from the previous estimate of +3.7%).
In the Eurozone, industrial production impro-
ved (+0.6% in July on a monthly basis) and
the GDP in Q2 2015 grew (+0.4% from the
initial +0.3%). The ECB confirmed the official
reference rate at its current level (0.05%).
12.0%
1.5%
-7.8%
-6.7%
-2.9%
-2.4%
-4.1%
-2.6%
-10% -5% 0% 5% 10% 15%
Stoxx Europe 600
S&P 500
Stoxx Europe 600 Utilities
FTSE MIB
September ‘15
YtD ‘15
Positive outperformance by the
Snam stock
Negative performance across
equity markets, impacted by the
auto sector’s sharp decline and
signs of economic slowdown in
some emerging countries
Oil prices down
2. In parallel with the negative performance of
the stock markets, almost all sectors in Sep-
tember were down. The sectors hit the hard-
est were those related to raw materials
(-15.4%), which came under pressure
(especially the stock of multinational Glen-
core) from the slowdown in Chinese demand
and the resulting price weakness. The auto-
motive sector (-11.6%) also came under
pressure, severely impacted in the latter half
of the month by the situation concerning
Volkswagen and other German car makers.
The Banking sector, exposed to the volatility
of the financial markets, also registered a
significant decline (-7.3%), as did the Oil &
gas sector (-6.7%) in the face of ongoing
weak oil prices. By contrast, the Food &
beverage sector (+2.7%) and the Real estate
sector (+2.0%) were positive, thanks to the
recovery in demand. The Tourism and lei-
sure sector also showed a positive trend,
benefiting from the increase in tourist move-
ment globally and low fuel prices.
In September, the utility sector registered a
decline of 2.4% compared to the previous
month. Energy Utilities (-6.7%) contributed to
the sector’s negative performance, following
the share decline of RWE and E.ON, pena-
lized by the prospect of high costs for the
dismantling of nuclear facilities, and of EDF,
due to the significant financial commitment
required by its investment plan in the nuclear
sector and renewable sources.
Positive performance was registered by the
“Other” sector (+1.1%), and even more so by
the “Defensive” sector (+5.9%), which are
favoured by investors during times of market
turmoil.
Sectors in the Stock markets
Source: Snam on the Bloomberg data
Main sector performance, September 2015
Sector and subsector performance, September 2015
1.1%
5.9%
-6.7%
-2.4%
-10% -5% 0% 5% 10%
.
Defensive Utilities
DJ Utility
Energy Utilities
Others
The Utility sector performance
Financial Markets Review September 2015 Snam S.p.A. Investor Relations
DJ Uti l i ty; -2,4%
DJ Insur ance; -3,5%
DJ T el ecom; -6,1%
DJ Heal th Car e; -3,8%
DJ M edi a; -0,7%
DJ Real Estate; -0,1%
DJ T r avel &Lei sur e; 0,6%
DJ Chemi cal s; -5,3%
DJ Food&Bev; 2,7%
DJ Const&M ater ; -6,5%
DJ Inds Good; -6,2%
DJ Oi l &Gas; -6,7%
DJ Per s&Househol ds; 2,0%
DJ Autopar ts; -11,6%
DJ T ech; -0,8%
DJ Fi nanci al Ser vi ces; -2,6%
DJ Retai l ; -3,4%
DJ Banks; -7,3%
DJ Basi c Resour ces; -15,4%
-20% -15% -10% -5% 0% 5%
3. 12.0%
15.6%
1.3%
0.1%
8.9%
1.0%
12.0%
1.5%
-2.2%
-7.8%
5.3%
4.6%
4.9%
4.1%
6.8%
5.2%
8.2%
-2.4%
-2.9%
-4.1%
-10% -5% 0% 5% 10% 15% 20%
The Snam shares and its peers
in the Stock markets
Snam shares closed the month of Septem-
ber with a rise of +5.3% (at €4.59 per share),
outperforming in sharp contrast both the
Italian market and the utility sector, thanks to
investor interest in its stability and the safety
of its returns during volatile market condi-
tions.
The stock's average daily trading volume in
September totalled 11.97 million units, up
slightly from 11.6 million in the previous
month.
M.o.U between Snam and
Socar
the performance of companies that stand out
for the excellent results achieved from an
economic, social and environmental point of
view, the Dow Jones Sustainability World
Index includes 317 companies, of which 10
are from Italy, from a universe of 2,500 invi-
ted companies.
Corporate News
Snam and its peers
Source: Snam on the Bloomberg data
YtD ‘15
September ‘15
FTSE MIB
Stoxx Europe 600
Stoxx Europe 600 Utilities
United Utilities
National Grid
Severn Trent
Red Electrica
Enagas
Snam
Terna
Socar President Rovnag Abdullayev and
Snam Ceo Carlo Malacarne held a meeting
on 23 September in Baku. They focused on
the possible involvement of Socar and Snam
in sharing their expertise and best practices
in the construction and operation of facilities
necessary for the transport of natural gas
from the Republic of Azerbaijan and other
producing countries to the European markets
through Italian infrastructures, with the aim of
further strengthening diversification and secu-
rity of gas supplies to Europe.
During the meeting, they signed a Memoran-
dum of Understanding for cooperation on the
evaluation of initiatives for the development of
the Southern Gas Corridor as a new major
route for gas flows to Europe, constituting the
frame for further exchange of information and
more in-depth assessments.
On 10 September Snam has been confirmed
for the seventh consecutive year in the Dow
Jones Sustainability World Index, the most
important global stock exchange index for
Corporate Social Responsibility. This reco-
gnizes the ongoing commitment of Snam to
sustainable development and creation of
value for the Company itself and its stake-
holders.
This year's results see an improvement with
respect to last year in terms of overall posi-
tioning (from 82 to 85 points), especially in
the environmental section - in line with the
sector’s best score - and in the social dimen-
sion, confirming the Snam’s ability to ensure
excellence in protecting the environment in a
framework of dialogue and interaction with
the communities it operates with.
Established in 1999 with the aim of awarding
Financial Markets Review September 2015 Snam S.p.A. Investor Relations
Snam SpA
Piazza Santa Barbara 7 - 20097 S. Donato Milanese (Mi) Italy
www.snam.it — investor.relations@snam.it
tel: +39 02 37037272- fax: +39 02 37037803
Agenda
October
27/28 Third quarter 2015 report
Board of Director, press release and conference call
Snam confirmed in the DJSI