2. 2
Snam’s Chief Financial Officer, Antonio Paccioretti, 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 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.
Disclaimer
5. • 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%
5
[ €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 Regulatory
Framework • Approved Transport, Distribution & LNG Regulatory Framework
[ €m ]
Up 76.7%
6. 31.0 30.8
16.6 16.3
25.3
21.2
2.0
1.8
2012 2013 2012 2013
6
Residential
& commercial
Industrial(*)
Thermoelectric
Other Sectors
Gas Consumption
-6.5%
70.1
74.9
Gas injected into the network
-8.9%
69.0
75.8
(*) Includes: NGV, Agriculture and Non-Energy Use
Source Italian Ministry of Economic Development and SRG estimates
Italian Gas Market in 2013
7. 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
13. Net Profit analysis
13
+17.7%
779
917
25
213
(77) (13) (10)
0
100
200
300
400
500
600
700
800
900
1.000
Net profit
2012
EBIT Net interest
income
(expenses)
Net income
from
associates
Net
income
taxes
Adj. on
unwinding of
IRS
Net profit
2013
€m
14. 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 beyond
2022
Snam debt structure
19. 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
15.7
11.2
4.5
15.9
11.4
4.5
+1.3
+1.8
--
Gas moved through storage system (bcm)
•Injection
•Withdrawal
15.63
8.43
7.20
18.42
8.92
9.50
+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. 20
52
83
223
154
62
35
277
92
149
159
340
86
131
146
95
99
39
2012 2013
50
79
230
Distribution**
Storage
Transport
and 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
21. 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-factor
1
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
