3. 3
Highlights and operational performance
Carlo Malacarne
Chief Executive Officer
4. 9M 2014 Highlights
• Revenues 2,648 Up 0.6%
• Ebitda 2,111 Up 1.3%
• Ebit 1,528 Up 0.8%
• Net income 863 Up 28%
• Capex 856 Up 10.5%
• Free cash flow 212 vs 24 in 9M2013
• Net debt 13,734
4
€m
Solid Results
5. TAG Acquisition
Key pillars of Snam’s
International Strategy
• Optimize the return on
current asset base in a
broader European context
• Completion of the East-
West corridor
• Integrated management of
the North-South and East-
West corridors,
coordinating capex and
commercial initiatives in
the framework of Snam-
Fluxys Strategic Alliance
Agreement with CDP
for the acquisition of TAG stake
Domestic pipelines International assets LNG Terminals
TECHNICAL FEATURES
• TAG is the pipeline bringing Russian gas from
Austrian/Slovak border to Italy
• 3 lines of 380 km (1,140 km overall length) and 5
compression stations
• 47.5 bcm/year transport capacity
• TAG is regulated by Austrian Authority (E – Control).
Capacity is booked with long term contracts
TRANSACTION DETAILS
• Acquisition of the entire stake held by CDP in TAG GmbH
(84.47%, corresponding to 89.22% of economic rights)
• Total consideration of 505 million euro
• Payment through a reserved share capital increase to CDP
Maximum number of shares to be issued: 119 million
Issuing price: Snam weighted average stock price of the
last 180 days before the closing
Minimum price of the shares to be issued: € 3.6
• Equity method consolidation
An acquisition enhancing Snam’s international strategy 5
6. Italian Gas Market in 9M 2014
Gas Consumption (Weather adj.)
2011 -4.4%
1.2
1.4
15.6 13.3
12.1 12.0
20.4 20.4
9M 2013 9M 2014 9M 2013 9M 2014
6
Other Sectors
Thermoelectric
Industrial(*)
Residential
& commercial
49.3 47.1
Gas injected into the network
-6.2%
47.2
50.3
(*) Includes: NGV, Agriculture and Non-Energy Use
Source Italian Ministry of Economic Development and SRG estimates
18. 9M 2013 9M 2014
97
398 195
35
54
132
221
97
37
21
155
147
63
91
445
47
203
23
99 53
49
232
183
175
Capital Expenditure*
Import & export capacity develop.
+ 2% for 10 yrs
Development of new fields
18
Transport
and LNG
Storage
Distribution
Expansion & new entry points:
+3% for 10 – 15 yrs
Regional & national development:
+2% for 7 – 10 yrs
Safety: +1% for 5 yrs
Maintenance: Base remuneration 6.4%
Development of new fields:
+4% for 16 yrs
Expansion of existing fields:
+4% for 8 yrs
Maintenance: Base remuneration 6.7%
Substitution of cast iron pipes:
+2% for 8 yrs
Metering: 8% allowed return
Other investments: Base
remuneration 7.6%
[ €m ]
(*) Gross of subsidies. In 9M 2013 and in 9M 2014 capex amounting to €4 million was carried out by Snam S.p.A.
+ 4% for 16 yrs
Expansion of existing fields
+ 4% for 8 yrs
Others 6.7%
Remuneration for
new investments
7.3%
Remuneration for
new investments
6.7%
Distribution
6.9% remuneration
Metering
7.2% remuneration
Regional & national develop.
+ 1% for 7 – 10 yrs
Others 7.3%
19. Operational Data
9M 2013 9M 2014 Δ %
Transport Gas injected into the network (bcm) 50.3 47.2 - 6.2
Gas pipeline network (km in operation) 32,277 32,320 +0.1
Storage Storage capacity (bcm)
•Modulation (*)
•Strategic
15.9
11.4
4.5
15.9
11.4
4.5
- -
- -
- -
Gas moved through storage system (bcm)
•Injection
•Withdrawal
15.32
7.96
7.36
12.58
7.81
4.77
-17.9
-1.9
-35.2
Distribution Gas distributed (bcm) 5.16 4.51 -12.6
Active Gas Metering at redelivery points (# mln) 5.92 6.38 +7.8
19
(*) Available capacity
20. 20
Disclaimer
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 operates 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.
