1. News@Facts
March 2014
News@Facts N. 1, March 2014
Regulatory environment
Transport and regasification tariffs
for 2014 approved p. 3
Focus
2013 dividend of 0.25 euro p. 3
News
New 600 million fixed-rate
bond issue p. 3
Sustainability developments p. 3
News
2014 Financial Calendar p. 4
News@Facts Issue 1 /Year 5
Information as of 21 March, 2014
Registered at the Court in Milan
Registration n. 534
as of November 26, 2009
Chief Director: Patrizia Rutigliano
Editorial Director: Marco Porro
Snam SpA - Piazza Santa Barbara, 7
20097 San Donato Milanese (MI) - Italy
T.: +39 023703 7272
F.: +39 023703 7803
During the next four years Snam will execute a sizeable
investment plan, overall amounting to 6.0 billion euro, which
will be focused on the strengthening of the domestic gas
infrastructure. We aim to increase flexibility and security of
the Italian gas system in the wider project of a more closely
integrated European network.
Both the goals of increasing transport capacity and making
the physical export towards northern Europe possible will
be pursued through the extension of about 1,000 km of
the network of 32,306 km operating at 2013 year-end, in
combination with the increase of the installed capacity of
RESULTS 12M 2012 12M 2013 Change
GAS INJECTED INTO THE NETWORK (BCM) 75.78 69.01 -8.9%
TOTAL REVENUE (MN €)* 3,621 3,529 -2.5%
EBITDA (MN €) 2,817 2,803 -0.5%
REPORTED EBIT (MN €) 2,111 2,034 -3.6%
REPORTED NET PROFIT (MN €)** 779 917 +17.7%
OPERATING INVESTMENTS (MN €) 1,300 1,290 -0.8%
In 2013 Snam has achieved significant results, proving the effectiveness of the
operating management and the efficiency of the financial one; such results are
particularly appreciable if considered in light of the unfavourable external environment,
The intervention:Message from the CEO of Snam, Carlo Malacarne
6.0 billion euro investments at the core of the 2014-2017
Strategic Plan
Performance:2013 results
EBIT exceeds 2 billion euro
Continue on page 2
Continue on page 2
(*)TotalrevenuedonotincludetheimpactofIFRIC12,relatedtothe“ServiceConcessionArrangements”.
(**)NetprofitisattributabletoSnam.
Carlo Malacarne,
CEO of Snam

2. continueThe intervention:Message from the CEO of Snam, Carlo Malacarne
the compression stations of around 130
megawatt (+15% vs. 2013 year-end).
Investments in the Transport business
will absorb 3.6 billion euro, that is
roughly 60% of the overall investments
envisaged in the Plan.
At the same time, in order to improve
security and flexibility in the system,
we expect to invest 0.9 billion euro in
the Storage business, with the aim of
rising by 18% the modulation capacity
and by roughly 12% the peak capacity,
compared to the levels at 2013 year-end.
Lastly in the Distribution business
we have defined an articulated series
of targets that we aim to achieve
through investments for 1.5 billion
euro in total; firstly, the improvement
of the service quality thanks to higher
technological levels of metering;
secondly, the development of new
sections of the network in Municipalities
that are presently uncovered; thirdly, the
optimisation of the activity portfolio,
also through new concession tenders,
in order to benefit from further cost
efficiencies. On the back of these
initiatives we expect to reach 6.6 million
meters in 2017, with a 12% increase vs.
5.9 million units in 2013.
From the perspective of the international
development, the two acquisitions
realised in the last two-year period –
TIGF and Interconnector UK – provide
a positive contribution to the results of
the Group, in line with our expectations;
on top of these, Snam is negotiating the
acquisition of TAG, a company presently
89% controlled by CDP.
This deal, as TAG is the company owning
the transport rights in the Austrian
pipeline linked to the Tarvisio Entry
Point into the National Network, would
represent an interesting opportunity
of integration of a further portion of
European gas corridors (in particular, the
East-West corridor).
In spite of the relevant size of the
investment plan, over the 2014-2017
four-year period we expect to be able to
keep the Debt-to-Assets (consolidated
RAB and non-consolidated associates)
ratio at a level around 55%, considering
that the operating cashflow generation
will finance the invested capital growth.
The RAB compound average growth rate
over the 2013-2017 period is expected
at 3.3%.
In the period we target further increases
in profitability, leveraging on three
different factors:
1. theincreaseintheRABwithhigherlevels
of remuneration, which we expect to
rise from 31% in 2013 to 37% in 2017,
thanks to heavier concentration in
investments presenting a remuneration
above the base one;
2. the continuous attention to operating
efficiency and to cost control, which
we expect to maintain stable in real
terms over the four-year period,
while the asset basis grows;
3. the ever growing contribution expected
from the associates.
Lastly, the visibility of the cashflow
generation, combined with the solid
capital structure, will allow us to continue
to remunerate our shareholders through
an attractive and sustainable dividend
policy: in the 2014-2015 two-year period
we intend to distribute an annual dividend
of 0.25 euro, payable each year in May.
characterised by an 8.9% decrease in
transported volumes. Reported EBIT
exceeds 2 billion euro, presenting a
3.6% decline vs. 2012.
From a sector viewpoint, the operating
performance of transport (+8.2%) and
storage (+17.8%) has been neutralised
by the drop recorded in the EBIT of
distribution (-9.1%).
Reported net profit reached 917 million
euro (+17.7%), with a positive change
of 138 million euro.
Such increase is mainly attributable to
the decline in net financial charges (+322
million euro), partly counterbalanced by
higher taxes (-97 million euro), due to
higher pre-tax profit. During 2013 Snam
has executed its investment plan.
Net operating investments totalled
1,290 million euro (1,300 in 2012),
while equity investments amounted to
599 million, of which 597 related to the
TIGF acquisition.
The positive cash flow from operating
activities, equal to 1,698 million euro,
allowed to almost fully cover the net
technical investments and the TIGF
acquisition, which have absorbed 1,790
million in total.
Net financial debt, following the
payment to shareholders of the dividend
of 845 million euro, amounts to 13,326
million euro (+928 million euro
compared with 31 December 2012).
continue Performance: 2013 results
News@Facts N. 1, March 2014
2014-2017 PLANTARGETS
6.0 billion euro > Overall amount of investments in the 4-year period,of which 1.3 billion euro in 2014
+3.3% > RAB CAGR from 2013 to 2017
Ca.55% > Average level of the“Debt/TotalAssets”ratio in the 4-year period
2014-2015TARGET
0.25 euro Annual dividend per share in 2014 and 2015
CASH FLOW
Depreciation
& other non
monetary assets
€ m
Net profit
Change
in working
capital
Cash
flow from
operation
Net technical
investments
Financial
investments
Cash flow from
Shareholders’
equity & other
Change in net
debt 2013
Free cash
flow
917
728
1,698
-599
-836 -928
-92
-1,191
53
2,000
1,800
1,200
800
400
-
-400
-800
-1,200

3. On 14 January 2014 Snam has successfully placed a new fixed-
rate bond issue with tenor of 10 years, as part of the EMTN (Euro
Medium Term Notes) Plan approved by the Board of Directors
on 11 June 2013. The issue has been welcome by high-profile
International investors, as the size of the demand prove, with
orders exceeding 1.5 billion euro.
News: New 600 million fixed-rate bond issue
News: Sustainability developments
PRESTIGIOUS ROBECOSAM AWARD
In January 2014 Snam has
been awarded with the
Bronze Class 2014 in the
“2014 Sustainability Yearbook”, following its inclusion in the
outstanding companies’ group which are members of the Dow
Jones SustainabilityWorld Index,the most important Sustainability
index in the world. Snam has been listed in the index since 2009.
SNAM MEMBER OF SIX ECPI INDICES
Attheendof2013Snamresultsinbeingmember
of six indices of the ECPI group, in comparison
with the three indices in which it was listed in the previous year.
- ECPI Global ESG Best-in-class Equity
- FTSE ECPI Italia SRI Benchmark
- FTSE ECPI Italia SRI Leaders
- ECPI Ethical EMU Equity
- ECPI Ethical Euro Equity
- ECPI Ethical Global Equity.
The sophisticated ECPI research platform allows the monitoring of more
than 4,000 companies; the stocks to be included into the indices are
selectedthroughanassessmentprocessbasedon100EGS(Environmental,
Social, Governance) indicators, divided into macro-categories.
In light of the good results achieved in the 2013 fiscal year, the
Board of Directors will propose to the Shareholders’ Meeting of 15
April 2014 to approve the distribution of a dividend per share of
0.25 euro, in line with the one of the 2012 fiscal year.
In October 2013 Snam distributed an interim dividend of 0.10
euro per share: the final dividend will therefore be equal to 0.15
euro. Shareholders will receive the payment as of 22 May 2014,
with an ex-dividend date of 19 May 2014.
Focus: 2013 dividend of 0.25 euro
News@Facts N. 1, March 2014
DIVIDEND PER SHARE EVOLUTION (€) DIVIDEND YIELD
0.09
0.14
€0.23
0.10
0.14
€0.24
0.10
0.15
€0.25
0.10
0.15
€0.25
Transport and regasification tariffs for 2014 approved
Through resolution 603/2013, in December 2013 the Authority has approved the 2014 tariffs for the activities of transport,
dispatching and metering of natural gas.The resolution sets the RAB at 31 December 2012 at 14.8 billion euro.Tariffs have been set
on the basis of recognised reference revenues at 1,969 million euro, of which approximately 135 million euro related to incentives
for development investments. Real-pretax WACC is equal to 6.3%.
Again in December, through resolution 604/2013 the Authority has also approved the 2014 tariffs for LNG regasification. RAB at
31 December 2012 has been set at 108 million euro. Tariffs have been set on the basis of reference revenues equal to 27.6 million
euro. Real pre-tax WACC is equal to 7.3%.
Regulatory environment
BOND CHARACTERISTICS
Listing market: Luxembourg Stock Exchange
Maturity: 22 January 2024
Coupon: 3.25% (spread of 128 basis points over the reference mid swap rate)
2010 2011 2012 2013
Interim Final
2010 2011 2012 2013
8,00%
7,00%
6,00%
5,00%
4,00%
3,00%
2,00%
1,00%
0
6.17%
7.08% 7.10%
6.19%
The 2013 dividend yield,calculated on the basis of the year-end official price of 4.04
euro,is equal to 6.19%.As the bar chart shows,Snam has provided its shareholders
with one of most attractive dividend yields over time.

4. Snam and the financial markets
Since the beginning of 2013 the Snam stock presents a
performance in line with the one of the sector benchmark index
(Euro Stoxx Utility). The Index of the blue chips of the Italian
equity market (FTSEMIB) has showed stronger dynamics, even
though characterised by huge volatility, being driven by the
significant weight of the financial sector. The renewed interest
of foreign investors for the Italian market, distinguishing both
late 2013 and early 2014, has been focused on stocks presenting
deep market capitalisation decreases as a consequence of the
long-lasting phase of economic recession, in sight of the recovery
expected at the end of 2014. In such an environment Snam share,
presenting defensive features, has enjoyed a lower consideration
by investors looking for purchasing bargains in the Italian market,
despite investors have favourably welcomed both the 2013 annual
results, released on 28 February, and the 2014-2017 Strategic Plan,
presented on 19 March. Since the beginning of 2014, following
the sustained growth that has characterised the last part of 2013,
the Snam share price has oscillated in a lateral direction moving
within the 4.00-4.15 euro range.
The average target price, representing the consensus of the 23
brokers covering the Snam stock, has improved from 3.9 euro as at
the end of December 2013 up to the current level of 4.1 euro. In
comparison with the picture provided in the last issue of News@
Facts, also the high target-price improved, increasing from 4.35
to 4.50 euro. Presently, three brokers out of the 23 ones covering
the Snam stock, present a target price of 4.50 euro. The set of
recommendations has not substantially changed: most ratings
either suggest to buy (10 brokers) or to adopt a neutral stance
(further 11 brokers).
News@Facts N. 1, March 2014
OFFICIAL LISTING MARKET > BORSA ITALIANA EQUITY MARKET
TYPE OF SHARES > ORDINARY SHARES
INDEX MEMBERSHIP > FTSEMIB / FTSE ALL-SHARE / EURO STOXX /
EURO STOXX UTILITY / STOXX EUROPE 600
ETHICAL INDEX MEMBERSHIP > FTSE4GOOD / ETHIBEL / CAPITAL PARTNERS /
DOW JONES SUSTAINABILITY WORLD / STOXX GLOBAL ESG LEADERS INDICES
/ VIGEO WORLD 120 / VIGEO EUROPE 120/ GC 100 /CDLI
CREDIT RATINGS > S&P’S: BBB+; MOODY’S: BAA1
CODES
ISIN > IT0003153415
REUTERS > SRG.MI
BLOOMBERG > SRG IM
HIGH (365 DD) > € 4.20 – 19 MARCH 2014
LOW (365 DD) > € 3.37 – 25 JUNE 2013
LAST DIVIDEND PAID (INTERIM 2013) >€ 0.10 – 24 OCTOBER 2013
TOTAL N. OF SHARES OF THE SHARE CAPITAL > 3,381,638,294
MKT CAP (BILLION EURO) > 13.83
SNAMANDTHE STOCK EXCHANGE
CONSENSUSTARGET PRICE
LOW3.2
HIGH4.5
AVERAGE4.1
NUMBER OF BROKERS: 23
0 1 2 3 4 5
CONSOLIDATED FINANCIAL STATEMENTSAND DRAFT FINANCIAL
STATEMENTSAT 31 DECEMBER 2013.DIVIDEND PROPOSAL FOR 2013.REPORT
ON CORPORATE GOVERNANCEAND OWNERSHIP STRUCTURE FOR 2013.
REPORT ON REMUNERATION FOR 2013.SUSTAINABILITY REPORT FOR 2013
27 FEBRUARY 2014 > BOD
28 FEBRUARY 2014 > PRESS RELEASE AND CONFERENCE CALL
2014-2017 STRATEGIC PLAN
18 MARCH 2014 > BOD
19 MARCH 2014 > PRESS RELEASE AND STRATEGY PRESENTATION
FINANCIAL STATEMENTSAT 31 DEC.2013.DIVIDENDAPPROVAL
FOR 2013
15APRIL 2014 > SHAREHOLDERS’ MEETING (SINGLE CALL)
FIRST QUARTER 2014 REPORT
5 MAY 2014 > BOD
6 MAY 2014 > PRESS RELEASE AND CONFERENCE CALL
2013 DIVIDEND DISTRIBUTION
19 MAY 2014 > 2013 FINAL DIVIDEND EX-DIVIDEND DATE
22 MAY 2014 > 2013 FINAL DIVIDEND PAYMENT DATE
INTERIM FINANCIAL REPORTAT 30 JUNE 2014
29 JULY 2014 > BOD
30 JULY 2014 > PRESS RELEASE AND CONFERENCE CALL
THIRD QUARTER 2014 REPORT
30OCTOBER2014 > BOD
31OCTOBER2014> PRESS RELEASE AND CONFERENCE CALL
Pressreleasewillbeissuedinthemorning(non-tradinghours),withtheexceptionofthe
oneon15April2014,whichwillbeissuedattheendoftheMeeting.
ConferenceCallsandStrategyPresentationtakeplaceintheafternoon.
2014 FINANCIAL CALENDAR
STOCK PRICE PERFORMANCE (2 JANUARY 2013 – 21 MARCH 2014)
STOCK PRICE (CLOSING PRICE OF 21 MARCH 2014 = 4.09 EURO)
COMPAREDWITH SECTORAND MARKET INDEX (BASE 2 JAN.2013 =100).
BROKER RECOMMENDATIONS
NUMBER OF BROKERS: 23
0 2 4 6 8 10 12 13
ADD/BUY4
OUTPERFORM6
HOLD/NEUTRAL11
REDUCE/SELL1
UNDERPERFORM1
SNAM EURO STOXX UTILITY FTSEMIB
Jan
2013
Feb
2013
Mar
2013
Apr
2013
May
2013
Jun
2013
Jul
2013
Aug
2013
Sep
2013
Oct
2013
Nov
2013
Dec
2013
Jan
2014
Feb
2014
Mar
2014
130
125
120
115
110
105
100
95
90
85

5. In-depth in Snam businesses -TRANSPORTAND DISPATCHING
News@Facts N. 1, March 2014
News – New steps into international development:
MOU for TAG acquisition
Snam has become an international operator thanks to the
acquisitions completed over the last two years
• of the 45% stake in TIGF, the company operating in transport
and storage in South France, purchased in consortium with
CIG (35%) and EdF (20%),
• of the 31.5% stake – purchased through a JV with the Belgian
operator Fluxys – in the Interconnector UK, the company
operating the submarine pipeline linking United Kingdom
and Continental Europe.
A new significant step into international development is
represented by the recent signature of the Memorandum of
Understanding, which sets the process to acquire the present
stake (89%) held by Cassa Depositi e Prestiti in TAG GmbH,
through a negotiation already underway.
The strategic value of this acquisition is important to Snam,
since TAG owns the transport rights in the pipeline connecting
the Slovenian-Austrian border with theTarvisio entry point into
the National Network.
TAG infrastructure system, which is articulated into three
pipelines of 380 km (1,140 km in total) and into five
compression stations, presents a transport capacity of 47.5
bcm per year.
Thecontrolof TAGwouldthereforeallowSnamtointegrate
the West-East corridor, in which it is already present with
the stake owned in TIGF.
8 entry points of the National Network for natural gas coming
from abroad:Tarvisio, Gorizia, Passo Gries, Mazara delVallo, Gela,
as well as the LNG terminals in Panigaglia, Rovigo (Cavarzere) and
Livorno.
53 entry points of the National Network at which national
production is injected.
2 virtual entry points, one for each storage operator (Stogit
SpA and Edison Stoccaggio SpA).
69.01 bcm of natural gas injected into the Network in 2013.
32,306 km Transportation Network in use at 2013 year-end.
108 shipper having transport contracts with Snam Rete Gas.
INVESTMENTS OBJECTIVES
● Develop new infrastructure along Italy’s South-North
backbone and in the Po Valley, with the aim to increase
transport capacity, diversify supply sources and make
physical export to North Europe possible.
● Increase flexibility and liquidity of the domestic and
European market, even through the offer of new integrated
services to system operators.
Saturation (%)
Transport
Capacity
Allocated
Capacity
87.0375.6 326.9
TRANSPORT INVESTMENTS IN 2013
Breakdownbylevelofremuneration
2014-2017
INVESTMENTS
INTRANSPORT
3.6 billion euro
(of which 0.7 billion euro in 2014)
500 600 700 800 900 1000
2011892
2012700
2013672
TRANSPORT OPERATING INVESTMENTS (mn euro)
1000 1050 1100 1150 1200 1250
20111,137
20121,135
20131,217
TRANSPORT EBIT (mn euro)Transport continues to represent the most relevant
portion of the four-year Investment Plan of Snam.
Snam has planned to invest 6.0 billion euro in Italy in the 2014-2017
four-year period, of which approximately 60%, that is 3.6 billion
euro, in the transport business.
As the 2013 figures prove (see chart on the right), most of the Snam
investments benefits from higher remuneration than the basic one.
REMUNERATION RATE FOR NEW INVESTMENTS: 7.3%
TRANSPORT CAPACITY
CALENDAR YEAR 2013 (bcm/d) Greater return of 1%
Greater return of 2%
New compression
stations
Greater return of 3%
Basic rate of return
New pipelines
41%
22%
14%
23%