2020 nine-month results

1. Milan
November 5th, 2020
2020 nine-month results

2. 2
Key highlights: strong delivery on results
• Capex plan €762m (+17% vs LY). Delays due to Covid to be
fully recovered by year end
• Efficiency plan ongoing: €60m cumulated already achieved
• Wacc review process initiated
Continuous improvement in our core business
• Closing for a 50% stake in Iniziative Biometano
• Closing for a 70% stake of Mieci and Evolve
• Progress on hydrogen value chain development:
• Strategic partnership with ITM Power, leading
eloctrolyzers producer
• Signed MoU with Ferrovie dello Stato to promote the
study of Hydrogen in rail transport
Enhanced exposure to the energy transition
• TAP commercial operating date confirmed in mid November
• First contribution of Adnoc Gas Pipelines Assets to P&L
and successful first tranche take out (USD 4bn) via long
term bond of acquisition financing
Progress on international activities Value creation from optimization of financial structure
• Lower financial charges –21% (from €126m in 9M 2019 to
€100m 9M 2020)
• Annual renewal of the EMTN Programme approved for a
total maximum amount of €11bn
• S&P affirms rating at BBB+, outlook improved to stable
• Snam founding member of the UN Global Compact CFO
taskforce

3. 3
Gas demand update
Progressive improvement in demand
• Civil sector: - 1.8bcm
• Power sector: - 1.6 bcm mainly due to lower electricity demand (-7%)
• Industrial sector: -0.9 bcm mainly due to the Covid-19 lockdown
• Gas demand: -7% y-o-y in Q1, -18% y-o-y in Q2, -1.5% in Q3
Weekly gas consumption
• Industrial sector is continuing to recover from the end of the lockdown
(May 4th, 2020) as the building sector too
• Increase of gas consumption for thermoelectric plants in September
versus the previous year
19.1 17.3
13.0
11.9
20.4
18.8
1.8
1.8
9M 2019
Gas consumption in Italy (Jan-September)
49.8
Building
Other
Thermoelectric
Industry
54.4
Bcm
9M 2020
(-8.5%)
Reduction of gas demand of ca. 4.6bcm (-8.5% y-o-y)
-
200,0
400,0
600,0
800,0
1.000,0
1.200,0
1.400,0
Smc
2019 2020

4. 9M 2020 results
1.880 1.910
9M 2019 9M 2020
1.661 1.670
9M 2019 9M 2020
Regulated revenues EBITDA
126 100
9M 2019 9M 2020
Net financial charges
867 873
9M 2019 9M 2020
Net income
• Higher transport tariff RAB
• Negative commodity effect
• Treasury management
optimization measures
• Liability management
• Lower financial charges
• Normalization of associates
contribution
• Positive effect from efficiency
programme
• New businesses contribution
+0.7%
+1.6% +0.5%
-21%
4
FY 2020 net profit guidance confirmed

5. 5
2020 9M results: Ebitda analysis
€ mn
1.661 1.67029 5
Ebitda 9M19
-3
Regulated
revenues (net of
energy costs)
-22
Fixed costs
core
Other core
(net of energy
costs)
New businesses Ebitda Adj. 9M20
• Tariff RAB increase
• Negative commodity effect • Lower capitalized costs
• Lower provisions
• Lower capital losses
• Regulatory recognition of energy
costs

6. 6
2020 9M results: Net profit analysis
€ mn
6
867
Income
taxes
Net interest
(expenses)
Net Profit
9M 2019
Net Profit Adj.
9M 2020
Ebit Net income
from associates
-7-20
26 7 873
• ACE benefit reintroduction
• Adnoc contribution
• Terega release of a tax prov
• IUK normalization
• Lower cost of debt
• OLT financial income

7. 7
Cash flow
€ mn • Additional items € 45m
• Undercharges: - € 56m
7
• Capex € -762m
• OLT cash out € -307m
• Adnoc € -221m
865
1.335
10 (883)
486
(114)
Change in
working
capital
Depreciation
& other
items
Net profit
(16)
Cash Flow
from
Operation
Cash Flow
(1,325)
Net
Investments
Free Cash
Flow
(779)
Dividend SBB

8. 8
Snam Debt Structure
Highlights first 9M 2020 Net debt and funding sources as of
30 September 2020
Fixed – Floating gross debt breakdown
76%
24%
Fix Floating
71%
29%
Fix Floating
FY 2019
11.4
3.2
8.1
1.1
1.5
12.8
3.2
2.1
8.7
1.6
15.6
-1
1
3
5
7
9
11
13
15
17
Net Debt Total committed
credit facilities and
bonds*
Istitutional Lenders
Debt Capital Market
Bilateral Banking Facilities
Pool Banking Facilities
Uncommitted credit lines and Commercial Papers are considered as
floating rate debt, given their nature of short-term facilities used
for treasury management optimization
• Strong liquidity profile leveraging on 700mln€ term loans, new
500m€ Transition bond, relevant cash on hand and the undrawn
3.2bn€ RCF credit line
• Solid financial structure with 71-29% fix-floating rate and 5.3
year M/LT maturity
• Sustainable finance: approx. 6bn€ in sustainable financing (ca.
40% of total funding)
• Recent developments:
 Further Treasury Management Optimization leveraging on
uncommitted credit lines and Commercial Paper at negative
yields
 Renewal of ECP Programme approved for a total maximum
amount of €2.5bn (from 2.0bn currently) with potential ESG
content
3Q 2020
* Not including €2 billion Euro Commercial Paper and
uncommitted credit lines

9. Q&A

10. BACKUP

11. 11
Income Statement
[ € mn ] 9M 2019 9M 2020* Change Change %
Revenues 1,955 2,032 77 3.9%
Operating expenses (294) (362) (68) 23.1%
EBITDA 1,661 1,670 9 0.5%
Depreciation & amortisation (536) (565) (29) 5.4%
EBIT 1,125 1,105 (20) (1.8%)
Net interest income (expenses) (126) (100) 26 (20.6%)
Net income from associates 170 163 (7) (4.1%)
EBT 1,169 1,168 (1) (0.1%)
Income taxes (302) (295) 7 (2.3%)
NET PROFIT 867 873 6 0.7%
* Adjusted for 9M 2020: Covid – 19 emergency (€ 11m of one-off donation, DPIs for internal needs; € 8m net of taxes)

12. 12
Revenues
[ € mn ] 9M 2019 9M 2020 Change Change %
Regulated revenues 1,880 1,910 30 1.6%
Transport 1,489 1,519 30 2.0%
Storage 377 374 (3) (0.8%)
LNG 14 17 3 21.4%
Non regulated revenues 20 20 - -
Total core business revenues 1,900 1,930 30 1.6%
New business revenues 55 102 47 85.5%
TOTAL REVENUES 1,955 2,032 77 3.9%

13. 13
Operating Expenses
[ € mn ] 9M 2019 9M 2020 Change Change %
Core business costs 239 265 26 10.9%
Variable costs 15 32 17 113.3%
Fixed costs 199 202 3 1.5%
Other costs 25 31 6 n/a
New business costs 55 97 42 76.4%
TOTAL COSTS 294 362 68 23.1%

14. 14
Balance Sheet
[ € mn ] 2019 9M 2020 Change Change %
Net invested capital 18,181 19,315 1,134 6.2%
Fixed capital 19,311 20,137 826 4.3%
Tangible fixed assets 16,802 16,963 161 1.0%
Intangible fixed assets 990 1,045 55 5.6%
Equity-accounted and other investments 1,828 2,103 275 15.0%
Financial receivables held for operating activities 3 308 305 n.m.
Net payables for investments (312) (282) 30 (9.6%)
Net working capital (1,094) (782) 312 (28.5%)
Receivables 1,549 1,458 (91) (5.9%)
Liabilities (2,643) (2,240) 403 (15.2%)
Provisions for employee benefits (46) (40) 6 (13.0%)
Non current assets held for sale 10 - (10) n.m.
Net financial debt 11,923 12,805 882 7.4%
Shareholders' equity 6,258 6,510 252 4.0%

15. Disclaimer
Luca Oglialoro, 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.