Financial Markets Review (July 2015)

1. July 2015
Performance of the main stock indices
Source: Snam on the Bloomberg data
The financial markets pag. 1
The utility sector pag. 2
Snam shares and its peers pag. 3
1H 2015 results pag. 4
The oil markets
In July, oil prices were in strong decline for
the U.S. crude benchmark WTI (-20.8%
closing the month at $47.1/barrel), and for
the Brent (-17.6%, at $50,6/barrel), impacted
by the weak fundamentals of the stock mar-
ket, the nuclear agreement with Iran, the
strengthening of the US dollar and the de-
crease in oil demand from China.
Snam S.p.A. Investor Relations
The financial markets
July registered a general increase across the
stock markets, with rises of +2.0% for the US
S&P 500, +3.9% for the European Stoxx
600, +4.8% for the Italian stock exchange,
and +3.5% for the Stoxx Europe 600 Utilities.
Stock markets, particularly those in Europe,
benefitted from the first agreement reached
between Greece and international creditors,
and from the release of emergency liquidity
from the ECB to the Greek banks. A further
contribution came from positive signals on
the economic performance in both the US
and the Eurozone. Regarding macroecono-
mic data, in the United States (June data, on
a monthly basis), increases were registered
in orders for durable goods (+3.4%), sales of
existing homes (+3.2%) and industrial pro-
duction (+0.3%). Positive indications came
from the labour market, with a decrease in
the weekly claims for unemployment benefit
down to the lowest level since 1973
(255,000). US GDP also grew in the second
quarter of 2015 (+2.3% QoQ annualised)
from +0.6% in the first quarter. The FED
confirmed interest rates at current levels
(between 0% and 0.25%).
In the Eurozone industrial production (May
data, on a monthly basis) declined at an
aggregate level (-0.3%), remained flat in
Germany, and increased in France (+0.4%)
and Italy (+0.9%). The German Ifo Index
increased more than expected thanks to the
business climate (at 108 points in July from
107.5 the previous month). The ECB confir-
med the reference rate at its current level
(0.05%).
23.8%
2.0%
15.7%
2.2%
4.8%
3.5%
3.9%
2.0%
-5% 0% 5% 10% 15% 20% 25%
Stoxx Europe 600
S&P 500
Stoxx Europe 600 Utilities
FTSE MIB
July 2015
YtD 2015
The Snam stock closed upA positive trend on the stock
markets, driven by the positive
developments in the Greek crisis
Oil prices in strong decline

2. Like the markets, the sectors also registered
largely positive performances, in particular
the real estate sector (+7.0%) and the con-
struction sector (+5.3%), due to the increase
in demand. The financial services sector
(+4.4%) and the banking sector (+4.2%) also
saw good performances, thanks to positive
signs given by the quarterly results.
In contrast the raw materials sector fell
(-6.6%), due to the ongoing slowdown of the
Chinese economy and the strengthening of
the US dollar, as did the Oil & Gas sector
(-0.9%), which was impacted by the fall in oil
prices.
In July, the utility sector rose 3.5%, bolstered
mostly by the “Other” sector (+6.2%), which
includes the French company Veolia
(+11.1%), boosted by expectations for its
annual targets to be revised upwards, and
Enel Green Power (+7,9%), thanks to its
positive half year results.
The “Defensive” sector was also on the rise
(+3.9%), and in addition to Snam (+5.0%),
Terna rose (+7.1%) thanks to its positive half
year results, as did Enagas (+4.9%), follo-
wing Standard&Poor’s rating upgrade from
BBB a BBB+.
Sectors on the stock market
Source: Snam on the Bloomberg data
Main sector performance, July 2015
Sector and subsector performance, July 2015
6.2%
3.0%
3.9%
3.5%
-5% 0% 5% 10%
Defensive Utilities
DJ Utility
Energy Utilities
Others
The utility sector performance
Financial Markets Review July 2015 Snam S.p.A. Investor Relations
DJ Uti l i ty; 3,5%
DJ Insur ance; 5,1%
DJ T el ecom; 4,9%
DJ Heal th Car e; 7,7%
DJ M edi a; 4,8%
DJ Real Estate; 7,0%
DJ T r avel &Lei sur e; 2,7%
DJ Chemi cal s; 3,5%
DJ Food&Bev; 3,4%
DJ Const&M ater ; 5,3%
DJ Inds Good; 2,9%
DJ Oi l &Gas; -0,9%
DJ Per s&Househol ds; 8,6%
DJ Autopar ts; -4,7%
DJ T ech; 2,5%
DJ Fi nanci al Ser vi ces; 4,4%
DJ Retai l ; 4,7%
DJ Banks; 4,2%
DJ Basi c Resour ces; 3,4%
-10% -5% 0% 5% 10% 15%

3. 9.3%
12.9%
-2.3%
-0.6%
-7.1%
9.9%
-2.6%
2.0%
23.8%
15.7%
5.0%
7.1%
4.9%
1.2%
4.4%
5.9%
0.0%
3.5%
4.8%
3.9%
-10% -5% 0% 5% 10% 15% 20% 25% 30%
The Snam shares and its peers
in the Stock Markets
The Snam stock closed the last session of
July at €4.48, up 5.0% from the previous
month.
The share price, which outperformed both
the utility sector as well as the Italian market,
was particularly impacted in the first half of
the month by the increase in bond yields, as
they are expected to translate into larger
returns. In addition, the half year results’
performance being in line with expectations
has counterbalanced some profit taking.
The stock's average daily trading volume in
July totalled 12.2 million units, down from
13.2 million in June.
1H 2015 Snam results
Corporate News
Snam and its peers
Source: Snam on the Bloomberg data
YtD 2015
July 2015
FTSE MIB
Stoxx Europe 600
Stoxx Europe 600 Utilities
United Utilities
National Grid
Severn Trent
Red Electrica
Enagas
Snam
Terna
On 28th July the Snam Board of Directors, at
meeting chaired by Lorenzo Bini Smaghi,
approved the consolidated half-year report to
30 June 2015 (subjected to a limited audit)
and the consolidated results for the second
quarter of 2015 (unaudited).
Carlo Malacarne, Snam CEO, made the follo-
wing comments on the results:
“The 9.1% growth in net profit in the first half
of 2015 reflects the robustness of our opera-
tions and our strict financial discipline, as well
as the growing contribution of our associates.
We are continuing our selective programme
of investment focused on upgrading Italian
gas infrastructure and promoting closer inte-
gration of the European networks”.
Activities relating to the revocation of the
judicial administration ordered by the Court
of Palermo regarding Italgas concluded on
9th July. The Court has ruled on the return of
the company, having considered the verifi-
cations carried out and the active coopera-
tion of the Snam Group.
Having taken note of the revocation order,
Italgas’ Shareholders' Meeting appointed the
company's Board of Directors – which was
scheduled to remain in office until April 2015
- until the approval of the 31 December 2015
financial statements, confirming all the
outgoing members and Marco Reggiani as
Chairman.
The Board has, in turn, confirmed Luca
Schieppati as Chief Executive Officer.
Financial Markets Review July 2015 Snam S.p.A. Investor Relations
Agenda
October
27/28 Third quarter 2015 report
Board of Director, press release and conference call
Fitch Ratings has affirmed Snam’s long-term
Issuer Default Rating (IDR) and senior unse-
cured rating at “BBB+”. The outlook is stable.
The short-term Issuer Default Rating has
been affirmed at “F2”.
Italgas: judicial administration
revoked
Fitch affirms Snam’s rating at
BBB+, outlook stable

4. Snam and its peers: 1H 2015 results
Operating Highlights
Financial Highlights
On 29th
July Snam presented the 1H 2015 results
* Net profit is attributable to Snam.
** Debt at 12.31.2014.
On 28th
July Terna presented the 1H 2015 results
On 21st
July Enagas presented the 1H 2015 results
(million euro) 1H 2014 1H 2015 Change
Total revenue 638 609 (4.6%)
EBITDA 507 459 (9.6%)
EBIT 339 312 (7.9%)
Net profit 210 213 +1.5%
Investments 419 280 (33.0%)
Net debt 4,059* 3,851 (5.1%)
Financial Highlights
On 29th
July Red Electrica presented the 1H 2015 results
(million euro) 1H 2014 1H 2015 Change
Total revenue 926 973 +5.0%
EBITDA 695 741 +6.6%
EBIT 485 507 +4.5%
Net profit 290 309 +6.5%
Net debt 5,409* 5,046 (6.7%)
Investments 249 226 (9.3%)
Financial Highlights
Snam SpA
Piazza Santa Barbara 7 - 20097 S. Donato Milanese (Mi) Italia
www.snam.it — investor.relations@snam.it
tel: +39 02 37037272- fax: +39 02 37037803
Financial Markets Review July 2015 Snam S.p.A. Investor Relations
(million euro) 1H 2014 1H 2015 Change
Total revenue 1,782 1,837 +3.1%
EBITDA 1,428 1,434 +0.4%
EBIT 1,044 1,012 (3.1%)
Net profit 561 612 +9.1%
Investments 526 487 (7.4%)
Net debt 13,652* 13,936 +2.1%
(billion cubic meters) 1H 2014 Change
Gas injected into the transportation
network
32.78 0%
Available storage capacity 11.4 0%
Number of active meters (mln) 5.911 +10.3%
1H 2015
32.77
11.4
6.518
*
Debt at 12.31.2014.
*
Debt at 12.31.2014.
(million euro) 1H 2014 1H 2015 Change
Total revenue 950 1,002 +5.5%
EBITDA 753 767 +1.9%
EBIT 518 524 +1.2%
Net profit 274 310 +13.1%
Net debt 6,966* 6,876 (1.3%)
Investments 386 439 +13.7%
*
Debt at 12.31.2014.
Financial Highlights