4. • Ebit 542 Up 2.1%
• Net income 292 Up 20.7%
• Net debt 13,120
• Capex 229
4
[ €m ]
Solid
Results
Business
Development
• MoU with Fluxys to combine international assets in Europe
• Swap agreement in AES Torino to focus on distribution assets
1Q 2014 Highlights
5. Integrated management of international assets with Fluxys paves the way for the creation
of a leader in the European gas infrastructure sector
Snam-Fluxys MoU: international assets integration
in the North- South and East-West gas corridors
5
To exploit European gas market opportunities
To optimize the value of domestic asset through
integrated management with international assets
To maximize gas volumes transported through our
assets in the North-South and East – West gas
corridors, attracting new gas flows and linking new
gas sources
To leverage financial strength and business scale
in order to exploit further potential international
development
To offer new integrated and cross border services
in transport, storage and regasification
Main targets
TENP
Transitgas
TIGF
TAG*
Snam and Fluxys domestic networks
IUK
BBL
Snam and Fluxys international pipelines
NEL
* In case of a positive completion of the
acquisition from CdP
6. 14.9 14.9
4.4 4.3
6.0 4.7
0.4
0.4
1Q 2013 1Q 2014 1Q 2013 1Q 2014
6
Residential
& commercial
Industrial(*)
Thermoelectric
Other Sectors
Gas Consumption (Weather adj.)
-5.5%
24.3
25.7
Gas injected into the network
-12.7%
16.3
18.7
(*) Includes: NGV, Agriculture and Non-Energy Use
Source: Italian Ministry of Economic Development and SRG estimates
Italian Gas Market in 1Q 2014
18. 9
17
43
69
2719
4
50
39
13
20
23
95
43
13
51
7
1330
57
14
71
50
107
Capital Expenditure*
18
Transport
and LNG
Storage
Distribution
1Q 20141Q 2013
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 1Q 2013 and 1Q 2014 capex for € 2 million and € 1 million respectively was carried out by Snam S.p.A.
Expansion of existing fields
+ 4% for 8 yrs
Development of new fields
+ 4% for 16 yrs
Others 6.7%
Metering
7.2% remuneration
Distribution
6.9% remuneration
Remuneration for
new investments
7.3%
Remuneration for
new investments
6.7%
Regional & national develop.
+ 1% for 7 – 10 yrs
Import & export capacity develop.
+ 2% for 10 yrs
Others 7.3%
19. Operational Data
19
1Q 2013 1Q 2014 ∆ %
Transport Gas injected into the network (bcm) 18.7 16.3 -12.7
Gas pipeline network (km in operation) 32,244 32,299 +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
6.97
0.01
6.96
4.84
0.08
4.76
-30.6
n.m
-31.6
Distribution Gas distributed (bcm) 3.54 3.30 -6.9
Active Gas Metering at redelivery points (# mln) 5.91 5.92 +0.2
(*) Available capacity
20. 20
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
