September 2014

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

The oil markets

In September, crude oil prices decreased

both for the U.S. crude benchmark WTI (-

5%, closing at $91.20/barrel) as well as the

Brent (-7.9% to $93.20/barrel), affected by

weak demand for oil on a global level in a

contest of an adequately supplied market

and by the strengthening of the dollar.

Snam S.p.A. Investor Relations

The financial markets

The month of September saw a general

increase in equity markets, with rises of

0.7% for the European DJ Stoxx50, 2.2% for

the Italian stock exchange and 1.9% for the

Stoxx Europe Utilities sector index. The sole

exception was the American S&P500, which

closed down (-1.6%).

Stock markets, particularly those in Europe,

benefited from the monetary policy measu-

res announced by the ECB, which consist of

the further reduction in interest rates and the

launch of a program to purchase asset-

backed securities and collateralised debt

obligations in order to facilitate greater liqui-

dity within the banking system. The tempora-

ry easing of tensions between Russia and

Ukraine also boosted the positive trend

across European markets. The US stock

market was negatively influenced by worse

than expected macroeconomic data.

From a macroeconomic perspective, in the

United States (with reference to the month of

August, on a monthly basis) data on orders

for durable goods was down (-18.2%), along

with industrial production (-0.1%) and the

real estate market (new builds -14.4%, buil-

ding permits -5.6% and sales of existing

homes -1.8%); the final estimate for US GDP

in the second quarter of 2014 saw a rise of

+4.6% (QoQ annualised) versus the initial

estimate of +4.2%.

In the Eurozone (with reference to the month

of September, on a monthly basis), there

was a general decline in leading indicators of

economic trends, both for the PMI indexes

(composite at 52.3 points, from 52.5 in the

previous month), as well as the German Ifo

and ZEW indexes. The ECB reduced inte-

rest rates by 10 basis points, bringing the

benchmark to 0.05% (a new record low)

from the previous 0.15%, and partially ad-

justed downwards its forecasts for GDP

growth and inflation for 2014 (respectively at

+0.9% and +0.7%) and 2015 (+1.6% and +

1.1%) .

10.1%

16.6%

5.1%

6.7%

2.2%

1.9%

0.7%

‐1.6%

-5% 0% 5% 10% 15% 20%

DJ Stoxx 50

S&P 500

DJ Euro Stoxx Utilities

FTSE MIB

September ‘14

YtD ‘14

Snam shares closed the month down.

A mostly positive performance by the markets in September, supported by new expansive monetary policy measures from the ECB

Crude oil prices closed down

Similarly to the equity markets, individual

sectors have experienced contrasting trends.

Some have registered a declining perfor-

mance, in particular the raw materials sector,

which was negatively affected by worse than

expected economic data from China that has

rekindled fears of a slowdown in the growth

of the world's second largest economy. Oth-

er sectors showed converse results, first and

foremost pharmaceutical, followed by bank-

ing and insurance, the latter two driven by

further expansionary monetary policies

adopted by the ECB earlier this month.

The utility sector also performed well, sup-

ported by the performance of energy compa-

nies.

During the month of September, the utility

sector saw a growth in performance of 1.9%

versus the previous month's end.

The sector’s result was driven by energy

utility companies, which were boosted by the

recovery in electricity prices during the

month. In particular, the sub-sector was

driven upwards by French electricity genera-

tion companies (GDF Suez +6% and EDF

+5%).

The Utility sector in the Stock Market

Source: Snam on the Bloomberg data

Main sector performance, September 2014

Sector and subsector performance, September 2014

‐1.0%

2.8%

‐1.1%

1.9%

-5% 0% 5%

.

Defensive Utilities

DJ Utility

Energy Utilities

Others

The utility sector also performed well, supported by the performance of energy companies.

The Utility sector performance

Financial Markets Review September 2014 Snam S.p.A. Investor Relations

DJ Ut i l i t y ; 1,9%

DJ Insur ance; 2,4%

DJ T el ecom; 1,3%

DJ Heal th Car e; 5,1%

DJ M edi a; 0,0%

DJ Real Estate; -2,3%

DJ T r avel &Lei sur e; 2,3%

DJ Chemi cal s; 0,1%

DJ Food&Bev; 0,3%

DJ Const&M ater ; -3,4%

DJ Inds Good; -0,9%

DJ Oi l &Gas; -1,8%

DJ Per s&Househol ds; -0,4%

DJ Autopar ts ; -4,5%

DJ T ech; 0,7%

DJ Fi nanci al Ser v i ces; -2,2%

DJ Retai l ; -4,1%

DJ Banks; 1,5%

DJ Basi c Resour ces; -5,1%

-10% -5% 0% 5% 10%

47.5%

11.6%

13.2%

38.9%

16.3%

12.9%

23.7%

16.6%

10.1%

5.1%

‐1.0%

1.6%

0.6%

7.0%

‐1.2%

‐3.5%

‐7.9%

1.9%

2.2%

0.7%

-10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

The Snam shares and its peers in the Stock Markets

The Snam stock closed the month of Sep-

tember down 1% (€ 4.38 per share), under-

performing both the Italian market as well as

the Utility sector.

The stock reached its highest historical le-

vels (€4.57) in the first week of the month,

while in the second half of September it was

lowered due to profit taking by investors,

partially absorbing the outperformance in

previous months.

The stock's average daily trading volume in

September totaled 7.9 million units, up from

7.5 million in August.

BoD approved the TAG acquisi-tion

On 11 September 2014 Snam has been

confirmed for the sixth consecutive year in

the Dow Jones Sustainability World Index,

the most important global stock exchange

index for Corporate Social Responsibility.

This recognizes the ongoing commitment of

Snam to sustainable development and crea-

tion of value for the Company itself and its

stakeholders.

This year's results, in line with the ones of

last year in terms of overall positioning (82

points), register an improvement in the social

dimension and in almost all the sections of

the environmental field, with scores in line or

next to the industry’s highest standard, con-

firming the Company’s ability to ensure ex-

cellence in protecting the environment in a

framework of dialogue and interaction with

the communities it operates with.

Corporate News

Snam and its peers

Source: Snam on the Bloomberg data

YtD ‘14

September ‘14 FTSE MIB

Stoxx 50

DJ Utility

United Utilities

NG

Severn Trent

REE

Enagas

Snam

Terna

On 12 September 2014 Snam's Board of

Directors, which met under the chairmanship

of Lorenzo Bini Smaghi, has approved the

transaction consisting in the acquisition of the

stake held by CDP GAS S.r.l. (CDP GAS), a

fully owned subsidiary of Cassa Depositi e

Prestiti S.p.A. (CDP) in Trans Austria Gaslei-

tung GmbH (TAG), for a total amount of EUR

505 million. The transaction is in line with

Snam’s international development strategy

and further strengthens the Company’s lea-

ding role amongst infrastructure operators in

Europe. The TAG pipeline, also in light of its

potential use in reverse flow towards Central

Europe markets, is a strategic asset for the

development of the European East-West

energy corridor in the broader context of the

increasing integration of continental energy

networks.

TAG holds the transmission rights of the

Austrian section of the pipeline that connects

Russia to Italy. The company recorded total

revenues of approximately EUR 320 million

and EBITDA of approximately EUR 154

million in 2013, and net financial debt of

approximately EUR 393 million as of 31

December 2013. The pipeline connects Bau-

mgarten, on the Austrian border with Slova-

kia, with Arnoldstein, on the border with Italy

(Tarvisio). It consists of three parallel lines

extending approximately 380 km each, 5

compressor stations, and auxiliary plants

with an overall length of about 1,140 km.

TAG operations are entirely subject to Au-

strian regulation. The amount of EUR 505

million will be paid through the execution of a

share capital increase, with exclusion of the

preemption right, reserved in favor of CDP

GAS.

Financial Markets Review September 2014 Snam S.p.A. Investor Relations

Snam SpA

Piazza Santa Barbara 7 - 20097 S. Donato Milanese (Mi) Italy

www.snam.it — investor.relations@snam.it

tel: +39 02 37037272- fax: +39 02 37037803

Snam confirmed in the DJSI

Agenda

October 30/31 Interim financial report at 30 September 2014 Board of Director, press release and Conference call