May 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

Oil prices increased during May, both for the

U.S. crude benchmark WTI (+2.9%, closing

at $102.70/barrel), as well as Brent (+1.8%,

at $110.70/barrel), driven by geopolitical

tensions (in Ukraine and Libya) as well as by

the large accumulation of crude oil stocks by

China.

Snam S.p.A. Investor Relations

The financial markets

May registered positive performance across

the majority of equity markets, with rises of

2.1% for the US S&P500, 1.9% for European

DJ Stoxx50, and 4.4% for the Stoxx Europe

Utilities sector index. The sole exception was

the Italian FTSE MIB, which closed down (-

0.7%).

The equity markets were mainly bolstered by

the confirmation of prospects of economic

growth, particularly in the United States, and

also by expectations of a potential initiative

regarding the ECB's expansionary monetary

policy.

From a macroeconomic perspective, in the

United States (with reference to the month of

April, on a monthly basis) data on orders for

durable goods was up (+0.8%) along with

sales of existing houses (+1.3%), while indu-

strial production was down (-0.6%). Positive

signs also came from the consumer confi-

dence index (at 83 points in May, up from

81.7 in the previous month). GDP data in the

first quarter of 2014 was pushed down to

-1.0% (QoQ annualised), from its previous

estimate +0.1%, due to adverse weather

effects and declining stocks.

In the Eurozone there was a rise in retail

sales (+0.3% in March, on a monthly basis)

as well as the consumer confidence index,

which is at its highest in 6 years (at -7.1

points in May, from -8.6 the previous month).

The reference rates were confirmed by the

ECB and the Bank of England at their cur-

rent levels (at 0.25%* and 0.5%, respective-

ly).

* 0.15 from June the 5th

14.0%

13.9%

3.9%

4.1%

‐0.7%

4.4%

1.9%

2.1%

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

DJ Stoxx 50

S&P 500

DJ Euro Stoxx Utilities

FTSE MIB

May ‘14

YtD ‘14

The Snam stock fell slightly A broadly positive performance across equity markets in May, boosted by signs of improvement in the macroeconomic situation

Crude oil prices closed up

The markets saw a positive performance in

May, supported by the confirmation of eco-

nomic recovery in the United States and

expectations for potential expansionary mon-

etary policies by the ECB in early June.

Individual sectors registered largely positive

performance. In particular, the leisure and

travel sector was boosted by an increase in

the number of air passengers in April

(+4.4%), and the utility sector was supported

both by positive company results for the

period as well as high levels of dividend

yields. The raw materials sector conversely

registered a negative performance, impacted

by the decline in the PMI manufacturing

index as well as the weak real estate market

in China.

The utilities sector registered a growth of

4.4% in May.

The sector was boosted by regulated com-

panies, particularly British ones (National

Grid +6%, United Utilities +9% and Severn

Trent +6.7%), which benefited from positive

2013-2014 annual results. Integrated com-

panies also registered a positive performan-

ce (+4.3%).

The Utility sector in the Stock Market

Source: Snam on the Bloomberg data

Main sector performance, May 2014

Sector and subsector performance, May 2014

1.0%

4.3%

4.5%

4.4%

-5% 0% 5% 10%

.

Defensive Utilities

DJ Utility

Energy Utilities

Others

The utility sector was supported both by positive results for the period as well as high levels of dividend yields

The Utility sector performance

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

DJ Ut i l i t y; 4,4%

DJ Insur ance; 1,1%

DJ T el ecom; 1,2%

DJ Heal th Car e; 1,0%

DJ M edi a; 3,8%

DJ Real Estate; 3,9%

DJ T r avel &Lei sur e; 4,4%

DJ Chemi cal s; 2,6%

DJ Food&Bev; 3,4%

DJ Const&M ater ; -1,3%

DJ Inds Good; 1,8%

DJ Oi l &Gas; 1,0%

DJ Per s&Househol ds; 4,1%

DJ Autopar ts ; 1,8%

DJ T ech; 3,5%

DJ Fi nanci al Ser v i ces; 3,5%

DJ Retai l ; 1,3%

DJ Banks; 1,1%

DJ Basi c Resour ces; -1,9%

-5% 0% 5% 10%

5.9%

7.2%

13.7%

29.8%

12.9%

15.4%

29.3%

13.9%

14.0%

3.9%

‐0.6%

‐0.2%

‐2.7%

6.2%

5.9%

6.7%

9.0%

4.4%

‐0.7%

1.9%

-5% 0% 5% 10% 15% 20% 25% 30%

The Snam shares and its peers in the Stock Markets

Snam shares closed the last session in May

at €4.31, with a drop in performance compa-

red to the previous month (-0.6%).

In line with the Italian market, the stock suf-

fered from the payment of the 2013 final

dividend (€ 0.15). In adjusting the closing

price with the amount of the final dividend,

the stock's performance would have been up

2.9%.

The stock was supported by investor interest

for high yield and low risk stocks in a context

of low interest rates.

The stock's average daily trading volume in

May totaled 12.7 million units, up from 10

million in April.

Snam’communication wins an award

On May 22, 2014, Snam distributed the Final

dividend of €0.15 per share, with ex-dividend

date on May 19, 2014.

Considering the €0.10 distributed in October

2013 as interim dividend, the 2013 full year

dividend amounts to € 0.25 per share.

For the fiscal year 2014 and 2015 Snam

expects to distribute a dividend per share in

line with 2013 dividend (0.25 euro/share).

Corporate News

Snam and its peers

Source: Snam on the Bloomberg data

YtD ‘14

May ‘14

FTSE MIB

Stoxx 50

DJ Utility

United Utilities

NG

Severn Trent

REE

Enagas

Snam

Terna

Snam is the third best Italian company in

online communications regarding Corporate

Social Responsibility. This is the result of the

sixth edition of the CSR Online Awards Italy,

a prestigious award given by Lundquist, one

of the most accredited consultancy compa-

nies in online communication. Lundquist ana-

lyzed the performance of stakeholder enga-

gement and the transparent dissemination of

information of the top 100 Italian companies,

arriving at a classification that placed Snam

on the podium.

It is a recognition of the group's commitment

to communicating all of its activities related to

sustainability and, more generally, corporate

social responsibility, in a proactive and acces-

sible manner. This includes the involvement

of stakeholders in activities undertaken in

the strict safety and accident prevention

policy, best practices in environmental pro-

tection, Shared Value projects, and the

transparent and comprehensive reporting on

the businesses.

Financial Markets Review May 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

2013 final dividend

Agenda

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