snam.it

Snam – Integrated Platform for optimisation in gas infrastructures construction and operationsMr. Andrea StegherSVP Marketing Global Solutions

Ravenna, March 14th 2018

REM – Ravenna, 14th March 2018

Snam at a glance

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19.4 bn€ Regulated Asset Base in Italy. High-pressure transport network, storage

sites and LNG terminal21.3 bn€ RAB including associates

Consolidated experience in developing and managing complex projects.

5 bn€ capex in large-scale and long-term projects in the period 2017-2021

European presence through 5 International associates

Key figuresMarket Capitalization: ~€ 15 bn

Enterprise value: ~€ 26 bnEBITDA adj. 2016: € 1.9 bn

Net Profit pf adj. 2016: € 845 m

Shareholding structure

30.3% 69.6%

REM – Ravenna, 14th March 2018 3

Over 75 years of development and innovation….

Natural gasexpansion

Network growth:From 4.000km to

>15.000km

Storage initial development

1st LNG terminal

Import infrastructures development

TransitgasTAG

TENPTransmed

GreenstreamBluestream

Liberalization and listing on stock

exchange

Snam Establishment

Start methanization of Italy

1941 1960-1970 1970 - 2000 2001 - 2012 2013 - 2017

Unbundling from Eni

Acquisitions:Italgas, Stogit, TIGF, TAG, Interconnector, TAP, GCA

A new model: Regulation and TPA

• OPEX reduction in the last 9 years:• Transport 36%• Storage 16%

HSE and emission rates in the last 5 years:• - 89% Total Injuries• - 89% LTIF• - 81% Severity Rate• - 12% CH4

• - 51% NOx

… which delivered robust performances…

• 3,800+ projects realized in the last 10 years• +12% network extension (construction of newpipelines)

~30% of which in 48”-56” diameter € 8.8 bn (85% on total spending)

• +40% compression capacity (upgrading and newCS)

€ 800 m (~1% on total capex)• +20% of storage capacity (upgrading and newfields/levels)

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A seamless combination of effective growth and increased efficiency

E&C Project Management O&M

HSE

In 2017 Snam, for the second year in a row, the company has been awarded a position on the Climate change A List, CDP’s highest scoring level, which includes only 112 companies from all over the world

In the Dow Jones Sustainability World Index, the most prestigious global stock exchange index for Corporate Social Responsibility, Snam obtained an overall score of 82 points

Snam has been selected for inclusion in the UN Global Compact 100 (“GC 100”). The index lists the 100 companies which globally outstand for executive leadership commitment and consistent baseline profitability, as well as their adherence to the Global Compact’s ten principles, on human rights, labour, environment and anti-corruption issues.

… and a continuos search for performance excellence …

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Certifications obtained Sustainable indices

ISO 9001Company level (Snam Rete Gas, Italgas)

ISO 14001 Company level (Snam, Snam Rete Gas, GNL Italia, Stogit, Italgas)

BS OHSAS 18001 Company level (Snam, Snam Rete Gas, GNL Italia Stogit, Italgas)

ISO 22301 Dispatching (Snam Rete Gas)Gas process systems (Snam Rete Gas)

ISO/IEC 27001Dispatching (Snam Rete Gas)Green Data Center (Snam Rete Gas)Emergency operative centre (Snam Rete Gas)

ISO 17025 Laboratory for testing (Snam Rete Gas, Italgas)Laboratory for calibration (Snam Rete Gas, Italgas)

Design and supply of metering and accounting of natural gas (Stogit)

REM – Ravenna, 14th March 2018

… to build our leadership in European gas infrastructure

Source: Snam elaboration on public data 5

Transport (Pipelines length, km) Storage (Capacity, bcm)

7.000

7.660

7.800

12.000

12.500

15.500

32.450

40.200 29

compressionstations

~1700 MW

2,5

0,2

0,7

3,4

0,4

11,7

19,5 11 storageplants

REM – Ravenna, 14th March 2018 7

Snam in Italy, 2016

of networks

compression stations

natural gas injected into the network

of available storage capacity

storage fields

annual regassification capacity

Employees

32,500 KM

11

75.1 bcm

16.5 bcm

9

3.5 bcm

3.000

REM – Ravenna, 14th March 2018

What

Rationale

Target clients

• A way to leverage on Snam’s competences as the owner and operator of thelargest European gas network, offering an advisoring partnership service in theMidstream value chain worldwide

• Being a Partner in accelerating the growth and efficiency in gas markets• Support the clients as a System Integrator for the whole gas value chain• Focus on high-value services• Synergy with organic development projects

• Governments and Authorities to design and develop gas infrastructure systems• Gas Transport&Storage Co. to improve efficiency leveraging on Snam track record results• Project Companies to realize and manage gas infrastructures (e.g. TAP)• O&G companies with midstream responsibilities (out of Europe)

Main activities

• Assessment of the gas value chain identifying the areas of improvement• Regulatory design , infrastructure integrated planning, CNG• Project Management, O&M, Technical and Commercial operations• ICT tailor made systems development and digital solutions for technical and

commercial operations• Asset Integrity & CyberSecurity

Snam Global Solutions

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65 Applications Focus on core business competences due to the

uniqueness of the market Complete mobilization

Operations

58 Applications High level of processes digitalization and standardization Dematerialization, usability enhancement and

mobilization program

Staff and Corporate

Commercial

Dispatching

24 Applications Business continuity and complete coverage of

regulation Revamping of applications for usability renewal and

integration program

12 Applications IOT Continuous improvement and analytics program

for decision support applications

ICT Applications Demand and Delivery

Digital innovation Building Blocks architectureICTBusiness

Service Catalogue Business oriented architecture

Architecture and digital scouting

Snam has developed a highly structure approach to achieve applications innovation and integration

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Key Snam customized ICT tools – O&M tools Smart Gas: an innovative solution for the whole asset lifecycle

Snam strong technical know-how combined with distinctive ICT expertise brings complex innovation on-field

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CARTESIO

MASTER/OFFICEWEB/MOBILE

SCHE.MA.

EAM MAXIMO

ENTERPRISE ASSET MANAGEMENT

WFM(Ra.D.I.Ca / SAM)

MAINTENANCE ACTIVITES SCHEDULER AND

MANAGEMENT

e-DOCDOCUMENT MANAGEMENT

SAPSERVICE MANAGEMENT,

CONCESSIONS AND DAMAGES

Key Snam customized ICT tools – O&M tools Smart Gas: an innovative solution for the whole asset lifecycle

Snam integrated and customized solution recognized as world-class success story

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Key Snam customized ICT tools – O&M tools Apple Success Story

snam.it

Snam – Integrated Platform for optimisation in gas infrastructures construction and operationsMr. Andrea StegherSVP Marketing Global Solutions

Ravenna, March 14th 2018