August 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

Crude oil prices ended the month of August

down, both for the U.S. crude oil benchmark

WTI (-2.3%, closing at $95.9/barrel), and for

Brent (-2.5%, to $101.3/barrel), following the

adequate supply of markets and the reinsta-

tement of oil exports from Libya.

Snam S.p.A. Investor Relations

The financial markets

August registered growth across the majority

of stock markets, with rises of 3.8% for the

US S&P500, 2.2% for European DJ Stoxx50

and 0.5% for the Stoxx Europe Utilities sec-

tor index. The sole exception was the Italian

stock exchange, which closed down (-0.6%).

Stock markets were boosted by expectations

for extraordinary monetary easing by the

ECB by means of unconventional initiatives

to counter the economic stagnation in the

Eurozone; the US stock markets were fur-

ther boosted by better than expected econo-

mic data and positive indications from the

Chairman of the Fed on the possibilities of

economic growth in the US in the second

half of the year.

From a macroeconomic perspective, in the

United States (with reference to the month of

July, on a monthly basis) data on orders for

durable goods was up (+22.6%), along with

industrial production (+0.4%) and real estate

(new constructions +15% and sales of exi-

sting houses +3.3%); there was also an

increase (with reference to the month of

August, on a monthly basis) in the Fed Phila-

delphia's index (at 28 points from the pre-

vious 23.9) as well as the consumer confi-

dence index (at 92.4 points from its previous

90.9). The Q2 2014 US GDP final estimate

was revised upwards to +4.2% (QoQ annua-

lised), from the +4.0% of the initial estimate.

In the Eurozone (with reference to the month

of August, on a monthly basis), there was a

general decline in leading indicators of eco-

nomic trends both for the PMI manifacturing

index (at 50.8 points, from 51.8 of the pre-

vious month), as well as for the German Ifo

(at 106.3 points from the previous 108).

4.3%

7.8%

14.5%

8.4%

0.5%

‐0.6%

2.2%

3.8%

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

DJ Stoxx 50

S&P 500

DJ Euro Stoxx Utilities

FTSE MIB

August ‘14

YtD ‘14

Snam stock closed up. A broadly positive outlook for stock markets in August, driven primarily by expectations for further expansionary monetary policy measures by the ECB

Crude oil prices closed down

Like the stock markets, individual sectors

saw positive performances, with the excep-

tion of the raw materials sector, which was

negatively impacted by weaker than ex-

pected Chinese economic data (PMI manu-

facturing index at 51.1 in August from 51.7 in

July), in addition to some profit taking follow-

ing July's outperformance.

The Utility sector recorded moderate growth,

continuing to benefit from lower interest

rates.

.

In August, the utility sector registered an

increase of 0.5% compared to the previous

month's closing.

The sector has been boosted by regulated

companies, in particular by UK operators

(National Grid + 5%), which were only par-

tially hit by the economic stagnation in the

Eurozone and have benefited from positive

macroeconomic data from the UK economy.

The Utility sector in the Stock Market

Source: Snam on the Bloomberg data

Main sector performance, August 2014

Sector and subsector performance, August 2014

0.5%

‐0.3%

2.5%

0.5%

-5% 0% 5%

.

Defensive Utilities

DJ Utility

Energy Utilities

Others

The Utility sector recorded moderate growth, continuing to benefit from lower interest rates.

The Utility sector performance

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

DJ Ut i l i t y ; 0,5%

DJ Insur ance; 3,1%

DJ T el ecom; 0,3%

DJ Heal th Car e; 3,2%

DJ M edi a; 2,8%

DJ Real Estate; 2,8%

DJ T r avel &Lei sur e; 1,4%

DJ Chemi cal s; 1,7%

DJ Food&Bev; 3,6%

DJ Const&M ater ; 0,7%

DJ Inds Good; 2,1%

DJ Oi l &Gas; 1,3%

DJ Per s&Househol ds; 1,3%

DJ Autopar ts; -0,3%

DJ T ech; 2,8%

DJ Fi nanci al Ser vi ces; 2,1%

DJ Retai l ; 0,8%

DJ Banks; 1,8%

DJ Basi c Resour ces; -3,0%

-5% 0% 5%

8.9%

7.9%

33.6%

32.1%

14.1%

14.1%

30.6%

14.5%

7.8%

4.3%

0.4%

‐0.3%

1.9%

‐0.2%

5.1%

0.5%

‐1.5%

0.5%

‐0.6%

2.2%

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

The Snam shares and its peers in the Stock Markets

The Snam stock closed the month of August

up at 0.4% (to €4.43 per share), outperfor-

ming the Italian market and in line with the

Utility sector.

The stock, which was negatively impacted in

the first half of the month by the profit taking

after the historic highs of late July and by the

market's general decline in the first week of

August, was boosted in the second half of

the month by positive brokers reports on the

company, as well as by interest rates remai-

ning at historically low levels.

The stock's average daily trading volume in

August totaled 7.5 million units, down from

8.7 million in July.

The new Snam Data center

Snam took part to the Meeting for the

Friendship Amongst Peoples, which took

place in Rimini from Sunday 24 to Saturday

30 August. The company’s presence at the

event, which for more than 30 years has

been promoting dialogue among people of

different faiths and cultures, has been ad-

dressed mostly to families and children. In

particular, Snam maked available an entern-

tainment experience focused on the themes

of sharing, networking and interaction

between energy infrastructure and nature.

This specific theme has inspired, among

other things, the Snam 2014 corporate cam-

paign

Corporate News

Snam and its peers

Source: Snam on the Bloomberg data

YtD ‘14

August ‘14

FTSE MIB

Stoxx 50

DJ Utility

United Utilities

NG

Severn Trent

REE

Enagas

Snam

Terna

The new Green Data Center is ready to host

the Snam IT infrastructure. Transferring all

technologies from the 8 computing centers

Snam to the building located in Ferrera Erbo-

gnone (Pavia), the Group moves forward

towards a better sustainability, continuity of

service and promptness in answering to busi-

ness.

Along with sustainability, it is paid attention to

innovation: thanks to Ferrera Erbognone Data

Center consolidation, number of physical

server decreases to 350, while virtual server

will be 1500. As a result of a massive use of

cloud computing, the ICT virtualization ratio of

Snam will reach 80%.

Additionally to virtualization technology, in-

crease of availability and flexibility of IT servi-

ce will be ensured thanks to adoption of a

high fidelity unique storage with a synchronic

twin pair of all production data and a very

high capacity grid architecture of geographi-

cal and local area. To guarantee the conti-

nuity of the service in case of exceptional

events, a Distaster Recovery site is able to

ensure a full recovery of efficiency of sy-

stems within one hour from the event.

Financial Markets Review August 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 at the Rimini’s Meeting

Agenda

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