Snam S p A : 2021 1Q Consolidated results (PDF)

energy to inspire the world

2021 1Q

Consolidated results

Milan, May 12th, 2021

1

Key Highlights

Continuous improvement in our core business

• Capex of €231m (+5% vs LY)
• Efficiency plan ongoing: €64m achieved to date (baseline 2016)
• Revenues from output based incentives in line with 1Q 2020
• Consultation document on metering activity
• Working with RINA to formalize the certification on H2 readiness

Continuous investments in energy transition businesses

• Continue to build leading hydrogen capabilities
• Good contribution from Energy Efficiency partially offset by slower ramp-up in Biomethane
• Approaching FID on Small scale LNG plant in south of Italy
• Italian Recovery Plan supportive of hydrogen, energy efficiency, sustainable mobility and biomethane

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Progress on international activities

• Desfa: Approved the 2021-2030 Development Plan by RAE (+65% above previous one)
• Terega: 100% of storage capacity fully booked for the thermal year 2021 - 2022
• Release of Snam's pre-completion guarantee on TAP debt

Value creation from optimization of financial structure

• Financial charges of €25m (-29% vs LY), with a cost of debt below 1%
• €2.4bn of sustainable bonds including our latest dual tranche transition issuance
• 50% sustainable financing achieved on total available funding
• Snam awarded as innovator in sustainable finance: winner of the "Bond Award 2021" by Environmental Finance

Continuous focus on ESG with a fully dedicated seminar

for investors and ongoing engagement	2

1Q 2021 financial results

EBITDA

€m

+0.7%

555 559

1Q 2020

1Q 2021

• Tariff RAB growth
• Lower input based incentives

2,197 • Stable output based incentives

• Slower ramp up of new businesses

Financial charges

€m

-28.6%		• Liability management carried
			out in 2020
35	25		• Treasury management
249	optimization
1Q 2020	1Q 2021

world	Income from associates
the	€m
32.7%	• Perimeter effect (Adnoc and
inspire
		De Nora)
to	52	69	• TAP contribution
• New regulatory period in Austria
energy
1Q 2020	1Q 2021	and lower unitary tariff in Desfa

Net income

€m

8.3%

		• Lower cost of debt
289	313	1,164 • Strong contribution from
associates
1Q 2020	1Q 2021	• ACE contribution

2020 pro-forma numbers have been reclassified coherently with the Resolution n. 69/2020/R/gas of the December 2020	3

2021 1Q results: Net profit analysis

€ mn

• Higher transport tariff RAB and allowed D&A
• Lower input based incentives

• Investment in H2 / Sust Mobility	• Lower cost of debt	•	Perimeter	• ACE contribution
•	Strong perf of SGS in Q1_20		•	TAP in operation
•	Ramp-up of biomethane and

Energy Efficiency

					17	6	313
289	6			10
	-2
			-13
Net profit	Ebitda core*	Ebitda new business	D&A	Net	Net income	Income taxes	Net profit 1Q21
1Q20 pro-				interest	from
forma				(expenses)	associates

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4

2020 pro-forma numbers have been reclassified coherently with the Resolution n. 69/2020/R/gas of the December 2020 * Ebitda core net of energy costs

Cash flow

• Mostly balancing activities with initial	•	Capex
absorption due to Ecobonus	•	M&A

energy to inspire the world

140

313

243

(210)

(819)

(739) (496)

						(323)
Net profit	Depreciati	Change in	Cash Flow	Net	Free Cash Flow	Dividend	Cash Flow
	on & other	working	from	Investments			5
	items	capital	Operation	and M&A