energy to inspire the world

2022 1H

Consolidated results

Milan, July 27th, 2022

Snam to play a key role in the new energy context

energy to inspire the world

Energy

affordability

Increased

requirement for green and decarb gas

Accelerated renewables targets

Security of supply has moved higher up the agenda

New

investments and services required for resilience

Potential for new interconnections in Europe

  • Unparalleled execution capabilities
  • Diversified asset portfolio, well- positioned in Italy and Europe
  • Leader in decarbonized and green gas
  • Strong balance sheet and disciplined investment approach

2

Internal

H1 results: key highlights

energy to inspire the world

SCENARIO

Energy crisis

  • EU Commission introduced a minimum 80% gas storage level obligation by 1st of Nov, rising to 90% for the following years. Italy committed to 90% storage level for this thermal year
  • RePower EU envisages natural gas infrastructure investments for integrating the European market

Gas market

  • H1 2022 gas demand at 39.2 bcm (-1.9% YoY*) and strong export volumes (ca 1.8bcm)
  • High gas prices (PSV ytd ca 110€/MWh or >2.2x 2021 avg)

Macro

  • Q1 2022 RAB deflator at 3.2%
  • Supportive WACC mark to market

* Non weather adjusted

SNAM KEY DEVELOPMENTS

  • Acquisition of 2 FRSUs completed in a highly competitive market
  • Storage operator of last resort: ca 2 bcm of gas stored from April to date contributing to the system infilling ahead of winter
    (storage 71% full)
  • De Nora IPO successfully completed, value of Snam stake almost doubled since acquisition
  • MoU with Edison on SSLNG
  • 1 new plants added to our biomethane portfolio (Genova 2MW entered in the perimeter in July)

KEY FIGURES

  • Adj. net profit up 1.7% YoY despite WACC revision thanks to solid operating performance, growing contribution from new businesses and higher associates
  • Net debt at €12.8bn impacted by temporary system balancing related positive working capital effect
  • Funding for the year already secured
  • Sustainable finance at ca 70% of total
  • Group capex of €537m (-5%vs LY). Delays to be recovered by YE

3

Internal

Supply security: two new FSRUs for Italy

Golar Tundra

Key Highlights

  • Capacity: 5bcm
  • Purchase cost: €329m
  • Year of built: 2015
  • In operations as FSRU from: 2H2023
  • Location: Piombino (on-shore for the first 3Y)

energy to inspire the world

Internal

The FSRUs will operate

under a regulated

regime which provides visibility on the return while increasing RAB growth profile

  • Acquisition costs fully recognized in
    RAB
  • LNG regulatory framework: 6.1% WACC and 64% guarantee factor
  • Annual contribution set by the so called "Decreto Aiuti" of overall €30 million per year for the two FSRUs implying a minimum guaranteed of ca 85-90%
  • These assets will contribute 13% of the national gas demand, bringing regasification capacity to over 30% of demand and reducing by 1/3 the dependence from Russia

BW Singapore

Key Highlights

  • Capacity: 5bcm
  • Purchase cost: $ 400m
  • Year of built: 2015
  • In operations as FSRU from: 3Q2024
  • Location: Upper Adriatic Sea, to intercept potential new LNG flows from North Africa and the Eastern Mediterranean

4

Supply security: gas storage infilling

Snam contributing ca

Snam contribution as

0.8bcm in April

last resort operator

(store of own gas needs)

ca 1.2 bcm

(ongoing)

12.000

ITALIAN STORAGE

120,0

11.000

110,0

71% FULL

(MSmc*)

10.000

100,0

9.000

90,0

8.000

80,0

level

7.000

70,0

worldthe

6.000

60,0

Storage

5.000

50,0

4.000

40,0

inspire

3.000

30,0

2.000

20,0

1.000

10,0

to

0

0,0

01/04

16/04

01/05

16/05

31/05

15/06

30/06

15/07

30/07

14/08

29/08

13/09

28/09

13/10

28/10

energy

Storage level 2021

Storage level 2022

Daily volumes 2021

Daily volumes 2022

Snam contribution

Daily volumes (MSmc/g *)

Internal

No working capital absorption, no volume/price exposure for Snam

* @PCS=10,57275 kWh/Smc

5

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SNAM S.p.A. published this content on 27 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 13:03:09 UTC.