Snam S p A : 2022 Nine months results

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9M 2022

Consolidated results

Milan, November 10th, 2022

9M 2022 key highlights

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SCENARIO

Gas market

• Continue gas prices volatility
• 9M 2022 Italian gas demand at 51.7 bcm (-3.2% YoY*). Q3 demand -7.2% driven by accelerating industrial decline (high prices)
• Changing gas flows in 9M y-o-y: North import -18%, Southern route +18% and LNG +27%
• Italy contributing to EU security of supply with 2.7bcm of export

Macro and regulation

• H1 2022 RAB deflator at 3.9%
• Rising interest rates
• Snam-Ternalong term joint scenarios
• Asset Health methodology - published on 31st October- under consultation
• Biomethane decree published on 26th Oct

SNAM KEY DEVELOPMENTS

Security of supply

• Piombino and Ravenna LNG terminals authorized by the Commissioners. Works started in Piombino
• Filling of storage facilities >95%. Snam contributed by storing ca 2 bcm of gas from April to date. Additional reverse flow services to be provided

Energy transition businesses:

• Restart of FID for repowering to biomethane, 9 new biogas plants (9 MWe) added to the portfolio in Q3 and ca 2MW of repowering completed in 9M
• Gigafactory project - in JV with DeNora - selected by the EU Commission within IPCEI wave "Hy2Tech" (EC Decision C(2022) 5158 of 15th July 2022)

KEY FIGURES

• Adj. net profit broadly in line with last year despite WACC revision thanks to solid operating performance, growing contribution from energy transition businesses and associates
• Net debt at ca €13bn impacted by positive working capital effect related to system balancing
• 2022 funding needs covered in 1H22. ca. 2bn€ of banking facilities secured in 2H22 as 2023 pre-funding while benefiting from adequate flexibility to manage current market volatility
• Group capex of €883m (+2% vs LY)
• Interim dividend of 0.11/share (in line with the policy)

2

* Non weather adjusted

Supply security: update on the new FSRUs

	2022				2023				2024
Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4

Definition of a supportive	Appointment of
regulatory scheme and a fast	the Extraordinary
tracked authorization process	Commissioners

Golar

Tundra acquisition (1st June)

BW Singapore purchase (6th July)*

Permitting applications
Authorization	Authorized
process	on 25 Oct
Engineering and tenders
	Construction	Commercial operation
	and test	May 2023
	Permitting applications
Authorization	Authorized
process	on 7 Nov

	Revamping of the offshore facilities
Acquisition of	Construction of the onshore / offshore pipelines & sealine
the offshore
terminal (Oct)
	Final tests

Snam's execution capabilities at work to deliver needed infrastructure

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3

* Closing by the end of 2023

Supply security: gas storage infilling

12 bcm

	10
	8
worldthe	6
4
inspire	2			Snam contributing ca		Snam contribution as last
					resort operator (ca 1.3 bcm)
				0.74 bcm in April
to				(store of own gas needs)
0
energy
Apr	May	Jun	Jul	Aug	Sep	Oct

No financial impact, no volume/price exposure for Snam

Storage filling

>95%

Min-Max last 5Y

Ideal infilling profile

Stock 2022-23

4

Snam source

* @PCS=10,57275 kWh/Smc

Energy transition: biomethane decree paves the way for investments ramp up

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New Biomethane Decree leverage on PNRR and provides visibility

• Dedicated to new plants or conversions of biogas plants with entry into operations by 30/06/2026
• Duration: 15 years
• Grant up to 40% of the investment
• Access to incentives following the award of public competitive procedures in which quotas of production capacity are made available
• • Waste tariff: 62 €/MWh
  • Agri tariff: 110 €/MWh 1
• From the date of publication of public competitive procedure, plants must entry into operations within:
• • 18 months for Agri
  • 24 months for Waste

Snam platform as of today

(MW)			AGRI			WASTE			5		32
									4
								2
							1	2
				11
												20
13
2
11												13
Biomethane		Biogas	Biogas (in	Non	Biomethane	Total(2)
							start up)	operational		under
									construction (2)

Snam can leverage on:

• An existing portfolio of biomethane assets using both urban and agricultural feedstock
• Biogas plants (9MWe recently added to the portfolio) can be converted further enhancing the growth
• A pipeline of projects at different authorization phase

1)	For plants with power above to 0,5 MW
2)	MWe = MW of biogas, MWeq = MW of biomethane	5