June 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

Oil prices increased through June, both for

the U.S. crude benchmark WTI (+2.6%,

closing at 105.4 $/barrel), as well as Brent

(+1.3%, at 112.1 $/barrel), mainly driven by

geopolitical tensions in Iraq.

Snam S.p.A. Investor Relations

The financial markets

June saw a positive trend for the US

S&P500 index (+1.9%) as well as the Stoxx

Europe Utilities sector index (+1.3%), while it

was negative for the European DJ Stoxx50 (-

0.6%) and the Italian FTSE MIB (-1.6%).

Stock markets, which in the first half of the

month benefitted from the announcement of

expansive monetary policy measures by the

ECB, were subsequently hit by uncertainty

over economic recovery in Europe, as well

as tensions over the increasing instability in

Iraq. Italian stocks were negatively impacted

by the payment of dividends by several com-

panies.

From a macroeconomic perspective, in the

United States (with reference to the month of

May, on a monthly basis) industrial produc-

tion (+0.6%) and retail sales (+0.3%) were

up, while durable goods orders were down (-

1.0%). GDP data in the first quarter of 2014

was down to -2.9% (QoQ annualised) from

its previous estimate of -1.0%, due to adver-

se weather effects and a drop in exports

(-8.9%). Interest rates were confirmed by the

Fed at their current levels (0-0.25%).

In the Eurozone, industrial production saw

an increase (+0.8% in April, compared to the

previous month), while there was a general

decline in leading indicators of economic

trends (with reference to June's data, on a

monthly basis) as well as the PMI composite

index (at 52.8 points, from 53.5), and the

German Ifo and ZEW indexes. The ECB has

reduced the official reference rate by 10

basis points, bringing it to 0.15% (a new

record low) from its previous 0.25%.

12.2%

15.4%

3.2%

6.1%

‐1.6%

1.3%

‐0.6%

1.9%

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

DJ Stoxx 50

S&P 500

DJ Euro Stoxx Utilities

FTSE MIB

June ‘14

YtD ‘14

The Snam stock rose. The equity markets registered mixed trends in June, negatively affected mainly by a number of worse than expected macroeconomic data

Crude oil prices closed up

The equity markets registered mixed perfor-

mance in June, boosted on the one hand by

the ECB's expansionary monetary policies

earlier in the month, and negatively impacted

on the other hand by lower than expected

economic data in the Eurozone.

Individual sectors also saw mixed trends.

Certain sectors ended the month up, such as

the oil & gas sector, which was bolstered by

the rise in crude oil prices due to tensions in

Iraq. The majority of sectors closed down,

particularly the banking sector, which was hit

by recapitalization activities (Deutsche

Bank), and the tourism and leisure sector,

driven down by high fuel prices and several

profit warnings (Lufthansa).

The utility sector registered a positive perfor-

mance, supported by visible and attractive

returns during a period of low interest rates.

In June, the utility sector registered a positi-

ve performance of 1.3%.

The sector's performance was boosted by

investor interest both for integrated and re-

gulated companies, seeking higher returns

during a period of low interest rates. Regula-

ted companies were however hit by dividend

payments by several companies (National

Grid -5.6%). Lastly, the introduction of the so

-called capacity mechanism in Germany

boosted integrated German companies

(E.on +5.6% and RWE +6.5%).

The Utility sector in the Stock Market

Source: Snam on the Bloomberg data

Main sector performance, June 2014

Sector and subsector performance, June 2014

‐1.6%

1.9%

‐1.7%

1.3%

-5% 0% 5%

.

Defensive Utilities

DJ Utility

Energy Utilities

Others

The utility sector registered a positive performance, supported by visible and attractive returns during a period of low interest rates.

The Utility sector performance

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

DJ Ut i l i t y; 1,3%

DJ Insur ance; -1,2%

DJ T el ecom; -1,3%

DJ Heal th Car e; 2,6%

DJ M edi a; -1,8%

DJ Real Estate; 0,8%

DJ T r avel &Lei sur e; -2,4%

DJ Chemi cal s ; -1,1%

DJ Food&Bev; 0,3%

DJ Const&M ater ; -1,0%

DJ Inds Good; -1,9%

DJ Oi l &Gas; 2,8%

DJ Per s&Househol ds; -1,0%

DJ Autopar ts ; -2,2%

DJ T ech; -1,8%

DJ Fi nanci al Ser vi ces; 0,2%

DJ Retai l ; -0,8%

DJ Banks; -5,0%

DJ Basi c Resour ces; 1,6%

-10% -5% 0% 5% 10%

13,3%

‐5,6%

8.2%

6.1%

23.7%

37.7%

6.6%

31.3%

15.4%

12.2%

3.2%

2.2%

‐1.1%

8.8%

6.1%

‐1.8%

1.6%

1.3%

‐1.6%

‐0.6%

-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 June

with a positive performance of 2.2% (€ 4.40

per share), outperforming both the Utility

sector and the Italian market.

The stock was boosted by interest rates at

historic lows, which pushed investors to-

wards securities that offer high and sustai-

nable returns.

The stock's average daily trading volume in

June totaled 9 million units, down from 12.7

million in May

EMTN program renewal

thus confirming its excellence in the mana-

gement and communication of anti-

corruption activities. Snam’s anti-corruption

procedure is indicated by Transparency

International Italy as an example of “ absolu-

te excellence".

Snam has always been significantly commit-

ted to business ethics and, more generally,

to the promotion of good behaviors ensuring

its reliability as well as its industrial and

ethics robustness, also taking into account

the social relevance of its activities. For this

reason, Snam has adopted tools and pro-

grams in line with the international anti-

corruption best practices and is engaged in

continuous education and information activi-

ties both internally and externally.

Corporate News

Snam and its peers

Source: Snam on the Bloomberg data

YtD ‘14

June ‘14

FTSE MIB

Stoxx 50

DJ Utility

United Utilities

NG

Severn Trent

REE

Enagas

Snam

Terna

On 23 June Snam's Board of Directors, chai-

red by Lorenzo Bini Smaghi, approved the

renewal of the EMTN Program for a maxi-

mum overall value of up to 12 billion euros

and, therefore, the issue before 30 June,

2015 of one or more further bonds with an

overall value of up to 2 billion euros to be

placed with institutional investors operating

mainly in Europe, in accordance with the

terms and conditions of the EMTN Program.

The EMTN Program is an efficient instrument

to find significant financial resources on the

market in a quick, flexible and cost-

competitive manner, in compliance with the

expected development of the Company’s

target financial structure. The issued bonds

may be listed on one or more regulated mar-

kets

On 27 June Snam has obtained by Transpa-

rency International Italy the highest score for

its proactivity and transparency in the mana-

gement and communication of anti-

corruption programs and activities. The sco-

re follows the assessment on Transparency

in Reporting on Anti-Corruption (TRAC)

promoted by the renown non-governmental

organization fighting corruption worldwide.

The TRAC project stems from the need to

raise the level of transparency of corporate

communications and demonstrate the firms’

effective commitment to actively fight against

corruption.

Snam, in particular, has achieved the top

score (100%) in both the two applicable

sections of the evaluation (Anti-corruption

program and Organization transparency),

Financial Markets Review June 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

Highest score for anti-corruption activities

Agenda

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