Basis of presentation

The consolidated financial statements have been prepared in line with the International Financial Reporting Standards (“IFRSs”) issued by the International Accounting Standards Board (IASB) and endorsed by the European Commission under the procedure referred to in article 6 of Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 and pursuant to article 9 of Legislative Decree 38/2005.

The consolidated financial statements include the financial statements of Snam Rete Gas S.p.A and the companies directly or indirectly controlled thereby, from the date on which control was acquired until the date on which it ceased, influencing the financial and management decisions of these companies in order to obtain the corresponding benefits. Non-significant subsidiaries outside the scope of consolidation, companies under joint control, associates and other investments are accounted for as described in the section on equity investments.

Consolidated companies, non-consolidated subsidiaries, companies under joint control, associates and other significant investments, governed in accordance with art. 126 of Consob resolution 11971 of 14 May 1999, as subsequently amended, are indicated separately in the document entitled “Significant shareholdings and investments of Snam Rete Gas S.p.A at 31 December 2009”, which is an integral part of these notes. The same document also reports changes in the scope of consolidation during the year.

The annual financial statements of consolidated companies and the consolidated financial statements have been audited by the independent auditors PricewaterhouseCoopers S.p.A.

The board of directors approved the financial statements of Snam Rete Gas at 31 December 2009 at its meeting on 10 March 2010.

The figures in the financial statements and corresponding notes are in millions of euros.