Reclassified statement of financial position ⁴²

The fixed capital (13,298 million euro) decreased by 5,352 million euro in respect to 31 December 2015 principally as a result of the reduction of shares (2,600 million euro) and lower financial credits in operating activities (2,775 million euro).⁴²

Equity investments

Equity investments of €6,093 million break down as follows:

Acquisitions and subscriptions (€170 million) refer to: (i) the capital contribution⁴³ of the consortium AS Gasinfrastruktur Beteiligung GmbH (ASG HoldCo) (€135 million), a joint venture in which Allianz and Snam hold stakes of 60% and 40%, respectively; (ii) the capital increase of TAP, in which Snam is required to participate to an extent proportionate with the stake held, based on the agreements entered into upon acquisition of the equity investment (€35 million).

Repayments and transfers (€2 million) relate to the reduction of the cost at which the stakes in the companies GasBridge 1 B.V. and GasBridge 2 B.V. are recognised, due to the distribution of part of the share premium reserve generated when the companies were established.

Value adjustments refer to the effects of the impairment loss (€25 million) on the equity investments in GasBridge 1 B.V. and GasBridge 2 B.V.

Extraordinary transactions (€2,722 million) refer to the transfer of Snam S.p.A.’s entire equity investment in Italgas Reti S.p.A. to Italgas S.p.A. (€2,966 million), through a transaction broken down into different unitary and related steps, upon completion of which Snam S.p.A. holds an equity investment of association in Italgas S.p.A. due to its stake of 13.5% in the company’s share capital⁴⁴ (€244 million).

Other changes mainly relate to the correction of the price adjustment in favour of Eni, recognised in 2010 in relation to contractual agreements made with Eni at the time of the acquisition of the stake in Stogit (€21 million).

Financial receivables held for operating activities

Financial receivables held for operating activities, including the relative short-term portions, amount to €7,190 million and refer to receivables for loans disbursed to the subsidiaries Snam Rete Gas (€5,411 million) and Stogit (€1,566 million), and the associate TAP (€213 million). The reduction of €2,775 million compared with 31 December 2015 was due to: (i) the repayment of financial receivables outstanding with respect to the Italgas Group at the date of completion of the spin-off transaction (-€1,438 million); (ii) the repayment of financial receivables with respect to Snam Rete Gas (-€1,000 million in nominal value), which had reached their natural expiry; (iii) the closure and simultaneous repayment, net of new receivables, of financial receivables outstanding with respect to Snam Rete Gas and Stogit (-€390 million in total nominal value) for the liability management transaction carried out by Snam in October 2016.

Net working capital (€73 million) decreased by €10 million compared with 31 December 2015 due primarily to: (i) the reduction in tax receivables (-€41 million) mainly because of the decrease in the Group VAT credit and in receivables for tax consolidation; (ii) the increase in other liabilities (-€22 million) due to an increase in payables due to Snam Rete Gas following the collection of the VAT advance; (iii) the increase in trade payables (-€20 million) due to payment trends. These effects were partially offset by: (i) the reduction in tax liabilities (+€46 million) primarily due to lower liabilities for current taxes relating to the VAT payment; (ii) the increase in the market value of derivatives (+€17 million) due to the valuation carried out at the date of year-end close; (iii) the increase in trade receivables (+€13 million) essentially in relation to receivables for services provided to the Italgas Group companies.

The breakdown of debt by type of interest rate at 31 December 2016 is as follows:

Fixed-rate financial liabilities (€7,092 million) reduced by €1,763 million compared with 31 December 2015, essentially following the repayment of bonds that had reached their natural maturity (-€700 million in nominal value) and the net repurchase of bonds for a nominal value of €1.0 billion in relation to the liability management operation.

Floating-rate debt (€3,994 million) fell by €943 million compared with 31 December 2015, owing essentially to: (i) the repayment of bonds that had reached their natural maturity (-€450 million in nominal value); (ii) the assumption and takeover by Italgas S.p.A., effective as of 7 November 2016, of two loans previously disbursed to Snam S.p.A. by the EIB (-€424 million in nominal value); (iii) the net repayment of term loans (-€200 million in nominal value).

Financial receivables not held for operations (€3,109 million) rose by €1,197 million compared with 31 December 2015, primarily due to higher net uses of current accounts available to the subsidiaries Snam Rete Gas, Stogit and GNL Italia (+€1,606 million), offset in part by the repayment of financial receivables due from the Italgas Group at the date on which the spin-off was completed (-€574 million).

Cash and cash equivalents (€12 million) refer to current account deposits held at banks.