11 Investments valued using the equity method

Investments valued using the equity method, with an amount up to €1,337 million (€1,372 million at 31 December 2015) break down as follows:

Capital gains (losses) on measurement using the equity method (€64 million) related to TAG (€37 million), TIGF (€16 million), Toscana Energia S.p.A. (€9 million) and GasBridge 1 B.V. and GasBridge 2 B.V. (a total of €4 million) as well as the portion of the loss attributable to the period of the Trans Adriatic Pipeline AG - TAP (-€2 million euros), a company that deals with the development of the project which will allow the transportation of gas from Azerbaijan to European markets.

The decrease in dividends (€115 million) mainly concerns TAG (€75 million), TIGF (€11 million), Toscana Energia S.p.A. (€13 million) and GasBridge 1 B.V. and GasBridge 2 B.V. (€16 million in total).

The exchange differences (€12 million) mainly refers to the effects of the valuation of the shareholding in Interconnector (UK) Ltd held by Snam S.p.A. by means of joint ventures Gasbridge 1 B.V. Gasbridge and 2 B.V. The amount reflects the effects of the conversion of the company’s assets to the spot rate EUR/GBP of 30 June 2016.

Sales and repayments (€2 million) related to the reduction of the carrying cost of the investments in GasBridge 1 B.V. and GasBridge 2 B.V., pursuant to the distribution of the share premium reserve, generated during the formation of companies.

Other changes (€30 million) mainly related to the future increase in TAP’s capital, within which Snam is required to participate in proportion to its shareholding held by virtue of the agreements signed on the acquisition of the investment. A capital increase of €26 million (28.6 CHF) has been subscribed and paid by Snam on 13 July 2016.

Except when noted below, during the semester no impairment indicators were detected, or significant changes in relation to the assessment of the recoverability of the carrying value of investments accounted for using the equity method. The considerations set out in the Annual Report, to which reference is made here, are hereby confirmed. With specific regard to exposure to impairment risks on investee companies arising from the declaration of UK citizens that they wish to leave the European Union (Brexit), which for Snam relevant to the assessment of Interconnector (UK) Ltd, a company owned by Snam S.p.A. by means of a joint holding company Gasbridge 1 B.V. Gasbridge and 2 B.V., it is stated that: (i) presently it is not possible to reach an estimate of the Brexit effects on the recoverable amount of the investment, also considering the fact that the conditions with which UK citizens would leave the European Union subject to specific negotiations, the definition of which is expected within two years. Therefore, for the purposes of the existence of “impairment indicators” provided for under the provisions of IAS 36, it is not possible to determine whether there is an indication that the asset may have suffered an impairment loss; (ii) due to the valuation on the basis of the equity method of subsidiaries Gasbridge 1 B.V. and Gasbridge 2 B.V held by Snam, net assets of Snam at 30 June 2016, reflect the loss resulting from the adjustment of net assets in Sterling of Interconnector (UK) Ltd at the Euro exchange rate at the end of that time period. This result, recorded in “Other components of comprehensive income” comprises a total amount of €12 million.

Consolidated companies, non-consolidated subsidiaries, joint ventures, associates and other significant equity investments are indicated separately in the appendix "Subsidiaries, associates and equity investments of Snam S.p.A. at 30 of June, 2016”, which is an integral part of these Notes.