Analysis of income statement items

Income from equity investments (€536 million) primarily comprises: (i) dividends paid out by subsidiaries Snam Rete Gas S.p.A. (€258 million), Italgas S.p.A. (€157 million), Stogit S.p.A. (€82 million) and GNL Italia S.p.A. (€1 million), as well as by jointly controlled companies GasBridge 1 B.V. and GasBridge 2 B.V. (€10 million); and (ii) other income pertaining to TIGF Holding S.A.S. (€28 million).

Interest income and other financial income (€385 million) essentially refers to interest income from the intragroup loans granted by Snam to the subsidiaries.

Interest expense and other financial expense (€435 million) refers to the costs relating to short- and long-term financial debt, and concerns expenses on bonds⁵⁸ (€350 million) and on loans from banks and other financial institutions (€85 million).

The decrease in interest expense and other financial expense (€55 million) and in interest income and other financial income (€61 million) was due mainly to a reduction in the average cost of borrowing, partly as a result of the measures implemented by Snam to improve the group’s financial structure⁵⁹.

Income from services rendered (€185 million) refers to the chargebacks to subsidiaries of the costs incurred to perform services managed centrally by Snam S.p.A. These services are governed by contracts concluded between the parent company and its subsidiaries in the following areas: ICT, personnel and organisation, planning, administration, finance and control, general services, property and security services, legal and corporate affairs and compliance, health, safety and environment, regulation, external relations and communication, internal audit and Enterprise Risk Management (ERM). The pricing model for service contracts is based on the chargeback of costs incurred to provide the services on a full-cost basis.

Other income (€12 million) essentially refers to revenue from renting and maintaining fibre optic telecommunications cables for third parties.

The personnel cost amounted to €68 million, broadly in line with the previous year.

The number of employees as at 31 December 2014 (705 people) is analysed below by professional status:

Costs for non-financial services and other costs (€147 million) consist mainly of expenses for the provision of services that are charged back to subsidiaries.