Outlook

The main management guidelines provide for organic growth in Italy and the consolidation of the Company’s presence in Europe, with the objective of improving supply security, flexibility and the quality of service of the entire gas system.

GAS DEMAND

According to the most recent estimates, demand for natural gas in Italy in 2016 will remain more or less unchanged from 2015 levels adjusted for weather effect.

TECHNICAL INVESTMENTS IN ITALY

Snam confirms its commitment to the development of natural gas infrastructure in Italy through a programme of technical investments, which for 2016 is essentially in line with the 2015 level for the same scope of activity.

OPERATING EFFICIENCY

In 2016 Snam confirms its attention to operating efficiency through initiatives aimed at controlling operating costs.

FINANCIAL MANAGEMENT

In 2016 Snam also confirms its objective to improve the Group’s financial structure in terms of duration and exposure to interest rates.

DEVELOPMENT OF PORTFOLIO

With regard to the constant process of analysis and evaluation of strategic options aimed at maximising value for our shareholders, and considering the development of various businesses in which the Group operates on the national and international level, Snam’s Board of Directors identified the opportunity to launch a feasibility study on a possible industrial and corporate restructuring operation for the separation of Italgas from Snam, which could be achieved through a partial and proportional splitting of Snam involving all or part of its equity investment in Italgas.

TRANSPORTATION AND REGASIFICATION

The planned investments target:

• Development of infrastructure for import and interconnection with other countries;
• Increased flexibility and security of the transportation system in Italy;
• Ongoing improvements to the quality of the transportation service.

A slight increase is expected for the length of the transportation network (32,534 km in 2015) and power installed in compression stations (around 877 MW in 2015).

STORAGE

The projects planned aim to complete the new storage site in Bordolano, with benefits for the system in terms of increased storage capacity (16 billion standard cubic metres in 2015) and peak flow capacity (282.5 million standard cubic metres a day in 2015), maintaining the level of efficiency of operating infrastructure and increasing the overall flexibility and security of the system.

DISTRIBUTION

The planned interventions will allow the Company to continue to sustain business development, including through selective management of the concessions portfolio in order to maximise profitability.

We confirm our commitment to the continuous improvement of security, reliability and service quality levels.