Other information

Relationships with related parties

Given the existence of a de facto situation of control by CDP S.p.A.²⁷ over Snam S.p.A., in accordance with IFRS 10 – Consolidated Financial Statements, Snam’s related parties, based on the group’s current ownership structure, include not only Snam’s associates and joint ventures, but also the parent company CDP S.p.A. and its subsidiaries and associates, as well as the companies directly or indirectly controlled by the Ministry of Economy and Finance (MEF). Transactions carried out by Snam with these entities mainly relate to the exchange of assets and the provision of services – and, as an integrated operator within the gas sector, the provision of regulated services – to companies directly or indirectly controlled by the MEF.

These transactions are part of ordinary business operations and are generally settled under market conditions, i.e. the conditions which would be applied for two independent parties, and, in the case of regulated services, are based on tariffs established by the Authority. All the transactions carried out were in the interest of the Snam Group companies.

Pursuant to the provisions of the relevant legislation, the company has adopted internal procedures to ensure that transactions carried out by Snam or its subsidiaries with related parties are transparent and correct in their substance and procedure.

Directors and auditors declare their interests affecting the company and the Group every six months, and/or when changes in said interests occur; they also inform the CEO (or the Chairman, in the case of the CEO), who in turns informs the other directors and the Board of Statutory Auditors, of individual transactions that the company intends to carry out and in which they have an interest.

At 30 June 2015, Snam manages and coordinates its subsidiaries, pursuant to Article 2497 et seq. of the Italian Civil Code.

The amounts involved in commercial, miscellaneous and financial relations with related parties, descriptions of the key transactions and the impact of these on the balance sheet, income statement and cash flows, are provided in Note 27 of the notes to the condensed interim consolidated financial statements.

Post-balance sheet events

The post-balance sheet events are described in the previous points of this report.

A glossary of financial, commercial and technical terms, as well as units of measurement, is available online at www.snam.it. The most common terms are described below.