1 Basis of presentation and accounting principles

The condensed interim consolidated financial statements at 30 June 2015 were prepared under the going-concern principle and in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and approved by the European Union, as well as with the legislative and regulatory provisions in force in Italy.

The condensed interim consolidated financial statements at 30 June 2015 were prepared in accordance with the provisions of IAS 34 – “Interim Financial Statements”. Pursuant to IAS 34, the condensed interim consolidated financial statements do not include all the information required in annual consolidated financial statements and, as such, they should be read in conjunction with the Snam Group’s consolidated financial statements for the year ended 31 December 2014.

The financial statements are the same as those adopted for the annual report. In the condensed interim consolidated financial statements, the same consolidation principles and accounting policies have been used as those used to prepare the annual report, except for IFRSs which have entered into force since 1 January 2015⁴, as described in Note 6 to the 2014 annual report, “Recently issued accounting standards”. The amendments made concern cases that are currently not applicable to the Snam Group.

The notes to the financial statements are in condensed form. Current income taxes are calculated based on taxable income at the reporting date. Tax receivables and payables for current income taxes are recognised based on the amount which is expected to be paid/recovered to/from the tax authorities under the prevailing tax regulations or those essentially approved at the reporting date and the rates estimated on an annual basis.

Consolidated companies, companies under joint control, associates and other significant equity investments, reporting for which is covered by Article 126 of Consob Resolution 11971 of 14 May 1999, as amended, are indicated separately in the appendix “Significant shareholdings, associates and equity investments of Snam at 30 June 2015”, which is an integral part of these notes.

The condensed interim consolidated financial statements at 30 June 2015, approved by the Board of Directors of Snam S.p.A. at its meeting of 28 July 2015, have undergone a limited audit by Reconta Ernst & Young S.p.A. The limited audit has a much smaller scope than a full audit carried out in accordance with established auditing principles.

The condensed interim financial statements are presented in euros. Given their size, amounts in the financial statements and respective notes are expressed in millions of euros.