11 Investments valued using the equity method

Investments valued using the equity method, amounting to €1,483 million (€1,499 million at 31 December 2016) break down as follows:

Acquisitions and subscriptions (€33 million) relate to: (i) the future share capital increase of TAP (€20 million) which Snam is obliged to invest in in proportion to the shareholding owned by virtue of the agreements signed during the acquisition of the equity investment (the share capital increase corresponding to CHF 22 million was subscribed and paid up by Snam on 7 July 2017); (ii) the TAP share capital increase paid up in the first half of 2017 (€13 million).

Capital gains (capital losses) arising from valuation using the equity method (€88 million) mainly refer to TAG (€43 million) and TIGF (€19 million).

The decrease in dividends (€121 million) essentially involves TAG (€88 million) and TIGF (€11 million).

Sales and repayments (€18 million) relate to the reduction in the book value of the equity investments in GasBridge 1 B.V. and GasBridge 2 B.V. following the distribution of part of the share premium reserve generated during the establishment of the companies.

Exchange rate conversion differences (€2 million) mainly refer to the effects of the valuation of the investment in Interconnector (UK) Ltd held by Snam S.p.A. via the joint control companies Gasbridge 1 B.V. and Gasbridge 2 B.V. The amount reflects the conversion of the shareholders’ equity of the investee company at the Euro/Sterling spot rate on 30 June 2017.

Consolidated companies, non-consolidated subsidiaries, joint ventures, associates and other significant equity investments are indicated separately in the appendix “Shareholdings, associates and equity investments of Snam S.p.A. at 30 June 2017”, which is an integral part of these Notes.