Snam S p A : Engagement presentation - maggio 2024

Energy infrastructure for a sustainable future

May 2024

Snam, a leading pan European gas infrastructure operator

energy

to inspire the world

Italian and International assets (pro-quota)		Key figures
~37,400	~20 bcm	~20 bcm/y	€ 23.8	~ € 15.6	€ 2.41	€ 1.17
bn	bn	bn	bn
km1	capacity2	capacity3
Transport	Storage	Regasification	Tariff RAB	Market	EBITDA	Net Income
20236	Cap7	Adj. 2023	Adj.2023

Italian assets

~33,000	~17 bcm	~17 bcm/y
km4	capacity	capacity5

Transport Storage Regasification

1. Including TAG, Desfa, GCA, Terega, Interconnector, TAP, Adnoc gas piples, EMG, Seacorridor pro-quota transport km
2. Including also Terega pro-quota storage capacity
3. Including also Golar Tundra, BW Singapore and the pro-quota of OLT, Adriatic LNG, Revithoussa and Alexandroupolis
4. o/w 10,000 national & 23,000 regional network
5. Including also Golar Tundra and BW Singapore
6. Italian
7. At December 31, 2023

Opening remarks

energy

to inspire the world

Snam's Board od Directors, guided by its robust governance, oversees its long-term strategy while fostering an engaged and accountable culture. We have always

been comprehensive in our approach to sustainability and remain committed to the Paris Agreement.

Oversight of Strategy

Robust Governance

Pay Aligned with Strategy

ENERGY

INFRASTRUCTURE

FOR A SUSTAINABLE

FUTURE

Comprehensive Approach to Sustainability

Committed to the Paris

Agreement

…and Net Positive Biodiversity Impact

Engaged and Accountable

3

Our Ambition: Energy infrastructure for a sustainable future

With two businesses that are synergistic and progressively interconnected, Snam's aim is to become a modular, flexible, and repurposeable infrastructure to secure energy supply across Italy and Europe. To achieve this, Snam will leverage two key strategic levers: sustainability, and innovation.

Integrated Strategic Framework

All-round Sustainable Strategy

4

2023-2027 Strategic Plan: key figures

	Capex
Old plan	New plan

energy

to inspire the world

	+15%	EBITDA adj.	Net income adj.
€ 10 bn
€ 11.5 bn1	Cagr	Cagr
2022-2026	2023-2027
		>7%	~4%
		€ bn	€ bn

	Tariff RAB	Net Debt
€ bn	Cagr	€ bn		~2.4	~3.2
>6%
	~ 28.6 bn
	~ 22.4 bn
				2023	2027E
		~15.5	~19.0	Guidance

~1.14 ~1.33

2023 2027E Guidance

2023		2027E	2023	2027E
Guidance			Guidance
LNG		Storage		Transport	1. Net of grants
					Total Capex gross of grants: € 12.4 bn

100 bps higher EPS growth vs Old Plan

5

Snam's Sustainability journey: what we achieved

energy

to inspire the world

1

2

3

1. 2023-2027 Strategic Plan

Methane emissions : -57% vs 2015 and 3 years gold standard by UNEP on methane emissions

Employee inclusion and Well-being:84%

engagement index by employees in 2023

Certifications: recent achievements in energy efficiency, anti-corruption and gender equality

58% of CapEx1 are aligned with the UN SDGs

and 37% to European Taxonomy

4

5

6

Governance: Sustainable value creation introduced in the By-laws, including energy transition businesses and BoD gender balance

Sustainable finance: 80% target on Sustainable Finance already achieved in 2023

Commitments: Net Zero on all emissions by 2050 & first TSO to be part of SBTN engagement program and to commit to net positive impact on biodiversity by 2027

Main impact on SDGs

6

All-round Sustainable Strategy: a 7 pillars framework

energy

to inspire the world

Develop an energy transition platform to reach system's decarbonization and sustainable growth through inclusive pathways of change1

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Decarbonize the core business in line with our path to Net Zero, while partnering with suppliers to promote the sustainability of the whole value chain

Leverage every new infrastructure project to positively impact on Nature and local environment, following a Science Based approach

Embed a culture of innovation within all Snam's People to maximize technology effectiveness, thus enhancing asset safety, reliability, sustainability and value chain capabilities

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Empower all Snam's People worth, fostering professional growth and providing comprehensive care

Keep generating value for local communities, acting as System Operator being attentive to territory needs

1. Pillars 1 and 2 covered in the Strategic Plan

To be conveyed in the upcoming Transition Plan

7

Full scorecard aligned with the 7 pillars framework

energy

to inspire the world

KPIs	2023
Actual

2024 2027

Target Target

KPIs

2023 2024 2027

Actual Target Target

Green

transition

Multi-

molecule

infrastruct.

•	Avoided CO	emissions (ktCO e)1	102.9
	2	2
• H2 readiness length of network certified (km)	1,513
•	Gas Transportation operational availability2 (%)	>99
• Production of biomethane (Mscm)	24.4
• Invest. related to the CCS Ravenna Project Phase 1+2 (€M)3	65

1. 500 1,900 3,000
   >99 >99
   20 160

1. 370

	• Employees engagement index (%)
	• Women in exec. and middle-mgmt. roles (%)*
People	• IpFG (Combined Frequency and Severity Index)5*
• Gender pay gap (%)6
	• Participation in welfare initiatives (%)
	• Training hours delivered to employees (h/capital)

84

25.9

0.47

-

57.9

37

>80

• 26

• min. 3y5

-

75

36

>80

27.5

• min. 3y5
  +/- 5
  80
  40

	• Reduction of total natural gas emissions (%)*
Carbon	•	Introd. ESG criteria in scoring models (% of contracts)*
Neutrality	•	RES4 on total electricity consumption (%)

• Tot. procurem. Spending on suppliers w/decarb. Plan (%)

• Zero Net Conversion by 2024

Biodiversity	• Net Positive impact by 2027
& Regener.
	• Vegetation restored in areas of pipes constr. (%)
Financial	• ESG Finance over total funding available (%)*
• CapEx EU Taxonomy-aligned (% of total)
& CO2
• Revenues EU Taxonomy-aligned (% of total)

-56.67

35

63

23

99.9

81

29

26

-57.5

35

52-55

25

99.9

-64.5

65

100

35

99.9

85

Local

Communit.

Transform. Innovation

• Benefits for local communities over reg. revenues (%)		0.4
• Value released at local communities (€M)
	1,451
• Avg customer satis. rate for service quality (1-10)7		8.1
• Investments in Innovation as % of revenues
3.3
• Start-ups accelerated after PoC (#)8
11 (22)
• Process digitalized and processes with AI (% of total)	100/10

• Projects covered by Security by Design cyber approach (%) New KPI

•	CapEx SDG-aligned (% of total)	61
•	Scope 1 and 2 CO2 emissions reduction (% v. 2022)9
-10

~1		~1
>1,000		>1,000
>8.1		>8.17

3 3

15(25) 27(30) 100/12 100/20

100 100

-25

Sustainable

principles

• ESG matters discussed at BoD meetings (>40% of BoD discussions with ESG topic discussed)
• 3rd parties subject to procure. Process on which reputational checks are performed (100% of suppliers with reputational checks performed)
• Italian territory covered by cyber resilience field tested scenarios (100% of Italian territory covered)

1. Emissions avoided to 3rd parties thanks to the Group's activities and investments in the infrastructure. 2. Previously called "Reliability levels on gas supply". 3. Cumulated figure 2023-2027. 4. Renewable Energy Source computed on
regulated perimeter 5. Snam targets to have an index lower than the minimum of the latest 3 years. 6. For equivalent organizational positions. 7. The target indicated refers to a spontaneous initiative by Snam to measure service quality	8
through the annual survey, using a scale of values from 1 to 10, however, we are expecting a change in the service quality assessment methodology in the coming years. In this case, the annual target will have to be modified accordingly.

8. KPI represents both the number of startup accelerated and the number of Proofs of Concept (PoC). 9. Reduction computed on regulated perimeter. (*) Numbers subject to final approval by committees involved in the remuneration process.

Agenda

Governance

Road to Carbon Neutrality

Biodiversity & Regeneration

Snam People

Engagement & Local Communities

Key Data

Robust Governance

Appointed on April 27, 2022

	Monica de	Stefano	Massimo	Laura	Augusta	Piero	Rita	Qinjing	Alessandro
Board of Directors	Virgiliis	Venier	Bergami	Cavatorta	Iannini	Manzoni	Rolli	Shen	Tonetti
Chair	CEO	Non-Executive	Non-Executive	Non-Executive	Non-Executive	Non-Executive	Non-Executive	Non-Executive
	Director	Director	Director	Director	Director	Director	Director
Independent Director1	✓		✓	✓	✓	✓	✓	(2)	(2)
Gender	Female	Male	Male	Female	Female	Male	Female	Male	Male
First appointment	2016-2019	2022	2022	2019	2022	2022	2019	2022	2016
2022
Committee3 Roles			N&R	Audit	Audit	Audit (C)	N&R (C)	ESG	N&R
		ESG	ESG (C)	ESG

Skills:				Effectiveness:
				Induction &	Joint Cross-	Strategy
				Training	Committee
				Workshop
Strategy	Sustainability	Sector	Corporate	Programs	Meetings
			Governace

1. In accordance with the Italian Corporate Governance Code
2. Officers of the jointly controlling shareholders who have been elected to the Board upon proposal of such shareholders
3. N&R = Nomination & Remuneration (67% independent), Audit = Audit, Risk and Related Parties Transactions (100% independent), and ESG = ESG and Energy Transition Scenarios (75% independent)

energy

to inspire the world

67%

Independent

44%

Female

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Self-Assessment

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