Basis of presentation

The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (hereinafter “IFRS” or “international accounting standards”) issued by the International Accounting Standards Board (IASB) and adopted by the European Commission pursuant to Article 6 of EC Regulation no. 1606/2002 of the European Parliament and of the Council of 19 July 2002 and to Article 9 of Legislative Decree no. 38/2005.

The consolidated financial statements are prepared using the historical cost method, taking into account value adjustments where necessary, except the items which, according to IFRS, must be measured at fair value, as described in the measurement criteria.

The consolidated financial statements include the financial statements of Snam Rete Gas S.p.A. and of the companies over which Snam Rete Gas has the right to exercise direct or indirect control from the date of acquisition until the date when such control is relinquished, determine financial and operational decisions, and obtain the benefits thereof.

Subsidiaries excluded from the consolidation scope as they are not significant, companies under joint control, associates and other equity investments are measured as described in “Equity investments”.

Consolidated companies, non-consolidated subsidiaries, companies under joint control, associates and other significant equity investments, reporting for which is covered by Article 126 of Consob Resolution no. 11971 of 14 May 1999, as subsequently amended, are indicated separately in the annex “Significant shareholdings, associates and equity investments of Snam Rete Gas S.p.A. at 31 December 2010”, which is an integral part of these notes. The same annex also reports the change in consolidation scope which took place during the year.

The financial statements of consolidated companies and the consolidated financial statements are audited by Reconta Ernst & Young S.p.A.

The Snam Rete Gas consolidated financial statements as at 31 December 2010 were approved and authorised for publication by the board of directors on 2 March 2011.

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