FULL YEAR 2019 RESULTS PRESENTATION
26 FEBRUARY 2020 FORWARD-LOOKING STATEMENTS
Forward-looking statements contained in this presentation regrading future events and future results are based on current expectations, estimates, forecasts and projections about the industries in which Saipem S.p.A. (the “Company”) operates, as well as the beliefs and assumptions of the Company’s management. These forward-looking statements are only predictions and are subject to known and unknown risks, uncertainties, assumptions and other factors beyond the Company’ control that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. These include, but are not limited to: forex and interest rate fluctuations, commodity price volatility, credit and liquidity risks, HSE risks, the levels of capital expenditure in the oil and gas industry and other sectors, political instability in areas where the Group operates, actions by competitors, success of commercial transactions, risks associated with the execution of projects (including ongoing investment projects), in addition to changes in stakeholders’ expectations and other changes affecting business conditions.
Therefore, the Company’s actual results may differ materially and adversely from those expressed or implied in any forward-looking statements. They are neither statements of historical fact nor guarantees of future performance. The Company therefore caution against relying on any of these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, economic conditions globally, the impact of competition, political and economic developments in the countries in which the Company operates, and regulatory developments in Italy and internationally. Any forward-looking statements made by or on behalf of the Company speak only as of the date they are made. The Company undertakes no obligation to update any forward-looking statements to reflect any changes in the Company’s expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.
The Financial Reports contain analyses of some of the aforementioned risks.
Forward-looking statements neither represent nor can be considered as estimates for legal, accounting, fiscal or investment purposes. Forward-looking statements are not intended to provide assurances and/or solicit investment.
|2 TABLE OF CONTENT
. 01 OPENING REMARKS
. 02 DELIVERING OUR STRATEGY
. 03 FY 2019 RESULTS
. 04 FOCUS ON DIVISIONS
. 05 GUIDANCE AND CLOSING REMARKS
. 06 APPENDIX
|3 OPENING REMARKS OPENING REMARKS A VERY GOOD YEAR: OPERATIONAL EXCELLENCE, RECORD ORDER INTAKE AND DELEVERAGING
. FY 2019 targets achieved, driven by operational results: • E&C Offshore: good operational performance • E&C Onshore: turnaround on track • Drilling: volume increase, margins still adjusting to current environment
. Exceptional order intake of €17.6bn, leading to 1.9x book to bill
. Record backlog of c.€25bn*
. Reported net profit of €12mn, vs a loss of €472 million in FY 2018
. Net debt pre-IFRS 16 at €472mn, vs €1,159mn in FY 2018 • Reflecting strong cash flow • Early redemption of 2021 bonds in progress
. Proposed to AGM a dividend** of €1 cent per share, first distribution since 2013***
* Of which c.€3.6bn non-consolidated ** For ordinary and savings shares. Ex-dividend date 18 May 2020, payment date on 20 May 2020 |5 *** For ordinary shares DELIVERING OUR STRATEGY MARKET OUTLOOK
2019 LONG-TERM 2020E MARKET EVOLUTION SCENARIO MARKET OUTLOOK
Primary energy supply mix evolution
Hydro & . E&C market: others . Opportunities in Middle East Wind & offshore solar . Selected initiatives in deepwater, especially in Africa Gas . LNG awards expected to continue Coal Oil after 2019 peak E&C Index Drilling Index . Good visibility on downstream Brent Index . Increasing client focus on green 2018 2040E technologies, shifting towards low- carbon solutions Source: company elaboration on Bloomberg data Source: company elaboration on IHS, IEA, Exxon, BP and Equinor scenarios . Drilling market: . Oil price volatility, also driven by . : a decade-long gradual process, but . Offshore expected to mildly geopolitics policies may accelerate energy mix shift recover, with harsh environment . Offshore FIDs and drilling rates . Low-carbon emission sources: more promising recovery slower than expected . natural gas to remain an essential source . Onshore: Middle East to continue, mixed LatAm . New wave of sizeable LNG project . renewables fundamental in power generation and awards mobility . New cross-sectors opportunities will arise from green technologies, decarbonization and digitalisation |7 STRATEGY DELIVERY ON TRACK FOR A NEW SAIPEM BUSINESS PORTFOLIO REFOCUS . DIVISIONALIZATION COMPLETED IN 2018 . SOLID & RENEWED MANAGEMENT TEAM . DIVERSIFYING OFFER FOR THE . STRATEGIC OPTIONS FOR DRILLING
TECHNOLOGY & INNOVATION DE-RISKING THE BUSINESS MODEL . ENHANCED INNOVATION CULTURE AND BUDGET . COMMERCIAL DISCIPLINE AND TENDER SELECTIVITY . NEW SOLUTIONS FOR CLIENTS: . EARLY ENGAGEMENT (XSIGHT) - DIGITAL . NO UNBILLED REVENUES UNDER LITIGATION - COST EFFECTIVE - DIVERSIFIED - ENABLERS OF
DEBT REDUCTION & CAPITAL DISCIPLINE COST OPTIMISATION & PROCESS EFFICIENCY . CASH FLOW SUPPORTED BY WORKING CAPITAL . E&C ONSHORE TURNAROUND WELL ON TRACK MANAGEMENT . EFFICIENCY PROGRAMS CONTINUING . SELECTIVE APPROACH ON CAPEX . STRENGTHENED AND RATIONALISED ASSET BASE . SOLID FINANCIAL STRUCTURE AND LIQUIDITY: - LEVERAGE RATIO BELOW 0.5x*
|8 * Adjusted EBITDA/net debt (pre-IFRS 16) Energy transition PIVOTAL IN THE ENERGY TRANSITION LEADING TODAY, READY FOR TOMORROW
FY19 E&C BACKLOG: 68% NON-OIL* . LEADERSHIP IN GAS VALUE-CHAIN: . LIQUEFLEXTM • LNG . HYDROGEN
GAS SMALL SCALE LNG 68% • REGAS 32% • GAS MONETISATION • PIPELINES
NON-OIL OIL . NEW FLOATING . EMERGING RENEWABLES . OFFSHORE WIND RENEWABLES • MARINE • WIND • HIGH-ALTITUDE WIND FY19 E&C OFFSHORE • SOLAR • OTHER ACQUISITIONS:
17% RENEWABLES** RENEWABLES . HYBRID SOLUTIONS FOR: • OFFSHORE FIELDS 17% • ONSHORE DOWNSTREAM PLANTS
83% . ADVANCED . CO2 . WASTE TO
OTHER BIOFUELS MANAGEMENT PRODUCTS
RENEW. OTHER SOLUTIONS
* Including projects in JV TODAY TOMORROW ** Offshore wind
ENABLING ENERGY TRANSITION THROUGH INNOVATION |9 DRIVEN BY SUSTAINABILITY ESG IS AT THE CORE
ESG: A TOP PRIORITY FOR CEO AND BOARD OF DIRECTORS INCLUDED IN KEY SUSTAINABILITY STOCK INDICES
. Active engagement with stakeholders on material issues to set priorities . Monitoring system to track and report sustainability performance . Targets on sustainability KPIs included in Confirmed for the 10th year Confirmed as the sector’s leader in top management remuneration in FTSE4Good Index Series DJSI World and Europe indices
2019 In accordance with TCFD* CLIMATE: recommendations FROM STRATEGY TO ACTION Risk and opportunities analysis
|10 * Task Force on Climate-Related Financial Disclosures FY 2019 RESULTS FY 2019 RESULTS YoY COMPARISON (€ mn)
Revenues Adjusted EBITDA* Adjusted Net Result*
9,099 11.7% margin 11.7% - pre IFRS 16 8,526 13.4% - IFRS 16
1,226
161 1,002
165
1,065
179 25
FY18 FY19 FY18 FY19 (14) FY18 FY19 IFRS 16 Impact |12 * Excluding special items, details in slide 15 FY 2019 RESULTS – E&C YoY COMPARISON (€ mn)
E&C OFFSHORE E&C ONSHORE*
Revenues Adjusted EBITDA Revenues Adjusted EBITDA
13.6% margin 13.9% pre IFRS 16 3.1% margin 4.5% pre IFRS 16 3,852 3,841 16.8% IFRS 16 4,165 5.4% IFRS 16 3,708
645 523 112 227 38
533 118 189
FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 IFRS 16 Impact • Higher volumes in North Africa and Latin America, offset by • Higher volumes in Middle and Far East lower volumes in Sub-Saharan • Margin reflecting good execution • Margin growth confirming turnaround
* E&C Onshore including Floaters business and XSight |13 FY 2019 RESULTS – DRILLING YoY COMPARISON (€ mn)
DRILLING OFFSHORE DRILLING ONSHORE
Revenues Adjusted EBITDA Revenues Adjusted EBITDA
555 48.6% margin 39.6% pre IFRS 16 26.9% margin 22.9% pre IFRS 16 40.7% IFRS 16 23.8% IFRS 16 538 465 501
226 226 6
135 128 220 5
123
FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19
IFRS 16 Impact • Higher volumes driven by SC8, S12000 and Pioneer (leased) • Growth driven by activity in Saudi Arabia and Latin America • Phasing out of past contracts reflects on EBITDA margin • EBITDA factoring lower activity in some area
|14 FY 2019 NET RESULT RECONCILIATION ADJUSTED-REPORTED Net Result (€ mn)
(14)
(48)
(22) 179 165 (25)
(58) 70 12 12 FY19 IFRS 16 FY19 Provisions for 2Q Write-down* Net impact from legal FY19 Impairment FY19 Adjusted Impact Adjusted redundancies proceedings** Pre-impairment Reported pre IFRS16 post IFRS16
SPECIAL ITEMS PROPOSED TO AGM A DIVIDEND OF €1 CENT PER SHARE***, FIRST DISTRIBUTION SINCE 2013****
* Write-down in 2Q 2019 of jackup Perro Negro 5 and related working capital ** Net impact of release of provision from Algerian legal case and outcome of some pending litigation |15 *** For ordinary and savings shares **** First distribution since 2013 for ordinary shares FY 2019 NET DEBT EVOLUTION (€ bn)
SOUND CASH GENERATION, LEADING TO NET DEBT/EBITDA* AT BELOW 0.5x
1.71 0.55
1.16 (0.65) 0.61 1.08
(0.38) 0.34 0.47
Net debt FY18 Net debt Cash flow Others includ. Capex Net debt FY19 Net debt Dec. 31, 2018 IFRS 16 Dec. 31, 2018 (N.P.+ D&A) Δ working Dec. 31, 2019 IFRS 16 impact Dec. 31, 2019 restated restatement capital
IFRS VIEW MANAGEMENT VIEW IFRS VIEW |16 * Year-end 2019 net debt (pre-IFRS16) / FY 2019 adjusted EBITDA (pre-IFRS16) SIGNIFICANT DELEVERAGING PRE-IFRS 16 (€ bn)
POST CAPITAL INCREASE 1.5
1.2
c.1.0 >(0.2)
<0.8 (0.15) LEVERAGE <0.7 1.1x (0.1) RATIO* (0.1) 0.5 FAVOURABLE PHASING LEVERAGE <0.5x RATIO*
Net debt Net debt Net debt Additional Updated Capex plan 4Q cash Working Net debt Net debt Dec.31, Dec.31, guidance cash flow net debt rephasing advances capital Dec.31, guidance 2016 2018 Y-E 2019 expectation** guidance management*** 2019 year-end Y-E 2019 2020E FOCUS PHASING 2019/20 * Net debt (pre-IFRS 16) / EBITDA adjusted (pre-IFRS 16) |17 ** Disclosed in 1H 2019 results presentation; mainly driven by net cash advances on major awards *** Mainly driven by collection of overdue receivables CAPITAL STRUCTURE AS OF DECEMBER 31, 2019
LIQUIDITY AND MATURITY PROFILE (€ mn)
Bonds ECA Facilities Bank Facilities Other Debt 2,833 REINVESTING IN THE €500mn BOND BUSINESS REDEEMED*** WITH 1,000 AVAILABLE CASH Undrawn RCF* 669 654 638 562 GROSS DEBT 63 63 38 REDUCTION 360 1,833 106 91 100 62 Available cash 89 and cash 72 equivalents** 152 500 500 500 500 113 DIVIDEND PROPOSAL 95 89 72 TO AGM
Liquidity 2020 2021 2022 2023 2024 2025 2026+
. Average debt maturity c.2.8 years****; average all-in interest rate c.4%, including treasury hedging . Undrawn committed credit facilities totalling c.€1.0bn, in addition to c.€0.2bn of uncommitted facilities . Available cash and cash equivalents c.€1.8bn** * Committed ** Not including trapped cash and marketable securities/other credit for c.€0.8bn *** The notes will be redeemed on March 3, 2020 **** c. 3.2 years pro-forma (excluding 2021 bonds)
AVAILABLE CASH TO BE USED FOR EARLY REPAYMENT OF 2021 BONDS |18 FOCUS ON DIVISIONS 2019 E&C OFFSHORE MAIN AWARDS A DIVERSIFIED SET OF AWARDS, SUPPORTING BOOK TO BILL >1x IN FY 2019
1Q 2Q 3Q 4Q
PAYARA SUBSEA DEVELOPMENT . Client: ExxonMobil . Location: Guyana TORTUE MARINE CIVIL WORKS . Scope of work: EPCI of a large subsea production BP – MAURITANIA/SENEGAL facility, including subsea structures, risers and flowlines HIGHLIGHTS: Proven track-record in Guyana, previous two phases of Liza Offshore. BERRI AND MARJAN FIELD DEV. FDS2 and Constellation: optimized combination of J-lay and Reel-lay SAUDI ARAMCO - SAUDI ARABIA NEART NA GAOITHE OFFSHORE WIND FARM . Client: NNG Offshore . Location: Scotland . Scope of work: EPCI of 56 steel foundation jackets, T&I of relevant topside BERRI DOWNSTREAM PIPELINES HIGHLIGHTS: SAUDI ARAMCO - SAUDI ARABIA Key milestone in the pursuit of our strategy to become a reference player for large offshore windfarm developments
FORMOSA 2 OFFSHORE WIND FARM . Client: Jan De Nul . Location: Taiwan ACG PIPELINE SYSTEMS AND T&I . Scope of work: supply of material and fabrication of 32 BP - AZERBAIJAN foundation jackets for wind turbine generators HIGHLIGHTS: Consolidating Saipem position as a global solution provider to the extended energy sector
2019 E&C OFFSHORE CONTRACT ACQUISITIONS €4.5bn |20 E&C OFFSHORE STRATEGY LEADING GLOBAL SOLUTION PROVIDER FROM EARLY ENGAGEMENT TO END OF ASSET LIFE
PRODUCTS SUBSEA SERVICES
CONVENTIONAL WIND LIFE OF FIELD
LATE LIFE MGMT PIPELINES DECOMMISSIONING MMO*
CORE “GREEN” SOLUTIONS
CONSOLIDATE THROUGH INNOVATION EVOLUTION
|21 * Maintenance, Modifications and Operations Energy transition 2019 E&C ONSHORE MAIN AWARDS RECORD-HIGH SET OF AWARDS, BOOK TO BILL AT 2.6x IN FY 2019
1Q 2Q 3Q 4Q
MOSCOW REFINERY JSC GAZPROMNEFT - RUSSIA
SERBIA PIPELINE IDC - SERBIA
ROVUMA BASIN AREA 1 LNG TOTAL - MOZAMBIQUE
BERRI - PKG-01 SAUDI ARAMCO - SAUDI ARABIA
MARJAN - PKG-10 SAUDI ARAMCO - SAUDI ARABIA
ARCTIC LNG2 TOPSIDES ARCTIC LNG2 - RUSSIA
2019 E&C ONSHORE CONTRACT ACQUISITIONS €11bn (€13bn incl. non consolidated) |22 E&C ONSHORE STRATEGY THE PARTNER OF CHOICE FOR THE LOW-CARBON ENERGY TRANSITION
- STRATEGY
LNG & REGAS FOCUS NEW GEOGRAPHIES EPC DIGITAL PLATFORMS CONSOLIDATE IN SUSTAINABLE HYBRID DOWNSTREAM SOLUTIONS CLIENT COLLABORATIVE PLATFFORMS GROWTH IN GAS TECH-DRIVEN MONETISATION PARTNERSHIPS & M&A
IVERSIFY ECARBONIZE IGITALIZE
CARBON-NEUTRAL OPERATIONS SHORTENING TIME-TO-MARKET ALONG THE EPC VALUE CHAIN
|23 Energy transition LEADING CONTRACTOR IN LNG
MAJOR LNG FOCUS ONGOING PROJECTS ON MOZAMBIQUE
Tangguh Expansion (T3) for BP, Indonesia Rovuma Basin Area 1 LNG for Total, Mozambique . Brownfield environment and remote area . Saipem as leader of the Italy-based JV with direct . EPC project fully executed locally responsibility on core activities . Saipem leader of the JV, activities rapidly progressing . Long-lead items purchased, early works at site started . Consolidated relationship with major client . Long-term relationship in the area with clients both offshore and onshore Arctic LNG 2 (GBS + topsides) for Novatek consortium, Russia . Activities are ongoing and progressing on schedule . Remote area in harsh environment . Engineering, Procurement and Construction of 3 GBSs and topsides of the LNG plant . Strong partnership with solid track record for the topsides
ENGINEERING CAPABILITY AND CAPACITY PROVIDING SCALE AND RELIABILITY |24 XSIGHT STRATEGY RE-DESIGNING AND DISRUPTING TRADITIONAL PROCESSES
EARLY ENGAGEMENT REVENUES & ORDER INTAKE FOCUS ON TECHNOLOGICAL THROUGH PREMIUM DOUBLE-DIGIT GROWTH DISRUPTIVE SOLUTIONS SERVICES
INNOVATION TO ENHANCE TIER-ONE CLIENTS EPC INTEGRATED MODEL ENERGY TRANSITION & RECOGNITION DIGITAL ENGINEERING DECARBONISATION
FIRST CONVERSION UNLOCK OPPORTUNITIES FEED TO EPC DESIGN FOR SUSTAINABLE FOR E&C DIVISIONS IN SINGLE SOURCE INNOVATION
MISSION ACHIEVEMENTS WHAT’S NEXT
CROSS-DIVISIONAL INNOVATION ENGINE
|25 Energy transition 2019 DRILLING MAIN AWARDS FLEET UTILIZATION AND VISIBILITY SIGNIFICANTLY IMPROVED YOY 1Q 2Q 3Q Q4
ONSHORE NEW CONTRACTS IN MIDDLE EAST AND OTHER COUNTRIES ONSHORE CONTRACTS IN SAUDI ARABIA, BOLIVIA AND OTHER . New contract and extension of 19 land-rigs with EXTENSIONS power between 1,500 and 2,000 HP in Middle East . PERRO NEGRO 8 Duration range from 3 up to 10 years ADNOC - UAE . Further extensions in Bolivia, Peru and Romania
PERRO NEGRO 7 HIGHLIGHTS: S. ARAMCO – S. ARABIA Consolidating presence in core Middle East market
SCARABEO 8 OFFSHORE SCARABEO 5 WINTERSHALL - NORWAY . Client: Eni . Location: Angola SEA LION 7 . Terms: 1-year firm period + 1 ½ year options S. ARAMCO – S. ARABIA HIGHLIGHTS: SCARABEO 9 Engaged for production support: vessel active and ready GSP - ROMANIA for drilling market recovery SCARABEO 8 REPSOL NORGE - NORWAY OFFSHORE SCARABEO 8 . Client: VarEnergi PERRO NEGRO 8 . Location: Norway ADNOC - UAE . Terms: 5 firm wells + 2 optional wells PERRO NEGRO 4 HIGHLIGHTS: PETROBEL - EGYPT Recognised contractor in the Norwegian market
2019 DRILLING CONTRACT ACQUISITIONS €2.3bn: €1.7bn ONSHORE AND €0.6bn OFFSHORE |26 OFFSHORE DRILLING FLEET
CLIENT AREA Saipem 12000 TO 2022> Eni Pakistan-Mozamb.
Saipem 10000 Eni Egypt
Eni - GSP ULTRA Scarabeo 9 Egypt-Romania
HARSH ENV. HARSH Vår Ener. - Repsol- Scarabeo 8 Norway DEEP-WATER and Wintershall Scarabeo 7 Eni Indonesia *ENGAGEMENT FOR PRODUCTION
DEEP- Scarabeo 5* Eni Angola WATER TO 2022> SUPPORT
Perro Negro 8 TO 2023> ADNOC UAE **LEASED VESSEL Saudi Aramco Saudi Arabia Perro Negro 7 TO 2023> ***TO BE SCRAPPED Eni M exico HI SPEC Pioneer** TO 2023> ****TENDER ASSITED ON STACKING MODE Sea Lion 7** TO 2022> Saudi Aramco Saudi Arabia
Perro Negro 5 \ Saudi Aramco Saudi Arabia Perro Negro 9** PN5 PN9 TO 2024> Perro Negro 4 Petrobel Egypt SHALLOW-WATER
STANDARD Perro Negro 2*** - -
TAD****
2019 2020 2021
Committed New awards in Optional period 4Q19 & 2020 to date |27 ONSHORE DRILLING FLEET
ONSHORE FLEET @ DECEMBER 31, 2019: 82 RIGS
REST OF THE WORLD 5 RIGS UTILISATION RATE 100%
LATIN AMERICA 46 RIGS MIDDLE EAST 31 RIGS UTILISATION RATE 32% UTILISATION RATE 96%
UTILISATION RATE IN FY 2019: 68% |28 OFFSHORE DRILLING STRATEGY FIRST TIER CONTRACTOR PROVIDING FLEXIBILITY AND INNOVATION
COST BASE ENLARGING OPTIMISATION CLIENT BASE
REASSESSING DIGITAL SEGMENTS
ASSET ASSET LIGHT MANAGEMENT STRATEGY
HYBRID RIG OPTIONALITY
RESILIENT READY
OPPORTUNISTIC APPROACH POTENTIAL PARTNERSHIP
|29 Energy transition and sustainability ONSHORE DRILLING STRATEGY EFFICIENT AND RELIABLE INTERNATIONAL CONTRACTOR
AGILE MIDDLE EAST AGILE ORGANIZATION CONSOLIDATION ORGANIZATION TECHNOLOGY & SELECTIVE IN DIGITAL LATAM
REPLACEMENT OF ASSET NEW COUNTRIES LOW EFFICIENCY OPTIMISATION GENERATORS
TARGETING NEW COST DISCIPLINE SEGMENTS
RESILIENT CONSOLIDATION & DIVERSIFICATION
OPERATIONS EXCELLENCE STRATEGIC PARTNERSHIP
|30 Energy transition and sustainability FY 2019 BACKLOG
(€ mn) 17,633 21,153 1,737 1,798 576 737
CURRENT E&C BACKLOG INCLUDING NON-CONSOLIDATED: 12,619 9,099 68% NON-OIL 599 538 10,849 13,007 716 555 4,165 68% 6,323 32%
3,841 4,471
4,981 5,611 NON-OIL OIL
Backlog FY19 FY19 Contract Backlog @Dec. 31, 2018 Revenues Acquisitions @Dec. 31, 2019
E&C Offshore E&C Onshore* Drilling Offshore Drilling Onshore
NON-CONSOLIDATED BACKLOG @ DEC. 31, 2019 (€ mn) 3,625 |31 * E&C Onshore including Floaters business and XSight FY 2019 BACKLOG BY YEAR OF EXECUTION (€ mn)
7,532 7,674 427 995 410 5,947 185 376 142 3,796
3,622 5,589
2,899 1,807 905
2020 2021 2022+
E&C Offshore E&C Onshore* Drilling Offshore Drilling Onshore
NON-CONSOLIDATED BACKLOG BY YEAR OF EXECUTION 2020 2021 2022+ € mn 815 1,197 1,613 |32 * E&C Onshore including Floaters business and XSight 2020 MAIN AWARDS YEAR-TO-DATE GOOD START OF THE YEAR FOR E&C OFFSHORE
CABAÇA AND AGOGO EARLY PHASE 1 ALEN PIPELINE
. Client: Eni . Client: Noble Energy . Location: Angola . Location: Equatorial Guinea . Scope of work: EPCI of risers, production flowlines, . Scope of work: T&I of a 70 km gas pipeline connecting jumpers and the installation of a Subsea Production the Alen Platform to Punta Europa System HIGHLIGHTS: HIGHLIGHTS: Main vessels: Castorone and Saipem 3000 Water depths ranging between 400 and 600m Main vessels: Saipem FDS and Saipem 3000
LTA 53 DECOMMISSIONG & HEAVY LIFTING
. Client: Saudi Aramco . Various Clients . Location: Saudi Arabia . Location: UK and USA . Scope of work: EPCI of a 36” carbon steel pipeline and . Scope of work: brownfield activities on fixed platforms . Decommissioning of existing infrastructures located in the Thistle Field in the North Sea HIGHLIGHTS: . T&I of offshore structures in the Walker Ridge area Carbon steel pipeline with 5” of thermal insulation in the Gulf of Mexico HIGHLIGHTS: Offshore activities performed by Saipem 7000
|33 Energy transition and sustainability E&C OPPORTUNITIES GOOD VISIBILITY ON NEAR-TERM INITIATIVES CONFIRMED
Europe/CIS & Central Asia Offshore
Fixed facilities Renewables & green €1.0bn Subsea
Europe/CIS & Central Asia Onshore
Americas Offshore Downstream €0.9bn Pipelines €1.1bn Subsea Africa Offshore Middle East Offshore
Americas Onshore Subsea €1.8bn Fixed Facilities €4.0bn Pipelines Asia Pacific Offshore Pipelines €0.3bn Africa Onshore Middle East Onshore Downstream Pipelines €1.1bn Floaters Downstream Infrastructures €3.7bn LNG €4.7bn Asia Pacific Onshore Renewables & green LNG Downstream Upstream Renewables & green LNG €1.8bn Upstream
c.€20bn E&C OPPORTUNITIES: c.€9bn OFFSHORE, c.€11bn ONSHORE |34 GUIDANCE AND CLOSING REMARKS A VERY GOOD YEAR: 2019 TARGETS ACHIEVED PRE-IFRS 16
FY 2019 FY 2019 Metrics guidance actual
Revenues . c. €9bn . €9.1bn
Adjusted EBITDA % margin . >10% . 11.7%
CAPEX . c. €450mn . €336mn
Net debt* . <€0.8bn . €0.5bn
* Excluding lease liabilities (IFRS 16) |36 2020 GUIDANCE
Metrics FY 2020
Revenues . c. €10bn
Adjusted EBITDA (post-IFRS16) . > €1.1bn
CAPEX . c. €600mn
Net debt (pre-IFRS16) . < €0.7bn
|37 CLOSING REMARKS
GOOD PROGRESS ON OUR LONG-TERM STRATEGY
SIGNIFICANT DELEVERAGING
DIVIDEND PROPOSAL TO AGM
RECORD BACKLOG
A KEY PARTNER IN THE ENERGY TRANSITION
|38 APPENDIX E&C OFFSHORE STRATEGY - FOCUS LEADING GLOBAL SOLUTION PROVIDER FROM EARLY ENGAGEMENT TO END OF ASSET LIFE
DIGITAL CAPABILITIES PROJECT/PRODUCT DIGITAL TWIN
VESSELS ROBOTICS
SUBSEA PROCESSING YARDS
WIND
PRODUCTS WELDING
MARKET ENABLERS TECHNOLOGY & INNOVATION
|40 Energy transition E&C OFFSHORE STRATEGY - TECHNOLOGY LEADING GLOBAL SOLUTION PROVIDER FROM EARLY ENGAGEMENT TO END OF ASSET LIFE
CORE MARKETS “GREEN” SOLUTIONS
SURF Welding, FJC*, Offshore Plant and Subsea Factory Life of Field Technologies NDT** Renewables Technologies Technologies
. RISER AND FLOWLINES . PRODUCTION . TECHNOLOGIES FOR . SUBSEA PROCESSING . INSPECTION AND INTERVENTION FOR DEEP AND ULTRA- ENHANCEMENT WITH NEW FLOATING WINDFARMS EQUIPMENT AND SUBSEA TECHNOLOGIES DEEPWATER EQUIPMENT AND AND CONVENTIONAL SYSTEMS . AI-SUPPORTED RESIDENT . HEATING PROCESSES PRODUCTION . SUBSEA CONTROLS & ROBOTICS . NEW MATERIALS OPTIMIZATION ADVANCED MONITORING . EMERGENCY RESPONSE
SIR FBJ DEH SPRINT HexaFloat SpoolSep Local Heating Hydrone Single Fusion Bonded Direct Internal Floating Subsea Subsea Heating Subsea Resident / Independent Joint Electrical Plasma Windfarm Liquid/Liqui Stations for Flow Autonomous Riser for Plastic Heating Welding Foundation d Separation Assurance ROV systems Lined pipe Technology |41 * FJC: Field Joint Coating; ** NDT: Non Destructive Testing E&C ONSHORE STRATEGY - FOCUS THE PARTNER OF CHOICE FOR THE LOW-CARBON ENERGY TRANSITION
BLUE & GREEN RENEWABLES AND HYDROGEN BIOTECH
E-FUELS HYDROGEN CARBON NEUTRAL: GREEN • DESIGN PETROCHEMICALS • ASSET OPERATIONS CCUS* • SUPPLY CHAIN GREEN AMMONIA
HYBRID SOLUTIONS DECARBONISE OUR OPERATIONS
FOCUS ON DECARBONIZATION SUSTAINABLE TECHNOLOGIES
|42 * Carbon capture, utilisation and storage Energy transition OFFSHORE DRILLING STRATEGY - FOCUS FIRST TIER CONTRACTOR PROVIDING FLEXIBILITY AND INNOVATION
NEW CAPACITY REINFORCE CLIENT RIG AVAILABILITY RELATIONSHIP
RENTAL BASIS FLEET REJUVENATION COMPETITIVE CONDITIONS
REGIONAL MARKET DIVERSIFICATION PURCHASE OPTION
ACTIONS ASSET LIGHT STRATEGY
|43 ONSHORE DRILLING STRATEGY - FOCUS EFFICIENT AND RELIABLE INTERNATIONAL CONTRACTOR
AUTOMATION ENERGY ASSESSMENT PERFORMANCE MONITORING SYSTEMS GHG EMISSION SAVING DIGITAL PLAN TRANSFORMATION
PREDICTIVE POWER BALANCE MAINTEINACE MONITORING SYSTEMS
WALKING RIG HIGH EFFICIENCY ASSET GENERATORS STANDARDISATION
ASSET AND OPERATIONS EXCELENCE SUSTAINABLE INNOVATION
|44 Energy transition and sustainability 4Q 2019 RESULTS QoQ TREND (€ mn)
Revenues Adjusted EBITDA* Adjusted Net Income*
margin 11.4% Pre IFRS16 11.7% 2,351 13.1% IFRS 16 13.7% 2,229
327 293 47 39 74
254 280 31 79
35
(4) (5) 3Q19 4Q19 3Q19 4Q19 3Q19 4Q19 IFRS 16 impact
|45 * Not including special items 4Q 2019 RESULTS - DIVISIONS QoQ TREND (pre IFRS 16 - € mn)
E&C OFFSHORE E&C ONSHORE* Revenues Adjusted EBITDA Revenues Adjusted EBITDA
13.5% margin 14.5% 1,191 4.4% margin 4.4% 998 135 124 974 853
54 43
3Q19 4Q19 3Q19 4Q19 3Q19 4Q19 3Q19 4Q19
DRILLING OFFSHORE DRILLING ONSHORE Revenues Adjusted EBITDA Revenues Adjusted EBITDA
178 35.5% margin 43.3% 136 24.3% margin 19.4% 129
121 77
43 33 25
3Q19 4Q19 3Q19 4Q19 3Q19 4Q19 3Q19 4Q19 |46 * E&C Onshore including floaters business and XSight DERISKED WORKING CAPITAL UNBILLED REVENUES LINKED TO LEGAL DISPUTES
€ mn
c.800
-
Dec. 31, 2016 Dec. 31, 2019
|47 FY 2019 RESULTS – D&A, FINANCE CHARGES AND TAX RATE
617
468 FY 2018 D&A € mn 307 FY 2019 D&A pre IFRS16 205 468 106 117 124 FY 2019 103 83 IFRS 16 impact 40 207 97 119 45 Offshore Onshore E&C E&C Total Drilling Drilling Onshore* Offshore D&A
FY 2019 26 210 € mn 74 184 FINANCE 110 CHARGES
Financing costs Project hedging Finance charges pre IFRS16 Impact Finance Charges costs** IFRS post IFRS
. Tax rate*** at c.34%, significantly improving year-on-year TAX RATE . 2020 tax rate*** expected at mid-thirty percent
* Floaters business included in E&C Onshore |48 ** Including exchange differences for €11mn *** Calculated on adjusted net income IFRS 16 IMPACT RECONCILIATION
FY 2019 €mn 4Q 2019 FY 2020E €mn €mn pre IFRS 16 IFRS 16 IMPACT IFRS 16 IMPACT IMPACT
Adjusted EBITDA 1,065 1,226 161 327 47 c.170
Depreciation 468 617 149 167 45
Financial Charges 184 210 26 56 7
Adjusted Net Income 179 165 14 74 5
Net Debt 472 1082 610 c.560
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