001-086SaipemSem21Ing.qxd 5-08-2021 17:57 Pagina I interim financial report as of june 30, 2021 001-086SaipemSem21Ing.qxd 5-08-2021 17:57 Pagina II Mission To complete extraordinary projects by pushing beyond the frontiers of innovation, opening the way for our clients to the energy of the future. VALUES Creative intelligence; care for people and planet; striving for trust; enhancement of cultural identities. Disclaimer By their nature, forward-looking statements are subject to risk and uncertainty since they are dependent upon circumstances which should or are considered likely to occur in the future and are outside of the Group’s control. These include, but are not limited to: exchange and interest rate fluctuations, commodity price volatility, credit and liquidity risks, HSE risks, the levels of capital expenditure in the oil 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), the COVID-19 pandemic (including its impacts on our business, our ongoing projects worldwide and our procurement chain), in addition to changes in stakeholders’ expectations and other changes affecting business conditions. Actual results could therefore differ materially from the forward-looking statements. The financial reports contain in-depth analyses of some of the aforementioned risks. Forward-looking statements are to be considered in the context of the date of their release. Saipem SpA is under no obligation to review, update or correct them subsequently, except where this is a mandatory requirement to the applicable legislation. COUNTRIES IN WHICH SAIPEM OPERATES EUROPE Albania, Austria, Bulgaria, Croatia, Cyprus, Denmark, France, Germany, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Spain, Switzerland, Turkey, United Kingdom AMERICAS Argentina, Bolivia, Brazil, Canada, Chile, Colombia, Ecuador, Guyana, Mexico, Peru, United States, Venezuela CIS Azerbaijan, Kazakhstan, Russia AFRICA Algeria, Angola, Congo, Egypt, Equatorial Guinea, Ghana, Libya, Mauritania, Morocco, Mozambique, Nigeria, Senegal, South Africa, Tunisia, Uganda MIDDLE EAST Iraq, Israel, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates FAR EAST AND OCEANIA Australia, Bangladesh, China, India, Indonesia, Malaysia, Singapore, Taiwan, Thailand BOARD OF DIRECTORS AND STATUTORY AUDITORS OF SAIPEM SpA BOARD OF DIRECTORS1 BOARD OF STATUTORY AUDITORS2 Chairman Chairman Silvia Merlo Giovanni Fiori Chief Executive Officer (CEO) Statutory Auditors Francesco Caio Giulia De Martino Norberto Rosini Directors Roberto Diacetti, Alessandra Ferone, Alternate Statutory Auditors Patrizia Michela Giangualano, Pier Francesco Ragni, Francesca Michela Maurelli Marco Reggiani, Paul Schapira, Paola Tagliavini Maria Francesca Talamonti INDEPENDENT AUDITORS KPMG SpA4 (1) Appointed by the Shareholders’ Meeting on April 30, 2021 for 2021, 2022 and 2023 and in any case up to the date of the Shareholders’ Meeting to approve the financial statements as at December 31, 2023. (2) Appointed by the Shareholders’ Meeting on April 29, 2020 for a three-year period and in any case up to the date of the Shareholders’ Meeting to approve the financial statements as at December 31, 2022. (3) The Shareholders’ Meeting of May 3, 2018 resolved to appoint KPMG SpA as the independent auditors from 2019 to 2027. 001-086SaipemSem21Ing.qxd 5-08-2021 17:57 Pagina 1 INTERIM FINANCIAL REPORT AS OF JUNE 30, 2021 Interim results 2 Structure of the Saipem Group 3 INTERIM DIRECTORS’ REPORT Saipem SpA share performance 8 Operating Review 10 Organisational structure 10 Market conditions 10 New contracts and backlog 11 Capital expenditure 12 Offshore Engineering & Construction 13 Onshore Engineering & Construction 19 Offshore Drilling 23 Onshore Drilling 25 Financial and economic results 27 Group organisation: reporting 29 Operating results 29 Balance sheet and financial position 34 Reclassified cash flow statement 37 Key profit and financial indicators 38 Business sustainability 40 Research and development 42 Health, Safety and Environment 50 Human resources 53 Digital, ICT Services 60 Risk management 62 Additional information 78 Reconciliation of reclassified statement of financial position, income statement and statement of cash flows with the mandatory templates 81 Glossary 83 CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Statements 88 Notes to the condensed interim consolidated financial statements 95 Information regarding the reprimand by Consob pursuant to Article 154-ter, subsection 7, of Italian Legislative Decree No. 58/1998 and the notice from the Consob offices dated April 6, 2018 160 Certification pursuant to Article 154-bis, paragraph 5 of the Legislative Decree No. 58/1998 (Consolidated Tax Law) 165 Independent Auditors’ Report 166 Approved by the Board of Directors on July 29, 2021 \ 1 001-086SaipemSem21Ing.qxd 5-08-2021 17:57 Pagina 2 SAIPEM INTERIM FINANCIAL REPORT AS OF JUNE 30, 2021 Interim results 2021 remains affected by the uncertainty associated with the persistence of the pandemic. In the first half of the year, to the health emergency effects on the business were added some specific project issues affecting the operational performance. The business scenario for 2021 remains inevitably affected by those events. Outlook for the second half of 2021: ≥ revenue between €4.5 and 5 billion; ≥ positive EBITDA adjusted; ≥ capital expenditure between €200 and €300 million; and ≥ net financial debt post-IFRS 16 of approximately €1.6 billion. This scenario does not take into account a possible additional significant deterioration of the macroeconomic environment and of business as a result, for example, of the intensification of the COVID-19 pandemic. Revenues amount to €3,200 million (€3,675 million in the corresponding period of 2020) and the adjusted EBITDA shows a loss of €266 million (profit of €355 million in the first half of 2020). Operating results show a slowdown compared to the first half of 2020, specifically for design and constructions activities due to: ≥ the continuation of the effects of the COVID-19 health emergency on the operations, with a slowdown in the execution of projects and the postponement of investment decisions in the relevant sectors; ≥ the suspension of the onshore LNG project in Mozambique; ≥ specific operational issues of an offshore wind farm project in the North Sea. The Onshore Engineering & Construction sector accounted for 58% of revenue; the Offshore Engineering & Construction sector contributed 32% of revenue; the Offshore Drilling sector contributed 5% of revenue and the Onshore Drilling sector generated 5% of revenue. Adjusted net profit reports a loss of €656 million compared to the loss of €132 million in the first half of 2020. The negative change recorded in the adjusted financial result, €557 million, and in the equity management (€35 million), is reduced by the improvement of the tax and financial management balance, as well as third party results for a total of €68 million. Net profit recorded a loss of €779 million (loss of €885 million in the first half of 2020) and, unlike adjusted net profit, was impacted by the following special items: ≥ accrual of the costs of approximately €75 million, for a dispute related to a project already completed, from the activity of periodic legal monitoring of the evolution of the overall litigation; ≥ costs deriving from the healthcare emergency for about €36 million. This amount includes the costs incurred in the period directly attributable to the COVID-19 pandemic, such as for personnel on stand-by in cases in which site activities and vessels were blocked by the authorities, for the purchase of personal protective equipment in addition to the standard quantities, for sanitising work areas and for the organisation of charter flights to bring the personnel home; ≥ restructuring expenses of €12 million. Capital expenditure in the first half of 2021, referring mainly to the maintenance and upgrading, amounted to €135 million (€195 million in the first half of 2020, including the acquisition of the new Saipem Endeavour vessel). Net financial debt pre-IFRS 16 lease liabilities amounts to €1,101 million as of June 30, 2021, up by €229 million since December 31, 2020 (€872 million) mainly due to the slowdown of some projects and the postponement of the contribution of recently acquired projects. Net debt inclusive of IFRS 16 lease liabilities (€296 million) amounted to €1,397 million. In the first half of 2021 Saipem was awarded new contracts amounting to a total of €4,402 million (€4,837 million in the first half of 2020). The backlog as of June 30, 2021 amounted to €23,602 million (€7,632 million in Offshore Engineering & Construction, €13,877 million in Onshore Engineering & Construction, €477 million in Offshore Drilling and €1,616 million in Onshore Drilling), of which €4,025 million to be realised in 2021. As of June 2021, more than 78% of its E&C backlog was made up of non-oil projects, including LNG and renewables (energy efficiency). The backlog inclusive of non-consolidated companies at June 30, 2021 amounted to €26,169 million (€7,698 million in Offshore Engineering & Construction, €16,378 million in Onshore Engineering & Construction, €477 million in Offshore Drilling and €1,616 million in Onshore Drilling), of which €4,690 million to be realised in 2021. \ 2 001-086SaipemSem21Ing.qxd 5-08-2021 17:57 Pagina