Saipem S.p.a. · MIL:SPM

Saipem — Q1 2017 Earnings Presentation

20 slides from Saipem's earnings presentation, Apr 21, 2017

  1. Slide 1: First Quarter 2017 Results Presentation

    FIRST QUARTER 2017 RESULTS PRESENTATION 21 April 2017

  2. Slide 2: Forward-Looking Statements

    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 ass

  3. Slide 3: Today's Presentation

    TODAY’S PRESENTATION 1 OPENING REMARKS 2 1Q 2017 RESULTS 3 BUSINESS UPDATE AND FIT FOR THE FUTURE 4 CLOSING REMARKS 3

  4. Slide 4: Opening Remarks

    OPENING REMARKS 1Q 2017 Results • Good operational performance in E&C Offshore • Improving E&C Onshore profitability • Resilient margins in Drilling Offshore Net debt at €1.6bn Full year guidance confirmed Strengthened capital structure • New Bond issue: €500mn / 5yrs • Average debt maturity extende

  5. Slide 5: 1Q 2017 Results

    fet SAIPEM ENGINEERING | | ENERGY 1Q 2017 RESULTS | pal SAIPEM ENGINEERING a | ENERGY

  6. Slide 6: 1Q 2017 Results: YoY Comparison

    1Q 2017 RESULTS YoY COMPARISON (€ mn) Revenues Adjusted EBITDA Adjusted Net Profit Reported Net Profit 2,840 243 XX 2,263 314 256 118 76 61 54 61 47 1Q16 1Q17 1Q16 1Q17 1Q16 1Q17 1Q16 1Q17 E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore 6

  7. Slide 7: 1Q 2017 Net Debt Evolution

    1Q 2017 NET DEBT EVOLUTION (€ bn) 1Q Recurring Cash Flow Supporting Net Debt Year-end Target 0.25 1.60 1.45 (0.19) 0.08 0.01 Net Debt Adj. Cash Flow Capex Δ Working Non-recurrent Net Debt @Dec. 31, 2016 (Adj. N.P.+ D.&A.) Capital and Items @Mar. 31, 2017 Others 7

  8. Slide 8: New Bond and Additional Export Facility

    NEW BOND AND ADDITIONAL EXPORT FACILITY Bond Amount  €500mn Tenor  5 Years Status  Senior Unsecured and Unsubordinated  Listed on the Euro MTF of the Luxembourg Stock Exchange Listing  Reserved to institutional investors  Issued under the authorized EMTN Programme dated 4th July 2016 Key Terms

  9. Slide 9: Solid Capital Structure

    SOLID CAPITAL STRUCTURE (€ mn) Improved Debt Maturity Profile and Liquidity Position 3,736 * NEW BOND 1,500 Undrawn RCF TERM LOAN PRE-PAYMENTS* 536 Undrawn GIEK and Atradius 752 546 532 532 1,780 Cash and equiv. 421 367 402 94 100 500 500 500 367 250 367 71 19 46 35 35 35 32 32 23 Liquidity 2017 201

  10. Slide 10: Business Update and Fit for the Future

    BUSINESS UPDATE AND FIT FOR THE FUTURE 10

  11. Slide 11: 1Q 2017 Backlog

    1Q 2017 BACKLOG (€ mn) 14,219 2,263 509 12,465 Backlog 1Q17 1Q17 Contracts Backlog @Dec. 31, 2016 Revenues Acquisition @Mar. 31, 2017 E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore 11

  12. Slide 12: Backlog by Year of Execution

    BACKLOG BY YEAR OF EXECUTION (€ mn) 5,667 347 359 3,857 2,291 445 364 2,941 336 1,205 390 430 2,670 1,843 1,785 2017 2018 2019+ E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore 12

  13. Slide 13: Update on Drilling: Offshore Drilling Fleet Contracts

    UPDATE ON DRILLING OFFSHORE DRILLING FLEET CONTRACTS Committed Stand-by Termination fee New Contract CLIENT LOCATION Saipem 12000 * Eni Cyprus*-Portugal Saipem 10000 Eni Worldwide DEEP-WATER Scarabeo 9 - - Scarabeo 8 Eni North Sea Scarabeo 7 Eni Indonesia Scarabeo 6** - - Scarabeo 5 Statoil North Se

  14. Slide 14: Main Ongoing E&C Projects

    MAIN ONGOING E&C PROJECTS LEGEND  OFFSHORE  ONSHORE NORTH SEA MEDITERRANEAN AND EUROPE CASPIAN J.SVERDRUP – STATOIL – PIPELINES ZOHR - PETROBELL - SUBSEA/PIPELINES SCPX PIPELINE – BP – PIPELINES MILLER – BP - DECOMMISSIONING TAP – PIPELINES SHAZ DENIZ PH.2 – BP - FIXED FACILITIES / STAR REFINERY -

  15. Slide 15: E&C Opportunities

    E&C OPPORTUNITIES LEGEND  OFFSHORE  ONSHORE Americas Europe/ CIS and Central Asia  ExxonMobil Liza – subsea  EDF Offshore Windfarms - renewables  BP Cassia Compression – fixed facilities  BP Shah Deniz IMR – inspection, maintenance & repair  Shell LNG Canada – LNG (post 2017)  SOCAR Baku Ref

  16. Slide 16: Fit For the Future

    FIT FOR THE FUTURE Fit For the Future cost optimisation programme  Completion confirmed by 2017 year end  Cumulative cost saving €1.7bn, progress at 1Q 2017 as scheduled  Headcount reduction on track with c.36,500 FTE at 1Q 2017 Fit For the Future 2.0  Implementation of new organisation during 2

  17. Slide 17: Closing Remarks

    fet SAIPEM ENGINEERING | | ENERGY CLOSING REMARKS | pal SAIPEM ENGINEERING a | ENERGY

  18. Slide 18: Closing Remarks

    CLOSING REMARKS SOLID OPERATIONAL PERFORMANCE STRENGTHENED CAPITAL STRUCTURE NEW DIVISIONAL ORGANISATION IN PLACE DURING 2Q GUIDANCE CONFIRMED 18

  19. Slide 19: Appendix

    fet SAIPEM ] ENGINEERING | | ENERGY APPENDIX | pal SAIPEM ENGINEERING a | ENERGY

  20. Slide 20: 2017 Guidance

    2017 GUIDANCE Metrics FY 2017 Revenues  c.€10bn EBITDA  c.€1bn % margin  c.10% Net profit  Higher than €200mn* CAPEX  c.€400mn Net financial position  c.€1.4bn * Including c.€30mn provisions for redundancies 20

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