Slide 1: Versalis Market Presentation
VERSALIS MARKET PRESENTATION December 2024
Slide 2: Disclaimer
DISCLAIMER This document contains certain forward‐looking statements particularly those regarding capital expenditure, development and management of oil and gas resources, dividends, share repurchases, allocation of future cash flow from operations, future operating performance, gearing, targets of
Slide 3: Key Messages
KEY MESSAGES EUROPEAN BASE CHEMICAL INDUSTRY IS GRAPPLING WITH SIGNIFICANT LACK OF COMPETITIVENESS CRACKING CRISIS VERSALIS PORTFOLIO IS HISTORICALLY AND STRONGLY EXPOSED TO BASE CHEMICALS SIGNIFICANT CASH LOSS CURRENT SCENARIO, GRIM OUTLOOK & SUSTAINABILITY TARGETS DRIVE A SIGNIFICANT CHANGE THE TR
Slide 4: Cracking Crisis in Europe
CRACKING CRISIS IN EUROPE ETHYLENE COST NON-COMPETITIVE 2020-24 GAS PRICES ETHYLENE CAPACITY ETHYLENE PRODUCTION VERSALIS’ ETHYLENE ($/Mmbtu) BY REGION (Mton) COSTS ($/t) BY REGION - 2023 PRODUCTION COSTS (€/t) – 2023 100 90 280 • Avg variable cost Versalis: 860 €/t 300 800 • Avg variable cost EU: 6
Slide 5: Chemical Scenario & Versalis Results
CHEMICAL SCENARIO & VERSALIS RESULTS EU CHEMICAL INDUSTRY IS CONTINUOSLY LOSING MARKET SHARE M€ 2019 2020 2021 2022 2023 2024 E 3F2024 UNBALANCED PORTFOLIO 400 BASIC CHEMISTRY TOWARDS BASIC CHEMISTRY & POLYMERS RESTRUCTURING 0 CUMULATIVE CASH LOSS -400 OF ALMOST € 3 BLN OVER THE LAST 5 YEARS -800 DE
Slide 6: Versalis Plan
VERSALIS PLAN LONG TERM VALUE THROUGH RESTRUCTURING & NEW PLATFORMS DRASTIC REDUCTION REQUIRED IN BASIC CHEMISTRY PORTFOLIO BASIC CHEMISTRY CLOSURE OF ALL ITALIAN CRACKING PLANTS WITHIN THE NEXT 12-15 MONTHS & POLYMERS RESTRUCTURING RESIZING OF POLYMERS POSITIONING DEVELOPMENT OF ENI INITIATIVES DEV
Slide 7: Basic Chemistry & Polymers Restructuring
BASIC CHEMISTRY & POLYMERS RESTRUCTURING
Slide 8: Main Rationalization & Revamping Actions
MAIN RATIONALIZATION & REVAMPING ACTIONS RECYCLED POLYMERS STRATEGIC PILLARS MAIN ACTIONS RATIONALIZATION REVAMPING RECYCLING TECHNOLOGY Mechanical & Chemical recycling PORTO MARGHERA Mechanical Recycling Efficiency CRESCENTINO • Efficiency BRINDISI • Biochemistry • Cracking Closure Biochemistry • M
Slide 9: Eni Initiatives on Chemical Industrial Sites
ENI INITIATIVES ON CHEMICAL INDUSTRIAL SITES
Slide 10: New Initiatives on Chemical Industrial Sites
NEW INITIATIVES ON CHEMICAL INDUSTRIAL SITES WITH SIMILAR INDUSTRIAL INTENSITY & EMPLOYMENT SIZE IN GROWING, SUSTAINABLE & HIGH- RETURN BUSINESSES BIOREFINERY BATTERY PRODUCTION & ENERGY STORAGE Vertical integration with feedstock production Vision & not in competition with food chain strategic cohe
Slide 11: Growth in New Platforms
GROWTH IN NEW PLATFORMS BIOCHEMISTRY, CIRCULARITY & COMPOUNDING
Slide 12: Long Term Value Through Restructuring & New Platforms
LONG TERM VALUE THROUGH RESTRUCTURING & NEW PLATFORMS BIOCHEMICALS CIRCULARITY SPECIALIZATION INNOVATION PRODUCT & HIGH-USER CHEMICAL RECYCLING DEMO MARKETS SPECIALIZATION FEEDSTOCK HIGH-VALUE AND INDUSTRIAL PLANT DIFFERENTIATION PRODUCT DEVELOPMENT START-UP 1ST MECHANICAL MARKET & GEOGRAPHICAL NEW
Slide 13: Economics
ECONOMICS
Slide 14: Industrial Transformation
INDUSTRIAL TRANSFORMATION ENABLING VERSALIS CAPEX SAVING 4Y PLAN INDICATIVE 4Y 2025-28 4Y PLAN ~€ 2 BLN INVESTMENTS 2024-27 TRANSFORMATION PLAN AFTER TRANSFORMATION OVER THE NEXT 5 YEARS FOR RESTRUCTURING PLAN ~€ 1200 M & OTHER ENI GROUP INITIATIVES ~€ 900 M ~€ 700 M BULK OF SAVINGS COMING FROM TRAD
Slide 15: Versalis Economics
VERSALIS ECONOMICS EXPECTED IMPROVEMENT CONTRIBUTIONS TO EBIT EVOLUTION | €M 2028 2027 RELEVANT ECONOMIC OILFIELD CIRCULARITY BIOCHEM IMPROVEMENT COMPOUNDING & SPECIALTIES EBIT 2028 BREAK-EVEN EBIT @2027 POLYMERS BREAK-EVEN FCF @2028 FCF 2024 CHEMICALS ~1 MT REDUCED CO2 EMISSIONS PORTFOLIO EVOLUTION