Slide 1: Stakeholder Value Through the Energy Transition
STAKEHOLDER VALUE THROUGH THE ENERGY TRANSITION ast. Efficient. Responsible. 2019-22 = i, ENI STRATEGY at = Bf... PRESENTATION, B= = ad Eni Green Data Center
Slide 2: Disclaimer
STRATEGY PRESENTATION 2019-2022 Disclaimer This document contains forward-looking statements regarding future events and the future results of Eni that are based on current expectations, estimates, forecasts, and projections about the industries in which Eni operates and the beliefs and assumptions
Slide 3: Our Distinctive Factors
OUR DISTINCTIVE FACTORS Access to new acreage Strong exploration results Fast monetisation of discoveries Original renewables model Financial discipline Fast. Efficient. Responsible.
Slide 4: 2019-22 Strategy
2019-22 Pe ATS EE TRANSITION. —— SF y
Slide 5: Upstream Organic Growth, LNG, Downstream, Circular Economy, Renewables
STRATEGY PRESENTATION 2019-2022 UPSTREAM LNG DOWNSTREAM CIRCULAR RENEWABLES ORGANIC GROWTH EXPANSION ECONOMY 5
Slide 6: Driving Value Through Technology
DRIVING VALUE THROUGH TECHNOLOGY STRATEGY PRESENTATION 2019-2022 >7,300 PATENTS AND >350 PROJECTS GHG OPERATIONAL EXCELLENCE DECARBONISATION CIRCULAR ECONOMY EFFORT BENEFITS* 4YP 2019-2022 € 900 Mln FULL LIFE ~900 ~ € 4 Mln€ Bln 6 * Estimated on a 100% share basis
Slide 7: Upstream Key Targets
UPSTREAM KEY TARGETS STRATEGY PRESENTATION 2019-2022 CAGR 2018-22 4YP EXP. RESOURCES 3.5 % 2.5 bln boe UPSTREAM CAPEX COVERAGE 4YP UPSTREAM FCF ~$ 37 /bbl € 22 bln 7
Slide 8: A Global Range of Exploration Opportunities
A GLOBAL RANGE OF EXPLORATION OPPORTUNITIES STRATEGY PRESENTATION 2019-2022 Norway Algeria UK Libya Egypt US Alaska Cyprus Middle East Mexico Pakistan Ghana & Ivory Coast Vietnam Indonesia Angola Mozambique Risked Exploration potential Resources to discover CURRENT NET ACREAGE +37% vs 2014 2.5 bln b
Slide 9: Technology: Our Competitive Advantage
FOCUS BLOCK 15/06 STRATEGY PRESENTATION 2019-2022 Oil discoveries Development leases 9 TECHNOLOGY: OUR COMPETITIVE ADVANTAGE
Slide 10: Start Ups Driving Growth
START UPS DRIVING GROWTH STRATEGY PRESENTATION 2019-2022 PRODUCTION GROWTH 4YP MAIN START UPS Mboed 2019 2020 2.4 Algeria – Berkine & BRN Pipeline Indonesia - Merakes >2.1 CAGR Egypt – Baltim SW Mexico – Area 1 Congo - Nené ph.2B Egypt - Meleiha ph.2 1.88 1.85 2018-22 Norway – Trestakk Norway - Smor
Slide 11: Areas of Upstream Growth
AREAS OF UPSTREAM GROWTH STRATEGY PRESENTATION 2019-2022 VAR ENERGI (NORWAY) 250 U.A.E. 1,400 MEXICO 100 KBOED GROSS in 2022 KBOED GROSS KBOED in 2023 (VAR 100% ) in second half of next decade MEXICO Block 24 Block 10 Block 12* Block 14 Block 7 Block 28 TECOALLI AREA 1 - develop. project AMOCA (exec
Slide 12: Long Pipeline of New Projects
LONG PIPELINE OF NEW PROJECTS STRATEGY PRESENTATION 2019-2022 Coral ph.2 (Mozambique) 2019 - 2022 Bonga SWA Kalimba cluster (Nigeria) (Angola) # MAIN FIDs Rovuma LNG ph.2 A/E Structures Val D’Agri (Mozambique) 18 (Libya) Development (Italy) Minsala Meleiha ph.2 Balder X (Congo) Nené ph.3 (Egypt) (No
Slide 13: The Rise of Upstream Cash Flow
THE RISE OF UPSTREAM CASH FLOW STRATEGY PRESENTATION 2019-2022 CAPEX UPSTREAM CFFO | € bln 14 ~ € 6.5 BLN 13 PER YEAR 12 13.6 FCF 2019 - 2022 11 11.5 10 € 22 bln Brent $/bl 2019 62 Exchange Rate €/$ 1.15 2022 70 1.21 ~2X COVERAGE OF DIVIDEND WITH UPSTREAM FCF 13 2019 CFFO Excludes one-off
Slide 14: Mid-Downstream Key Targets
MID-DOWNSTREAM KEY TARGETS STRATEGY PRESENTATION 2019-2022 EBIT END OF PLAN CFFO 4YP € 2 BLN € 10 BLN CAPEX 4YP CASH FLOW AFTER CAPEX 4YP € 5 BLN ~€ 5 BLN 14 Includes G&P, R&M and Chemicals
Slide 15: Gas & Power – An Integrated and Optimized Model
GAS & POWER – AN INTEGRATED AND OPTIMIZED MODEL STRATEGY PRESENTATION 2019-2022 EBIT | € bln FREE CASH FLOW | € bln Gas & LNG Marketing and Power (GLP) Retail – Eni gas e luce 0.7 0.5 0.5 € 2.3 bln 2019-2022 2018 2019 End of plan 15
Slide 16: Retail Will Double EBIT Result
RETAIL WILL DOUBLE EBIT RESULT STRATEGY PRESENTATION 2019-2022 FAST GROWING CUSTOMER BASE HIGH VALUE CUSTOMER BASE 12 mln EXTRA - COMMODITY TOTAL CUSTOMERS IN 2022 +26% vs 2018 20% of 2022 EBIT > 4 mln 5X vs. 2018 EBIT POWER CUSTOMERS IN 2022 2X vs 2018 16
Slide 17: LNG: Doubling Our Portfolio
LNG: DOUBLING OUR PORTFOLIO STRATEGY PRESENTATION 2019-2022 LNG PORTFOLIO @ 2022 EQUITY @2022 MTPA 16 Egypt Damietta Qatar (current) >70% Vs 56% in 2018 14 Oman (current) Nigeria 8.8 NLNG (current) Mozambique Nigeria Rovuma NLNG Indonesia Jangkrik (current) Australia 2018 2022 2025 Angola Indonesia
Slide 18: R&M – Bigger and More Profitable
R&M – BIGGER AND MORE PROFITABLE STRATEGY PRESENTATION 2019-2022 EBIT adj.| € bln ORGANIC FCF | € bln Refining* Marketing 0.7 1.0 € 2.6 0.4 bln 2019-2022 2018 2019 End of plan Breakeven $ 2.7 /bbl Green 1 Mton/y Margin* from 2020 production from 2021 LT Breakeven $ 1.5 /bbl Retail 25% Margin* from 2
Slide 19: Renewables Organic Growth
RENEWABLES ORGANIC GROWTH STRATEGY PRESENTATION 2019-2022 CAPACITY | GWp 4YP CAPEX| € bln INSTALLED CAPACITY @2022 ASIA ITALY 5 20% 17% 1.6 € 1.4 bln Rest of the GW World AFRICA 20% 43% > 1.6 Wind 15% 0.5 1 2019-2022 PV Hybrid 0.2 Photovoltaic 1.6 2% 83% GW 2019 2020 2021 2022 2025 19
Slide 20: Strategy Presentation 2019-2022
STRATEGY PRESENTATION 2019-2022
Slide 21: The Dual Challenge of Energy
THE DUAL CHALLENGE OF ENERGY STRATEGY PRESENTATION 2019-2022 130% We recognize the need for +30% full energy access 120% 280 mln 110% boe/d Energy demand 100% 90% 32 Gton CO2 emissions 80% 70% We share the objectives of the 60% -45% Paris agreement to keep global warming <2° 50% 2017 2030 2040 Energ
Slide 22: Our Strategy for Decarbonisation
OUR STRATEGY FOR DECARBONISATION STRATEGY PRESENTATION 2019-2022 UPSTREAM NET ZERO EMISSIONS* BY 2030 (SCOPE 1) TOOLS Increased Forestry Growing Growth in Circular projects share of gas zero carbon CCUS efficiency approach sources NEW TECHNOLOGIES 22 * On equity basis
Slide 23: Direct Intervention in Forestry
DIRECT INTERVENTION IN FORESTRY STRATEGY PRESENTATION 2019-2022 POSITIVE POSITIVE LOCAL SOCIAL ENVIRONMENTAL DEVELOPMENT IMPACT IMPACT > 20 MTON CO2/Y CAPTURED @ 2030 23
Slide 24: Circular Economy
CIRCULAR ECONOMY STRATEGY PRESENTATION 2019-2022 TRANSFORM SUSTAINABLE RECYCLE/ AND EXTEND INPUT REUSE LIFE CYCLE CAPEX 2019-2022 > € 950 Mln 24
Slide 25: Strategy Presentation 2019-2022
STRATEGY PRESENTATION 2019-2022
Slide 26: Our Capex Plan
OUR CAPEX PLAN STRATEGY PRESENTATION 2019-2022 CAPEX PER YEAR 4YP CAPEX 2019 BREAKDOWN YEARLY CAPEX FLAT 13% 80% ~8 9% ~33 € bln € bln in the 4YP 77% 15% 5% E&P Decarbonization, Circular & Renewables Others BALANCING CAPITAL DISCIPLINE AND SUSTAINABLE LONG TERM GROWTH 26
Slide 27: Upstream: Focus on Projects Under Development
UPSTREAM: FOCUS ON PROJECTS UNDER DEVELOPMENT STRATEGY PRESENTATION 2019-2022 IRR | % Net cash flow | $ bln 26% 30 24% 20 22% 10 0 20% -10 18% 2018 2019 2020 2021 2022 2023 2024 2025 -20% Eni scenario +20% NCF NCF including dual exp model BREAKEVEN ~25 $/bbl 27
Slide 28: Cash Flow Growth
CASH FLOW GROWTH STRATEGY PRESENTATION 2019-2022 Upstream CFFO before working capital $ 19.5 /boe $ 20.5 /boe (Var Energi proportional basis) 20 $ 18.5 /boe 15 GROUP CFFO AND CAPEX € bln 15 @ actual scenario 17 % CAGR 10 Free Cash Flow 10 CAPEX CFFO 5 before working capital 5 0 0 2018 2019 2022 28 A
Slide 29: Remuneration Policy
REMUNERATION POLICY STRATEGY PRESENTATION 2019-2022 Progressive distribution to shareholders over the long-term 2019 2020-2022 DIVIDEND DIVIDEND 0.86 € per share progressive with underlying earnings and FCF BUYBACK BUYBACK When leverage steady below 20%: € 400 mln € 400 mln/year @ Brent $60 - 65/bbl
Slide 30: IFRS Impacts
IFRS IMPACTS STRATEGY PRESENTATION 2019-2022 Balance Sheet Cash Flow Income Statement @ 1/1/2019 2019 2019 Capital Operating ~6 € bln ~0,3 € bln Employed Free Cash profit ~1 € bln Flow Net Debt ~6 € bln Net Profit ~ Year end Leverage: ~10 p.p. 30
Slide 31: Ambitions to 2030
AMBITIONS TO 2030 UPSTREAM LNG & GAS RETAIL DOWNSTREAM DECARBONISATION
Slide 32: Strategy Presentation 2019-2022
STRATEGY PRESENTATION 2019-2022
Slide 33: Assumptions and Sensitivity
ASSUMPTIONS AND SENSITIVITY STRATEGY PRESENTATION 2019-2022 4YP Scenario 2019 2020 2021 2022 Brent dated ($/bl) 62 65 68 70 FX avg ($/€) 1.15 1.17 1.19 1.21 Std. Eni Refining Margin ($/bl) 5.0 5.5 5.5 4.7 NBP ($/mmbtu) 8.2 6.7 6.8 6.9 PSV (€/kmc) 266 225 222 220 Sensitivity 2019 EBIT adj (€ mln) net
Slide 34: Key Projects 1/2
KEY PROJECTS 1/2 STRATEGY PRESENTATION 2019-2022 West Hub 37% WI East Hub 37% WI LIQ LIQ 2019 Equity: 26 kboed 2019 Equity: 25 kboed Plateau 100%: 100 kboed @2021 Plateau 100%: 70 kboed (reached) ANGOLA ANGOLA GAS Zohr 50% WI GAS Berkine & BRN Pipeline 49% WI LIQ EPF SU: Mid 2019 Progress: 80% 2019
Slide 35: Key Projects 2/2
KEY PROJECTS 2/2 STRATEGY PRESENTATION 2019-2022 CONGO Nené ph.2B 65% WI NORWAY Balder X 70% WI LIQ LIQ Progress: 5% Progress: under FID (2019) Start up: 2H 2020 Start up: 2H 2021 Peak 100%: 13 kboed @2021 Plateau 100%: 40 kboed @2023 MOZAMBIQUE Coral FLNG 25% WI ABU DHABI Dalma Gas 25% WI GAS GAS P
Slide 36: Production Details
PRODUCTION DETAILS STRATEGY PRESENTATION 2019-2022 Production weight % 2018 Total Production 1.85 Mboed 18% 16% 9% 9% 2022 Total Production >2.1 Mboed Europe Caspian Sea Production kboed 600 8% 38% 34% 400 7% 200 600 America North Africa - 400 Europe 9% 11% 200 700 - 600 Caspian Sea 19% 21% Asia & 6
Slide 37: Improving Our Operating Targets
IMPROVING OUR OPERATING TARGETS STRATEGY PRESENTATION 2019-2022 2018-2021 2018-2021 today previous plan Exploration discoveries 2.5 bln boe 2 bln boe Production CAGR ~3.5% 3.5% Upstream projects breakeven $ 25/bbl $ 30/bbl LNG contracted volumes 2025 16 MTPA 14 MTPA Refining breakeven LT $ 1.5/bbl $