Saipem S.p.a. · MIL:SPM

Saipem — Q1 2019 Earnings Presentation

26 slides from Saipem's earnings presentation, Apr 18, 2019

  1. Slide 1: First Quarter 2019 Results Presentation

    FIRST QUARTER 2019 RESULTS PRESENTATION 18 April 2019

  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 2019 RESULTS 3 BUSINESS UPDATE 4 CLOSING REMARKS 3

  4. Slide 4: Opening Remarks

    OPENING REMARKS 1Q 2019 Good results on trend with 2019 guidance  E&C Offshore: solid, effective execution  E&C Onshore: turnaround progressing  Drilling: higher volumes, margins adjusting to current environment Contract awards for c.€2.5bn, book to bill 1.2x Backlog at €14.8bn, including non-con

  5. Slide 5: 1Q 2019 Results

    — SAIPEM 1Q 2019 RESULTS 18 April 2019

  6. Slide 6: IFRS 16 First Adoption 1/2: 2019 Impacts

    IFRS 16 FIRST ADOPTION 1/2 2019 IMPACTS EBITDA INCOME STATEMENT Financial Charges Net Income BALANCE SHEET Net Debt Leverage 6

  7. Slide 7: IFRS 16 First Adoption 2/2: 1Q 2019 Reconciliation

    IFRS 16 FIRST ADOPTION 2/2 1Q 2019 RECONCILIATION 1Q 2018 1Q 2019 €mn €mn pre IFRS 16 IFRS 16 IMPACT Adjusted EBITDA 214 238 274 36 Depreciation 114 115 148 33 Financial Charges 43 47 54 7 Adjusted Net Income 11 33 29 4 Net Debt 1,200 1,185 1,745 560 7

  8. Slide 8: 1Q 2019 Results: YoY Comparison

    1Q 2019 RESULTS YoY COMPARISON (€ mn) Revenues Adjusted EBITDA Adjusted Net Income 11.2% margin 11.0% - pre IFRS 16 2,156 12.7% - IFRS 16 1,915 274 36 214 29 238 11 33 (4) 1Q18 1Q19 1Q18 1Q19* 1Q18 1Q19* IFRS 16 Impact 8 (*)1Q 2019 Adjusted Results not including €8mn of provisions for redundancies

  9. Slide 9: 1Q 2019 Results – E&C

    1Q 2019 RESULTS – E&C YoY COMPARISON (€ mn) E&C OFFSHORE E&C ONSHORE* Revenues Adjusted EBITDA Revenues Adjusted EBITDA 12.8% margin 12.9% pre IFRS 16 3.0% margin 3.5% pre IFRS 16 914 15.6% IFRS 16 968 4.3% IFRS 16 803 878 143 42 25 103 8 26 118 34 1Q18 1Q19 1Q18 1Q19 1Q18 1Q19 1Q18 1Q19 (*) E&C Ons

  10. Slide 10: 1Q 2019 Results – Drilling

    1Q 2019 RESULTS – Drilling YoY COMPARISON (€ mn) DRILLING OFFSHORE DRILLING ONSHORE Revenues Adjusted EBITDA Revenues Adjusted EBITDA 45.7% margin 38.6% pre IFRS 16 27.1% margin 23.9% pre IFRS 16 40.0% IFRS 16 24.6% IFRS 16 140 134 116 118 56 53 2 32 33 1 54 32 1Q18 1Q19 1Q18 1Q19 1Q18 1Q19 1Q18 1Q1

  11. Slide 11: 1Q 2019 Net Debt Evolution

    1Q 2019 NET DEBT EVOLUTION (€ bn) Steady Net Debt before IFRS 16 NEW LEASE 1.71 0.55 JACKUP PIONEER 0.04 0.56 1.75 0.52 1.16 (0.15) 0.07 1.19 0.11 Net Debt FY18 Net Debt Cash Flow Δ Working Capex Net Debt 1Q19 Net Debt Dec. 31, 2018 IFRS 16 Dec. 31, 2018 (N.P.+ D&A) Capital and March 31, 2019 IFRS 1

  12. Slide 12: Business Update

    BUSINESS UPDATE 18 April 2019

  13. Slide 13: Main Recent Awards 1/2

    MAIN RECENT AWARDS 1/2 1Q 2019 E&C Offshore BERRI AND MARJAN FIELD DEVELOPMENT  Client: Saudi Aramco  Location: Kingdom of Saudi Arabia – Arabian Gulf  Scope of work: EPCI of Platforms, with associated subsea pipelines, cables and infrastructures  Main vessels employed: DeHe, Castoro II HIGHLIGH

  14. Slide 14: Main Recent Awards 2/2

    MAIN RECENT AWARDS 2/2 1Q 2019 Drilling Offshore PERRO NEGRO 8  Client: ADNOC  Location: United Arab Emirates  Terms: 9 months, in continuation from previous engagement PERRO NEGRO 7  Client: Saudi Aramco  Location: Saudi Arabia  Terms: 4 years, in continuation from previous engagement HIGHLIG

  15. Slide 15: 1Q 2019 Backlog

    1Q 2019 BACKLOG (€ mn) 12,619 2,517 12,980 2,156 134 194 599 538 659 968 140 214 790 716 914 1,571 5,893 6,323 4,981 5,638 Backlog 1Q19 1Q19 Contracts Backlog @Dec. 31, 2018 Revenues Acquisition @Mar. 31, 2019 E&C Offshore E&C Onshore* Drilling Offshore Drilling Onshore NON-CONSOLIDATED BACKLOG @ Ma

  16. Slide 16: Backlog by Year of Execution

    BACKLOG BY YEAR OF EXECUTION (€ mn) 5,288 280 282 4,078 160 305 3,614 2,183 219 203 1,950 1,760 2,543 1,663 1,432 2019 2020 2021+ E&C Offshore E&C Onshore* Drilling Offshore Drilling Onshore NON-CONSOLIDATED BACKLOG BY YEAR OF EXECUTION 2019 2020 2021+ € mn 154 425 1,265 16 (*) E&C Onshore including

  17. Slide 17: 2019 E&C Opportunities

    2019 E&C OPPORTUNITIES GOOD VISIBILITY ON SELECTED INITIATIVES Americas Europe/ CIS and Central Asia  SUBSEA Approx. value of  RENEWABLES  PIPELINES opportunities: €2.8bn  FIXED FACILITIES  FLOATERS  DECOMMISSIONING Approx. value of Middle East  LNG opportunities: €2.4bn  DOWNSTREAM  UPSTRE

  18. Slide 18: Offshore Drilling Fleet

    OFFSHORE DRILLING FLEET Committed New awards in 1Q19 Optional period 2019 2020 2021 CLIENT AREA DEEP-WATER and Saipem 12000 TO 2022> Eni Pakistan-Mozamb. HARSH ENV. Eni Egypt ULTRA Saipem 10000 Scarabeo 9 Eni Egypt AkerBP - Eni Scarabeo 8 Norway - Wintershall WATER Scarabeo 7 Eni Indonesia DEEP- Sca

  19. Slide 19: Onshore Drilling Fleet

    ONSHORE DRILLING FLEET ONSHORE FLEET @ MARCH 31, 2019: 84 RIGS REST OF THE WORLD 5 RIGS UTILISATION RATE 100% LATIN AMERICA 48 RIGS MIDDLE EAST 31 RIGS UTILISATION RATE 33% UTILISATION RATE 96% UTILISATION RATE IN 1Q 2019: 68% 19

  20. Slide 20: Closing Remarks

    CLOSING REMARKS 18 April 2019

  21. Slide 21: Closing Remarks

    CLOSING REMARKS GOOD OPERATIONAL RESULTS SUSTAINED BY HIGHER VOLUMES AND EFFECTIVE EXECUTION IN E&C 1Q19 BOOK-TO-BILL GREATER THAN 1x: DRIVEN BY AWARDS IN E&C OFFSHORE AND IMPROVING ACTIVITY IN DRILLING GOOD VISIBILITY ON SELECTED NEAR TERM E&C OPPORTUNITIES WELL POSITIONED TO DELIVER YEARLY GUIDANC

  22. Slide 22: Appendix

    — SAIPEM APPENDIX 18 April 2019

  23. Slide 23: 1Q 2019 Results: QoQ Trend

    1Q 2019 RESULTS QoQ TREND (€ mn) Revenues Adjusted EBITDA Adjusted Net Income 2,469 9.7% margin 11.0% - pre IFRS 16 12.7% - IFRS 16 2,156 274 242 36 29 238 33 8 (4) 4Q18 1Q19 4Q18 1Q19* 4Q18 1Q19* IFRS 16 Impact 23 (*) 1Q 2019 Adjusted not including €8mn of provisions for redundancies

  24. Slide 24: 1Q 2019 Results: QoQ Trend by Segment

    1Q 2019 RESULTS QoQ TREND (pre IFRS 16 - € mn) E&C OFFSHORE E&C ONSHORE* Revenues Adjusted EBITDA Revenues Adjusted EBITDA 1,040 9.7% margin 12.9% 3.1% margin 3.5% 1,189 914 118 968 37 34 101 4Q18 1Q19 4Q18 1Q19 4Q18 1Q19 4Q18 1Q19 DRILLING OFFSHORE DRILLING ONSHORE Revenues Adjusted EBITDA Revenues

  25. Slide 25: Capital Structure as of March 31, 2019

    CAPITAL STRUCTURE AS OF MARCH 31, 2019 LIQUIDITY AND MATURITY PROFILE (€ mn) Bonds ECA Facilities Bank Facilities Other Debt 2,276 239 Undrawn ECA* Facility (GIEK) 1,000 Undrawn RCF* 639 625 600 581 63 63 38 Available Cash 257 77 62 81 1,037 178 62 and equiv.** 62 94 500 500 500 500 125 112 38 66 62

  26. Slide 26: 2019 Guidance

    2019 GUIDANCE Metrics FY 2019* Revenues  c. €9bn Adjusted EBITDA % margin  >10% CAPEX  c. €500mn Net financial position  c. €1.0bn (*) Not inclusive of the impact of IFRS 16 26

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