Eni S.p.a. · MIL:ENI
Eni — Investor Day (September 2023)
71 slides from Eni's investor day presentation, Sep 14, 2023
Slide 1: 14 September 2023 Venice
~~. 14 September 2 : os Venice
Slide 2: Introduction
INTRODUCTION Giuseppe Ricci Jon Rigby 14 September 2023 Venice
Slide 3: Disclaimer
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 of the management of Eni. In a
Slide 4: Agenda
AGENDA 14 SEPTEMBER 08.00 Transfer from Venice to Porto Marghera 09.00 Welcome & refreshments 09.15 Introduction 09.45 Biorefining 10.45 Break 11.00 Agri Feedstock Initiatives 11.30 Q&A session 12.00 Transfer to canteen and lunch 13.30 Tour of the biorefinery 14.30 Satellites and closing comments 15
Slide 5: Eni's Ultimate Goal
ENI’S ULTIMATE GOAL OUR TRIPLE MANDATE: SUSTAINABILITY, ENERGY SECURITY & VALUE CREATION … To provide effective answers to the energy trilemma and contribute to providing abundant, affordable and environmentally sustainable energy, Eni has developed an innovative business and financial model that al
Slide 6: Our approach to the energy trilemma
OUR APPROACH TO THE ENERGY TRILEMMA ENVIRONMENTAL Themes ENERGY SUSTAINABILITY SECURITY Energy mix and geographical diversification Deployment of new technologies Focus on gas as a bridge energy source New business and financing models Time to market 5 AFFORDABILITY
Slide 7: Eni at a glance
ENI AT A GLANCE NATURAL RESOURCES ENERGY EVOLUTION FINANCIALS Decarbonizing and value Growing profitably while Aligning industrial and financial 70 enhancing our upstream transforming strategy YEARS OF INNOVATION portfolio HISTORY FOUNDED IN 1953 EXPLORATION 750 MBOED discovered in 2022 700 MBOED ta
Slide 8: Our transition
OUR TRANSITION OUR LEGACY OUR PRESENT OUR FUTURE MEDIUM TERM GROWTH WITH SHIFT TO GAS IMPROVED RISK-RETURN PROFILE ORGANIC, DUAL EXPLORATION MODEL 60% GAS WEIGHTED PORTFOLIO AT 2030 PHASED DEVELOPMENT WITH FOCUS ON TIME TO MARKET CCS AT SCALE TO TACKLE UNABATED DE-RISKED PORTFOLIO EMISSIONS E&P UPST
Slide 9: Towards a net zero energy business
TOWARDS A NET ZERO ENERGY BUSINESS Bio and CCUS crucial in delivering our emissions targets UPSTREAM NET ABSOLUTE GHG EMISSIONS (SCOPE 1+2+3) Production plateauing and gas share growing 2018 505 to 60% by 2030 MtCO 2 eq BIOENERGY Capacity to reach >5 MTPA by 2030 (>20% CAGR 2022-2030) 2030 328 RENEW
Slide 10: Energy Evolution: our key pillars
ENERGY EVOLUTION Our key pillars GENERATING VALUE WHILE TRANSFORMING STRENGTHENING OUR OFFER OF LOW CARBON PRODUCTS AND SOLUTIONS TO REACH NET ZERO TARGET IN 2050 HIGHER GROWTH CONTINUING TRANSFORMATION OF TRADITIONAL 2X BUSINESSES EBIT TO LEAD BIOREFINING AND SUSTAINABLE CHEMISTRY BY OVER THE 4YP L
Slide 11: Energy Evolution: a global portfolio of transforming businesses
ENERGY EVOLUTION A global portfolio of transforming businesses SUSTAINABLE MOBILITY PLENITUDE VERSALIS PEOPLE TECHNOLOGIES HSE FINANCIAL DISCIPLINE B2B COORDINATION ASSET INTEGRITY INTEGRATED PROJECTS ENI REWIND REFINING EVOLUTION POWER GENERATION AND TRANSFORMATION & MARKETING 10
Slide 12: Porto Marghera industrial site
PORTO MARGHERA INDUSTRIAL SITE An example of industrial reconversion OUR HISTORY AND REBIRTH… 1934 1926 1944 1948 2014 START UP THE WAR RECONSTRUCTION VENEZIA BIOREFINERY OF VENICE REFINERY 1978 11 …WHAT’S NEXT?
Slide 13: Back up
BACK UP
Slide 14: Company business structure
COMPANY BUSINESS STRUCTURE* CHIEF EXECUTIVE OFFICER Claudio Descalzi Fully owned Partially owned CHIEF FINANCIAL TECHNOLOGY, R&D Listed OFFICER & DIGITAL Francesco Gattei Francesca Zarri NATURAL ENERGY RESOURCES EVOLUTION Guido Brusco Giuseppe Ricci REFINING ENI VÅR ENERGI CCUS,FORESTRY & GLOBAL GAS
Slide 15: Today's speakers
TODAY’S SPEAKERS Giuseppe Ricci – Energy Evolution Jon Rigby – Investor Relations & Strategic Analysis He was appointed Chief Operating Officer of Energy Evolution on January 1, 2021. He Jon joined Eni in 2022. He has extensive professional experience in capital markets and joined Eni in 1985 initia
Slide 16: Biorefining
BIOREFINING Stefano Ballista Raffaella Lucarno 14 September 2023 Venice
Slide 17: Eni Sustainable Mobility
Eni Sustainable Mobility A Multi-energy, Multi-service Company: Creating the Leading Future Mobility BIOENERGY MARKETING & SALES 2nd in HVO production in Europe & Global presence: 3rd largest operator globally for bio capacity • EU: 5.300 stations, of which ~200 methane 22 biogases plants • Other: E
Slide 18: Business environment
BUSINESS ENVIRONMENT
Slide 19: SAF and RD demand will upsurge in the next decades
SAF and RD demand will upsurge in the next decades… SAF and RD as key pillars for decarbonization WORLD LIQUID BIOFUELS DEMAND | Mton/y CAGR ‘22-’50 270 245 ~90% HARD TO ABATE +25% of 2022-2050 additional aviation SECTORS 50 95 SAF biofuel demand 205 15 Eni sustainablemobility 165 30 33 freight, mar
Slide 20: With a focus in Europe, North America and Asia
…with a focus in Europe, North America and Asia… Short/Medium term market concentrated in Europe / N. America Long term growth expected also in Asia especially for SAF WORLD RENEWABLE DIESEL / SAF DEMAND | MTON/Y 130 N. AMERICA EUROPE ASIA PACIFIC WORLD RD SAF 46 RD SAF RD SAF RD SAF 40 83 95 35 35
Slide 21: Boosted mainly by strong policies support
IN PLACE …boosted mainly by strong policies support Clean Fuel Regulations -15% Fuel Carbon intensity 2030 B.C. LCFS Renewable diesel/SAF proposed targets and regulation -30% Fuel Carbon intensity 2030 will drive demand increase Renewable Fuel Standard (RFS2) Annual volume obligations and D4 RINs Bl
Slide 22: Many players have decided to invest in new capacity
Many players have decided to invest in new capacity… HVO/HEFA1 capacity will more than double by 2026, mainly thanks to N. America projects N. AMERICA EUROPE WORLD HVO/HEFA CAPACITY Mton/y Mton/y Mton/y 2 plants 7 plants Ecofining 2.6 11.8 34% 7 plants 25 plants 5.2 8 plants 22 plants 7 39 16 plants
Slide 23: Still room for further investments in 2030
…but there is still room for further investments in 2030 Big gap between demand and supply in 2030, even including main announced projects WORLD RENEWABLE DIESEL/SAF FROM CAPACITY TO SUPPLY 2030 | Mton/y SUPPLY vs DEMAND | Mton/y 50 45 40 ~15 Mton/y COPROCESSING & OTHER 2030 MARKET SPACE = ~30 PLANT
Slide 24: HVO/HEFA sustainable feedstock availability
HVO/HEFA sustainable feedstock availability Novel vegetable oils support the rising biofuels demand POTENTIAL HVO/HEFA SUSTAINABLE FEEDSTOCK AVAILABILITY 2050 | MTON/Y NOVEL VEGETABLE OILS 200+ Wastes and Cover Crops Non-food crops Agricultural residues degraded land residues* 9 (*) = Amount of agri
Slide 25: Our growth plan
OUR GROWTH PLAN
Slide 26: Eni sustainable mobility distinctive elements
Eni sustainable mobility distinctive elements … Investing in our strengths to drive business and earnings growth 3rd largest HVO/SAF operator in the world, 2nd in Europe FIRST MOVER INTO and 1st among energy majors BIOREFINERY CONVERSION Almost 10 years of successful biorefining operations and conve
Slide 27: Strategic drivers and targets for a world-class biorefiner
…and strategic drivers/targets for a world-class biorefiner Focusing on key levers for value creation FEEDSTOCK & PRODUCTION END-USE RAW MATERIALS PRODUCTS STRATEGIC GROWTH DRIVERS INCREASE FEEDSTOCK INCREASE BIOREFINING STRENGTHENING MARKET MARKET AND PRODUCT SECURITY OF SUPPLY AND CAPACITY AND PRE
Slide 28: Eni vertical integration strategy
Eni vertical integration strategy Agri-hubs security of supply vs W&R M&A Vertical Integration vs Alternative Supply Strategy Chain Options NOVEL VEGETABLE OILS PLANTING SEEDS SUPPLY + SERVICES HORECA / MEAT PRODUCER waste generation (e.g. mechanization, training) UCO/ANIMAL FATS farmer cooperatives
Slide 29: Agri-hubs supported by trading
On top of agri-hub, biorefineries supported by trading Worldwide presence and strategic positioning TRADING KEY DATA Hamburg MANAGING Ghent/Antwerp Trelleborg FLEXIBILITY with cost competitive Rotterdam Sundsvall feedstock supply & strong London marketing capabilities Venice Houston Ravenna Daesan F
Slide 30: Maintaining leadership in biorefining capacity
Maintaining leadership in biorefining capacity Roadmap to >3 Mton/y by 2025 and >5 Mton/y by 2030 OPERATIONAL UNDER CONSTRUCTION/ DEVELOPMENT OTHER PROJECT VENEZIA (2014) Project in advanced evaluation phase. Ongoing investments to increase Timing may be fine tuned to reflect market throughput capac
Slide 31: Growing bio-product portfolio
Eni sustainable mobility growing bio-product portfolio Focus on high-value added products optionality in a flexible production system HVO DIESEL HVO NAPHTHA Pure HVO already available in 500 retail stations Integration with Versalis crackers and JV with international chem partners Arctic diesel Inve
Slide 32: Enilive
Enilive A new name and logo to mark the transformation 17
Slide 33: From service station to mobility hub
Marketing: evolution from service station to mobility hub Customer value resilience and downstream vertical integration From fuel distribution NEW BRAND to mobility hub by ALTERNATIVE FUELS ENILIVE integrating new energy vectors, smart mobility services, quality catering (Alt “stazione del gusto”) a
Slide 34: A world-class player in biorefining
A world-class player in biorefining Attractive growth potential with a well-controlled cost profile Strong EBITDA increase in the 4YP Disciplined Investments EBITDA ADJ | BLN € ORGANIC CAPEX | BLN € SIZEABLE UPSIDE BOLSTERED BY COMPETITIVE ADVANTAGE EBITDA CAGR 2023-26 0.5 UNDERPINNED BY UNIQUE FEED
Slide 35: Basics of biorefining
BASICS OF BIOREFINING
Slide 36: Biorefining value chain
Biorefining value chain Enhancing value across processes BIOFEEDSTOCK BIOMASS TREATMENT ECOFINING BIOFUELS A wide variety of raw materials Pretreatment unit is necessary to Ecofining™ is proprietary Hydrotreated vegetable oil (HVO) such as: remove impurities such as technology to converts cooking is
Slide 37: Ample and flexible feedstocks
Ample and flexible feedstocks Raw materials for Ecofining™ technology Wide range of waste and by-products ANIMAL FATS from oil and fats processing • Tallow * WASTE GREASES • Used Cooking Oil* • Choice White Grease (pork) • Yellow Grease • Poultry Fat Eni biorefinery Palm Oil free BY-PRODUCTS PLANTS
Slide 38: Biomass Pre-Treatment Processes
Biomass Pre-Treatment Processes Enhancing our feedstock processing flexibility The main purpose of degumming Bleaching is a complex physical and section is to remove, adding water chemical process employed in the and acid, hydratable and non- pretreatment of vegetable oils and fats. hydratable gums
Slide 39: Ecofining process
Ecofining process ™ ECOFINING STAGE 2 ECOFINING STAGE 1 HYDRODEOXYGENATION ISOMERIZATION FRACTIONATION PRODUCTS Catalytic Hydrodeoxygenation is a Catalytic hydroisomerization is an Lastly, a dedicated separation section chemical process which is specifically effective approach that transforms to spl
Slide 40: Biorefinery products
Biorefinery products A premium, sustainable portfolio HVOLUTION: CHARACTERISTICS OF ENI’S BIOFUELS IN COMPARISON HVO1 MADE FROM OUR ECOFINING TECHNOLOGY HVO FAME BIOFUELS High stability & total High fouling power absence of deposits formation of deposits due to 100% of renewable component O2 replace
Slide 41: Venice Biorefinery Case-study
Venice Biorefinery Case-study Venice biorefinery conversion model MILESTONES AND TIMELINE 2007 2012 2013 2014 2018 2022 >2023 License Project Shut down Biorefinery on- Biomass Palm oil phase New projects EcofiningTM announced & of petroleum stream with Treatment Unit out technology engineering refin
Slide 42: Emissivity: Life Cycle Assessment
Emissivity Life Cycle Assessment (LCA) The calculation of emissions over the entire life cycle shows that even in the long term, a 100% HVO vehicle is comparable to an electric or hydrogen car. MAIN EMISSION SOURCES IN LCA PERSPECTIVE EMISSIONS VEHICLE USE gCO2e/km PRODUCTION OF THE VEHICLE 227 Lege
Slide 43: Conclusions and final remarks
CONCLUSIONS AND FINAL REMARKS
Slide 44: Concluding remarks
CONCLUDING REMARKS WELL POSITIONED TO CAPITALISE ON HVO/SAF MARKET UPSURGE A WORLD-CLASS BIOREFINING PLAYER WITH TECHNOLOGY-BACKED COMPETITIVE ADVANTAGES DISTINCTIVE VERTICAL INTEGRATION BOTH ON SUPPLY AND DOWNSTREAM TO OFFER SIZEABLE UPSIDE UNIQUE OPPORTUNITY WITH SOLID GROWTH PROFILE AND ATTRACTIV
Slide 45: Annex
ANNEX
Slide 46: Venice bio-refinery
VENICE BIO-REFINERY WORKING INTEREST 100% Increasing capacity Enhancement of New products € 250 mln biomass pre- from 400 to 600 kton/y like Biojet and Arctic Capital invested in treatment at 2025 with new steam diesel, together with biorefinery conversion Strategic highlights reforming & Ecofining
Slide 47: Gela bio-refinery
GELA BIO-REFINERY WORKING INTEREST 100% 700 kton/Y Feedstock flexibility Products € 450 mln with pre-treatment Biojet, Arctic diesel, Capital invested in upgrade (degumming) biorefinery conversion Strategic highlights HVOs (Diesel, Naphtha, and other development Synergy with existing assets (utiliti
Slide 48: Chalmette bio-refinery
CHALMETTE BIO-REFINERY JV - WORKING INTEREST 50% 550 Kton/y Renewable Fuel Products Eni contribution production & Pre Eni Capacity HVOs (Diesel, Naphtha, $ 835 Mln plus Treatment units LPG) additional up to $ 50 Respectively based on Mln subject to Strategic highlights SAF (under evaluation) Ecofini
Slide 49: Livorno bio-refinery
LIVORNO BIO-REFINERY WORKING INTEREST 100% 500 kton/Y Renewable Fuel Products € ~500 Mln production & Pre Capacity HVOs (Diesel, Naphtha, Capital expenditure Treatment units LPG) Respectively based on SAF (under evaluation) Ecofining™ & Strategic highlights TechnOilogy Synergy with existing assets (
Slide 50: Pengerang bio-refinery
PENGERANG BIO-REFINERY JV UNDER STUDY ~230 Kton/y Renewable Fuel Products production Eni Capacity SAF and HVOs (Diesel, Strategic highlights based on Ecofining™ Naphtha, LPG) Strategic location close to Singapore on major international aviation and shipping Pre Treatment unit routes, with easy acces
Slide 51: Daesan bio-refinery
DAESAN BIO-REFINERY JV UNDER STUDY LG Chem ~200 Kton/y Renewable Fuel Products production Strategic highlights Eni Capacity SAF and HVOs (Diesel, based on Ecofining™ Naphtha, LPG) Strategic location within the existing LG Chem industrial complex in Daesan ensuring reduced CAPEX and improved time to
Slide 52: Abbreviations and Acronyms
Abbreviations and Acronyms HEFA Hydroprocessed Esters and Fatty Acid HVO Hydrotreated Vegetable Oil ILUC Indirect Land Use Change LCA Life Cycle Assessment SAF Sustainable Aviation Fuel 37
Slide 53: Fundamentals of chemical reactions in Ecofining
Fundamentals of Chemical reactions in Eco-fining Ecofining stage 1- Hydrotreating Stage: deoxygenation and decarboxylation FFAs HO Vegetable oils mainly consist of triglycerides with CH3 typically 1-2% free fatty acid content O CO2 H3C H3C CH3 O CH3 CH2 + In the stage 1 Deoxygenation and Decarboxyla
Slide 54: Agri Feedstock Initiatives
AGRI FEEDSTOCK INITIATIVES Luigi Ciarrocchi Federico Maria Grati 14 September 2023 Venice
Slide 55: Eni unique model of agri feedstock
ENI UNIQUE MODEL OF AGRI FEEDSTOCK Vertical integration of agribusiness for bio refining THE VALUE OF OUR INTEGRATED VALUE CHAIN SECURITY OF SUPPLY Stable volumes of bio feedstock COMPETITIVE AND STABLE COST Vs market price and volatility of bio feedstock QUALITY Low carbon emissions (carbon neutral
Slide 56: HVO/HEFA bio feedstock availability 2050
HVO/HEFA BIO FEEDSTOCK AVAILABILITY Novel vegetable oils support the rising biofuels demand NOVEL VEGETABLE AVAILABILITY 2050 OILS POTENTIAL Food Wastes and Non-food crops Agricoltural Cover Crops vegetable oil residues degraded land residues* ~250 > 40 Mton/y 70 Mton/y 85 Mton/y Up to 40 Mton/y Mto
Slide 57: A distinguishing model
A DISTINGUISHING MODEL AGRICULTURAL SUPPLY CHAIN AGRICULTURAL PRODUCTION Cultivation entrusted to farmers (access to land) SMALL FARMERS LARGE FARMERS Land and crops not in competition CULTIVATION OF NON-FOOD CORPS COVER CROPS with food production ON DEGRADED LAND AFTER CEREAL PRODUCTION Promotion o
Slide 58: Agri feedstock design and development
AGRI FEEDSTOCK DESIGN AND DEVELOPMENT A global value chain across geographies PROJECT START Phase 1 Phase 2 Phase 3 COUNTRY PROJECT BIOMASS AGRI FEEDSTOCK AGRI FEEDSTOCK SCOUTING AGREEMENTS DEVELOPMENT SUPPLY PRODUCTION DELIVERY Signature agreement Agronomic studies Production monitoring Production
Slide 59: Innovation and R&D
INNOVATION AND R&D Our added value SCOUTING DEVELOPMENT SUSTAINABLE SOURCING NOVEL FEEDSTOCK NEW CROPS VALUE CHAIN R&D on unexploited biomass R&D on innovative oil crops Digitalization (AI, drones) of the for biofuel production agricultural value chain to ensure traceability and certification Evalua
Slide 60: Sustainable biomass
SUSTAINABLE BIOMASS No competition with the food value chain NOVEL VEGETABLE OILS CERTIFIED RAW MATERIALS Whole value chain certified according to European highest standards CASTOR COVER CROPS AGRO-FORESTRY (ISCC EU) DEGRADED LAND non-food crop intermediate crops after Trees planted by farmers droug
Slide 61: Cultivation on degraded land: Kenya
CULTIVATION ON DEGRADED LAND The Agri-Energy program in Kenya EXAMPLE OF DEGRADED LAND (2022) EXAMPLE OF LAND CULTIVATED WITH CASTOR (2023) KENYA AGRI-ENERGY PROGRAM FIRST OIL SECOND 80,000 START UP AGRI HUB AGRI HUB FARMERS ACTIVITIES MAKUENI INVOLVED JULY 2021 AUG 2022 4Q 2023 DEC 2023 8
Slide 62: Our portfolio
OUR PORTFOLIO Global presence with a diversified portfolio KAZAKHSTAN ITALY AGRI-FEEDSTOCK FIRST OIL 2022 Kenya UNITED STATES ALGERIA 2023 Congo, Italy, Ivory Coast, Mozambique VIETNAM GUINEA BISSAU INDONESIA KEY SELECTION CRITERIA INDONESI IVORY COAST RWANDA A COUNTRY OF PRESENCE (LEGACY) KENYA Ups
Slide 63: Project KPIs and targets
PROJECT KPIs AND TARGETS 2026 PRODUCTION PRODUCTION > 700 thousand tons vegetable oil for biorefining >> 1 million tons animal feed >> 1 and fertilizers FIRST M TON CARGO FROM KENYA FARMERS OCT 2022 > 700 ~ 700 thousand families of K TON farmers involved with opportunity for long term, stable additi
Slide 64: Carbon intensity of Eni biofuels
CARBON INTESITY OF ENI BIOFUELS Targeting lowest emissions MARKET BENCHMARK ENI DISTINGUISHING MODEL REFERENCED AND PROVED FIGURES CO2eq / MJ HVO Validation of the Eni distinguishing 94 gr model thanks to EU Funded projects 73 gr by academic/R&D partners -22% 46 gr -51% Bio-Jet produced by Eni from
Slide 65: Concluding remarks
CONCLUDING REMARKS Target 2026 2030 >700 >> 1 SECURING SUPPLY OF QUALITY FEEDSTOCKS IN A HIGHLY COMPETITIVE MARKET K TON M TON OFFERING COMPETITIVE AND STABLE COST AGAINST MARKET VOLATILITY - 20/30% - 30% TO PRODUCE SAF AND OTHER LOW EMISSION BIOFUELS WITH THE UPSIDE TO SUPPLY-CHAIN CARBON INTENSITY
Slide 66: Satellites and closing comments
SATELLITES AND CLOSING COMMENTS Giuseppe Ricci Jon Rigby 14 September 2023 Venice
Slide 67: The satellite model
THE SATELLITE MODEL Addressing the Challenges of Capital & Energy Markets Our distinctive approach Our satellites KEY FEATURES VÅR ENERGI OF THE SATELLITE MODEL Unlocking value through dedicated satellite companies Initially created in 2018. Acquired XOM assets in 2019. Accesses and matches capital
Slide 68: The valuation opportunity
THE VALUATION OPPORTUNITY Generating visibility on valuation FOCUS IN: ADDRESSING THE VALUATION OPPORTUNITY ENI MULTIPLE 1 ENI EARNINGS BY SEGMENT EV/EBITDA 2022 - Post-tax segmental income Eni shares Impacted by ESG concerns, macro volatility, perception of long-term challenges to Plenitude & Power
Slide 69: CCUS, an emerging opportunity
CCUS, AN EMERGING OPPORTUNITY Value and capital proposition Sleipner KEY FEATURES Emerging business opportunity Target to store 30MTPA by 2030 in depleted HyNet reservoirs Ravenna CCS Bacton T&S operating regulated market RAB based business model ENI MAIN PROJECTS Exploit existing infrastructure Lar
Slide 70: Shareholder distribution
SHAREHOLDER DISTRIBUTION A priority commitment funded from organic cashflow A SIMPLIFIED POLICY ENHANCED SHARING VALUE ONE OF THE HIGHEST REMUNERATION YIELD IN THE SECTOR DISTRIBUTION (remuneration yields 2023, estimated %) Target €0.94 ~12% YIELD Competitive policy ~25-30% 2023 DPS 4 year return ~4
Slide 71: Venice 14 September 2023
Venice 14 September 2023 • An emerging, material, high growth, and globally relevant earnings stream • Confirm EBITDA of €1.5Bln for Sustainable Mobility by 2026. New ~20% ROACE guidance for Plan period • Confirm biorefining capacity target of >3MTPA by 2025 and >5MTPA by 2030 • Raised outlook for S