Eni S.p.a. · MIL:ENI
Eni — Investor Day (March 2022)
38 slides from Eni's investor day presentation, Mar 18, 2022
Slide 1: Capital Markets Day 18 March 2022
CAPITAL MARKETS DAY 18 MARCH 2022
Slide 2: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Eni S.p.A., Eni Plenitude S.p.A. società benefit, and their affiliates (collectively, the “Company”) or any person on behalf of th
Slide 3: Eni Distinctive Approach
ENI DISTINCTIVE APPROACH Delivering value through the transition PROPRIETARY AND BREAKTHROUGH TECHNOLOGIES LEADING EDGE COMPETITIVE BUILDING SCALE STAKEHOLDER ALLIANCES NEW BUSINESS MODELS matching business growth with dedicated leadership team OUR PEOPLE and capital structure CUSTOMERS INDUSTRIES L
Slide 4: Proprietary and Breakthrough Technologies
PROPRIETARY AND BREAKTHROUGH TECHNOLOGIES A portfolio of technologies to meet decarbonized energy needs DECARBONIZED SOLUTIONS RENEWABLES & CARBON CAPTURE NEW ENERGIES UTILIZATION & STORAGE MAGNETIC FUSION ENERGY STORAGE deploying safe, easy to apply and cost- effective solutions for CO2 capture, CI
Slide 5: New Business Models
NEW BUSINESS MODELS SUSTAINABLE Through dedicated satellite companies MOBILITY AZULE ENERGY Accelerating growth and decarbonization Deeper operational focus VÅR ENERGI Access to diversified capital markets Tailored capital allocation Strategic and financial flexibility PLENITUDE 5
Slide 6: Stakeholder Alliances
STAKEHOLDER ALLIANCES Leveraging a strong network of collaborations Our People >30 thousand people fully engaged in the transition leveraging experience and skills Customers >10 million customer base supplied with green power and services Industrial partners >5 thousand service stations across Europ
Slide 7: Towards a Net Zero Energy Business
TOWARDS A NET ZERO ENERGY BUSINESS Accelerating our GHG emission reduction targets Net Absolute GHG Emissions (Scope 1+2+3) MtCO2eq -35% -55% Net Carbon Footprint Eni (Scope 1+2) MtCO2eq -80% -40% Net Zero Net Zero 2018 2030 2040 2050 (baseline) 7
Slide 8: Towards a Net Zero Energy Business
TOWARDS A NET ZERO ENERGY BUSINESS Multiple business levers to reach targets Net Absolute GHG Emissions (Scope 1+2+3) 2018 505 MtCO2eq 2030 330 MtCO2eq 2050 0 NET ZERO UPSTREAM MIDSTREAM DOWNSTREAM CCUS OFFSET 8
Slide 9: New Energy Solutions
NEW ENERGY SOLUTIONS A growing and balanced new energies and services portfolio New energy sold Capital Allocation POWER RENEWABLES >80 % Traditional ~60 % BIO PRODUCTS ~30 % HYDROGEN New Energy Solutions 2025 2030 2040 2050 2025 2030 2040 MAGNETIC FUSION Commercial Plant 9
Slide 10: Decarbonizing and Enhancing Our Upstream Portfolio
DECARBONIZING AND ENHANCING OUR UPSTREAM PORTFOLIO 10
Slide 11: 2022-2025 Highlights
2022-2025 HIGHLIGHTS DECARBONIZING AND ENHANCING OUR UPSTREAM PORTFOLIO UPSTREAM CAPEX UPSTREAM € ~4.5 BLN CASH NEUTRALITY AVERAGE 2022-2025 25 $/BBL AVERAGE 2022-2025 LNG GROWTH -65% NET SCOPE 1+2 >15 MTPA in 2025 BY 2025 (vs 2018) CONTRACTED VOLUMES REDUCING BREAKEVEN AND CARBON FOOTPRINT 11
Slide 12: Decarbonizing Upstream
DECARBONIZING UPSTREAM Growing production while reducing carbon footprint UPSTREAM PRODUCTION | Mboed KEY METRICS CAGR ~3 % € 29 Bln CUMULATIVE 1.89 FCF 2022-25 1.68 1.70 € 4.5 BLN 2022-25 CAPEX AVERAGE PER YEAR 2021 2022 2025 -65 % Baseline Start up Ramp Up NET CARBON FOOTPRINT (SCOPE 1+2) Brent 71
Slide 13: Exploration
EXPLORATION Accelerating time to market through discovery of advantaged barrels 2022-2025 CAPEX BY ACTIVITY Norway 10% NEAR FIELD, "ILX" & PROVEN BASINS Egypt & East Mediterranean FRONTIER Algeria 90% Arabic Gulf Mexico Cote d’Ivoire Oman EQUITY RESOURCES | BLN boe Congo & Angola 2.2 in 4YP Vietnam
Slide 14: Integrated Natural Gas
INTEGRATED NATURAL GAS A competitive portfolio to secure supply to key markets UPSTREAM GAS GGP NORWAY >15 MTPA LNG ~50 TCF RESERVES UK CONTRACTED VOLUMES & RESOURCES ITALY BY 2025 ALGERIA EGYPT LIBYA MIDDLE EAST € 2.7 BLN ~40 TCF* RISKED 2022-2025 EXPLORATION POTENTIAL CONGO INDONESIA CUMULATIVE FC
Slide 15: Angola Business Combination
ANGOLA BUSINESS COMBINATION Azule Energy: a bp-Eni Company GETTING BIGGER AND STRONGER ENHANCING GROWTH AND EFFICIENCY AZULE ENERGY INTEGRATED OPERATING MODEL: DIVERSIFIED & SYNERGIC PORTFOLIO >200 KBOED PRODUCTION ~15% COST REDUCTION 2 BLN BOE NET RESOURCES CONTRIBUTING TO UNLOCK NEW GROWTH OPPORTU
Slide 16: CCS
CCS Becoming a leader in carbon management A SAFE AND MATURE PROCESS PROJECTS PIPELINE Norway - Sleipner UK - Hynet Australia UK - Bacton PERMANENT STORAGE Italy Ravenna TRANSPORT Egypt UAE - Gasha Lybia - BES CO2 CAPTURE UNDER DEVELOPMENT NEW INITIATIVES IN OPERATION PROVIDING SERVICES FOR THIRD PA
Slide 17: Growing Profitably While Transforming
GROWING PROFITABLY WHILE TRANSFORMING 17
Slide 18: 2022-2025 Highlights
2022-2025 HIGHLIGHTS GREEN VALUE CHAIN & SUSTAINABLE MOBILITY PLENITUDE AT 2025 BIOREFINERY CAPACITY > 6 GW RES CAPACITY ~2 MTPA > 11 MLN CUSTOMERS BY 2025 ~30k CHARGING POINTS LOW CARBON BUSINESSES LOW CARBON BUSINESSES >25 % GROUP € 2.3 BLN EBITDA INVESTMENTS BY 2025 IN 4YP GROWING PROFITABLE NEW
Slide 19: Sustainable Mobility
SUSTAINABLE MOBILITY A winning multienergy, multiservice hub BIO PRODUCTS SMART SERVICES BIO-FEEDSTOCK PRODUCTION MOBILITY BEYOND MOBILITY SHORT & MEDIUM MULTISERVICE HUB RANGE MILEAGE 35% ~2 MTPA VERTICAL BIOREFINING CAPACITY INTEGRATION BY 2025 BY 2025 A SINGLE SITE FOR MULTIPLE SOLUTIONS 19 >5,00
Slide 20: Sustainable Mobility
SUSTAINABLE MOBILITY A profitable customer-centric and integrated proposition ENI LIVE STATION EBITDA| € BLN GROWTH LEVERS CAGR >10 % FEEDSTOCK INTEGRATION 1.5 RETAIL TRANSFORMATION 0.9 COST OPTIMIZATION 0.4 INTERNATIONAL EXPANSION R&M 2021 Sustainable Sustainable ~1.5 MLN TOUCHPOINTS PER DAY Mobili
Slide 21: Plenitude
PLENITUDE Towards upcoming IPO IPO RATIONALE BUSINESS DIVISION TARGETS >6 RENEWABLE 1.1 >2 CUSTOMER Installed capacity GW 2021 2022 2025 11.5 RETAIL 10 >10 Customers mln GREEN 2021 2022 2025 ENERGY E-MOBILITY ~30,000 EV 6,500* >12,000 n. Charging points 2021 2022 2025 TARGETING NET ZERO BY 2040 EBIT
Slide 22: Financials
CAPITAL MARKETS DAY 18 MARCH 2022 2022-2025 STRATEGIC PLAN FINANCIALS
Slide 23: Financials
FINANCIALS Aligning industrial and financial strategy CAPITAL DISCIPLINE SUSTAINABLE AVG CAPEX 2022–2025 INSTRUMENTS ~ € 7 BLN REACHING € >13 BLN BY 2025 PORTFOLIO STRONG BALANCE OPTIMIZATION SHEET BUSINESS COMBINATIONS, AVG LEVERAGE 2022–2025 ASSETS RATIONALIZATION ~10% SELECTIVE M&A 23 Leverage an
Slide 24: Our Financial Plan
OUR FINANCIAL PLAN Balancing strict capital discipline and valuable growth 2022-2025 PROJECTS RETURNS 2022 CAPEX AVG CAPEX UPSTREAM IRR 21% 24% 17% € 7.7 BLN € ~7 BLN -20% Eni Scenario +20% Projects in execution RENEWABLES 25% 200 BPS WACC WACC Target return* UPSTREAM GREEN + PLENITUDE spread target
Slide 25: Portfolio Management
PORTFOLIO MANAGEMENT New business models and M&A to speed up transformation NEW PORTFOLIO BUSINESS MODELS HIGH-GRADING RATIONALIZATION BUSINESS COMBINATIONS OF NON-CORE ASSETS € 3 BLN NET CONTRIBUTION SPIN OFF/IPO SELECTIVE 2022-2025 ACQUISITIONS SPAC OPTIMIZATION 25
Slide 26: Sustainable Finance
SUSTAINABLE FINANCE A structural core component in the execution of our plan SUSTAINABLE INSTRUMENTS| € BLN KEY FIGURES >13 CREDIT LINES 100% SUSTAINABLE SINCE 2022 SENIOR BONDS NEW ISSUANCE 100% SUSTAINABLE 8 >25% SUSTAINABLE GROSS DEBT BY 2025 0 CONTRIBUTING TO SDGs 2019 2021 2025 Sustainable inst
Slide 27: Cash Flow Growth
CASH FLOW GROWTH A solid FCF generation 2022 CASH FLOWS| € BLN 2022-2025 16 + 10-20 $/b UPSIDE € ~55 BLN EXCESS 4YP CUMULATIVE CFFO ORGANIC FCF 12 FCF REMUNERATION 8 € >25 BLN 4YP CUMULATIVE FCF CAPEX 4 < 45 $/BBL 0 AVG CASH NEUTRALITY CFFO USES CFFO = CAPEX + FLOOR DIV. Brent 80 $/b Figures at Eni
Slide 28: Distribution Policy
DISTRIBUTION POLICY Sharing the upside with our shareholders SHARING VALUE CREATION 2022 DISTRIBUTION UPSIDE RESILIENCE ADDITIONAL BUYBACK € 0.88 DIVIDEND PER SHARE 30% OF INCREMENTAL FCF SIMPLIFIED, ENHANCED € 1.1 BLN BUYBACK FOR BRENT ABOVE 90 $/BBL DPS SLIDING SCALE BRENT REFERENCE PRICE VS PREVI
Slide 29: Conclusions
2022-2025 STRATEGIC PLAN CONCLUSIONS
Slide 30: Conclusions
CONCLUSIONS A DISTINCTIVE STRATEGY Offering clean, affordable and secure energy ACCELERATED NET ZERO PATH Bringing forward our intermediate GHG emission targets INTEGRATED NATURAL GAS Securing supply to premium markets through our global gas portfolio GROWTH ROBUST CASH GENERATION Capital discipline
Slide 31: Back Up
CAPITAL MARKETS DAY 18 MARCH 2022 BACK UP
Slide 32: Scenario Assumptions
SCENARIO ASSUMPTIONS 4YP SCENARIO 2022 2023 2024 2025 Brent dated ($/bbl) 80 75 70 70 FX avg ($/€) 1.15 1.18 1.21 1.24 Ural MED c.i.f. - Med Dated Strip ($/bbl) -1.5 -1.4 -1.5 -1.5 Std. Eni Refining Margin ($/bbl) -0.3 1.5 2.6 3.2 NBP ($/mmbtu) 21.1 14.4 11.7 9.6 PSV (€/kcm) 688 452 363 293 SENSITIV
Slide 33: Distribution Policy
DISTRIBUTION POLICY TOTAL DISTRIBUTION │ €/share NEW DPS 0.31 BUYBACK PER SHARE PREVIOUS PLAN DPS 0.23 0.11 0.88 0.86 0.08 0.75 0.61 0.49 FLOOR 0.41 DIVIDEND 0.36 $43 $47 $51 $56 $61 $66 $80 $90 BUYBACK│ € MLN 300 400 800 1100 UPSIDE BUYBACK FOR BRENT SCENARIO > $90/BBL EQUIVALENT TO 30% OF INCREMEN
Slide 34: Main Decarbonisation Targets
MAIN DECARBONISATION TARGETS 2025 2030 2035 2040 2050 UPS -65% NET ZERO CARBON FOOTPRINT SCOPE 1+2 ENI -40% UPS NET ZERO ENI NET ZERO NET GHG LIFECYCLE EMISSIONS SCOPE -35% -55% -80% NET ZERO 1+2+3 VS 2018 NET CARBON INTENSITY SCOPE 1+2+3 VS 2018 -15% -50% NET ZERO GHG EMISSIONS ROUTINE FLARING | ms
Slide 35: Main Business Targets
MAIN BUSINESS TARGETS 2022 2025 2030 2035 2040 2050 RETAIL CUSTOMER BASE | MLN POD a >10 11.5 >15 >20 RENEWABLES INSTALLED CAPACITY | GW a >2 >6 >15 >30 60 EV CHARGING POINTS | k a >12 ~30 ~35 ~160 BIO PALM OIL FREE BY 2023 REFINING BIO REFINING | MLN TON/Y ~2 6 NATURAL GAS PRODUCTION | OIL & GAS 60
Slide 36: Key Projects Starting Up in 2022-25 [1/2]
KEY PROJECTS STARTING UP IN 2022-25 [1/2] Area 1 Full Field 100% WI Coral FLNG 25% WI Start up: February 2022 LIQ Start up: H2 2022 GAS 2022 Equity: 35 kboed 2022 Equity: 10 kboed FF Progress: 68% Progress: 97% Production (kboed): Production (kboed): 98 (100%) @ 2025 - 35 (eq.) @2022 106 (100%) – 28
Slide 37: Key Projects Starting Up in 2022-25 [2/2]
KEY PROJECTS STARTING UP IN 2022-25 [2/2] Merakes East/Maha 65%/40% WI Cassiopea 60% WI Start up: 2024 GAS Start up: 2024 GAS Production (kboed): Progress: 23% 32 (100%) – 13 (equity) @2025 Production (kboed): 27 (100%) – 16 (equity) @2025 INDONESIA ITALIA A&E Structure 50% WI Breidablikk 22% WI Sta
Slide 38: Plenitude: Renewables Pipeline
PLENITUDE: RENEWABLES PIPELINE Installed & under High visibility & medium Pipeline > 10 GW Low maturity construction maturity (GW) By technology 4.7 2.3GW 3.7GW 4.7GW Photovoltaic Onshore wind Offshore wind Other3 Undisclosed M&A4 3.7 Other5 By geography 2.3GW 3.7GW 4.7GW 2.3 Exp. completion date 20