Slide 1: 2016 results and 2017-2020 strategy
1 MARCH 2017 2016 results and 2017-2020 strategy A year of records Our path to long term value
Slide 2: 2016 Results
2016 RESULTS Goliat FPSO
Slide 3: Highlights 2016: a year of records
Highlights 2016: a year of records UPSTREAM MID-DOWNSTREAM MID-DOWNSTREAM EFFICIENCY FINANCIALS FINANCIALS Exit rate at 1.86 Mboe/d FCF: €2.3 bln € 3 bln saving (vs 2015) : CFFO: € 8.3 bln Exp: 1.1 Bboe @UEC $0.6/boe EBIT adj. R&M+Chem €0.6 bln Capex: - € 2.2 bln (-19%) CFFO = CAPEX @
Slide 4: HSE performance
HSE performance People Safety – TRIR Upstream Methane Emissions|MtCO2 eq. Flaring down | MSmc Eni top performer since 2013 -9% TCO2eq/Tep: on track to reach 2025 target (-43% since 2014) 3 5 10,000 2016 vs. 2007 2016 vs. 2007 4 8,000 2 -57% -73% Industry 3 6,000 average 2 4,000 1 1 2,000 -21% 2016 v
Slide 5: Exploration successes fuelling future production
Exploration successes fuelling future production Cumulative discovered resources 2014-2016| bln boe 2016 RRR | % 4 200 193* 3.4 180 3 2016 Short cycles 160 P2/P3 + 30% 140 assets 50% contingent 120 2 2015 100 80 Disposed/ 70% Long life 25% under production 60 1 disposal assets 35 40 2014 FID/ 25% Un
Slide 6: 2017 start ups ahead of schedule
2017 start ups ahead of schedule East Hub – Angola OCTP – Ghana JANGKRIK - Indonesia IN PRODUCTION 8th February 2017 Execution Time 39 months Execution Time 30 months Execution Time 42 months FID FID FID FID 100% Start-up FID 85% Start-up FID 95% Start-up June 2017 June 2017 Project details Project
Slide 7: Zohr: countdown to first gas
Zohr: countdown to first gas December Aug. 2015 Feb. 2017 Feb. 2016 2017 FIRST Discovery FID 2.3 years from discovery GAS Zohr 1 Zohr 2 Zohr 3 Zohr 4 Zohr 5 Zohr 6 Zohr 7 Exploration & development Reservoir studies Engineering & Proc. Long Lead Items Onshore Construction & Installation Site Start St
Slide 8: Strong cash generation from mid-downstream
Strong cash generation from mid-downstream EBIT adj| € mln CFFO| € bln 4 569 193 Mid-downstream 3.1 3.0 3 R&M 2 Chemicals 1 G&P 0 2015 2016 G&P Chemicals R&M 2015 2016 ALL BUSINESSES FREE CASH FLOW POSITIVE 8
Slide 9: Relentless focus on cost efficiency
Relentless focus on cost efficiency Group Capex*| € bln Opex| $/boe G&A| € Mln 1445 -10% 11.5 -19% 7.2 -14% 9.3 1296 6.2 2015 2016 2015 2016 2015 2016 OVERALL COST OPTIMISATION 2016 vs 2015 € 3 BLN 9 * Including JV financing
Slide 10: Best-in-class for financial discipline
Best-in-class for financial discipline Net debt| € bln 2016 leverage and change vs 2013 45 16 Net Cash 40 Change since 2013 (% points) Flow Dividends 14 13.0 35 12 11.7 1.0 2.6 2.9 30 10 25 8 Disposals 20 pre tax 6 (incl Zohr) 15 4 10 2 5 24 0 0 Eni YE 2015 YE 2016 20 30 40 50 60 70 pro-forma pro-fo
Slide 11: An outstanding result in 2016
An outstanding result in 2016 2016 Cash balance| € bln 8.7 8.3 CFFO = CAPEX $ 46 /bbl vs targets $ 50 /bbl CFFO* Capex* SLASHING CASH NEUTRALITY SINCE 2013 11 * pro-forma, considering the sale of 40% of Zohr and Val d’Agri effect
Slide 12: 12
12
Slide 13: FPSO Angola
ARMADA OLOMBENDO FPSO FPSO. Angola
Slide 14: Exploration and long term organic growth are the engine of our strategy
Exploration and long term organic growth are the engine of our strategy Resources Operations Value High impact and conventional High level of operatorship Upstream and G&P integration exploration Design to cost Enhancement in the downstream Long term organic growth Fast track Active
Slide 15: Best positioned to capture upside: 2017-2020 targets
Best positioned to capture upside Upstream 70 70 Production growth CAGR 3% Exploration resources 2-3 bln boe 2017-2020 targets Mid downstream G&P breakeven in 2017 4YP avg Refining breakeven at $3/bbl margin in 2018 capex cash neutrality* < $ 45 /bbl Free cash Efficiency flow Capex vs prev
Slide 16: A rich set of exploration opportunities
A rich set of exploration opportunities Organic growth and replacement Flexibility and low break-even EXPLORATION Gas – 55% Early monetization Oil – 45% 2-3 BLN BOE EQUITY RESOURCES 16
Slide 17: A large portfolio for the long term
A large portfolio for the long term New EXPLORATION successes… Bouri ph2 Nyonie Evan Shoal FID before 2020 Mamba T3-4 IDD FID 2020+ Eldfisk ph2 Coral ph2 Bonga North Kashagan ph2 Karachaganak EP Etan &Zabazaba A&E structures Libya Bonga SW Perla Ph.2 MambaT1-2 Loango Kashagan CC01 Merakes Argo clust
Slide 18: An unrivalled inventory
An unrivalled inventory Libya Kazakhstan Italy Norway - Kashagan CC01 Bahr Essalam Ph.2 Johan Castberg Argo Cluster - Karachaganak Ph. 3 A&E structures CAGR 2020-2025 3% CAGR 2016-2020 3% 2016 2017 2020 2025 New projects/ramp ups Indonesia Egypt Jangkrik Ghana Congo Angola Mozambique Merakes Venezue
Slide 19: High quality long term cash flow
High quality long term cash flow Cash flow per barrel| $/boe 4YP start up 4YP 29 $/boe 30 start up 27 $/boe 25 20 20 15 15 Legacy 11 16 $/boe 10 Legacy 12 $/boe 5 2016 2017-18 2019-20 Brent $/Bl 43.7 57.5 67.5 19
Slide 20: Gas demand continuous growth and market rebalancing
Gas demand continuous growth and market rebalancing Supply/Demand LNG |Mtpa International prices|$/MMbtu ~ 135 Mtpa 14 500 ~ 55 Mtpa (30-40 LNG trains) (12-15 LNG trains) 12 400 10 300 8 200 6 4 100 2 0 2015 2020 2025 2030 0 2017 2018 2019 2020 2025 2030 Spot or renewals of existing contracts Contra
Slide 21: A turning point for G&P
A turning point for G&P Ebit adj| € mln 4YP Action plan > 600 Gas supply contracts aligned to the market Logistic costs reduction ~300 Equity gas/LNG monetization avg 2017-18 avg 2019-20 2025 CUMULATIVE CFFO € 2.6 BLN IN THE 4YP 21
Slide 22: Extracting value from integration
Extracting value from integration Upstream gas productions Midstream Positions Focus on LNG sales | Mtpa Targets 10 Maximizing value of equity gas Developing a competitive LNG portfolio 3.5 Leadership position in European and emerging markets 2017 2025 A PORTFOLIO PLAYER INTEGRATED WITH UPSTRE
Slide 23: Downstream: building on the restructuring
Downstream: building on the restructuring Refining & Marketing EBIT Chemicals | € Mln Breakeven Refining margin | $/bl 300 300 7.5 EBIT +€ 300 Mln EBIT 2020 4.2 self help € 900 Mln 600 3 300 2016 2020 Scenario @ constant scenario upside 2013 2016 2018 2016 2016 4YP 4YP avg avg./y onwards SERM 4.2 5.
Slide 24: Capex plan
Capex plan Capex allocation 2017-20 € Bln -8% 34.4* IRR (%) 35 Other 31.6 Mid-downstream 30 Other ≈10 + New energies 25 Upstream Production optimization > 20 -13% Mandatory 20 E&P** 15 E&P Development of new 15-20 10 production 5 Exploration 0 plan 2016-2019 plan 2017-2020 average 2017-20 CAPEX 2017
Slide 25: Our enhanced disposal programme
Our enhanced disposal programme Disposal| € bln 30 40% Zohr 25 5-7 Proved successful portfolio mgmt 20 2 Dual exploration model 15 E&P portfolio rationalization Further financial flexibility 10 18 5 0 2013-16 2017-20 25
Slide 26: Cash Flow plan
Cash Flow plan € Bln 16,0 14,0 scenario disposal Growth & efficiency other 12,0 disposal 10,0 other 8,0 CAPEX 6,0 E&P E&P 4,0 2,0 0,0 avg 17-18 avg 19-20 Brent $/Bl 57 67 26
Slide 27: Remuneration - dividend policy confirmed
Remuneration - dividend policy confirmed Competitive distribution policy progressive with underlying earnings growth and scenario Floor dividend cash sustainability Cash neutrality $50/bbl including disposals in 2016 $60/bbl organic in 2017 <$60/bbl organic 2018-20 Additional financial flexibi
Slide 28: Unrivalled exploration, fast cash generation, low breakeven portfolio
Unrivalled exploration Fast cash generation Low breakeven portfolio Highly leveraged to oil price Strong balance sheet
Slide 29: BACK UP
BACK UP 29
Slide 30: New energy solutions
New energy solutions 2017-2030 Guidelines Significant growth of installed capacity Technology neutral, with focus on hybrid projects Technological and geographical synergy with other Eni business lines MW 500 400 300 200 100 0 2017 2018 2019 2020 Energy Solutions installed capacity 30
Slide 31: Assumptions and sensitivity
Assumptions and sensitivity 4YP Scenario 2017 2018 2019 2020 Brent dated ($/bl) 55 60 65 70 FX avg (€/$) 1.08 1.13 1.15 1.20 Std. Eni Refining Margin ($/bl) 4.0 4.0 4.3 5.5 NBP ($/mmbtu) 5.2 5.3 5.5 5.5 Cracker Contribution Margin (€/ton) 270 260 254 255 4YP sensitivity* Ebit adj (bln €) Net adj (bl
Slide 32: Main start ups
Main start ups Equity peak in 4 YP Working Liquids/Gas Main start ups 2017-2018 country op start up (kboed) Interest Nenè Ph.2A Congo yes Achieved 20 65% Liquids Block 15-16 East Hub Angola yes Achieved 20 37% Liquids OCTP Oil Ghana yes 1H17 20 56% Liquids Jangkrik Indonesia yes 2H17 45 55% Gas Zohr