Slide 1: Full Year 2022 Results and Strategy Update
FULL YEAR 2022 RESULTS AND STRATEGY UPDATE February 28th, 2023 1
Slide 2: Disclaimer
Disclaimer This communication does not constitute an offer or an invitation to subscribe for or purchase any securities. Forward-looking statements contained in this presentation regarding future events and future results are based on current expectations, estimates, forecasts and projections about
Slide 3: Agenda
4Q & Full year 2022 highlights Financial and business performance Agenda Strategic update Closing remarks Appendix 3
Slide 4: Another quarter of strong delivery: 4Q 2022 results
Another quarter of strong delivery: 4Q 2022 results 2.9 B€ 150 M€ Group Revenues1 Group Adjusted EBITDA1 +72% YoY Driven by offshore +3% QoQ 6.0 B€ 56 M€ Order Intake1 Net Cash pre-IFRS 16 ~ 14 B€2 in FY 2022, 264 M€ Net debt 1.4x Book-to-bill post-IFRS 16 1. Revenues, adjusted EBITDA and order inta
Slide 5: FY 2022: delivery on strategic plan commitments (1/2)
FY 2022: delivery on strategic plan commitments (1/2) Revenue growth • Revenue ~ 10 B€1, +53% YoY - guidance2 ✓ Return to profitability • Adjusted EBITDA 595 M€1 - guidance2 • Delivered > 150 M€ cost efficiencies ✓ Deleveraging • Year-end 2022 net debt3 264 M€ - guidance2 ✓ • Record order intake in
Slide 6: FY 2022: delivery on strategic plan commitments (2/2)
FY 2022: delivery on strategic plan commitments (2/2) • Offshore Drilling fleet: zero idleness1 in 2022 Leveraging offshore drilling • Booked 87%2 in 2023 and 70%2 in 2024 • 3 projects completed, others in line with revised Phased approach for offshore wind schedule • Commercial agreement with Seawa
Slide 7: Agenda
4Q & Full year 2022 highlights Financial and business performance Agenda Strategic update Closing remarks Appendix 7
Slide 8: FY 2022 group results
FY 2022 group results (M€) Revenues Adjusted EBITDA2 (excluding discontinued operations1) (excluding discontinued operations1) Adjusted Net Result2 n.m. margin 6.0% +53% 9,980 595 6,528 (139) (1,274) (1,914) FY21 FY22 FY21 FY22 FY21 FY22 1. Excluding discontinued operations (Drilling Onshore) 2. Exc
Slide 9: FY 2022 results – Offshore
FY 2022 results – Offshore (M€) E&C Offshore Drilling Offshore Revenues Adjusted EBITDA1 Revenues Adjusted EBITDA1 n.m. margin 8.2% 29.4% margin 30.8% +80% +43% 565 5,127 420 174 394 116 2,848 (954) FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 • Revenue increased by 80% YoY, with 4Q confirming strong pro
Slide 10: FY 2022 results – Onshore
FY 2022 results – Onshore (M€) E&C Onshore Revenues Adjusted EBITDA1 n.m. margin 0.0% • Revenue increased YoY driven by project progress mainly in +30% Middle East and Latam; Mozambique decreased due to suspension from April 21 4,288 • Adjusted EBITDA improvement YoY, with 2021 backlog review 1 stil
Slide 11: FY 2022 results – P&L YoY comparison (excluding drilling onshore)
FY 2022 results – P&L YoY comparison (excluding drilling onshore) Group – Adjusted1 Group – Reported Income Statement Income Statement M€ FY 21 FY 22 Var. FY 21 FY 22 Revenue 6,528 9,980 3,452 6,528 9,980 Total costs (7,802) (9,385) (1,583) (8,252) (9,437) EBITDA (1,274) 595 1,869 (1,724) 543 margin
Slide 12: 4Q 2022 Net Debt Evolution
4Q 2022 Net Debt Evolution (M€) Of which: Of which ~ 220 M€ for Santorini drillship acquisition (December 2022) • Backlog review cash outflow ~ 150 M€ • Positive working capital and non- monetary items (inc. reversal of 426 advanced payments) 264 338 339 88 320 (497) (75) (47) (56) 136 Net debt IFRS
Slide 13: Available liquidity provides ample room to manage upcoming maturities
Available liquidity provides ample room to manage upcoming maturities Pro-forma1 liquidity (M€) Gross debt maturities @year-end 2022 3,546 Credit rating improving 470 New facilities BB- BB BB+ (Feb. 2023) S&P Feb 22 Apr 22 Dec 22 390 Upgrade of 2 notches 500 B1 Ba3 15 Moody’s Feb 22 Jul 22 560 1,324
Slide 14: Selective commercial strategy brought ~14 B€ of order intake in 2022
Selective commercial strategy brought ~ 14 B€ of order intake in 20221 Order intake FY 20221 Awards concentrated in Saipem’s sweet 8.4B€ E&C Offshore spots, as targeted in the business plan: ~ 73% in Offshore (E&C and drilling) 1.7B€ Drilling Offshore Achieved over a third of 2022-25 E&C 3.7B€2 Offs
Slide 15: Backlog shifting towards offshore
Backlog shifting towards offshore IFRS Backlog portfolio As of 31st December 2021 As of 31st December 2022 Detail as of 31st December 2022 34% Offshore 51% Offshore by geography (%) Italy Rest of Europe 4% Drilling E&C E&C 5% Onshore Onshore Offshore Far East 9% 1,497 E&C 11,767 10,756 Americas Midd
Slide 16: Offshore wind projects well under execution
Offshore wind projects well under execution Large projects in backlog nearing completion1 Saint-Brieuc T&I (France) ✓ Formosa (Taiwan) ✓ Fécamp (France) ✓ Average Completed Completed Completed progress1 ~85% Seagreen (UK) Dogger Bank (UK) NNG (UK) Courseulles-sur-Mer (France) Jackets fabrication com
Slide 17: E&C market near-term opportunities worth ~51 B€
E&C market near-term1 opportunities worth ~ 51 B€ Growing project pipeline momentum, weighed towards offshore Europe, CIS & Central Asia ~ 5.1 B€ Asia Pacific ▪ Conventional ▪ ▪ Pipelines Renewables & green ~ 0.6 B€ Americas ▪ Conventional Tailwinds from supercycle: ~ 3.2 B€ commercial pipeline ~ 7.
Slide 18: Agenda
4Q & Full year 2022 highlights Financial and business performance Agenda Strategic update Closing remarks Appendix 18
Slide 19: Progressing along the strategic path outlined in March 2022
Progressing along the strategic path outlined in March 2022 Asset Based Services Energy Carriers E&C Drilling Offshore E&C Sustainable Robotics & Offshore Offshore Wind Onshore Infrastructures Industrial Solutions Exploit positive Leverage positive Focus on backlog Position Saipem in the Target NRRP
Slide 20: Asset Based Services - E&C Offshore growth
Asset Based Services - E&C Offshore growth Exploit the positive Focus acquisitions in Africa, Guyana and Middle East secure execution capabilities market context and • Subsea projects in West Africa, Guyana Expected order growing clients' demand, • Leverage presence in Middle East and West / North i
Slide 21: Asset Based Services - Exploit positive Drilling Offshore momentum
Asset Based Services - Exploit positive Drilling Offshore momentum Expand drilling fleet Exploit positive market momentum and possible • Increase drilling fleet, mainly through leased vessels, Expected order both shallow and deep-water, to increase capacity to fleet monetization serve clients intake
Slide 22: Asset Based Services - Progress Offshore Wind strategy
Asset Based Services - Progress Offshore Wind strategy Short-term focus on Focus on core capabilities backlog • Target T&I and EPCI of foundations leveraging on Leveraging on lesson Saipem’s track record in serial fabrication and offshore installation learned for new acquisition • Progressively purs
Slide 23: Energy Carriers - Selective E&C onshore, focusing on energy transition
Energy Carriers - Selective E&C onshore, focusing on energy transition Position Saipem in the energy transition Position Saipem in the • Focus on LNG, Gas Monetization (including green Expected order energy transition, and blue solutions), pursue momentum in CCUS intake 2023-26 stabilize cash flows
Slide 24: Building Sustainable Infrastructures
Building Sustainable Infrastructures Target NRRP1 projects, Leveraging 30+ years in railways infrastructure focusing on high-tech • Mainly focusing on strategic transportation and railway infrastructures infrastructure projects and further investments on innovative mobility solutions Potential to ex
Slide 25: Develop Robotics and Industrialized Solutions
Develop Robotics and Industrialized Solutions Low-carbon and energy transition Industrialized solutions • Bluenzyme 200 first product to capture CO2 for the for low-carbon energy hard-to-abate segment (200t/day) with digitally enabled • Plastic to Liquid: invest in innovative technologies product-to
Slide 26: Further accelerating low-carbon commercial effort
Further accelerating low-carbon commercial effort E&C expected order intake (2023-26) 46 B€ Low/zero carbon activities Traditional Offshore Wind activities Sustainable Offshore Onshore Infrastructures 25% 28 B€ 39% 18 B€ 75% 61% Plastic Recycling Carbon Capture Robotics and Industrialised Solutions
Slide 27: GHG emissions: initiatives towards net zero
Initiatives towards net zero well identified and under execution Baseline 2018 1.31 M Scope 2 Scope 1 & 2 Scope 1 & 2 t CO2eq Carbon Neutrality by 50% reduction1 by Net zero by 2025 2035 20503 GHG emissions (t CO2eq) Biofuels (HVO2) Efficiency, Electrification, Renewables Offsetting Residual Emissio
Slide 28: Guidance and Outlook
Guidance and Outlook 1 2 Revenues Adj. EBITDA Capex FCF Net Debt Positive Net cash pre-IFRS 16 2023 > 11 B€ ~ 850 M€ ~ 450 M€ Breakeven Net debt ~ 500 M€ post-IFRS 16 Double-digit margin from 2025 ~ 1.2 B€ Positive Net cash 2026 > 12 B€ > 1.2 B€ cumulative > 0.6 B€ > 0.7 B€ 2023-26 post-IFRS 16 1. E
Slide 29: Agenda
4Q & Full year 2022 highlights Financial and business performance Agenda Strategic update Closing remarks Appendix 29
Slide 30: 4Q 2022 group results
4Q 2022 group results QoQ comparison - (M€) Revenues Adjusted EBITDA2 Adjusted Net Result2 (excluding discontinued operations1) (excluding discontinued operations1) 6.4% margin 5.1% +3% -18% 2,856 2,937 182 150 7 (38) 3Q22 4Q22 3Q22 4Q22 3Q22 4Q22 1. Excluding Drilling Onshore (discontinued operatio
Slide 31: 4Q 2022 results by division
4Q 2022 results by division QoQ comparison (M€) E&C Offshore Drilling Offshore Revenue Adjusted EBITDA1 Revenue Adjusted EBITDA1 8.3% margin 8.3% 36.7% margin 27.7% -8% +16% 132 47 122 148 41 1,592 128 1,463 3Q 2022 4Q 2022 3Q 2022 4Q 2022 3Q 2022 4Q 2022 3Q 2022 4Q 2022 E&C Onshore Revenue Adjusted
Slide 32: FY 2022 Net Debt evolution
FY 2022 Net Debt evolution (M€) 550 (497) 1,862 115 1,541 318 1,223 726 (358) 103 (1,918) Of which: • Backlog review cash outflow ~ 550 M€ • Working Capital and other (inc. reversal of advanced 264 payments) ~ 180 M€ 320 Net debt IFRS 16 Net debt Adjusted Cash Delta WC Capex Cash-in from Others 1 Ne
Slide 33: Russia: exit almost completed
Russia: exit almost completed, in full compliance with the sanctioning framework provisions and timeframe Non-consolidated backlog evolution (Russia) ▪ Exit completed from consolidated projects ▪ Exit on non-consolidated projects ongoing, consistently with the 2 B€ provisions and timeframe of the
Slide 34: FY 2022 backlog distribution
FY 2022 backlog distribution Sizeable backlog provides support for the mid-term Distribution by year and breakdown (M€) 10,009 492 7,220 4,760 6,788 374 628 4,254 2,753 4,757 3,407 2,592 1.00 2.00 3.00 2023 2024 2025+ E&C Offshore E&C Onshore Drilling Offshore Non-consolidated Backlog By Year Of Exe
Slide 35: FY 2022 Net Result - Reconciliation Adjusted vs Reported
FY 2022 Net Result - Reconciliation Adjusted vs Reported Drilling Onshore Net Result (M€) (discontinued operations2) FY22 FY22 Health & Safety Adjusted (Covid-19)1 Others Reported Costs from Covid-19 Cost mainly related to management of pandemic and safeguarding people’s (28) health (139) (1) (24) (
Slide 36: FY 2022 Results – D&A, financial expenses and taxes
FY 2022 Results – D&A, financial expenses and taxes (M€) 495 445 FY 2022 338 315 M€ FY21 69 72 88 58 FY22 D&A Offshore E&C E&C Total Drilling Onshore Offshore D&A FY 2022 M€ 41 (26) 195 180 Financial expenses1 Financing costs 1 Project hedging Exchange Differences Financial expenses costs • Taxes at
Slide 37: Debt maturity profile and liquidity
Debt maturity profile and liquidity Analysis as of 31 December 2022 Bonds and banking facilities maturities (M€) Other Debt Billion € FY 22 790 82 ECA Facilities Gross Debt 2.63 566 560 95 500 Bank Facilities o/w Banks 0.53 66 60 113 Bonds Bonds 2.00 500 95 500 500 15 500 95 15 Accruals and other 0.
Slide 38: Drilling offshore fleet booking on the rise
Drilling offshore fleet booking on the rise Drilling Vessel Engagement Map (2022-24) Fleet utilisation based on 2022 2023 2024 current contracts3: Client Area 2023 ~ 87% Saipem 12000 to 2025 Eni, Azule Africa 2024 ~ 70% Ultra Deep-water Saipem 10000 Eni Egypt/Italy and Harsh Env. Santorini Eni US Go
Slide 39: Top-ranked ESG player among peers
Top-ranked ESG player among peers ESG Rating1 2 Saipem 79/100 87/100 4.2/5 79.3/100 61/100 18.1(100<0) E&C peers 23/100 74/100 2.6/5 53.2/100 n.a. 25.9 (100<0) average3 Saipem ranking4 1st 1st 1st 1st 1st 3rd ESG culture and achievements recognized externally 1. Rating as of 31 December 2022 2. Rati