Slide 1: Presentation to the Financial Community
Presentation to the Financial Community 1H 2014 Consolidated Results San Donato Milanese, July 29, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements By their nature, forward-looking statements are subject to risk and uncertainty since they are dependent on upon circumstances which should or are considered likely to occur in the future and are outside of the Company’s control. These include, but are not limited to: fore
Slide 3: Presentation Outline
Presentation Outline 1. Financial Results 2. Operational Update 3. Legacy Contracts 4. 2014 Guidance 5. Market Outlook 6. Medium Term Guidance 7. Q&A 3
Slide 4: 1H 2014: further progress in year of transition
1H 2014: further progress in year of transition Significant new business wins on sound commercial terms Focus on operational and commercial progress on legacy contracts remains intense Net debt reduction and working capital improvement achieved in Q2; further progress expected in H2 Top end
Slide 5: Financial Results
Saipem 1. Financial Results ws, saipem
Slide 6: 1H 2014 Financial Results (mn €)
1H 2014 Financial Results (mn €) Revenues EBIT Net Profit 5,966 5,246 556 93 608 293 (225) 93 155 136 192 (330) 1H 2013 1H 2014 1H 2013 1H 2014 1H 2013 1H 2014 E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore 1H 2014 IFRS 10 and 11 compliant; 2013 restated for comparability. 1H 2013 resta
Slide 7: 1H 2014 Net Debt driven by Working Capital
1H 2014 Net Debt driven by Working Capital Net Debt (bn €) 0.06 5.61 0.26 0.83 0.13 0.43 0.05 5.10 4.76 0.24 0.20 Net Debt Net Debt Net Debt 1 2 3 4 5 6 7 8 9 10 11 @ Dec. 31, 2013 @Mar. 31, 2014 @June 30, 2014 Cash Flow (Net Income + D&A) Capex Δ Working Capital Others 1H 2014 IFRS 10 and 11 compli
Slide 8: Backlog and new orders (mn €)
Backlog and new orders (mn €) 13,132 24,215 17,065 5,966 Backlog 1H14 Revenues 1H14 Contracts Backlog @Dec. 31, 2013 Acquisition @June 30, 2014* E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore All Figures are IFRS 10 and 11 compliant. *Includes the cancellation of the € 16 mn backlog rel
Slide 9: Backlog @June 30, 2014 by year of execution (mn €)
Backlog @June 30, 2014 by year of execution (mn €) 9,679 8,709 689 410 1,519 886 5,827 2,736 2,444 214 571 1,372 5,027 4,677 3,670 2014 2015 2016+ E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore All Figures are IFRS 10 and 11 compliant. 9
Slide 10: Operational Update
Saipem 2. Operational Update ws, saipem
Slide 11: Update on Drilling
Update on Drilling Offshore Drilling fleet commitment CLIENT LOCATION Saipem 12000 Total Angola DEEP-WATER Saipem 10000 Eni Worldwide Scarabeo 9 Eni Angola Scarabeo 8 Eni North Sea Scarabeo 7 2 Year extension Eni Angola/Indonesia Scarabeo 6 Burullus Egypt Scarabeo 5 * *3 Months stand-by rate Statoil
Slide 12: Record E&C order intake on sound commercial terms…
Record E&C order intake on sound commercial terms… Shah Deniz Stage 2 – Caspian Area – Harsh & Remote Environment Client: BP (on behalf of Shah Deniz Consortium) Scope of work: T&I of jackets, topsides and subsea production systems and subsea structures; laying of over 360 km of pipelines; d
Slide 13: …as evidence of strong relationships and operational expertise
…as evidence of strong relationships and operational expertise Kaombo FPSOs – Angola - Floaters Client: Total Scope of work: EPCI of 2 converted turret-moored FPSOs 7-Years contract for operation and maintenance services Schedule: first FPSO unit operational by 1Q 2017 second FPSO un
Slide 14: Legacy Contracts
Saipem 3. Legacy Contracts ws, saipem
Slide 15: Ongoing execution of E&C legacy contracts
Ongoing execution of E&C legacy contracts E&C Backlog to be executed in 2014 and 2015 (bn €) 7.6 7.4 2.7 5.0 5.9 2.3 4.9 64% 2.7 54% 1.5 20% 2014 2014 2015 @ Dec. 31, 2013 @ June 30, 2014 @ June 30, 2014 Existing lower New contracts won margin contracts since 2013 All Figures are IFRS 10 and 11 comp
Slide 16: E&C legacy contracts: progress on negotiations
E&C legacy contracts: progress on negotiations 21 projects identified as critical in 2013: Commercial negotiations for 14 have now been satisfactorily resolved 90% of the pending revenues at the end of June, totaling €1.2bn, are accounted for by five contracts still under negotiation Expected
Slide 17: 2014 Guidance
Saipem 4. 2014 Guidance ws, saipem
Slide 18: Overview of 2014 Guidance
Overview of 2014 Guidance 2014 Guidance Updated (as at FY’13) 2014 Guidance Revenues: € 12.5 – 13.6 bn ~ € 13 bn EBIT: € 600 – 750 mn € 600 – 700 mn Net profit: € 280 – 380 mn € 280 – 330 mn Capex: ~ € 750 mn ~ € 750 mn Net Debt: ~ € 4.2 bn € 4.2 – 4.5 bn 18
Slide 19: Market Outlook
Saipem 5. Market Outlook ws, saipem
Slide 20: Market Outlook
Market Outlook E&P Spending Forecast (bn $) 1,000 2014 Global E&P spending to surpass 2014 vs 2013: +6.3% $700bn 800 5th consecutive year of annual worldwide 600 spending gains since 2009 400 Slight slowdown by Majors (-0,4% Y/Y) more than offset by National and 200 Independent 0 2014E 2015E 2
Slide 21: New business wins and opportunities
New business wins and opportunities Main E&C bids ongoing examples / Year-to-date update Central Asia / Europe: South Stream trunkline (First line and associated facilities for the four lines) Shah Deniz - fixed facilities/pipelines/IMR SCPX – pipeline Versalis EPDM – downstream Argo Cluster - SUR
Slide 22: Medium Term Guidance
6. Medium Term Guidance ws, saipem Saipem 22
Slide 23: Medium term targets – “normalised” business
Medium term targets – “normalised” business E&C Offshore Revenues: € 6.0 – 7.0 bn; EBIT %: mid teens Floaters EBIT %: high single digit E&C Onshore Revenues: € 3.5 – 4.5 bn; EBIT %: 5% Drilling Stable evolution of revenues and margins Capex for fleet upgrade & maintenance ~ € 750 mn Net Debt ~ € 2 b
Slide 24: 1H 2014 – further progress in year of transition
1H 2014 – further progress in year of transition Components for sustained recovery now in place Strong competitive position as integrated end-to-end contractor Range of market opportunities in H2 and beyond Risk levels reduced but task yet to be completed 24
Slide 25: Saipem
Saipem ws, saipem
Slide 26: Saipem Meetings with the Financial Community
Saipem Meetings with the Financial Community September 2014 MON TUE WED THU FRI SAT SUN 15 16 17 18 19 20 21 London London Morgan Stanley Morgan Stanley 1-1s 1-1s 22 23 24 25 26 27 28 29 30 October 2014 MON TUE WED THU FRI SAT SUN 1 2 3 4 5 Paris Natixis 1-1s 6 7 8 9 10 11 12