Saipem S.p.a. · MIL:SPM
Saipem — FY2012 Earnings Presentation
28 slides from Saipem's earnings presentation, March 2013
Slide 1: 2012 Consolidated Results and 2013 Outlook
Presentation to the Financial Community 2012 Consolidated Results and 2013 Outlook March 2013
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: mone
Slide 3: Presentation Outline
Presentation Outline 2012 Financial Results Backlog Analysis Net Debt and Working Capital evolution 2013 Guidance Looking Ahead 3
Slide 4: 2012 Financial Results
Saipem 2012 Financial Results ws, saipem
Slide 5: Q4 2012 Financial Results
Q4 2012 Financial Results Revenues EBITDA (Mln €) EBIT Net Profit % on Revenues 3,549 3,423 591 (16.7%) % on Revenues % on Revenues (7.6%) 509 (14.9%) 401 (11.3%) (2.7%) % on Revenues (32.0%) (30.8%) (7.0%) 318 (9.3%) 249 (2.2%) (54.4%) (51.5%) (13.4%) (13.9%) 180 (26.6%) (26.6%) (17.8%) (17.7%) (12
Slide 6: FY 2012 Preliminary Financial Results
FY 2012 Preliminary Financial Results Revenues EBITDA (Mln €) EBIT Net Profit % on 13,369 % on Revenues Revenues % on 12,593 2,207 (16.5%) Revenues % on 2,135 (17.0%) Revenues 1,493 (11.9%) 1,481 (11.1%) 428 (6.9%) 6175 518 (8.7%) 5945 483 (8.1%) 395 (6.4%) 921 902 238 (31.7%) 233 (31.5%) 103 (13.7%
Slide 7: FY 2012 Preliminary Financial Results: Capex and Net Debt
FY 2012 Preliminary Financial Results (Mln €) Sources and uses of funds, Capex Net Debt & D/E Ratio D/E = 0.66 D/E =0.77 4,278 1,199 59 122 1,015 3,192 84 2,714 122 509 284 1,376 1,628 323 509 525 1,015 2011 2012 Net Debt Uses Sources Net Debt @Dec. 2011 @ Dec. 2012 Offshore Onshore Outflows Inflows
Slide 8: Backlog Analysis
Saipem Backlog Analysis ws, saipem
Slide 9: FY 2012 Contract Acquisitions & Backlog
FY 2012 Contract Acquisitions & Backlog (Mln €) Contract Acquisitions Backlog 13,391 20,417 19,739 12,505 3,972 6,701 9,604 5,006 917 1,025 1,079 588 912 3,238 780 3,301 7,477 6,131 8,721 6,600 2011 2012 Dec., 31 ’11 Dec., 31 ’12 Offshore Offshore Drilling Onshore Onshore 9
Slide 10: Backlog Analysis
Backlog Analysis Saipem Backlog € 19.7 Bln @ Dec., 31 2012 by Client by Year of Execution 2013 Backlog split by Business Unit 1,127 4,710 4,706 400 Offshore Off. On. Onshore Drilling by Geo Area by Country – Local Content Focus 46% of present backlog in Countries where Saipem has a strong Local Cont
Slide 11: Net Debt and Working Capital evolution
Net Debt and Working Capital evolution 11
Slide 12: Net Debt in 2012
Net Debt in 2012 (Bln €) 4.3 3.2 1.6 Terms&Cond. 1.0 Claims Dividend Working Capital 1.4 Cash Capex Flow Net Debt Expected @ Dec 2011 Net Debt @ Dec 2012 Sources of Funds Applications of Funds 12
Slide 13: Net Debt in 2013E
Net Debt in 2013E (Bln €) 4.3 1.2 4.2 Dividend 0.5 Cash 0.3 Flow Capex Claims Terms&Cond. Working Capital 0.2 Expected Expected Net Debt Net Debt @ Dec 2012 @Dec 2013 Sources of Funds Applications of Funds 13
Slide 14: 2013 Guidance
Saipem 2013 Guidance ws, saipem
Slide 15: 2013 Guidance
2013 Guidance Revenues: ~ € 13.5 bln EBIT: ~ € 750 mln Net profit: ~ € 450 mln Capex: € 0.9 bln - € 1 bln 15
Slide 16: 2013 Drilling Outlook
2013 Drilling Outlook Positive and solid outlook for Drilling business based on the Saipem fleet’s long-term contractual commitment EBIT: 20% increase compared to 2012 In Offshore Drilling, revenues and margins are expected to increase thanks to: Full year contribution of new-built DW semisu
Slide 17: 2013 E&C Outlook
2013 E&C Outlook E&C EBIT reduction vs 2012 due to a combination of factors: A number of contracts with higher profitability have been completed in 2012 or are very close to completion The majority of contracts to be executed in 2013 are lower margin and this reflects the highly competitive mark
Slide 18: Comparison with FY2012 guidance for E&C
Comparison with FY2012 guidance for E&C (Bln €) E&C 2012 E&C 2013E Revenues Sales Margin Revenues Sales Margin 11.5 11.4 1.57 2.0 4.5 0.72 9.4 6.9 Sales Margin 1.57 Sales Margin 0.72 ‘Structure’ Cost (0.48) ‘Structure’ Cost (0.48) EBIT 1.09 EBIT 0.24 Contracts completed in 2012 or close to New expec
Slide 19: Evolution of portfolio mix in E&C
Evolution of portfolio mix in E&C E&C 2012 E&C 2013E E&C 2014E 20% Contracts completed 40% 65% New contracts 80% Existing lower 60% margin contracts 35% Higher proportion Management projects a of lower margin balanced profitability contracts mix of new contracts Previously expected new contrac
Slide 20: Existing E&C lower margin projects are phasing out
Existing E&C lower margin projects are phasing out Onshore Offshore 20
Slide 21: Looking Ahead
Saipem Looking Ahead ws, saipem
Slide 22: Operational review
Operational review The new management team has commenced a comprehensive operational review of the entire business The objective is to quickly ensure an operating structure to deliver: improved execution to capture project upsides • closeness to clients across all project phases • responsibili
Slide 23: Market Opportunities
Market Opportunities E&P Spending Forecast* $ Bln Global E&P spending is set to further increase in 2013 by 7%* versus 2012 supporting ongoing opportunities for the Oil Services industry * Source: Barclays Research, Global 2013 E&P Spending Outlook, December 2012 Over 50% of giant discoveries to
Slide 24: Large number of identified E&C Offshore opportunities - examples
Large number of identified E&C Offshore opportunities - examples SURF/Subsea Floaters Bonga (Nigeria) Burullus 9B (Egypt) Gendalo-Gehem FPU 2 units Carioca (Brazil) (Indonesia) Egina (Nigeria) Kaombo (Block 32) FPSO (Angola) Jangkrik (Indonesia) Masela FLNG (Indonesia) Kaombo - Blo
Slide 25: Large number of identified E&C Onshore opportunities - examples
Large number of identified E&C Onshore opportunities - examples LNG Onshore Upstream Onshore Pipelines Browse LNG (Australia) Dgs ffd (Iraq) Arrow Pipeline (Australia) Kitimat LNG (Canada) Eastern Urengoy Gas PF Explotación Sulfuros Mozambique LNG Plant (Russia) Radomiro Tomic – Ph. II
Slide 26: Drivers for recovery
Drivers for recovery Strengthening of the Oil&Gas market and growing number of opportunities Increased focus on new contracts from a profitability rather than revenue point of view Expected positive impact from the operational review Saipem strong competitive position for attractive E&C bidd
Slide 27: Saipem Meetings - February 2013
Saipem Meetings - February 2013 Mon Tue Wed Thu Fri Sat Sun 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 London London Barclays Barclays 1:1s 1:1s (UV, HOD, SG, SC) (UV, HOD, SG, SC) 25 26 27 28
Slide 28: Saipem Meetings - March 2013
Saipem Meetings - March 2013 lun mar mer gio ven sab dom 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Milan Equita 1-1s 18 19 20 21 22 23 24 Paris (afternoon) Paris (afternoon) London Citi Citi UBS Conference 1-1s 1-1s Presentation, 1-1s 25 26 27 28 29 30 31 NY NY Boston Mediobanca Mediobanca Morgan St