Eni S.p.a. · MIL:ENI

Eni — Debt Investor Presentation (November 2017)

23 slides from Eni's debt investor presentation, Nov 28, 2017

  1. Slide 1: Fixed Income Investor Update

    Fixed Income Investor Update 27-28 November, 2017

  2. Slide 2: Disclaimer

    Disclaimer THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER OF SECURITIES IN THE UNITED STATES OR ANY OTHER JURISDICTION. SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION OR AN EXEMPTION

  3. Slide 3: Eni at a glance, Business overview, Financial profile

     Eni at a glance  Business overview  Financial profile 3

  4. Slide 4: Eni company overview: 64 years of history

    Eni company overview: 64 years of history  Integrated energy company present in 73 countries (2) with more than 33k employees  3.4bln boe of discovered resources 2014-2016  Listed on the Milan & New York stock exchanges with a Market cap of €50bln(1)  2016 CFFO of €8.3bln (€6.8bln 9M 17)  Avera

  5. Slide 5: Eni at a glance: business segments and main financial figures

    Eni at a glance Exploration & Production Main financial figures 2016 highlights € Bln 3Q 17 2016 3Q2017 9M 17 € 8.2 bln Net Sales 55.8 49.4 Upstream capex Adj Operating Profit 2.3 3.8 Focused on finding and 1.76 Mboe/d of which E&P 2.5 3.3 of production G&P (0.4) (0.0) producing oil and gas. 7.5 bln

  6. Slide 6: Business overview

     Eni at a glance  Business overview  Financial profile 6

  7. Slide 7: Health Safety Environment performance

    Health Safety Environment 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

  8. Slide 8: Upstream business overview

    Upstream business overview EBIT adj| € bln Oil & Gas Production 5000 4.2 2.5 3.3 75 Production | Kboed Production by Region (2016) 4750 4500 65 # countries: 24 4250 4000 52.5 51.9 3750 55 1,760 1,759 1,790 Australia and Italy 3500 43.7 Oceania 8% 3250 1% Rest of Europe 3000 45 12% 2750 2500 35 Ameri

  9. Slide 9: 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

  10. Slide 10: Exploration successes fueling future production

    Exploration successes fueling future production Cumulative discovered resources 2014-2016| bln boe 2016 RRR | % 4 200 193* 3.4 180 3 2016 160 30% Short cycles P2/P3 + assets 140 50% contingent 120 2 2015 100 70% 80 Disposed/ 70% Long life 25% under production 60 1 disposal assets 35 40 2014 FID/ 25%

  11. Slide 11: 2017 start ups ahead of schedule

    2017 start ups ahead of schedule EAST HUB JANGKRIK OCTP ZOHR Angola Indonesia Ghana Egypt (WI: 37%) (WI: 55%) (WI: 44%) (WI: 60%) Execution Time 22 months IN PRODUCTION IN PRODUCTION IN PRODUCTION 8 February 2017 15 May 2017 20 May 2017 Start FID FID 90+% up Execution Time 39 months Execution Time 4

  12. Slide 12: Net result: operational efficiency

    Net result: operational efficiency Opex | $/boe 3-yr F&D | $/boe 16 160 Peers Peers 140 14 120 12 100 10 80 60 8 40 6 20 4 0 2012 2013 2014 2015 2016 2012-14 2013-15 2014-16 Peers: BP, Chevron, Conoco Phillips, Exxon, Shell, Total Peers: BP, Chevron, Conoco Phillips, Exxon, Shell, Statoil, Total (St

  13. Slide 13: Increased upstream capital efficiency

    Increased upstream capital efficiency E&P Capex* vs production € bln kboed 1900 10 1800 8 1700 6 1600 4 1500 2013 2016 9M 2017 Capex Production 13 * Before disposal

  14. Slide 14: Mid-downstream business overview

    Mid-downstream business overview EBIT adj| € mln 569 193 877 Mid-downstream R&M 9M 2017 CFFO Chemicals € 1.2 billion G&P 2015 2016 9M 2017 14

  15. Slide 15: Integrated strategy across businesses

    Integrated strategy across businesses  E&P - An ongoing success  Profitable organic growth - New projects breakeven around $30/bbl  Dual exploration model generates additional organic CF through early monetization of our discoveries  Integrated development model: cost optimization and exceptiona

  16. Slide 16: Financial profile

     Eni at a glance  Business overview  Financial profile 16

  17. Slide 17: Financial objectives

    Financial objectives  Keeping a solid financial structure through:  Solid level of liquidity and unused long-term committed facilities  Well-balanced debt maturity profile  Lengthening medium/long term debt average maturity  Limited exposure to interest rate risk  Funding diversification:  Ac

  18. Slide 18: Net debt to equity

    Robust financial position Mln € 3Q 17 Leverage Total debt 27,508 0,40 0.40 ST Debt 7,108 LT Debt 20,400 0,30 0.30 Liquidity 12,543 Net debt to equity Cash and cash equivalents 5,863 Securities held for trading and other 6,365 0,20 0.20 Fin. Receiv. for non oper. purposes 315 0.32 0.29 0.28 Net borro

  19. Slide 19: Eni credit ratings vs comparables

    Eni credit ratings vs comparables A+ S&P Moody’s A A- Long Term BBB+ Baa1 S&P BBB+ Short Term A-2 P-2 BBB Outlook Stable Stable BBB- Baa3 Baa2 Baa1 A3 A2 A1 Aa3 Moody’s 19

  20. Slide 20: Debt strategy

    Debt strategy Key elements: € mln Historic bond issues activity - as of today  Bond issues at corporate level 5,000 5.000  Strong credit rating: Baa1 (Stable) / BBB+ (Stable) 4,000 4.000  ̴ € 6 bln committed credit facilities* 3,000 3.000  Long term funding raised at attractive conditions 2,000

  21. Slide 21: Maturity profile – limited financial risk

    Maturity profile – limited financial risk € mln Bonds maturity profile 4,000 4.000 € 2.7 bln 3.500 3,500 26% € 4.4 bln 3.000 3,000 2.500 2,500 € 20.4 bln ̴ 75% of the total debt is 2,000 2.000 74% made up of 1.500 1,500 bonds 1.000 1,000 500 3Q 2017 0 ST Debt 2018 2019 2020 2021 2022 2023 2024 2025

  22. Slide 22: Strong liquidity position

    Strong liquidity position Key elements: € mln Short term debt vs liquidity sources 21,000 21 000  Sound level of liquidity and unused committed facilities 18,000 18 000  Liquidity sources provide a 15 000 15,000 coverage of 2-3 times the short 12 000 12,000 term debt 99,000 000  In order to minim

  23. Slide 23: $60/bbl 9M cash neutrality

    Cash balance 9M cash balance| € bln One off Val d’Agri -0.2 Despite an all cash dividend 6.8 5.7 $60/bbl 9M cash neutrality CFFO = capex + prorated cash dividend CFFO CAPEX Brent $52/bbl CFFO pre working capital at replacement cost and adjusted for one-off fiscal claim Capex adjusted for disposal 23

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