Eni S.p.a. · MIL:ENI
Eni — Investor Day (March 2024)
42 slides from Eni's investor day presentation, Mar 14, 2024
Slide 1: Capital Markets Update, 14 March 2024
eni ®& CAPITAL MARKETS UPDATE 14 MARCH 2024
Slide 2: Well positioned to embrace the transition
WELL POSITIONED TO EMBRACE THE TRANSITION POLICIES INCREASINGLY ALIGNED WITH OUR STRATEGIC APPROACH GROWING GAS COMPONENT IN TRANSITIONAL FUELS FACILITATING THE PRODUCTION AND CUTTING ENERGY TRANSITION AND ENSURING SCOPE 1&2 EMISSIONS ENERGY SECURITY MATERIAL, HIGH GROWTH RENEWABLES BUSINESS WITH TR
Slide 3: Our value chain of the future
OUR VALUE CHAIN OF THE FUTURE CREATING A TRANSITION-ORIENTED PORTFOLIO THAT OFFERS GROWTH AND RETURNS UPSTREAM GGP PLENITUDE ENILIVE CCUS BIOCHEMISTRY Increasing gas Growing Growing renewables Growing biorefining Growing position with Growing production commercialising gas capacity, retail capacity
Slide 4: Satellite model
SATELLITE MODEL SOLVING CAPITAL NEEDS, ADDING VALUE BIOCHEMISTRY PLENITUDE ENILIVE OPERATING AND FINANCIAL SYNERGIES UNLOCKING AND CONFIRMING VALUE FOCUSSED MANAGEMENT ACCESSING ALIGNED CAPITAL GROUP SKILLS AND RESOURCES FUNDING FURTHER GROWTH CCUS VÅR AZULE ENERGI ENERGY 4
Slide 5: Natural Resources
NATURAL RESOURCES
Slide 6: Natural Resources key points
NATURAL RESOURCES DISTINCTIVE DUAL KEY POINTS EXPLORATION MODEL AND FAST-TRACK EXPLORATION DEVELOPMENTS LEADING VALUE IN THE SECTOR, FOCUSSED ON NEAR-FIELD AND ILX STRATEGY EFFICIENCY AND VALUE CREATION UPSTREAM EFFICIENT PORTFOLIO FOCUSSED ON TIME TO M&A FOR RESOURCES MARKET AND PHASED DEVELOPMENTS
Slide 7: Exploration
EXPLORATION THE ENGINE OF UPSTREAM COMPETITIVE ADVANTAGE LEADING VALUE CREATION DISCOVERED RESOURCES I MBOE IN EXPLORATION >16 BBOE EQUITY RESOURCES 900 820 700 750 DISCOVERED IN THE LAST 15 400 YEARS WITH 1.2 $/BOE UEC 2019 2020 2021 2022 2023 NCS & NORTH SEA IN THE LAST 10 YEARS: SIRTE BASIN PRODU
Slide 8: Upstream: delivering growth and value
UPSTREAM DELIVERING GROWTH AND VALUE UPSTREAM OUTLOOK NEW MAIN STARTUPS ROBUST ARRAY OF ADVANTAGED OPPORTUNITIES UPSTREAM PRODUCTION 3-4% UNDERLYING Mboed CAGR (2023-2027) COUNTRY TYPE PROJECT DISCIPLINED AND SELECTIVE CAPEX 2% REPORTED* ANGOLA LIQUIDS AGOGO BREAKEVEN $25/BBL 1.69-1.71 ANGOLA GAS NG
Slide 9: GGP: delivering on portfolio reload
GGP DELIVERING ON PORTFOLIO RELOAD GAS SOURCES LEVERAGING VALUE CHAIN NORWAY INTEGRATION 2022 2023 2027 NETHERLANDS ITALY PIPE 85% 81% 70% LIBYA LNG 15% 19% 30% BUILDING UP A DIVERSIFIED UK LNG PORTFOLIO CENTRED ON EQUITY DEVELOPMENTS EGYPT ALGERIA LNG EVOLUTION CONTRACTED VOLUMES I MTPA ADDITIONAL
Slide 10: CCS: emerging energy transition lever
CCS EMERGING ENERGY TRANSITION LEVER DISTINCTIVE AND INTEGRATED PROJECT HIGHLIGHT BUSINESS MODEL HARD TO ABATE RAVENNA CCS - ITALY UPSTREAM OPERATORSHIP IN COST 2024 START UP COMPETITIVE ASSETS AUSTRALIA ~20% OF SOUTHERN & WESTERN TRUDVANG I VÅR ENERGI EUROPEAN CCS CAPACITY1 VISIBLE PIPELINE Gross S
Slide 11: Energy Evolution
ATUL Wh oe RARAANNNNS NS
Slide 12: Energy Evolution key points
ENERGY EVOLUTION KEY POINTS ENILIVE A PORTFOLIO OF BUSINESS MULTI-ENERGY, MULTI-SERVICE STRATEGY SOLUTIONS ADDRESSING GLOBAL LEADER IN BIOREFINING CUSTOMER NEEDS TO CUT EMISSIONS VERSALIS RESTRUCTURING AND TRANSFORMING DEVELOPING NEW NEW PLATFORMS FOR SPECIALISED PRODUCTS, BUSINESSES FOR BIOCHEMISTR
Slide 13: Enilive: Biorefining
ENILIVE: BIOREFINING GROWING A WORLD-CLASS BIOREFINING PLAYER OPTIMISED CAPEX & SCHEDULE EXPANDING CAPACITY UNIQUE ADVANTAGED PRODUCT FOR CAPACITY AND SAF FEEDSTOCK STRATEGY DIVERSIFICATION OPTIONALITY GROWTH Strengthening Europe Expanding Far East Secure agri-feedstock access Accelerating SAF optio
Slide 14: Enilive: Marketing
ENILIVE: MARKETING FROM SERVICE STATIONS TO MOBILITY PLATFORMS NETWORK EXPANSION ALTERNATIVE ENERGY CARRIERS & HIGH-GRADING PREMIUM NETWORK +300 owned HYDROGENATED VEGETABLE OIL (HVO) INCREASED OFFER OF SERVICES stations in Italy & abroad in 4YP 100% PURE in >1.000 stations in 2024 IN ENILIVE STATIO
Slide 15: Enilive: Financials
ENILIVE: FINANCIALS ATTRACTIVE GROWTH WITH WELL-CONTROLLED COST PROFILE STRONG EBITDA INCREASE IN THE 4YP MARKETING EBITDA PRO-FORMA EBITDA ADJ | BLN € ORGANIC CAPEX | BLN € PROVIDING STEADY CONTRIBUTION 0.5 BIOREFINING EBITDA UNDERPINNED BY CAPACITY >1.6 GROWTH & THROUGHPUT INCREASE 35% 1.2 40% CAP
Slide 16: Versalis
VERSALIS LONG TERM VALUE THROUGH RESTRUCTURING & NEW PLATFORMS RESTRUCTURING BASE CHEMICALS PERIMETER REDUCTION & EBITDA BREAKEVEN HIGH CAPITAL INTENSITY SITE RECONFIGURATION IN 2025 HIGH SCALE CIRCULARITY INVESTMENTS HIGH MARGIN VOLATILITY THROUGH COMPLEMENTARY EBIT POSITIVE SOLUTIONS IN 2026 FCF B
Slide 17: Plenitude: growth along the plan
PLENITUDE GROWTH ALONG THE PLAN INTEGRATION TO HEDGE MARGINS AND CAPTURE OPPORTUNITIES RENEWABLES RETAIL E-MOBILITY >20GW PIPELINE TO FUEL ORGANIC & SELECTIVE GROWTH IN RENEWABLES >8 GW INSTALLED 11.5 MLN CUSTOMERS 40K PUBLIC CPs ENERGY SOLUTIONS & DISTRIBUTED GENERATION in 2027 (~3x vs 2023) in 202
Slide 18: Plenitude: material value creation
PLENITUDE MATERIAL VALUE CREATION IN THE TRANSITION 2024 OPERATING TARGET AVERAGE ROACE ~10% GLOBAL PRESENCE IN THE MEDIUM TERM EMPLOYEES: >2.5k & COUNTRIES: >15 RENEWABLES PRO-FORMA EBITDA (€ BLN) 4 GW CAPACITY 2.0 SOLAR & WIND RETAIL 10 MLN CUSTOMERS 0.9 1.0 ENERGY & SOLUTIONS E-MOBILITY 24K PUBLI
Slide 19: Financials
FINANCIALS 19
Slide 20: Earnings and cashflow delivery
EARNINGS AND CASHFLOW DELIVERY GROWING RETURNS AND CASHFLOWS EBIT PRO-FORMA IMPROVING CAPITAL ~€13 BLN IN 2024 2027 VS 2024: AROUND +25% ~€60 BLN OVER THE PLAN PRODUCTIVITY CFFO ADJUSTED PER SHARE FCF 2024-27 +10$ BRENT/B CFFO GROWTH DELIVERED FROM UPSIDE ALL SEGMENTS >13% CAGR 2024-2027 AT CONSTANT
Slide 21: Consistent investment drives growth
CONSISTENT INVESTMENT DRIVES GROWTH CAPEX DISCIPLINE LEAVES ROOM FOR HIGH DIVESTMENT INCOME 2024-27 NET CAPEX € 27 BLN 2024-27 CAPEX SPLITTING OTHER 37 35 OIL 10% GAS&LNG & NET ZERO FIELDS NET CAPEX >20% LOWER THAN 21% 39% PREVIOUS PLAN 27 CAPEX FLEXIBILITY 30% 50% CAPEX UNCOMMITTED AVG 2025-2027 LO
Slide 22: Shareholder distribution
SHAREHOLDER DISTRIBUTION ENHANCED DISTRIBUTION RAISING SHARE OF CFFO DISTRIBUTED CFFO BASED BUSINESS ~30-35% OF CFFO DISTRIBUTED VIA DIVIDENDS AND BUYBACK FROM 25-30% PREVIOUSLY PERFORMANCE DRIVEN HIGH VISIBILITY RAISING DIVIDEND RISING DIVIDEND €1.00 DPS 2024: 6% INCREASE VS 2023, DISTRIBUTED QUART
Slide 23: Strong capital structure
STRONG CAPITAL STRUCTURE MAINTAINING INVESTMENT-GRADE RATED BALANCE SHEET HISTORICALLY LOW LEVERAGE LEVEL | % MAINTAINING BALANCE SHEET 40 STRENGTH AND FLEXIBILITY 35 15-25% 30 RANGE GOOD RETURNS ON LIQUIDITY 25 ~4 P.P. LEADING TO A LOW COST OF DEBT 20 15 10 EX-PLENITUDE LEVERAGE ~5 P.P. LOWER THAN
Slide 24: Financials: growing returns and cashflows
FINANCIALS GROWING RETURNS AND CASHFLOWS STRONG CASHFLOW ENABLING GROWING CFFO BY >13% CAGR* FINANCIAL EXECUTION STRENGTH CAPITAL DISCIPLINE NET CAPEX >20% LOWER THAN PREVIOUS PLAN DELIVERING COMPETITIVE RETURNS BALANCE SHEET TO OUR INVESTORS A CONSERVATIVE CAPITAL STRUCTURE WITH ADVANTAGED COST OF
Slide 25: Concluding remarks: Natural Resources overview
Natural Resources - Overview Key Points: • Natural Resources activities to remain core to Eni’s strategy • CONCLUDING Expanding value chains in gas, LNG, Trading and CCS while growing production over the 4YP • depth of opportunity REMARKS Active portfolio management to derisk investments and increas
Slide 26: Concluding remarks
CONCLUDING REMARKS ADDRESSING THE TRILEMMA TRANSFORMING THE COMPANY A DISTINCTIVE STRATEGY WITH FOCUSSED ORGANIC INVESTMENT AND LEADING CASHFLOW GROWTH EXCEPTIONAL DEPTH OF OPPORTUNITIES ALLOWS US TO ADVANCE VALUE THROUGH PORTFOLIO NATURAL RESOURCES ACTIONS CAPTURING VALUE THROUGH LEADING EXPLORATIO
Slide 27: Back up
BACK UP
Slide 28: Guidance and plan targets
GUIDANCE AND PLAN TARGETS 2024 GUIDANCE 2024-2027 PLAN 3-4% UNDERLYING PRODUCTION 1.69-1.71 MBOED 2% REPORTED GGP PRO-FORMA EBIT € 0.8 BLN ~ €0.8 BLN AVG ENILIVE PRO-FORMA EBITDA ~ € 1.0 BLN > €1.6 BLN IN 2027 PLENITUDE PRO-FORMA EBITDA € 1.0 BLN €2.0 BLN IN 2027 GROUP PRO-FORMA EBIT ~ € 13 BLN ~€60
Slide 29: Scenario assumptions
SCENARIO ASSUMPTIONS 4YP SCENARIO 2024 2025 2026 2027 Brent dated ($/bbl) 80 80 80 80 FX avg ($/€) 1.08 1.09 1.10 1.12 Ural MED c.i.f. - Med Dated Strip ($/bbl) -10 -10 -9 -8 Std. Eni Refining Margin ($/bbl) 8.1 6.3 3.5 3.5 PSV (€/MWh) 30.7 36.0 38.0 36.3 NBP ($/mmbtu) 9.2 11.0 12.1 11.7 EBIT adj Ne
Slide 30: Summary of main business targets
SUMMARY OF MAIN BUSINESS TARGETS 2024 2026 2027 2030 2035 2040 2050 CUSTOMER 10 >11 >15 >20 RETAIL BASE MLN POD a INSTALLED 4 >8 >15 >30 60 RENEWABLES CAPACITY GW a b EV CHARGING POINTS k a 24 40 ~50 ~160 CAPACITY BIO REFINING MLN TON/Y >3 >5 NATURAL GAS OIL & GAS PRODUCTION >60 >90 % ON PORTFOLIO c
Slide 31: Summary of main decarbonization targets
SUMMARY OF MAIN DECARBONIZATION TARGETS 2024 2025 2030 2035 2040 2050 GHG EMISSIONS UPS NET ENI NET NET ZERO CARBON FOOTPRINT SCOPE 1+2 VS 2018 a UPS -50% UPS -65% ZERO ZERO NET GHG LIFECYCLE EMISSIONS SCOPE 1+2+3 VS 2018 a -35% -55% -80% NET ZERO NET CARBON INTENSITY SCOPE 1+2+3 VS 2018 a -15% -50%
Slide 32: Transparency leads to top ranked ESG ratings
TRANSPARENCY LEADS TO TOP RANKED ESG RATINGS LEADING THE PEER GROUP ON ENVIRONMENT MOODY’S LIMITED ADVANCED * ESG SOLUTIONS WEAK ADVANCED 2023 A AA MSCI ESG CCC AAA 2023 HIGH MEDIUM SUSTAINALYTICS SEVERE NEGLIGIBLE ESG RISK RATING 2023 RISK RISK C B- ** ISS ESG D- A+ 2021-23 CDP CLIMATE B- A- CHANGE
Slide 33: Outlook to 2030
OUTLOOK TO 2030 A BIGGER, MORE RELEVANT AND SUSTAINABLE ENI TARGETING HIGHEST CASHFLOW GROWTH AMONGST EU SECTOR UPSTREAM GGP CCS BIOENERGY RENEWABLES FINANCIALS Production LNG Contracted CO2 Transport Biorefining Capacity Installed Capacity CFFO | €BLN Mboed MTPA & Storage MTPA GW MTPA Gross capacit
Slide 34: Upstream key start-ups in the plan
UPSTREAM KEY START-UPS IN THE PLAN PRODUCTION COUNTRY PROJECT OPERATOR W.I. PRODUCTS FID START UP (KBOED)A ANGOLA 2023 Early Prod Agogo West Hub Integrated N 18% Liquids 2022 180 (100%) 2026 (FPSO) (Azule Energy) NGC Quiluma & Mabuqueiro N 19% Gas 2021 2026 100 (100%) 2023 Nearshore ph. CONGO Congo
Slide 35: Upstream projects overview
UPSTREAM PROJECTS OVERVIEW NORWAY BALDER X JOHAN CASTBERG KAZAKHSTAN GAS STRATEGY ITALY CASSIOPEA QATAR CYPRUS NFE LIBYA BLOCK 6 A&E STRUCTURE UAE BOURI GUP DALMA GAS HAIL & GHASHA IVORY COAST INDONESIA BALEINE PH.2 SOUTHERN HUB BALEINE PH.3 (MERAKES EAST, MAHA,, GENDALO GANDANG) EGYPT NORTHERN HUB
Slide 36: Gas/LNG global balance outlook
GAS/LNG GLOBAL BALANCE OUTLOOK 350 YOY TRENDS 2024 VS 2023 300 250 200 150 BULLISH FACTORS BEARISH FACTORS €/MWh 100 SHORTER MARKET LONGER MARKET 50 0 PRICE/VOLATILITY UP PRICE/VOLATILITY DOWN Jan/21 Jan/22 Jan/23 Jan/24 Jan/25 Jan/26 TTF spot TTF fwd Mar24 TTF fwd dec22 ASIAN DEMAND RECOVERY: SLIGH
Slide 37: CCS: rapidly growing business
CCS RAPIDLY GROWING BUSINESS GROSS STORAGE CAPACITY ~3.0 GIGATONS KEY PROJECTS PIPELINE Gross Storage Capacity ATTRACTIVE AND BROAD ITALY – RAVENNA CCS PORTFOLIO OF STRATEGIC T&S MEDITERRANEAN SEA NORTH SEA 2024 START UP PROJECTS ASIA PACIFIC PRE 2030s 4 MTPA OPERATORSHIP POST 2030s 16 MTPA NEPTUNE
Slide 38: Biorefining key projects
BIOREFINING KEY PROJECTS COUNTRY PROJECT W.I. START UP CAPACITY STATUS ADDITIONAL NOTES Production capacity increase 2025 from 360 to 600 kton/y ITALY 100% 600 kton/y Firm - (VENICE) Enhanced flexibility to allow Ph1 in 2023 other biomass processing (incl. Ph2 in 2026-27 low bio ILUC) Product mix en
Slide 39: Plenitude key projects
PLENITUDE KEY PROJECTS SOLAR ONSHORE OFFSHORE B STORAGE PV WIND WIND WORKING EQUITY INSTALLED YEARLY COUNTRY PROJECT TECHNOLOGY COMPLETION INTEREST CAPACITY (MW) PRODUCTION (GWh) Caparacena, Guillena, SPAIN 100% 1.020 2024-2025 2.080 Villarino, La Flota & Renopool USA Brazoria 100% 263 2022 450 USA
Slide 40: Plenitude: Renewables
PLENITUDE: RENEWABLES EBITDA (€ BLN) CAPEX (€ BLN) 4Y: >€2 BLN 1.8 >0.8 STRATEGIC DRIVERS 1.0 >0.2 GEOGRAPHICAL DIVERSIFICATION 0.2 IN OECD COUNTRIES 2023 2024 2027 2023 AVG 24-27 ORGANIC DEVELOPMENT & SELECTIVE GROWTH TECHNOLOGY MIX PIPELINE RETAIL AS ROUTE TO MARKET HIGH/ MEDIUM MATURITY OPPORTUNI
Slide 41: Plenitude: Retail
PLENITUDE: RETAIL EBITDA (€ BLN) CAPEX (€ BLN) 4Y: >€3 BLN >0.8 0.3 0.25 0.7 >0.7 STRATEGIC DRIVERS GROWING IN POWER 2023 2024 2027 2023 AVG 24-27 INCREASING RES INTEGRATION ENERGY MIX EBITDA FROM SOLUTIONS ENERGY SOLUTIONS & DISTRIBUTED GENERATION 20% avg on 23-27 EBITDA retail POWER GAS INTERNATIO
Slide 42: Plenitude: E-Mobility
PLENITUDE: E-MOBILITY REVENUES (€ BLN) CAPEX (€ BLN) 4Y: >3 BLN 1.5 0.15 0.12 STRATEGIC DRIVERS ITALY: 0.3 0.03 EXPANDING THE CAPILLARY NETWORK 2023 2024 2027 2023 AVG 24-27 EU: FOCUS ON ULTRA FAST CPS INSTALLED MIX PIPELINE (CPs) SYNERGIES WITH RETAIL LEVERAGING ENILIVE STATIONS AC 40k DC REST OF I