Saipem S.p.a. · MIL:SPM

Saipem — Q1 2018 Earnings Presentation

28 slides from Saipem's earnings presentation, Apr 24, 2018

  1. Slide 1: 1Q 2018 Results Presentation

    1Q 2018 RESULTS PRESENTATION 24 April 2018

  2. Slide 2: Forward-Looking Statements

    FORWARD-LOOKING STATEMENTS Forward-looking statements contained in this presentation regrading future events and future results are based on current expectations, estimates, forecasts and projections about the industries in which Saipem S.p.A. (the “Company”) operates, as well as the beliefs and ass

  3. Slide 3: Today's Presentation

    TODAY’S PRESENTATION 1 OPENING REMARKS 2 1Q 2018 RESULTS 3 BUSINESS UPDATE 4 CLOSING REMARKS AND 2018 GUIDANCE UPDATE 3

  4. Slide 4: Opening Remarks

    OPENING REMARKS 1Q 2018 overall profitability resilient, despite declining volumes  Healthy margin in Offshore E&C and Drilling  E&C Onshore margin on track  Efficiency initiatives supportive of Drilling Onshore Positive net cash generation during quarter, despite settlement in Algeria Backlog at

  5. Slide 5: 1Q 2018 Results

    ™=y SAIPEM ENGINEERING c= ENERGY 1Q 2018 RESULTS

  6. Slide 6: 1Q 2018 Results – YoY Comparison

    1Q 2018 RESULTS YoY COMPARISON (€ mn) Revenues Adjusted EBITDA Adjusted Net Result 11.3% margin 11.2% 2,263 1,915 256 214 54 11 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 6

  7. Slide 7: 1Q 2018 Results – E&C

    1Q 2018 RESULTS – E&C YoY COMPARISON (€ mn) E&C OFFSHORE E&C ONSHORE* Revenues Adj. EBITDA Revenues Adj. EBITDA 10.8% margin 12.8% 1,002 4.4% margin 3.0% 975 878 803 105 103 44 26 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 • Middle East partially offsetting lower activity • Lower activity in Middle Eas

  8. Slide 8: 1Q 2018 Results – Drilling

    1Q 2018 RESULTS – Drilling YoY COMPARISON (€ mn) DRILLING OFFSHORE DRILLING ONSHORE Revenues Adj. EBITDA Revenues Adj. EBITDA 46.9% margin 45.7% 25.0% margin 27.1% 162 124 118 76 116 53 31 32 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 • Declining revenues due to higher idleness • Cost saving and higher

  9. Slide 9: 1Q 2018 Net Debt Evolution

    1Q 2018 NET DEBT EVOLUTION (€ bn) Good Cash Flow generation positively impacting Net Debt 1.30 (0.13) 0.03 0.00 1.20 Net Debt Adj. Cash Flow Capex Δ Working Net Debt @Dec. 31, 2017 (Adj. N.P.+ D&A) Capital and @Mar. 31, 2018 Others* (*) Includes payment of Algeria settlement 9

  10. Slide 10: Capital Structure as of March 31, 2018

    CAPITAL STRUCTURE AS OF MARCH 31, 2018 (€ mn) Debt maturity profile Bonds ECA Facilities Bank Facilities Other Debt 3,047 286 Undrawn ECA* Facilities (GIEK and Atradius) 1,500 Undrawn RCF* 600 585 560 576 25 25 Available Cash 439 76 1,261 75 60 60 and equiv.** 139 85 375 75 500 500 500 60 500 62 23

  11. Slide 11: Business Update

    ™=y SAIPEM ENGINEERING c= ENERGY BUSINESS UPDATE

  12. Slide 12: New E&C Offshore Asset: Saipem Constellation 1/3

    NEW E&C OFFSHORE ASSET: SAIPEM CONSTELLATION 1/3 RIGID REEL-LAY AND SUBSEA DEVELOPMENT VESSEL  Immediate access to Reel-Lay solutions with latest generation vessel (built 2013)  Multipurpose “one stop shop”:  800mT tension, for the deepest waters  3000mT mast crane  Subsea installation  Less s

  13. Slide 13: New E&C Offshore Asset: Saipem Constellation 2/3

    NEW E&C OFFSHORE ASSET: SAIPEM CONSTELLATION 2/3 COMPLEMENTING THE RANGE OF SUBSEA DEVELOPMENT SOLUTIONS  S-Lay NEW SEGMENT: SUBSEA TIE BACK PROJECTS CASTORONE ACCESS TO BROADER RANGE OF INTEGRATED SUBSEA PROJECTS (SPS + SURF) J-Lay MULTIPURPOSE VESSEL FOR GREENFIELD PROJECTS EXTENDING FDS/FDS 2 F

  14. Slide 14: New E&C Offshore Asset: Saipem Constellation 3/3

    NEW E&C OFFSHORE ASSET: SAIPEM CONSTELLATION 3/3 ACCESSIBLE MARKET GOM North Sea COUNTRIES: POTENTIAL CLIENTS: COUNTRIES: POTENTIAL CLIENTS:  USA  Anadarko  Norway  BP  BHP Billiton  UK  Statoil  Mexico  BP  Chevron  Chevron  Lundin  LLOG  OMV  Pemex West Africa COUNTRIES: POTENTIAL C

  15. Slide 15: Main Awards 2018

    MAIN AWARDS 2018 E&C ONSHORE DUQM Refinery Package 3  Client: Duqm Refinery and Petrochemical Industries Company  Location: Oman  Scope of work: EPC works for a new grassroots Crude Tank Farm at Ras Markaz composed by 8 crude oil tanks with a cumulative volume of 824,000 m3 E&C OFFSHORE ConocoPhi

  16. Slide 16: 1Q 2018 Backlog

    1Q 2018 BACKLOG (€ mn) 12,392 1,915 855 1,023 11,500 878 947 803 778 758 856 5,946 5,846 4,644 4,040 Backlog 1Q18 1Q18 Contracts Backlog @Dec. 31, 2017 Revenues Acquisition @Mar. 31, 2018 E&C Offshore E&C Onshore* Drilling Offshore Drilling Onshore 16 (*) E&C Onshore including Floaters business and

  17. Slide 17: 1Q 2018 Backlog by Year of Execution

    1Q 2018 BACKLOG BY YEAR OF EXECUTION (€ mn) 4,799 319 304 3,380 3,321 2,037 299 140 227 325 1,795 2,014 2,139 1,059 842 2018 2019 2020+ E&C Offshore E&C Onshore* Drilling Offshore Drilling Onshore 17 (*) E&C Onshore including Floaters business and XSight

  18. Slide 18: Offshore Drilling Fleet Contracts

    OFFSHORE DRILLING FLEET CONTRACTS Operative New Contracts awarded year-to-date Optional period Preparation for Mozambique 2018 2019 2020 CLIENT AREA Cyprus-Maroc- DEEP-WATER and Saipem 12000 TO 2022> Eni Portugal-Mozamb. HARSH ENV. Saipem 10000 ULTRA Eni Egypt Scarabeo 9 JV Eni-Partner Black Sea Sca

  19. Slide 19: Update on Onshore Drilling Fleet

    UPDATE ON ONSHORE DRILLING FLEET ONSHORE FLEET @ March 31, 2018: 84 RIGS REST OF THE WORLD 6 RIGS UTILISATION RATE 84% LATIN AMERICA 48 RIGS MIDDLE EAST 30 RIGS UTILISATION RATE 33% UTILISATION RATE 100% UTILISATION RATE 1Q 2018: 69% 19

  20. Slide 20: Closing Remarks and 2018 Guidance Update

    CLOSING REMARKS AND 2018 GUIDANCE UPDATE

  21. Slide 21: 2018 Guidance Updated

    2018 GUIDANCE UPDATED Metrics FY 2018 Revenues  c. €8bn EBITDA Adjusted % margin  >10% CAPEX *  c. €500mn Net financial position *  c. €1.3bn (*) Updated post vessel acquisition 21

  22. Slide 22: Closing Remarks

    CLOSING REMARKS GOOD PROJECT EXECUTION DELIVERING SOLID OPERATIONAL MARGINS POSITIVE CASH GENERATION DRIVING NET DEBT REDUCTION GOOD VISIBILITY ON NEW PROJECTS - NOT YET REFLECTED IN FIDs / AWARDS ACCESS TO TIE-BACK MARKET, STRENGTHENING SAIPEM GLOBAL SUBSEA OFFERING 22

  23. Slide 23: Appendix

    ™=y SAIPEM ENGINEERING c= ENERGY APPENDIX

  24. Slide 24: 1Q 2018 Results – QoQ Trend

    1Q 2018 RESULTS QoQ TREND (€ mn) Revenues Adjusted EBITDA Adjusted Net Result 7.9% margin 11.2% 2,126 1,915 214 169 11 (105) 4Q17 1Q18 4Q17 1Q18 4Q17 1Q18 24

  25. Slide 25: 1Q 2018 Results – QoQ Trend by Segment

    1Q 2018 RESULTS QoQ TREND (€ mn) E&C OFFSHORE E&C ONSHORE* Revenues Adj. EBITDA Revenues Adj. EBITDA 803 24.1% margin 12.8% 1,219 (7.8)% margin 3.0% 646 156 878 26 103 (95) 4Q17 1Q18 4Q17 1Q18 4Q17 1Q18 4Q17 1Q18 DRILLING OFFSHORE DRILLING ONSHORE Revenues Adj. EBITDA Revenues Adj. EBITDA 137 59.1%

  26. Slide 26: E&C Onshore - Opportunities

    E&C ONSHORE - OPPORTUNITIES Americas Europe/ CIS and Central Asia  Ferrostaal Pacific NW Ammonia Plant – downstream  RFI TAV Brescia Verona – infrastructures  DOWNSTREAM  INFRASTRUCT.  Pemex Refineries H-OIL – downstream  High Speed Railway Moscow – Kazan –  RENEWABLES  RENEWABLES infrastruc

  27. Slide 27: E&C Offshore - Opportunities

    E&C OFFSHORE - OPPORTUNITIES GOM and NW Atlantic North of Europe  OFFSHORE  SUBSEA  Eni Amoca-Mitzon Field – fixed facilities  EDF Fecamp Offshore Windfarm – renewables WIND  FIXED  ExxonMobil Liza future dev. – subsea  EDF Courseulles Offshore Windfarm –  FIXED FACILITIES  Chevron Anchor a

  28. Slide 28: FFF2.0 – Optimisation Programme

    FFF2.0 – OPTIMISATION PROGRAMME NEW DIVISIONAL INITIATIVES INCREASING TARGET SAVINGS TO €150mn ADDITIONAL REDUNDANCIES INCREASING RELEASES TO C.1,250 FTE €10mn INCREMENTAL SAVINGS >1,200 c.1,250 FTE RUN RATE Achieved >1,000 100  CUMULATIVE HEADCOUNT 100 REDUCTION (FTE) 450 >900 March '18 Additional

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