Slide 1: Presentation to the Financial Community: 1H 2015 Consolidated Results
Presentation to the Financial Community 1H 2015 Consolidated Results San Donato Milanese, July 28, 2015
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. Opening Remarks: 90 days in the job 2. 1H 2015 Financial Results 3. Business Review 4. Guidance 5. Q&A 3
Slide 4: Opening Remarks: 90 days in the job
1. Opening Remarks: 90 days in the job 4
Slide 5: 90 Days into the Job: a Foundation of Core Strengths
90 Days into the Job: a Foundation of Core Strengths Strong HSE culture and unmatched technical capabilities Global leader in the sector with a well diversified business portfolio Brand image, clients portfolio and industry relationships Competence, pride and commitment of people Excellenc
Slide 6: 90 Days into the Job: Main Challenges
90 Days into the Job: Main Challenges Market Oil price driving Clients’ capex cut and pressure on supply chain Worsening scenario in specific geographic areas/market segments Reduced visibility on new awards/delayed FIDs Increasing confrontational attitude of Clients, in some cases leading t
Slide 7: 90 Days into the Job: Actions Undertaken
90 Days into the Job: Actions Undertaken “Fit for the Future”: shaping Saipem to the new oil order Overall cost saving target of €1.3 billion over 3Y Asset base rationalisation Impairment and write downs on asset for €211 million Review of capex plan ongoing, saving > €50 million already i
Slide 8: Fit for the Future: preliminary cost savings
Fit for the Future: preliminary cost savings Preliminary Impacts (Cumulative 2015-17) Cost Reduction by Allocation €300mn Cost FTE Actions saving reduction Geographic Footprint Optimization €500 mn 5,000 €450mn Complexity Reduction And Process Optimization €400 mn 400 Fleet and Assets Optimization €
Slide 9: Fit for the future: asset base optimisation – preliminary results
Fit for the future: asset base optimisation – preliminary results Actions Dismissal of obsolete vessels with expensive running costs and rationalization of fabrication yards Area of focus Offshore Fleet: 4 Construction vessels 1 Drilling vessel Yards: Downsize/exit from non strategic areas
Slide 10: Strategic Review Key Guidelines
Strategic Review Key Guidelines Cost Optimisation and Business Portfolio Process Efficiency Refocus and Relaunch Business De-Risking Technology and Innovation Evolving for a renewed leadership 10
Slide 11: Focus on technology and innovation
Focus on technology and innovation “Top Five” priority areas SURF Technologies: New systems/solutions for risers and flowlines (including flow assurance) Heavy items subsea installation, reeling and related vessel/equipment Materials Technologies: New and faster pipeline welding technologi
Slide 12: 1H 2015 Financial Results
2. 1H 2015 Financial Results 12
Slide 13: 1H15 Financial Results (mn €)
1H15 Financial Results (mn €) EBIT Net Result 139 (718) (579) (211) (790) (920) 1H15 Working 1H15 1H15 1H15 Non-cash Underlying Capital Adjusted Items Reported Reported Items 13
Slide 14: 1H15 Financial Results – YoY comparison (mn €)
1H15 Financial Results – YoY comparison (mn €) Revenues EBIT Adjusted Net Result 5,966 5,373 293 139 155 42 (579) 538 151 151 136 82 36 (58) (709) 1H14 1H15 1H14 1H15 1H15 1H14 1H15 Underlying Adjusted Adjusted E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore 14
Slide 15: 1H15 Net Debt Evolution (bn €)
1H15 Net Debt Evolution (bn €) 0.50 5.53 0.89 (0.16) 4.42 (0.39) 0.27 Net Debt Net Debt Dec. 31, 2014 June 30, 2015 Cash Flow Capex ∆ Working Capital Others Forex on Hedging (Underlying NI + D&A) Derivatives 15
Slide 16: Business Review
Saipem 3. Business Review we, saipem
Slide 17: 1H15 Backlog and new orders (mn €)
1H15 Backlog and new orders (mn €) 22,147 5,373 3,500 19,018 Backlog 1H15 1H15 Contracts South Stream Backlog @Dec 31, 2014 Revenues Acquisition Termination Impact @June 30, 2015* and Scarabeo 5 E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore *Including the effects of the cancellation of
Slide 18: 1H15 Backlog by year of execution (mn €)
1H15 Backlog by year of execution (mn €) 7,621 391 996 6,091 5,306 423 288 2,757 1,058 493 1,364 1,965 3,477 3,161 2,645 2015 2016 2017+ E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore 18
Slide 19: Update on Drilling
Update on Drilling Offshore Drilling fleet contracts Committed Stand-by New contract Under rolling negotiations CLIENT LOCATION Saipem 12000 Total Angola DEEP-WATER Saipem 10000 Eni Worldwide Scarabeo 9 Eni Angola Scarabeo 8 Eni North Sea Scarabeo 7 Eni Angola/Indonesia Scarabeo 6 Burullus Egypt Sca
Slide 20: Update on E&C business new opportunities
Update on E&C business new opportunities Central Asia / Europe: NCOC Kashagan early production pipelines Lukoil Filanovsky Phase 2 – fixed facilities BP Shah Deniz Ph. 2 Operational Construction Vessel - SURF Lotos Delayed Coker – downstream RFI AV Brescia Verona – infrastructures Gazprom
Slide 21: Update on E&C business new opportunities
Update on E&C business new opportunities 1. Transcanada Prince Rupert Pack. 2-3: shortlisted contractor. Obtainment of permits by Client ongoing. 2. Radomiro Codelco Tomic: negotiations ongoing with Client. 3. Anadarko Onshore LNG: selected contractor. Award subject to Client Final Investment Decisi
Slide 22: Guidance
Saipem 4. Guidance ws, saipem
Slide 23: Update on 2015 Guidance
Update on 2015 Guidance Revenues: €12 bn EBIT adjusted: €(250) mn EBIT: €(450) mn Net Result: €(800) mn Capex: < €600 mn Net Debt: €5.0 bn (*) * Excluding impact of currency fluctuation 23
Slide 24: Key Takeaways
Key Takeaways Current trading and short term expectations impacted by the context Saipem is built on solid foundation of competences and values to overcome market challenges Fundamental actions have been taken to tackle immediate priorities New strategic approach to create a positive discont
Slide 25: Q&A
Saipem 5. Q&A ws, saipem
Slide 26: Saipem: incontri con la comunità finanziaria settembre 2015
Saipem: incontri con la comunità finanziaria settembre 2015 lun mar mer gio ven sab dom 1 2 3 4 5 6 7 8 9 10 11 12 13 New York Barclays CEO Energy Power Conference 1-1s 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30