Eni S.p.a. · MIL:ENI
Eni — UBS European Conference 2012
15 slides from Eni's conference presentation, Nov 13, 2012
Slide 1: UBS European Conference
UBS European Conference Alessandro Bernini, CFO London, 13 November 2012 eni.com
Slide 2: eni: structure
eni: structure divisions subsidiaries Exploration & Refining & Gas & Power Production Marketing 43% S i Saipem S Snam Ch Chemicals i l Under disposal, Deconsolidated in Q4 2012 2
Slide 3: eni after Snam: increased financial flexibility…
eni after Snam: increased financial flexibility… Net debt 2011 (PF) bln € Completed disposal of 35% of Snam 30% sold to for €4.1 bn CDP for €3.5 eni residual debt €10.4 5% sold to the Snam debt fully deconsolidated by YE market for €0.6 2012 Market value remaining Flexibility on disposal of th
Slide 4: … and greater upstream exposure
… and greater upstream exposure Net capital employed YE 2011 Net capital employed YE2011 (PF ex Snam) E&P ~48% E&P ~58% G&P ~ 31% G&P ~ 17% R&M/Chem. ~13% R&M/Chem. ~16% E&C ~9% E&C ~11% eni €88bn eni €73bn • E&P capital employed rising to 58% from 48% • eni ROACE proforma rising to 10.4% from 9.9%
Slide 5: E&P: excellent track record of exploration success
E&P: excellent track record of exploration success Exploration performance Main discoveries 8 Bboe Core areas/fast Emerging basins 7 time to market 6 Egypt Norway - Barents ~ 7 Bboe West Africa Ghana 5 Pakistan Mozambique 4 Italy Indonesia 3 2 1 0 2008 2009 2010 2011 2012* 2008-12* P
Slide 6: focus on exploration: Mozambique – Rovuma basin
focus on exploration: Mozambique – Rovuma basin Area 4 6 wells drilled to date Total potential of the Mamba North 1 Mamba discoveries up to 70 Tcf North East 2 Further exploration and Mamba Mamba North East 1 appraisal i l wells ll planned l d South 1 Mamba South 2 Ongoing unitization talks
Slide 7: Project pipeline: our main hubs…
Project pipeline: our main hubs… Yamal Barents Sea Samburskoye Goliat Yaro/Yakhinskoye / khi k Skrugard Urengoskoye Havis Yevo Severo Kazakhstan Kashagan EP North Africa Karachaganak g p ph 3 MLE CAFC EL Merk Venezuela Wafa compr. Bahr Essalam Ph. 2 Far East Perla Jangkrik Junin Sub-Saharan Jau Kute
Slide 8: .. drive a decade of organic growth
.. drive a decade of organic growth Production growth kboe/d Long term optionality ~3% >3% adj Kashagan FF Mozambique FF Russia and Caspian Russian Barents Sub-Saharan Africa Sea West Africa Latin America Pre-salt and Far East transform f margin Europe and North America Unconventionals Nor
Slide 9: increased value per barrel
increased value per barrel Cash flow/boe 130 Increased proportion of @115 $/bbl oil vs gas 120 Higher production in @ 90 $/bbl lower tax rate areas 110 Good capture ratio supported by strong 100 contractual structure 90 2010 2015 Brent 85 85 ($/boe) Data rebased at 100 9
Slide 10: G&P: merchant business exposed to European headwinds
G&P: merchant business exposed to European headwinds G&P proforma adj. Ebitda Market context EU 27 (bcm) Low Transitgas market risk TENP activities TAG 600 -11% ~16% International 550 transport 500 450 Marketing Snam 400 350 300 Activities 2010 2011 2012 2015 2020 subject to demand and Weak short
Slide 11: G&P: mitigating market volatility
G&P: mitigating market volatility • Continuous renegotiation • Improving cost position pply to ensure market g flexibility • Increasing y on Sup reflectivity volumes • Retail customer base • Single brand identity and Resillent segment +28% by 2015 leading customer service • Enhanced international •
Slide 12: R&M: increasing efficiency and complexity
R&M: increasing efficiency and complexity Increased focus on complexity and efficiency to benefit from potential scenario recovery EST completion by 2012 Optimisation O ti i ti & efficiency Increased system integration + €400m p Exploit flexibility y and asset-backed trading g Marketing: c
Slide 13: growth fueled by enhanced capex plan...
growth fueled by enhanced capex plan... 2012-2015 capex plan Total capex plan of €59.6bn (of bln € which €6.2bn €6 2bn relate to Snam) 2.3 2.5 Focus on E&P: 1 2.8 Enhanced exploration 6.2 programme Production optimization to reduce decline rates g High-return growth g 44.7 projects G&P e
Slide 14: … financed by organic cashflow generation
… financed by organic cashflow generation 2012-15 cash flow* bln € Organic cash-flow more than covers capex requirements Additional cash-inflows expected from disposals Impact of Snam deconsolidation on free cash-flow broadly neutral Snam Snam * @ 90$/bl in 2012-13; 85$/bl in 2014-15 14
Slide 15: the new eni: growth and returns
the new eni: growth and returns Ensure appropriate financial strength Maintain adequate gearing in the context of new upstream-focused business model High liquidity reduces reliance on credit market in volatile environment Continue to invest in high-return E&P portfolio New project pipeline wi