Slide 1: Saipem First Half 2021 Results
SAIPEM FIRST HALF 2021 RESULTS 30 JULY 2021
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
Slide 3: Table of Content
TABLE OF CONTENT ▪ 01 CEO REFLECTIONS ▪ 02 1H 2021 RESULTS ▪ 03 2H 2021 OUTLOOK & CLOSING REMARKS ▪ 04 APPENDIX |3
Slide 4: CEO Reflections
CEO REFLECTIONS
Slide 5: CEO Reflections – Opening Remarks
CEO REFLECTIONS – OPENING REMARKS CHALLENGING EVENTS STRUCTURAL STRENGTHS ▪ Prolonged Covid-19 impact ▪ Financial resilience ▪ Mozambique project suspension ▪ Competence base ▪ Execution issues in a specific offshore ▪ Relationship with key clients wind project |5
Slide 6: CEO Reflections – Opening Remarks
CEO REFLECTIONS – OPENING REMARKS ▪ Launched strategic review of all businesses to define new plan, to be presented in Autumn ▪ Launched programme to reduce operating leverage… ▪ …through streamlining of operations and processes |6
Slide 7: CEO Reflections – Opening Remarks
CEO REFLECTIONS – OPENING REMARKS New investment cycle in core business ▪ Competences, technologies, track record ▪ Trust based relationship with key accounts Growing demand for Energy transition and ▪ Uniquely strong culture, record in HSE and renewables sustainability ▪ Engineering skills and tool
Slide 8: 1H 2021 Results
1H 2021 RESULTS
Slide 9: 1H 2021 Highlights
1H 2021 HIGHLIGHTS ▪ Business environment still conditioned by pandemic • Current project execution: certain delays and cost overruns • Project acquisitions • Direct costs weighing on financials ▪ Execution challenges in a specific offshore wind project ▪ Mozambique project suspension ▪ Revenue -13%
Slide 10: 1H 2021 Results: YoY Comparison
1H 2021 RESULTS YoY COMPARISON (€ mn) Revenue Adjusted EBITDA1 Adjusted Net Result1 9.7% margin n.m. 3,675 3,200 355 (132) (266) (656) 1H20 1H21 1H20 1H21 1H20 1H21 1 Excluding special items, details in slide n.12 |10
Slide 11: 1H 2021 Results: P&L YoY
1H 2021 RESULTS P&L YoY (€ mn) Adjusted1 € mn 1H 20 1H 21 Var Revenue 3,675 3,200 (475) Total costs (3,320) (3,466) 146 EBITDA 355 (266) (621) margin 9.7% n.m. n.m. D&A (313) (249) 64 Driven by the termination of contract on a leased vessel and asset impairments of 2020 EBIT 42 (515) (557) Financial
Slide 12: 1H 2021 Net Result Reconciliation Adjusted vs Reported
1H 2021 NET RESULT RECONCILIATION ADJUSTED VS REPORTED Net Result (€ mn) 1H21 Health & Safety Others1 1H21 Costs from Covid-19, safety first Adjusted (Covid-19) Reported Cost mainly related to management of pandemic and safeguarding people’s health: ▪ Cost of personnel on stand-by (e.g. quarantine,
Slide 13: 1H 2021 Results – E&C
1H 2021 RESULTS – E&C YoY COMPARISON (€ mn) E&C OFFSHORE E&C ONSHORE1 Revenue Adjusted EBITDA Revenue Adjusted EBITDA 11.6% margin n.m. 3.6% margin n.m. 1,769 1,843 1,485 173 64 1,032 (70) (271) 1H20 1H21 1H20 1H21 1H20 1H21 1H20 1H21 • Lower volumes in Middle East and North Africa partially offset
Slide 14: Focus on E&C Issues
FOCUS ON E&C ISSUES OFFSHORE WIND UPDATE ON MOZAMBIQUE AREA 1 ▪ Challenging soil conditions in one project resulted in ▪ Discussing the best way forward to preserve the technical issues and caused project reassessment value of the project, including assessment of security risk at site, to allow smoo
Slide 15: Offshore Drilling Fleet
OFFSHORE DRILLING FLEET VESSEL UTILIZATION AHEAD OF THE MARKET CLIENT AREA DEEP-WATER and HARSH Saipem 12000 Eni Mozambique Saipem 10000 Eni Worldwide ULTRA ENV. Santorini* Eni US GoM → New leased high-spec. drillship Scarabeo 9 Eni Angola Vår Energi Scarabeo 8 Norway Winthershall DEEP-W. Scarabeo 5
Slide 16: 1H 2021 Results – Drilling
1H 2021 RESULTS – DRILLING YoY COMPARISON (€ mn) DRILLING OFFSHORE DRILLING ONSHORE Revenue Adjusted EBITDA Revenue Adjusted EBITDA 34.1% margin 26.9% 23.3% margin 19.0% 185 236 167 63 158 45 55 30 1H20 1H21 1H20 1H21 1H20 1H21 1H20 1H21 • Revenue decrease mainly driven by S10000 and PN8, partly off
Slide 17: 1H 2021 Net Debt Evolution
1H 2021 NET DEBT EVOLUTION (€ bn) GOOD WORKING CAPITAL DYNAMIC IN 1H 0.30 1.40 0.41 0.04 (0.46) 1.23 0.35 0.10 1.10 0.14 0.87 Net cash flow from operations Free cash flow Net debt IFRS 16 Net debt Adjusted Cash Delta WC Capex Others 1 Net debt IFRS 16 Net debt Dec. 31, 2020 impact Dec. 31, 2020 Net
Slide 18: Balance Sheet and Liquidity
BALANCE SHEET AND LIQUIDITY STRONG LIQUIDITY AND WELL-BALANCED DEBT STRUCTURE DEBT MATURITY PROFILE (€mn) 713 654 € billion 1H 21 562 557 62 112 500 Gross Debt1 3.4 92 101 62 57 (Total liquidity) (2.3) 201 500 500 89 500 500 500 Net Debt (pre IFRS 16) 1.1 132 15 50 19 89 15 IFRS 16 0.3 2021 2022 202
Slide 19: 2H 2021 Outlook & Closing Remarks
2H 2021 OUTLOOK & CLOSING REMARKS
Slide 20: Outlook 2H 2021
OUTLOOK 2H 20211 Metrics 2H 2021 BACKLOG TO BE EXECUTED IN 2021 c.€4.0bn 0.2 Revenue ▪ €4.5-5bn 0.1 CAPEX ▪ €200-300mn 1.5 2.2 Adjusted EBITDA ▪ Back to positive E&C Offshore E&C Onshore2 Drilling Offshore Drilling Onshore Net debt ▪ ~€1.6bn 1 Outlook for 2H does not factor further and possible mate
Slide 21: Closing Remarks
CLOSING REMARKS MOVING FORWARD… …TO CAPTURE GROWTH • New investment cycle ▪ Strategy review • Demand for Energy transition ▪ Competitiveness programme • New infrastructures in Italy NRRP CAPITAL MARKET DAY IN AUTUMN 2021 |21
Slide 22: Appendix
APPENDIX
Slide 23: 1H 2021 Main Awards
1H 2021 MAIN AWARDS A DIVERSIFIED SET OF AWARDS, BOOK TO BILL OF 1.8x IN 2Q 2021 1Q 2Q 3Q Courseulles-sur- NFPS EPCO 5 LTA contacts, Mer Offshore Wind Farm, additional SoW, Saudi Aramco, EODC, France Qatar, Qatargas Saudi Arabia E&C OFFSHORE NFPS EPCL, Agogo Early Qatar, Qatargas Ph.2, Angola, eni F
Slide 24: 1H 2021 Backlog
1H 2021 BACKLOG WELL-DIVERSIFIED AND SIZEABLE BACKLOG CURRENT E&C BACKLOG (€ mn) INCLUDING NON-CONSOLIDATED 4,402 23,602 22,400 3,200 186 158 1,711 126 1,616 1,588 167 5% 1,843 2,379 477 6% 18% 518 1,032 4% 13,877 14,009 67% 7,632 6,285 NON-OIL 78% Backlog 1H21 1H21 Contract Backlog RENEWABLES INFRA
Slide 25: Backlog Distribution by Year
1H 2021 BACKLOG DISTRIBUTION BY YEAR BACKLOG PROVIDES SOLID SUPPORT FOR THE MID-TERM (€ mn) 10,663 1,043 8,914 75 385 250 4,354 8,019 4,025 188 152 1,504 3,925 2,181 1,526 2021 2022 2023+ E&C Offshore E&C Onshore1 Drilling Offshore Drilling Onshore NON-CONSOLIDATED BACKLOG BY YEAR OF EXECUTION 2021
Slide 26: Onshore Drilling Fleet
ONSHORE DRILLING FLEET FLEET @ JUNE 30, 2021: 66 RIGS1 AMERICAS EMEA 30 RIGS1 36 RIGS1 AVERAGE UTILISATION AVERAGE UTILISATION RATE2 IN 1H21: 32% RATE2 IN 1H21: 55% vs 34% in 1H20 vs 90% in 1H20 AVERAGE UTILISATION RATE2 IN 1H21: 45% vs 65% in 1H20 1 Excluding 17 rigs stacked in Venezuela and curren
Slide 27: E&C Opportunities c.€21bn
E&C OPPORTUNITIES c.€21bn OPPORTUNITIES BY SEGMENT WELL-DIVERSIFIED TENDERING PIPELINE AHEAD 14% Europe, CIS & Central Asia 4% 34% c.€1.5bn c.€2.5bn ‐ Pipelines ‐ Downstream ‐ Renewables & ‐ Infrastructures green ‐ Renewables & 48% ‐ Subsea green RENEWABLES INFRASTRUCTURES Americas Middle East & GRE
Slide 28: Results – D&A, Financial Expenses and Taxes
1H 2021 RESULTS – D&A, FINANCIAL EXPENSES AND TAXES 313 (€ mn) 249 1H 2020 D&A 156 € mn 124 1H 2021 D&A 66 59 50 41 35 31 Offshore Onshore E&C 1 E&C Total Drilling Drilling Onshore Offshore D&A 1H 2021 7 (9) 56 € mn 58 FINANCIAL EXPENSES Financing costs 2 Project hedging Exchange Differences Financi
Slide 29: 2Q 2021 Results
2Q 2021 RESULTS QoQ TREND (€ mn) Revenue Adjusted EBITDA1 Adjusted Net Result1 5.4% margin n.m. 1,618 1,582 88 (105) (354) (551) 1Q21 2Q21 1Q21 2Q21 1Q21 2Q21 1 Not including special items |29
Slide 30: 2Q 2021 Results - Divisions
2Q 2021 RESULTS - DIVISIONS QoQ TREND (€ mn) E&C OFFSHORE E&C ONSHORE1 Revenue Adjusted EBITDA Revenue Adjusted EBITDA 1.4% margin n.m. 938 4.8% margin n.m. 557 905 475 43 8 (279) (113) 1Q21 2Q21 1Q21 2Q21 1Q21 2Q21 1Q20 2Q21 DRILLING OFFSHORE DRILLING ONSHORE Revenue Adjusted EBITDA Revenue Adjuste
Slide 31: Saipem Strategic Partner for Net Zero
SAIPEM STRATEGIC PARTNER FOR NET ZERO COLLABORATIONS ANNOUNCED IN 1H 2021 ▪ Launched SUISO, a technological solution for the production ▪ Acquired the Naval Energies activities in floating wind of green hydrogen combining floating wind, floating solar and business marine energy. It will be applied f