Slide 1: First Half 2022 Results
FIRST HALF 2022 RESULTS July 27th, 2022 0
Slide 2: Disclaimer
Disclaimer This communication does not constitute an offer or an invitation to subscribe for or purchase any securities. Forward-looking statements contained in this presentation regarding future events and future results are based on current expectations, estimates, forecasts and projections about
Slide 3: Agenda
1H results: highlights Financial performance Agenda Business plan execution Closing remarks Appendix 2
Slide 4: A quarter of robust growth in revenue and margins: 2Q 2022 results
A quarter of robust growth in revenue and margins: 2Q 2022 results1 2.5 B€ 176 M€ Group Revenues Group Adjusted EBITDA +28% vs 1Q +21% vs 1Q 3.5 B€ 1.7 B€ Order Intake2 Net Debt post IFRS-163 (1.0B€ available cash & equivalent) Book to bill at 1.4x Pre-capital increase 1. Revenue, adjusted EBITDA, o
Slide 5: Strong industrial and commercial performance (1/2)
Strong industrial and commercial performance (1/2): accelerating project execution on current backlog and strong order intake ▪ Project execution and billing back to pre-covid levels despite orderly exit from Russia and international 2.5 B€ logistic difficulties • Revenues +28% vs 1Q 2022 2Q Group R
Slide 6: Strong industrial and commercial performance (2/2)
Strong industrial and commercial performance (2/2): order intake concentrated in Saipem’s sweet spots, as foreseen in the business plan Order Intake 1H 2022 by business by product (E&C only) Drilling Order intake: Onshore Infrastructures Renewables 638 & other non-oil & green • 54% in offshore (E&C
Slide 7: Improved financial performance: first half 2022 results
Improved financial performance: first half 2022 results1 4.4 B€ 321 M€ Group Revenues Group Adjusted EBITDA +39% vs 1H 21 vs 1H 21 loss (266M€) 5.8 B€ 1.3x Order Intake Book-to-bill 54% in offshore2 Underpinning growth 1. Revenue, adjusted EBITDA, order intake, book-to-bill include discontinued oper
Slide 8: First Half 2022 results in a nutshell
First Half 2022 results in a nutshell Strong industrial (project execution) and commercial performance (order intake) Improved financial performance vis-à-vis 1Q increases confidence and visibility on 2022 and business plan targets Strategic plan execution running fast and smoothly, across all initi
Slide 9: Agenda
1H results: highlights Financial performance Agenda Business plan execution Closing remarks Appendix 8
Slide 10: 1H 2022 group results
1H 2022 group results Revenues and adjusted1 EBITDA, including discontinued operations2 (M€) Drilling Onshore (discontinued operations2) Revenues Adjusted EBITDA1 Adjusted net result1 n.m. margin 7.2% 4,435 321 248 58 3,200 263 158 30 (4) (37) 4,187 (104) 3,042 (296) (108) (619) (266) 1H21 1H22 1H21
Slide 11: 1H 2022 results – E&C
1H 2022 results – E&C (M€) E&C Offshore E&C Onshore Revenue Adjusted EBITDA Revenue Adjusted EBITDA N.M. margin 8.0% N.M. margin 0.6% 1,843 1,826 166 2,072 11 1,032 (271) (70) 1H21 1H22 1H21 1H22 1H21 1H22 1H21 1H22 • Revenue doubled year-on year, almost entirely driven by ramp up of • Project progr
Slide 12: 1H 2022 results – drilling
1H 2022 results – drilling (M€) Discontinued operations from 1 January 20221 Drilling Offshore Drilling Onshore Revenue Adjusted EBITDA Revenue Adjusted EBITDA 26.9% margin 29.8% 19.0% margin 23.4% 289 248 86 158 167 58 45 30 1H21 1H22 1H21 1H22 1H21 1H22 1H21 1H22 • First positive effects of busine
Slide 13: 1H 2022 results – P&L YoY comparison
1H 2022 results – P&L YoY comparison Group – Adjusted1 Group – Reported Income Statement Income Statement M€ 1H 21 1H 22 Var. 1H 21 1H 22 Revenue 3,042 4,187 1,145 3,042 4,187 Total costs (3,338) (3,924) (586) (3,458) (3,943) EBITDA (296) 263 559 (416) 244 margin n.m. 6.3% n.m. 5.8% D&A (190) (217)
Slide 14: 1H 2022 Net Debt Evolution (pre capital increase)
1H 2022 Net Debt Evolution (pre capital increase) (B€) 0.08 1.85 (0.46) 0.11 0.60 0.31 1.70 1.54 0.32 1.22 (0.16) Of which: • Backlog review cash outflow c.0.2B€ • Reversal of advanced payments c.0.2B€ • Working Capital and non-monetary items c.0.2B€ Net debt IFRS 16 Net debt Adjusted Delta WC Capex
Slide 15: Debt maturity profile and liquidity
Debt maturity profile and liquidity Analysis as of 30 June 2022 Bonds and banking facilities maturities (M€) Pro-forma post capital increase1 Other Debt Billion € 1H 22 1H 22 Proforma 7081 ECA Facilities (Post rights issue) 95 566 560 500 Bank Facilities 268 66 60 Gross Debt 3.72 2.85 113 179 Bonds
Slide 16: Fast deleveraging post capital increase and drilling onshore sale
Fast deleveraging post capital increase and drilling onshore sale 2H 2022 Expected Net Debt Evolution – IFRS 16 (B€) 1.7 (1.5) Expected to include: Backlog review cash outflow c.0.3B€ Capex c.0.3B€ Neutral dynamic of working capital c.0.1 c.0.8 (0.5) c.0.5 IFRS16 lease liabilities c.0.3 Financial IF
Slide 17: Agenda
1H results: highlights Financial performance Agenda Business plan execution Closing remarks Appendix 16
Slide 18: Strategic plan execution running fast and smoothly
Strategic plan execution running fast and smoothly Improved Commercial efficiency Energy Asset refocus valorization and transition cash actions derisking 1H order intake Green shoots 54% offshore1, 120 M€ 550M$ cash + Cost efficiencies for subsea 10% stake 65% gas Robotics from actions from drilling
Slide 19: Commercial refocus resulting in sizeable Offshore order intake
Commercial refocus resulting in sizeable Offshore order intake 2.4B€ 0.8B€ E&C Offshore Drilling Offshore 1H order intake 1H order intake Highest backlog since 20151 Backlog doubled YoY2 Order intake in key segments, Fleet engagement3 (% of billable time) delivering on Plan: 2021A 73% 73% Yellowtail
Slide 20: Selective E&C Onshore acquisitions, enhanced proposition in Middle East
Selective E&C Onshore acquisitions, enhanced proposition in Middle East 2.0B€ E&C Onshore 1H order intake Delivering on schedule Key awards consistent with Plan: New Saudi EPC National Champion agreement • Hawiyah (Saudi Arabia): first gas in in line Perdaman Urea1 (Australia) with schedule Gas mone
Slide 21: De-risked portfolio with enhanced visibility of future results
De-risked portfolio with enhanced visibility of future results Backlog review covered c.88% of E&C backlog1 Backlog @June 30, 2022 IFRS backlog Total backlog (incl. non-consolidated) E&C backlog (incl. non-consolidated) Drilling Onshore Infrastructures Renewables & other non-oil & green 1,887 E&C No
Slide 22: Offshore wind dual strategy is progressing
Offshore wind dual strategy is progressing Delivering existing backlog Unleashing full strategy Saint-Brieuc (T&I) delivered ✓ Partnering with local players in Formosa 2 all jackets completed ✓ developed Countries and delivered to client • Selective approach to new initiatives in the Fixed Wind mark
Slide 23: Asset valorization and quick cash actions are being delivered
Asset valorization and quick cash actions are being delivered c. 50% of the asset valorisation Agreement with KCA Deutag for the Agreement with BW Energy for the and asset cash actions already sale of Drilling Onshore business sale of the FPSO Cidade de Vitória in Brazil delivered in the first 4 mon
Slide 24: Agenda
1H results: highlights Financial performance Agenda Business plan execution Closing remarks Appendix 23
Slide 25: Closing remarks
Closing remarks Capital increase completed, strengthened balance sheet Robust performance in 2Q with sequential acceleration of revenues, EBITDA and order intake Fast paced delivery on strategic plan objectives, benefitting from O&G supercycle Cash quick actions to support short-term deleveraging Fi
Slide 26: Agenda
1H results: highlights Financial performance Agenda Business plan execution Closing remarks Appendix 25
Slide 27: 1H 2022 group results - accounting treatment of drilling onshore
1H 2022 group results - accounting treatment of drilling onshore Current accounting of drilling onshore Post closing Middle East Post closing of Americas1 from 1st Jan 2022 till first closing till closing of Americas1 Revenue Revenue Revenue EBITDA EBITDA EBITDA D&A D&A D&A EBIT EBIT EBIT Financial
Slide 28: 2Q 2022 group results
2Q 2022 group results QoQ comparison - Revenues and adjusted1 EBITDA, including discontinued operations2 (M€) Drilling Onshore (discontinued operations2) Revenue Adjusted EBITDA1 Adjusted net result1 6.3% margin 7.1% 2,493 130 1,942 118 176 145 28 2,363 30 1,824 148 115 1 (79) (24) (6) (85) (23) 1Q2
Slide 29: 2Q 2022 results by division
2Q 2022 results by division QoQ comparison (M€) E&C Offshore E&C Onshore Revenue Adjusted EBITDA1 Revenue Adjusted EBITDA1 7.8% margin 8.1% 963 1.2% margin 0.1% 1,240 863 101 832 65 10 1 1Q 2022 2Q 2022 1Q 2022 2Q 2022 1Q 2022 2Q 2022 1Q 2022 2Q 2022 Drilling Offshore Drilling Onshore discontinued o
Slide 30: 2Q – 1H 2022 Net Result - Reconciliation Adjusted vs Reported
2Q – 1H 2022 Net Result - Reconciliation Adjusted vs Reported Net Result (M€) Drilling Onshore (discontinued operations2) Health & Health & 2Q22 Safety 2Q22 1H22 1H22 Safety Adjusted (Covid-19)1 Others Reported Adjusted (Covid-19)1 Others Reported Costs from Covid-19, safety first Cost mainly relate
Slide 31: 1H 2022 Results – D&A, Financial Expenses and Taxes
1H 2022 Results – D&A, Financial Expenses and Taxes 190 (1H21) and 217 (1H22) excluding discontinued operations (drilling onshore) (M€) 249 268 1H 2022 150 M€ 124 1H 2021 59 51 31 38 35 29 1H 2022 D&A1 Offshore Onshore E&C 2 E&C Total Drilling Drilling Onshore Offshore D&A (discontinued operations)
Slide 32: De-risked capital structure following swift implementation of the Financing Package
De-risked capital structure following swift implementation of the Financing Package Less than 4 months from announcement to completion De-risking of the Capital structure… Shareholder composition 1 Free S&P Global credit rating Float 2B€ Rights Issue completed improved from BB- 56.0% (CreditWatch Ne
Slide 33: 1H 2022 backlog distribution by year and breakdown
1H 2022 backlog distribution by year and breakdown Sizeable backlog provides support for the mid-term (M€) 10,033 8,484 1,248 439439 412 292 4,467 4,737 5,771 200200 182 1,977 2,287 3,016 2,602 2,108 2022 2023 2024+ E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore (discontinued operations
Slide 34: Minor exposure to Russia
Minor exposure to Russia Full compliance Limited share of Immaterial Cash advances are with applicable Russian projects potential cash in balance with regulation in backlog flow impact actual progress ▪ Orderly exit from 2 existing projects in Russia1 ▪ No new acquisitions in Russia in 2022-25 Strat
Slide 35: Sizeable opportunity set in the short-run worth ~29 B€
Sizeable opportunity set in the short-run worth ~ 29 B€ Europe c. 2.7 B€ Asia Pacific ▪ Conventional ▪ Pipelines c. 1.6 B€ Americas ▪ Renewables & green ▪ Downstream c. 4.6 B€ c. 4.2 B€ Middle East ▪ Upstream ▪ Pipelines ▪ Renewables & green ▪ Downstream ▪ Infrastructures c. 4.2 B€ ▪ SURF ▪ Subsea ▪
Slide 36: Drilling offshore fleet booking on the rise
Drilling offshore fleet booking on the rise Drilling Vessel Engagement Map (2022-24) 2022 2023 2024 Client Area Saipem 12000 Eni Africa Ultra Deep-water and Harsh Env. Saipem 10000 Eni Egypt/Italy Santorini1 Eni US GoM Scarabeo 9 Eni Angola Wintershall, Scarabeo 8 to 2025 Norway Aker BP Deep-W. Scar
Slide 37: Onshore Drilling fleet utilisation improved
Onshore Drilling fleet utilisation improved FLEET @ JUNE 30, 2022: 66 RIGS1 AMERICAS EMEA 30 RIGS1 36 RIGS1 AVERAGE UTILISATION AVERAGE UTILISATION RATE2 IN 1H22: 39% RATE2 IN 1H22: 78% vs 32% in 1H21 vs 55% in 1H21 1H22 AVERAGE2 UTILISATION RATE: 61% vs 45% in 1H21 1. Excluding 17 rigs stacked in V
Slide 38: Top-ranked ESG player among peers
Top-ranked ESG player among peers ESG Rating1 2 Saipem 78/100 87/100 4.2/5 79.36/100 62/100 19.2 (100<0) E&C peers 35/100 73/100 2.3/5 53.2/100 n.a. 24.2 (100<0) average3 Saipem 2 ranking4 1st 1st 1st 1st 1st 5th ESG culture and achievements recognized externally REDUCING GHG SCOPE 1&2 EMISSIONS BY