Eni S.p.a. · MIL:ENI

Eni — Banca Akros 2010 Workshop

18 slides from Eni's conference presentation, Jun 18, 2010

  1. Slide 1: Banca Akros 2010 Workshop

    Alessandro Bernini, eni’s CFO Banca Akros 2010 Workshop Porto Cervo, June 18th eni.com

  2. Slide 2: eni 2010-2013 strategy

    eni 2010-2013 strategy  E&P: build on enhanced portfolio  G&P: leverage on European leadership  R&M: limit exposure 2

  3. Slide 3: E&P 2010-2013: build on enhanced portfolio

    E&P 2010-2013: build on enhanced portfolio  More production >2.5%/y  More giants +400 kboed  More operatorship +1.5 mmboed Profitable growth 3

  4. Slide 4: Balanced portfolio leveraged to oil price

    balanced portfolio leveraged to oil price 2009 2P reserves 2009 production 3% 8% 7% Africa OECD 57% FSU Other 25% Liquids Gas with price cap Gas (oil linked) Fuel gas Spot gas Onshore Deep Offshore Offshore Other conventional 4

  5. Slide 5: Low cost per barrel

    low cost per barrel 2009 opex/boe $/boe 10 OECD OECD Italy Italy  Leading production Africa Africa FSU FSU costs in the industry 5 Other Other  Exposure to Africa, Italy and FSU  Continuing focus on cost efficiency 0 0 500 1,000 1,500 Production (kboed) 5

  6. Slide 6: Rich portfolio of high return projects

    rich portfolio of high return projects Capex 2010-2013 Bln € Production Optimization 37 IRR: >40% Payback below 24 months 4 26% Breakeven 32 @ WACC adj. 74% ~40$/bbl 2010-13 Development Exploration Growth IRR: ~20% Other 6

  7. Slide 7: High visibility on organic growth

    high visibility on organic growth Production profile to 2013 (kboed) Other Other 25% 25% ofof new new (near (near field field start-ups start-ups exploration) exploration) contribution contribution  Low decline rate >2.5% CAGR Contribution Contribution 150  Visible and strong from from new new sta

  8. Slide 8: Low depletion rate

    low depletion rate Depletion 2009-2013* - by play Other Other (Arctic, (Arctic, LNG, LNG, Uncon.) Uncon.) 6.2% 6.2% Onshore Onshore Conventional  Portfolio exposed to: Conventional 1.5% 1.5%  Giant projects  Young basins 0%  Conventional plays Avg. eni portfolio ~-3%  Depletion per region  Afr

  9. Slide 9: Solid pipeline of projects

    solid pipeline of projects kboed 16 major projects for growth Peak Production 560 Project Country Op. Status Start-up 100% (kboed) FID Zubair Iraq  FID 2010 2010 1,200 9% 2011 Perla and Junin 5 Venezuela  FID 2010-11 2013 375 Iraq and Val D'Agri Ph. 2 Italy  FID 2010 2010 42 Venezuela 24% Samburg

  10. Slide 10: Leading value per barrel

    leading value per barrel PV10 of P1 reserves* eni 2P NPV/boe by region $/boe $/boe 10 Avg @ 85$ 9.1$/boe 7.1 6.9 5.0 5.0 4.7 Avg. @ 65$ 6.4 $/boe 4.1 4.0 5 il i BP ps l n l En el ob ta ro Sh lli To M ev hi on oP Ch 0 x c Ex no North Africa West Africa OECD Other Co * 2009 SEC @ 59.9$/bbl scenario 10

  11. Slide 11: G&P 2010-2013: leverage on European leadership

    G&P 2010-2013: leverage on European leadership  Grow gas sales +14 bcm  Strengthen market share >22% in EU  Preserve profitability ~€4.4 bln Ebitda/y A prize asset 11

  12. Slide 12: 2010-2013 and beyond: gas demand recovery and growth

    2010-2013 and beyond: gas demand recovery and growth Gas demand EU27 Bcm CAGR CAGR  Recovery of European gas demand 2010-20 2010-20 ~1.5% 600 ~1.5% by 2013 Italy 500  Expected reduction of spot gas price discount vs long-term 400 Rest of EU contracts 300 2008 2010 2013 2020  Renegotiation or revi

  13. Slide 13: 2010-2013: leveraging on European leadership

    2010-2013: leveraging on European leadership Gas sales Pro-forma adj. EBITDA Bcm Bln € 118 104 4.4 4.4 74 63% 64 40 44 37% 2009 2013 2009 Avg. 2010÷2013 Abroad* Italy Int. Transp. Snam Rete Gas Marketing & Power Preserve profitability * Including E&P gas sold in Europe and Gulf of Mexico 13

  14. Slide 14: R&M 2010-2013: limit exposure

    R&M 2010-2013: limit exposure  Improve cost position  Grow market share in Italy  Upgrade of marketing network Managing market weakness 14

  15. Slide 15: 2010-2013: managing market weakness

    2010-2013: managing market weakness Refining Marketing  Operational improvement  Growth in European retail  Process Utilization Index: +10 pp market share  Italy +2.5 pp  Selective increase of complexity  Selected European countries  Middle distillate yield: +2 pp  Upgrade marketing network

  16. Slide 16: Capex 2010-2013: fueling long term growth

    capex 2010-2013: fueling long term growth Bln € 4.0 52.8 1.1 Upstream focus: 70% 48.8 Others 1.0 3.3 Saipem 3.9 2.7  Commitment on giant R&M 2.8 projects: ~50% 8.3 G&P 8.5  Breakeven @ WACC adj. ~40$/bbl  Devoted to sustain 37.4 growth beyond 2013: 35% E&P 32.6 2009-2012 Variation 2010-2013 Capex

  17. Slide 17: Cash allocation priorities

    Cash allocation priorities 1 Maintain financial discipline 2 Fund our capex programme for future growth 3 Dividend 17

  18. Slide 18: A progressive dividend policy

    a progressive dividend policy Under eni’s four-year oil price assumption, we are committed to pay a €1 a share dividend for 2010, and thereafter growing it in line with OECD inflation 18

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