Eni S.p.a. · MIL:ENI

Eni — Investor Presentation (March 2011)

42 slides from Eni's investor presentation, Mar 10, 2011

1. Slide 1: 2011-2014 Strategy

   2011-2014 Strategy 10 March 2011 eni.com

2. Slide 2: Update on Libya

   update on Libya  Personnel safety first priority  Some assets in operation, mainly gas  Facilities on “hot standby” – ready to restart quickly  Payback on existing investments already achieved  Limited investments in the plan period  Limited contribution to plan period growth (plateau volume a

3. Slide 3: Libya: impacts on eni 2011 outlook

   Libya: impacts on eni 2011 outlook Negatives Positives E&P E&P • Lower contribution from  Higher oil price scenario production G&P G&P • Higher supply costs  Lower ToP prepayments Negative impacts fully offset 3

4. Slide 4: E&P: a solid pipeline to support growth

   E&P: a solid pipeline to support growth Production growth Well-positioned to grow: kboe/d  Industry-leading low decline CAGR rate >3% >2,050  Strong pipeline of project start-ups  Focus on giant projects with 1,815 long plateau volumes Raised 4-yr target 2010 2014 to >3% CAGR $/bl 79.5 70 4

5. Slide 5: Longer term upside: promising growth opportunities

   longer term upside: promising growth opportunities Unconventional gas Russian giants in East Europe  Samburgskoye  Poland  Urengoskoye  Yaro and others Venezuela full field developments  Junin 5  Perla Sub-Saharan Africa Pacific gas  East Africa  China gas shale  Gulf of Guinea  Indonesia

6. Slide 6: G&P: tackling short term challenges

   G&P: tackling short term challenges.... Proforma Ebitda Short term scenario Ebitda sustained by:  Demand recovery  Regulated and low-volatility businesses  Spot price increase  Volume and market share growth  LT contract renegotiation GTI M&P SRG ~30% of Ebitda from activities subject to demand

7. Slide 7: To benefit from medium-term recovery opportunities

   … to benefit from medium-term recovery opportunities Long term scenario  European demand growth Bcm and additional opportunities from fuel switching 600 +1% 550  Continuous decline of 500 European domestic 450 production 400 +3% 350  Limited new LNG capacity for 300 the Atlantic basin 250 200  G

8. Slide 8: R&M: enhanced efficiency in a difficult market

   R&M: enhanced efficiency in a difficult market  Limited improvements expected in refining scenario  Doubling efficiency target to €200m  Increase flexibility of supply slates  Improve integration of Italian refining system  Marketing profitability growth (retail and wholesale) EBIT €200m in 201

9. Slide 9: Eni's key assets: enhanced value creation prospects

   eni’s key assets: enhanced value creation prospects Snam Saipem Galp  Limited impact from  Delivering outstanding  Great financial EU gas directive results investment  Continuing profitability  Key synergies with  Additional upside enhancement upstream operations potential 9

10. Slide 10: Exploration & Production

    Exploration & Production Claudio Descalzi, COO eni.com

11. Slide 11: 2010: achieved key milestones for future growth

    2010: achieved key milestones for future growth Iraq Venezuela Perla Perla Zubair  Gas in place over 16 tcf  Sanction of Rehabilitation Plan  20 kboed booked in Q4 Junin 5 Junin-5  First Major to enter cost recovery phase  Set up of empresa mixta  Reserves booked: 100Mboe Angola bl. 15/06 Russ

12. Slide 12: Enhanced asset base: the foundation of long-term growth

    enhanced asset base: the foundation of long-term growth 2010 total resources* By type 13% 7% Bln boe 31 Others 6% Onshore Offshore 41% Deepwater Arctic 33% By area 2P reserves Other reserves/ 21% 19% North Africa resources America Europe Brent 14% 79 Other ($/boe) 20% Central Asia/Russia Life Index

13. Slide 13: 2011-2014: accelerating growth

    2011-2014: accelerating growth CAGR 2011-14 Production sensitivity CAGR >3% ~3% >2,050 1,815 >2.5% 2% 2010 2014 80$ 90$ 100$ $/bl 79.5 70 price scenario 2011-14: 70$/bbl flat 13

14. Slide 14: Growth based on low decline rate

    growth based on low decline rate.... 4 year plan production Production optimization  20% of total 4Y plan capex  1,300 actions in 4Y plan ~ 500 infilling & workover ~ 800 facilities’ upgrading  reducing decline rate ~ 220 kboed @ 2014  value generation 2010 2011 2012 2013 2014 IRR >40% payback <

15. Slide 15: A strong pipeline of new start-ups

    … and a strong pipeline of new start-ups Production @ 2014 15 major projects for growth 2014 equity 630 kboe/d Fields Country Op. FID Start-up prod. (kboed)  Nikaitchuq USA √ √ 2011 22  MLE Algeria √ √ 2011 15 Others 10%  CAFC Algeria √ √ 2012 18  El Merk Algeria √ 2012 15 FID 23%  Kashagan EP

16. Slide 16: More operatorship

    more operatorship... Operated production 100% and equity Mboed  Competences & know how 12% 4.4  Cost efficiency  HSE rules 2.8 2.5  Technical standards 1.1 1.2 1.4 Improved Improved performance performance & & 2009 2010 - 2014 risk risk management management equity 100% CAGR 16

17. Slide 17: And more giant projects

    … and more giant projects Contribution from new giants Main start-ups kboed 900 Goliat Nikaitchuq Russian projects Jasmine West Franklin Kashagan 600 Val d’Agri ph.2 Burun Ph.2 Appaloosa CAFC/MLE Zubair El Merk Junin 5 & Perla Congo gas Indonesia gas 300 Bl. 15/06 Kitan Kizomba Sat ph.1 ALNG 0 2011

18. Slide 18: Long term growth: solid and balanced exploration portfolio

    long term growth: solid and balanced exploration portfolio Capex 2011-14 Barents Sea Alaska ~ 3.6 Bln € 30% North Africa Middle East frontier & new basins Gulf of Mexico Pakistan Pacific Area India Venezuela 40% Ghana/Togo Mozambique Indonesia proven basins Gabon & plays RDC/Angola Australia Sub-Sah

19. Slide 19: Strategic position in unconventional projects

    strategic position in unconventional projects Exploration drivers Eastern Europe gas shales  Low entry costs China gas shales  Profitable gas market Barnett Shale North Africa Pakistan gas/oil shales  Developed tight gas infrastructures Congo Indonesia tar sands CBM  Technology transfer from US

20. Slide 20: High-return capex plan

    high-return capex plan Capex 2011-2014 IRR Bln € +4.3% Production optimization 39.1 IRR: >40% 37.4 1.8 payback below 24 months 2.1 3.6 3.6 PSA ~65% 20% 31.7 33.7 80% Growth projects IRR: ~23% 2010-13 2011-14 New projects breakeven at 45$/bl development exploration other 20

21. Slide 21: Short time-to-market crucial for returns

    short time-to-market crucial for returns Time-to-market of resources Australia – Kitan discovered in 2008-2010 2.5 years Discovery date: 2008 Start-up: 2011 Venezuela – Perla 27% 3 years 52% Discovery date: 2010 Start-up: 2013 21% Angola – Block 15/06 Mpungi-1 Cabaca North-1 (2010) (2009) Nzanza-1 (

22. Slide 22: Confirmed leadership in efficiency

    confirmed leadership in efficiency Opex F&D cost $/boe $/boe 10 10 35 9 9 30 8 28.8 8 28.9 25 77 7 20 66 19.3 5.7 15 55 5.4 4.8 10 44 3 5 3 06-08 07-09 08-10 11-14 06-08 07-09 08-10 eni Benchmark group* * XOM, CVX, COP, BP, RDS, TOT, eni. (no RDS for 2010) 22

23. Slide 23: Leading cash generation and value

    leading cash generation and value Cash Flow eni 2P NPV/boe by region $/boe $/boe 35 35 12 Avg @ 100$ 11.5$/boe @ 100 $/bbl 3030 8 Avg. @ 70$ 7.5 $/boe 26.6 26.7 26.7 @ 70 $/bbl 2525 4 20 20 0 06-08 07-09 08-10 11-14 North Africa West Africa OECD Other Brent 78 77 79 avg ($/boe) 15 eni Benchmark grou

24. Slide 24: E&P operating model

    E&P operating model Assets Actions Goals  Giants  Time to market  Long term  Conventional growth  Production  Profitability  Balanced optimization exploration  Operatorship  Technology 24

25. Slide 25: Gas & Power

    Gas & Power Domenico Dispenza, COO eni.com

26. Slide 26: European gas market 2011-2014: a gradual rebalancing

    European gas market 2011-2014: a gradual rebalancing Key trends 2011- 2014 (bcm) Europe Japan and Korea North America Gas demand Strong demand and No significant import recovery and import growth. Contract No export in 2014 horizon production decline renewals in progress China and India Strong growt

27. Slide 27: G&P targets 2011-2014: recovering profitability

    G&P targets 2011-2014: recovering profitability Pro-forma adj. EBITDA Marketing & Power Bln €  Supply cost improvement 4.2  5% CAGR of sales in Italy and 3.8 key European markets  Development of integrated trading activities  Continuous attention to efficiency Regulated business 2010 2014  Resi

28. Slide 28: Growth driven by international expansion

    growth driven by international expansion … Sales in EU (excl. Italy) bcm Sales driven by: 16%  integrated pan-European platform 56  multi country offering 48  development of new customised commercial offers Expansion of direct sales in key markets (incl. France, Germany and Austria) Maintain lead

29. Slide 29: And Italian market share recovery

    … and Italian market share recovery Sales in Italy * bcm Recovery in business segments:  improved competitiveness of eni’s 36% offer 44  tailored solutions and customized contracts 32 Expansion of retail customer base:  new marketing initiatives (new advertising and commercial offer)  best-in-cl

30. Slide 30: Capex plan: increasing focus on regulated businesses

    capex plan: increasing focus on regulated businesses Total capex € 7.5 billion Regulated business 1%  € 6.4 billion with guaranteed returns 13%  improvement of flexibility, reliability and quality of service  development of storage capacity, according to government guidelines 86% Merchant activit

31. Slide 31: Refining & Marketing

    Refining & Marketing Angelo Fanelli, COO eni.com

32. Slide 32: Weak scenario with limited improvements

    weak scenario with limited improvements EU demand/capacity Refining marker margin 2010-2014 Mbl/d TRC Brent $/bl +0.1 7 6 5 4 3 2 1 0 -1.5 2008 2009 2010 11-14 avg capacity demand  Stable demand  Improving refining margins  Refining capacity shut down  Slight opening of sour-sweet throughout Eur

33. Slide 33: R&M target: return to profitability

    R&M target: return to profitability Refining Marketing  Operational improvement  Retail network upgrading  Integration of refining cycles  New premium products  Energy saving: -6% consumption  Rebranding  Fuel mix optimizations: coke/natural  Non oil development gas vs fuel oil  Improve cus

34. Slide 34: Selective capex plan

    selective capex plan Bln € 2.9 Development 2.7 65% 30% 40% 12% 23% Stay in HSE business 60% 70% Main projects:  EST in Sannazzaro (breakthrough Plan 10-13 Plan 11-14 technology, resilient to scenario changes)  Logistic infrastructures in Taranto (up- Refining Marketing downstream integration)  Re

35. Slide 35: Financial Outlook

    Financial Outlook Alessandro Bernini, CFO eni.com

36. Slide 36: Efficiency programme

    efficiency programme Bln € 4.4 E&P 11% 1.7 G&P 11% Corporate & others 46% R&M 11% 2.4 Chem. 17% E&C 4% 0.3 2004-05 2006-10 2004-14 2004-05 achievements 2006-10 achievements 2011-14 target  Procurement optimization  Technology improvements and operational excellence  Downstream and logistics strea

37. Slide 37: Financial debt: low risk

    financial debt: low risk 2010 net debt Snam Rete Gas  Lowest risk profile of eni’s portfolio 2011 guidance (at 70$/bl) € 10 billion  Self financing  Divestments ~€2 bln  Net debt to equity down compared to Saipem  Major vessels almost 2010 completed € 3 billion Going forward  Strong cash flow

38. Slide 38: Financial debt: high quality

    financial debt: high quality Debt by instrument Debt by maturity 5% >10 yrs Commercial paper 16% 46% 4-10 yrs Bonds 52% 27% 2-4 yrs Banks 22% 32% Current M/L Term  Extension of debt maturity, privileging bond emissions  Progressive diversification of holders/countries/currencies  Fixed rate long-

39. Slide 39: Capex 2011-2014

    capex 2011-2014 Bln € Others 1.1 52.8 0.5 53.3 1.4 Saipem 3.3 2.4 2.7 2.9 R&M 8.3 7.5 G&P  Upstream focus: >70%  Selective G&P and downstream investment  Completion of E&C E&P 37.4 39.1 investment cycle 2010-2013 Variation 2011-2014 Capex plan Capex plan 39

40. Slide 40: A progressive dividend policy

    a progressive dividend policy  For 2010 we will propose a €1 a share dividend  Under eni’s four-year oil price assumption, we will increase our dividend in line with OECD inflation from 2011 40

41. Slide 41: Closing remarks

    Closing remarks Paolo Scaroni, CEO eni.com

42. Slide 42: Strategy 2011-2014: a strengthened growth profile

    strategy 2011-2014: a strengthened growth profile E&P: faster growth coming through G&P: solid business with long term upside R&M: enhanced efficiency in difficult market 42

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