Slide 1: Preliminary 2015 Consolidated Results Presentation
PRELIMINARY 2015 CONSOLIDATED RESULTS PRESENTATION 24 February 2016 mercoledì 24 febbraio 2016 Saipem. Engineering Energy
Slide 2: Forward-Looking Statements
Saipem. Engineering Energy 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
Slide 3: Today's Presentation
Saipem. Engineering Energy TODAY’S PRESENTATION 1 OPENING REMARKS 2 FY 2015 PRELIMINARY RESULTS 3 BUSINESS REVIEW 4 UPDATE ON DELIVERY OF STRATEGY 5 GUIDANCE 3
Slide 4: Highlights
Saipem. Engineering Energy HIGHLIGHTS FY 2015 results confirm guidance Q4 EBIT margin close to 6% E&C Onshore at breakeven in 2H 2016 guidance confirmed Underpinned by backlog coverage (~74%), visible near-term opportunities Cost optimisation programme on track Deleveraging and refinan
Slide 5: FY 2015 Preliminary Results
Saipem. Engineering Energy FY 2015 PRELIMINARY RESULTS 5
Slide 6: 2015 Financial Results: YoY comparison – Reported
Saipem. Engineering Energy 2015 FINANCIAL RESULTS YoY comparison – Reported (€ mn) Revenues EBIT Net result 12,873 11,507 1,192 1,067 100 55 54 (230) (452) (806) FY14 FY15 FY14 FY15 FY14 FY15 Reported Reported Reported Reported Reported Reported E&C Offshore E&C Onshore Drilling Offshore Drilling On
Slide 7: 2015 Financial Results: Reconciliation
Saipem. Engineering Energy 2015 FINANCIAL RESULTS Reconciliation (€ mn) EBIT 464 (718) (254) (198) (452) FY15 Working Capital FY15 Non-cash FY15 Underlying Items Adjusted Items Reported 7
Slide 8: 2015 Financial Results: YoY comparison - Underlying
Saipem. Engineering Energy 2015 FINANCIAL RESULTS YoY comparison - Underlying (€ mn) Revenues EBIT 13,003 12,043 1,192 350 595 1,067 464 295 FY14 FY15 FY14 FY15 Underlying Underlying Underlying Underlying E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore Total EBIT 8
Slide 9: 2015 Financial Results: 4Q YoY comparison – Underlying
Saipem. Engineering Energy 2015 FINANCIAL RESULTS 4Q YoY comparison – Underlying (€ mn) Revenues EBIT 3,528 3,062 182 152 4Q14 4Q15 4Q14 4Q15 Underlying Underlying Underlying Underlying E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore Total EBIT 9
Slide 10: 2015 Net Debt Evolution
Saipem. Engineering Energy 2015 NET DEBT EVOLUTION (€ bn) 0.49 (0.19) 5.39 0.98 4.42 (0.87) 0.56 ~ 2.00 Net Debt Cash Flow Capex Δ Working Forex on Divestments Net Debt PRO-FORMA @ Dec. 31, 2014 (Underlying N.I. Capital Hedging And Others @ Dec. 31, 2015 Net Debt Derivatives Post Capital Increase +D
Slide 11: Business Review
Saipem. Engineering Energy BUSINESS REVIEW 11
Slide 12: 2015 Backlog and New Orders
Saipem. Engineering Energy 2015 BACKLOG AND NEW ORDERS (€ mn) 22,147 11,507 6,515 15,846 Backlog FY15 FY15 Contracts South Stream Backlog @Dec. 31, 2014 Revenues Acquisition Termination @Dec. 31, 2015 Impact, SC5 and S12000 E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore 12
Slide 13: Backlog by Year of Execution
Saipem. Engineering Energy BACKLOG BY YEAR OF EXECUTION (€ mn) 8,098 406 855 2,379 4,615 245 496 3,133 2,048 366 659 4,458 874 1,826 1,234 2016 2017 2018+ E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore 13
Slide 14: E&C Opportunities
Saipem. Engineering Energy OPPORTUNITY OFFSHORE OPPORTUNITY ONSHORE LEGEND SAIPEM AWARD / SAIPEM AWARD E&C OPPORTUNITIES o NEW OPPORTUNITY Americas Asia Pacific CFE Gulf Mex – offshore pipelines BP Tangguh – offshore fixed facilities and pipelines o ExxonMobil Liza – subsea – New (post 201
Slide 15: Update on Drilling
Saipem. Engineering Energy UPDATE ON DRILLING Offshore Drilling fleet contracts Committed Stand-by New contract CLIENT LOCATION Saipem 12000 - - Saipem 10000 Eni Worldwide DEEP-WATER Scarabeo 9 Eni Angola Scarabeo 8 Eni North Sea Scarabeo 7 Eni Angola/Indonesia Scarabeo 6 Burullus Egypt Scarabeo 5 S
Slide 16: Update on Delivery of Strategy
Saipem. Engineering Energy UPDATE ON DELIVERY OF STRATEGY 16
Slide 17: Update on Delivery of Strategic Objectives
Saipem. Engineering Energy UPDATE ON DELIVERY OF STRATEGIC OBJECTIVES Saipem’s Strategic pillars Progress as of today Progress in downsizing Canada, Brazil, UK and Australia Environmental Services and Roma-Vibo engineering sold 1 Business portfolio refocus Strategic review of Italian infrastru
Slide 18: Update on Cost Optimisation Programme
Saipem. Engineering Energy UPDATE ON COST OPTIMISATION PROGRAMME Programme ongoing, progress as scheduled Fixed Cumulative Cost Savings €1.5bn 63% 37% Variable Planned EBIT improvements Staff & Central Costs €0.45bn 480 370 Achieved 150 Project & Operation Costs €0.55bn 2H2015 2016 2017 Avoided Co
Slide 19: Cost Optimisation Programme on Track
Saipem. Engineering Energy COST OPTIMISATION PROGRAMME ON TRACK Total savings €1.5bn 2015 Achievements 2016/2017 Actions Yard rightsizing (Angola, Canada) Rightsize overseas support functions Staff & Central Costs Optimization of peripheral (local and expat personnel) €0.45bn operating centres
Slide 20: Snapshot of Saipem-Aker Alliance
Saipem. Engineering Energy SNAPSHOT OF SAIPEM-AKER ALLIANCE Two leaders in their respective markets SURF EPCI contractor leveraging on SPS technology driven manufacturer leveraging engineering, assets, local content, subsea on engineering and products technologies Vertical integration of complementa
Slide 21: Guidance
Saipem. Engineering Energy GUIDANCE 21
Slide 22: 2016 Guidance
Saipem. Engineering Energy 2016 GUIDANCE Metrics FY 2016 >€11bn Revenues 74% covered by backlog EBIT >€600mm % margin ~5.5% Net profit ~ €300mm CAPEX ~ €500mm Net financial position <€1.5bn 22
Slide 23: Takeaways
Saipem. Engineering Energy TAKEAWAYS 23
Slide 24: Takeaways
Saipem. Engineering Energy TAKEAWAYS 2015 guidance met Strengthened balance sheet 2016 guidance underpinned by backlog, opportunities and efficiencies Continuous review of costs, disciplined commercial effort 24