Saipem

Earnings Release • Jul 30, 2021

SAIPEM FIRST HALF 2021 RESULTS

30 JULY 2021

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 assumptions of the Company's management.

These forward-looking statements are only predictions and are subject to known and unknown risks, uncertainties, assumptions and other factors beyond the Company' control that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. These include, but are not limited to: forex and interest rate fluctuations, commodity price volatility, credit and liquidity risks, HSE risks, the levels of capital expenditure in the oil and gas industry and other sectors, political instability in areas where the Group operates, actions by competitors, success of commercial transactions, risks associated with the execution of projects (including ongoing investment projects), the Coronavirus outbreak (including its impact across our business, worldwide operations and supply chain); in addition to changes in stakeholders' expectations and other changes affecting business conditions.

Therefore, the Company's actual results may differ materially and adversely from those expressed or implied in any forward-looking statements. They are neither statements of historical fact nor guarantees of future performance. The Company therefore caution against relying on any of these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, economic conditions globally, the impact of competition, political and economic developments in the countries in which the Company operates, and regulatory developments in Italy and internationally. Any forward-looking statements made by or on behalf of the Company speak only as of the date they are made. The Company undertakes no obligation to update any forward-looking statements to reflect any changes in the Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.

The Financial Reports contain analyses of some of the aforementioned risks.

Forward-looking statements neither represent nor can be considered as estimates for legal, accounting, fiscal or investment purposes. Forward-looking statements are not intended to provide assurances and/or solicit investment.

TABLE OF CONTENT

• 01 CEO REFLECTIONS
• 02 1H 2021 RESULTS
• 03 FY 2021 GUIDANCE & CLOSING REMARKS
• 04 APPENDIX

CEO REFLECTIONS

CEO REFLECTIONS – OPENING REMARKS

CHALLENGING EVENTS

• Prolonged Covid-19 impact
• Mozambique project suspension
• Execution issues in a specific offshore wind project

STRUCTURAL STRENGTHS

• Financial resilience
• Competence base

• Relationship with key clients

• 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

CEO REFLECTIONS – OPENING REMARKS

• Competences, technologies, track record
• Trust based relationship with key accounts
• Uniquely strong culture, record in HSE and sustainability

▪ Engineering skills and tools to go beyond traditional services

New investment cycle in core business

Growing demand for Energy transition and renewables

Italy NRRP¹ investments in advanced infrastructures

1H 2021 RESULTS

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% YoY and negative adjusted EBITDA
• Order intake of €4.4bn, book-to-bill c.1.4x in 1H (c.1.8x in 2Q)
• c.85% of E&C order intake "non-oil"
• c.€26.2bn¹ backlog provides support for the mid-term
• Cash flow dynamics under control
• Net debt post IFRS-16 c.€1.40bn
• Early signs of drilling activity recovery

1H 2021 RESULTS

YoY COMPARISON (€ mn)

¹ Excluding special items, details in slide n.12

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 expenses	(95)	(56)	39	Costs for bond buyback in 2020, lower expenses for FX derivatives and leasing in 2021
Result from investments	10	(25)	(35)	Loss from projects in JV
EBT	(43)	(596)	(553)
Income taxes	(74)	(60)	14	Lower taxable profits
Minorities	(15)	0	15	No contribution from entities with minority partners
Net result	(132)	(656)	(524)

1H 2021 NET RESULT RECONCILIATION ADJUSTED VS REPORTED

Net Result (€ mn)

Costs from Covid-19, safety first

Cost mainly related to management of pandemic and safeguarding people's health:

• Cost of personnel on stand-by (e.g. quarantine, extraordinary charter flights)
• Personal protective equipment in excess of the standard quantities
• Sanitising work areas

1H 2021 RESULTS – E&C

YoY COMPARISON (€ mn)

• Lower volumes in Middle East and North Africa partially offset by Europe and Americas
• Results impacted by execution issues in specific wind farm project and fabrication bottlenecks in Far East also due to pandemic
• Projects in traditional O&G business progressing well, but low volumes and high operating leverage amplified the EBITDA loss

3.6% margin n.m. Adjusted EBITDA Revenue Adjusted EBITDA 1H20 1H21 1H20 1H21 1H20 1H21 1,769 64 1,843 (70)

• Revenue increase driven by Sub-Saharan Africa, more than offsetting Middle East
• Margin affected by impact of Mozambique project and project extra-costs in Middle East

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FOCUS ON E&C ISSUES

OFFSHORE WIND

• Challenging soil conditions in one project resulted in technical issues and caused project reassessment
• Discussions ongoing with client to move forward
• No similar challenges expected from other projects in portfolio
• Investing in floating wind market with proprietary technology, recently strengthened with an acquisition

UPDATE ON MOZAMBIQUE AREA 1

• Discussing the best way forward to preserve the value of the project, including assessment of security risk at site, to allow smooth resumption
• Since the end of April 2021, activities performed out of site
• Residual project backlog on 30 June 2021 c.3.6 billion euro, excluding potential contribution from reimbursements of suspension and security risk costs
• In 2H, revenues contribution mainly expected from suspension costs on reimbursable basis

OFFSHORE WIND REMAINS AN ATTRACTIVE OPPORTUNITY FOR SAIPEM

DISCUSSING BEST WAY FORWARD TO SUPPORT THE CLIENT IN THE SUSPENSION PERIOD

OFFSHORE DRILLING FLEET

VESSEL UTILIZATION AHEAD OF THE MARKET

1H 2021 RESULTS – DRILLING

YoY COMPARISON (€ mn)

• Revenue decrease mainly driven by S10000 and PN8, partly offset by SC8
• Covid-19 impact on offshore market weighed on revenues and margin

• Green shoots of market recovery with improving utilization

• Lower activity in Middle East resulting from rig suspensions

• EBITDA and EBITDA margin impacted by lower volumes

1H 2021 NET DEBT EVOLUTION

GOOD WORKING CAPITAL DYNAMIC IN 1H

¹ Others including buy-back of treasury shares/exercise of stock grant, cash flow from own funds, repayment of lease liabilities, exchange differences and other changes

BALANCE SHEET AND LIQUIDITY

€ billion	1H 21
Gross Debt1	3.4
(Total liquidity)	(2.3)
Net Debt (pre IFRS 16)	1.1
IFRS 16	0.3
Net Debt (post IFRS 16)	1.4

Key debt metrics	1H 21
Average actual tenor	Above 3Y
Average debt cash cost 2	c. 3%

LIQUIDITY (€bn)

3.3

¹Including c.0.1bEUR of accruals and other minor financial liabilities

²Average cost of debt c.4% including treasury hedging

³Restricted liquidity mainly related to projects and local currencies

FY 2021 GUIDANCE & CLOSING REMARKS

|20 1 Outlook for 2H does not factor further and possible material macro and business deterioration (e.g. from Covid-19) ² E&C Onshore including floaters business and XSIGHT

CLOSING REMARKS

• Strategy review
• Competitiveness programme

MOVING FORWARD… …TO CAPTURE GROWTH

• New investment cycle

• Demand for Energy transition
• New infrastructures in Italy NRRP

CAPITAL MARKET DAY IN AUTUMN 2021

APPENDIX

1H 2021 MAIN AWARDS

A DIVERSIFIED SET OF AWARDS, BOOK TO BILL OF 1.8x IN 2Q 2021

1H 2021 BACKLOG WELL-DIVERSIFIED AND SIZEABLE BACKLOG

(€ mn)

1H 2021 BACKLOG DISTRIBUTION BY YEAR BACKLOG PROVIDES SOLID SUPPORT FOR THE MID-TERM (€ mn)

NON-CONSOLIDATED BACKLOG BY YEAR OF EXECUTION

¹ E&C Onshore including Floaters business and XSIGHT

ONSHORE DRILLING FLEET

¹ Excluding 17 rigs stacked in Venezuela and currently not marketable ² Simple average: # days sold / # days available for sale

2Q 2021 RESULTS

QoQ TREND (€ mn)

2Q 2021 RESULTS - DIVISIONS QoQ TREND (€ mn)

¹ E&C Onshore including floaters business and XSIGHT

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SAIPEM STRATEGIC PARTNER FOR NET ZERO COLLABORATIONS ANNOUNCED IN 1H 2021

• Launched SUISO, a technological solution for the production of green hydrogen combining floating wind, floating solar and marine energy. It will be applied for the first time to the Agnes project in the Adriatic Sea, the offshore energy hub that Saipem, in partnership with QINT'X, intends to build in Italy off the coast of Ravenna
• Signed a MoU with Alboran for the joint development and the construction of five plants for production of green hydrogen through the electrolysis process

• Signed a framework agreement with Danieli and Leonardo to work together for the sustainable conversion of energyintensive primary plants in the steel sector

• Acquired the Naval Energies activities in floating wind business

• Signed a feasibility study agreement for the decarbonisation business with the Norwegian company Elkem
• Signed an agreement for the promotion of Versalis' technology PROESA® to produce sustainable bioethanol
• Signed a Memorandum of Understanding with Siram Veolia a to collaborate on energy transition projects in Italy
• Launched the newco Saipem-Hyperion Eastmed Engineering Ltd, to provide highly specialized consultancy and engineering services supporting clients in energy transition in the Eastern Mediterranean region