Saipem

Investor Presentation • Oct 24, 2019

NINE MONTHS 2019 RESULTS PRESENTATION

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), 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.

1	OPENING REMARKS
2	9M 2019 RESULTS
3	BUSINESS UPDATE
4	GUIDANCE AND CLOSING REMARKS

OPENING REMARKS

9M 2019

Major LNG award in Russia (Arctic LNG 2 Topsides) and preferred bidder for Nigeria LNG7 Solid Book-to-bill around 2x in 9M; 1.9x in 3Q, driven by Saudi Arabia Backlog c.€23.8bn* , the highest since 2Q 2014 Healthy E&C Offshore opportunity pipeline

Good results, on trend for FY 2019 targets

• E&C Offshore: good operational performance
• E&C Onshore: turnaround continues
• Drilling: volume increase, margins still adjusting to current environment

Delivered net profit of €44mn, vs loss of €357mn in 9M 2018 Net debt pre-IFRS 16 at €927mn, on track with year-end guidance of <€0.8bn

9M 2019 RESULTS

9M 2019 RESULTS

YoY COMPARISON (€ mn)

(*) Excluding special items, details in appendix

9M 2019 RESULTS – E&C YoY COMPARISON (€ mn)

(*) E&C Onshore including Floaters business and XSight IFRS 16 Impact

• Higher volumes in Middle East, North Africa and Latin America
• Margin underpinned by good execution
• Higher volumes in Middle/Far East, Sub-Saharan and Caspian
• Margin growth confirming turnaround

9M 2019 RESULTS – DRILLING

YoY COMPARISON (€ mn)

• Higher volumes driven by SC8, S12000, Pioneer (leased)
• Phasing out of past contracts reflects on EBITDA margin
• Growth driven by activity in Saudi Arabia and Latin America
• Stable EBITDA QoQ 8

8

9M 2019 NET DEBT EVOLUTION

(€ bn)

BUSINESS UPDATE

24 October 2019

MAIN RECENT AWARDS E&C – 3Q19

BERRI - PKG-01 EXPAND ABU ALI CRUDE & KGP GAS FACILITIES

• Client: Saudi Aramco
• Location: Kingdom of Saudi Arabia
• Scope of work: EPC for new units for the Abu Ali oil-gas separation plant and the Khursaniyah gas treatment plant

MARJAN - PKG-10 GAS TREATMENT AND SULFUR RECOVERY

• Client: Saudi Aramco
• Location: Kingdom of Saudi Arabia
• Scope of work: EPC for new units for gas treatment and the recovery of acid gases for sulfur production

ARCTIC LNG2 - TOPSIDES

• Client: Arctic LNG2
• Location: Gydan peninsula, Russia
• Scope of work: EPCI of 3 LNG trains, each with a capacity of approximately 6.6 MTPA, will be installed on concrete gravity-based structures (GBS)

HIGHLIGHTS:

Proven track-record in harsh environment and yard operations Synergic with GBS contract already under execution Leading contractor in LNG

BP AZERI-CHIRAG-GUNASHLI FIELD: 3 CONTRACTS FOR NEW PIPELINE SYSTEMS AND T&I

• Client: BP
• Location: Caspian Sea (Azerbaijan), Azeri-Chirag-Gunashli (ACG) field
• Scope of work: design and installation of 2 new subsea pipeline systems for Chirag conventional gas lift project and Azeri Central East (ACE) platform; T&I of offshore facilities for ACE platform

HIGHLIGHTS:

Consolidates Saipem presence (since 1990s) and continued activity in Azerbaijan Synergic with other projects already awarded in the area (Shah Deniz and Absheron) FEED phase awarded by BP to XSight division

11

OFFSHORE DRILLING FLEET

Committed New awards in 3Q19 Optional period

* ENGAGEMENT FOR PRODUCTION SUPPORT CONTRACT UNDER NEGOTIATION

** LEASED VESSEL

*** ON STACKING MODE

ONSHORE DRILLING FLEET

(*) E&C Onshore including Floaters business and XSight

14

9M 2019 BACKLOG BY YEAR OF EXECUTION (€ mn)

NON-CONSOLIDATED BACKLOG BY YEAR OF EXECUTION

	2019	2020	2021+
€ mn	116	783	3,068

(*) E&C Onshore including Floaters business and XSight

E&C BACKLOG BREAKDOWN EVOLUTION BACKLOG MAINLY DRIVEN BY GAS

E&C BACKLOG €bn

E&C OFFSHORE OPPORTUNITIES

CONFIRMED GOOD VISIBILITY ON ~€8 BILLION NEAR-TERM INITIATIVES

Americas
➢ SUBSEA ➢ PIPELINES	~€1.3bn	Europe/ CIS and Central Asia ➢ RENEWABLES ~€1.3bn
Middle East		➢ PIPELINES
FIXED FACILITIES ➢	~€2.6bn	Asia Pacific ➢ PIPELINES
Africa		~€1.2bn ➢ RENEWABLES
➢ SUBSEA	~€1.3bn	LEGEND Approx. value of the ➢ SEGMENT OF BUSINESS opportunities in the area

GUIDANCE AND CLOSING REMARKS

2019 GUIDANCE UPDATE PRE IFRS 16

CLOSING REMARKS

BACKLOG AROUND €24bn*, THE HIGHEST LEVEL SINCE 2Q 2014

GOOD OPERATIONAL RESULTS, CONSISTENT WITH FULL YEAR GUIDANCE

VISIBILITY REMAINS GOOD ON SELECTED NEAR-TERM E&C OFFSHORE OPPORTUNITIES

DELIVERED NET PROFIT IN Q3 AND 9M VS LOSS IN 2018

DELEVERAGING CONTINUES WITH NET DEBT AT c.€0.9bn

APPENDIX

24 October 2019

3Q 2019 RESULTS

QoQ TREND (€ mn)

(*) Not including special items

3Q 2019 RESULTS

QoQ TREND (pre IFRS 16 - € mn)

(*) E&C Onshore including Floaters business and XSight

9M 2019 NET RESULT RECONCILIATION ADJUSTED-REPORTED

Net Result (€ mn)

(*) Write-down in 2Q 2019 of jackup Perro Negro 5 and related working capital

9M 2019 RESULTS – D&A, FINANCE CHARGES AND TAX RATE

IFRS 16 IMPACT RECONCILIATION

CAPITAL STRUCTURE AS OF SEPTEMBER 30, 2019 LIQUIDITY AND MATURITY PROFILE (€ mn)

• Average debt maturity c.2.9 years. Overall financing interest rate c.4%, including treasury hedging
• Undrawn committed cash facilities totalling c.€1.2bn, in addition to c.€0.3bn of uncommitted facilities
• Available cash and equivalent c.€1.2bn**

(*) Committed (**) Not including trapped cash and marketable securities/other credit for c.€0.9bn

SOUND FINANCIAL STRUCTURE

E&C ONSHORE OPPORTUNITIES

OVER €8 BILLION NEAR-TERM INITIATIVES

Americas
		Europe/ CIS and Central Asia
PIPELINES ➢	~€0.5bn	~€0.2bn ➢ DOWNSTREAM
Middle East
DOWNSTREAM ➢ ➢ UPSTREAM	~€0.9bn	Asia Pacific
		~€1.0bn DOWNSTREAM ➢
Africa
DOWNSTREAM ➢		LEGEND
➢ LNG ➢ FLOATERS	~€5.7bn	Approx. value of the SEGMENT ➢ OF BUSINESS opportunities in the area