Eni — Earnings Release 2016

Mar 1, 2017

Highlights 2016: a year of records

UPSTREAM MID-DOWNSTREAM FINANCIALS FINANCIALS

• Exit rate at 1.86 Mboe/d
• Exp: 1.1 Bboe @UEC \$0.6/boe
• Organic RRR: 193%
• Zohr 40% disposal

• 2017 startups ahead of schedule

• FCF: €2.3 bln

• EBIT adj. R&M+Chem €0.6 bln

MID-DOWNSTREAM

G&P set to breakeven in 2017

• € 3 bln saving (vs 2015) :
• Capex: € 2.2 bln (-19%)
• Opex: \$ 6.2 /boe (-14%)
• G&A: -€ 150 mln

EFFICIENCY

• CFFO: € 8.3 bln
• CFFO = CAPEX @ \$46 /bbl
• Leverage 24%*

* proforma including 40% of Zohr disposal BEATING TARGETS AND FUELLING GROWTH

HSE performance

HSE OUR TOP PRIORITY

4

Exploration successes fuelling future production

AVG 2014-2016 UEC < \$1 /BOE

Peers: Total, Chevron, Statoil, BP, Shell, Conoco Philips, Exxon

*139%, considering 40% of Zohr disposal

2017 start ups ahead of schedule

Project details

• Eni working interest: 37%
• Hydrocarbon: oil
• Gross Volumes in place Block 15/06 (West + East) > 1.2 bln boe
• Peak production Bl 15/06 (West + East) 100%: 150 kboe/d

Execution Time 30 months

Project details

• Eni working interest: 44%
• Hydrocarbon: oil & gas
• Gross Volumes in place: 750 mln boe
• Peak production 100%: 85 kboe/d

Execution Time 42 months

Project details

• Eni working interest: 55%
• Hydrocarbon: gas
• Gross Volumes in place: 470 mln boe
• Peak production 100%: 80 kboe/d

Zohr: countdown to first gas

7

Strong cash generation from mid-downstream

ALL BUSINESSES FREE CASH FLOW POSITIVE

Relentless focus on cost efficiency

OVERALL COST OPTIMISATION 2016 vs 2015 € 3 BLN

Best-in-class for financial discipline

An outstanding result in 2016

SLASHING CASH NEUTRALITY SINCE 2013

Exploration and long term organic growth are the engine of our strategy

• High impact and conventional exploration
• Long term organic growth
• Integrated with E&P assets and close to final market

Resources Operations

• High level of operatorship
• Design to cost
• Fast track

Value

• Upstream and G&P integration
• Enhancement in the downstream
• Active portfolio management

BUILDING A HIGH MARGIN PORTFOLIO

Best positioned to capture upside

Upstream

• Production growth CAGR 3%
• Exploration resources 2-3 bln boe

Mid downstream

• G&P breakeven in 2017
• Refining breakeven at \$3/bbl margin in 2018

Efficiency

• Capex vs previous plan: -8%
• New projects BEP around \$30/bbl

Financials

• New 4YP disposal target ~€ 5-7 bln
• 4YP CFFO € 47 bln

2017-2020 targets

A rich set of exploration opportunities

2-3 BLN BOE EQUITY RESOURCES

A large portfolio for the long term

New EXPLORATION successes…

An unrivalled inventory

High quality long term cash flow

Gas demand continuous growth and market rebalancing

NEW LNG REQUIRED EARLY NEXT DECADE

A turning point for G&P

CUMULATIVE CFFO € 2.6 BLN IN THE 4YP

Extracting value from integration

Targets

A PORTFOLIO PLAYER INTEGRATED WITH UPSTREAM

and emerging markets

portfolio

Downstream: building on the restructuring

Capex plan

** E&P post portfolio

Our enhanced disposal programme

Cash Flow plan

16,0 € Bln

26

Remuneration - dividend policy confirmed

Competitive distribution policy progressive with underlying earnings growth and scenario

2017 DIVIDEND €0.8/SHARE (FULLY CASH)

Unrivalled exploration

Fast cash generation

Low breakeven portfolio Highly leveraged to oil price

Strong balance sheet

BACK UP

New energy solutions

2017-2030 Guidelines

• Significant growth of installed capacity
• Technology neutral, with focus on hybrid projects
• Technological and geographical synergy with other Eni business lines

Energy Solutions installed capacity

4YP Scenario	2017	2018	2019	2020
Brent dated (\$/bl)	55	60	65	70
FX avg (€/\$)	1.08	1.13	1.15	1.20
Std. Eni Refining Margin (\$/bl)	4.0	4.0	4.3	5.5
NBP (\$/mmbtu)	5.2	5.3	5.5	5.5
Cracker Contribution Margin (€/ton)	270	260	254	255

4YP sensitivity*	Ebit adj (bln €)	Net adj (bln €)	FCF (bln €)
Brent (-1\$/bl)	-0.3	-0.2	-0.2
Std. Eni Refining Margin (+1\$/bl)	+0.2	+0.1	+0.2
Exchange rate €/\$ (+0.05 \$/euro)	-0.4	-0.2	-0.2

Main start ups

Main start ups 2017-2018	country	op	start up	Equity peak in 4 YP (kboed)	Working Interest	Liquids/Gas
Nenè Ph.2A	Congo	yes	Achieved	20	65%	Liquids
Block 15-16 East Hub	Angola	yes	Achieved	20	37%	Liquids
OCTP Oil	Ghana	yes	1H17	20	56%	Liquids
Jangkrik	Indonesia	yes	2H17	45	55%	Gas
Zohr	Egypt	yes	2H17	175	60%	Gas
OCTP Gas	Ghana	yes	1H18	20	56%	Gas
West Hub (Ochigufu)	Angola	yes	1H18	<10	37%	Liquids
Bahr Essalam Ph. 2	Libya	yes	2H18	70	50%	Liquids/gas
Baltim SW (Barakish)	Egypt	yes	2H19	20	50%	Gas
West Hub (Vandumbu)	Angola	yes	2H19	<10	37%	Liquids

Start ups post 2020	country	op	start up	Equity peak (kboed)	Working Interest	Liquids/Gas
Argo Cluster	Italy	yes	>2020	<10	60%	Gas
Marine XII Full Field	Congo	yes	>2020	30	65%	Liquids
Coral FLNG	Mozambique	yes	>2020	50	50%	Gas
Johan Castberg	Norway	no	>2020	55	30%	Liquids
Mamba T1-T2	Mozambique	yes	>2020	135	50%	Gas
Merakes	Indonesia	yes	>2020	30	85%	Gas
Bonga SW	Nigeria	no	>2020	20	10%	Liquids
Karachaganak EP	Kazakhstan	yes	>2020	40	29%	Liquids/Gas
Kashagan CC01	Kazakhstan	no	>2020	15	17%	Liquids/Gas
Loango	Congo	yes	>2020	<10	43%	Liquids
A-E structures	Libya	yes	>2020	70	50%	Liquids/Gas
Perla ph2	Venezuela	yes	>2020	85	50%	Gas
Mamba next trains	Mozambique	yes	>2020	>100	50%	Gas
Coral Phase 2	Mozambique	yes	>2020	50	50%	Gas