Saipem — Investor Presentation 2016

Feb 24, 2016

PRELIMINARY 2015 CONSOLIDATED RESULTS PRESENTATION

24 February 2016

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 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.

TODAY'S PRESENTATION

1	O G S P E N I N R E M A R K
2	F Y 2 0 1 5 P R E L I M I N A R Y R E S U L T S
3	B S S S R U I N E E V I E W
4	P D A O D R O S R A G U T E N E L I V E Y F T T E Y
5	G C U I D A N E

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 refinancing process progressing
• €3.5bn Rights issue completed
• Successful debt syndication
• Positive cash generation in 2016

FY 2015 PRELIMINARY RESULTS

2015 FINANCIAL RESULTS

YoY comparison – Reported (€ mn)

6

2015 FINANCIAL RESULTS Reconciliation (€ mn)

EBIT

YoY comparison - Underlying (€ mn) 2015 FINANCIAL RESULTS

2015 FINANCIAL RESULTS4Q YoY comparison – Underlying (€ mn)

2015 NET DEBT EVOLUTION (€ bn)

BUSINESS REVIEW

2015 BACKLOG AND NEW ORDERS (€ mn)

BACKLOG BY YEAR OF EXECUTION (€ mn)

E&C OPPORTUNITIES

Americas

• CFE Gulf Mex – offshore pipelines
• ExxonMobil Liza – subsea – New (post 2016)
• Kinder Morgan – onshore pipelines - New
• Codelco Rodomiro Tomic1 – onshore pipelines
• CFE/Transcanada pipelines – onshore pipelines – New
• Shell LNG Canada – LNG2

West and North Africa

• Eni Shorouk (Zohr) development Phase 1 – subsea/pipelines
• Eni Shorouk future dev. – subsea/pipelines – New (post 2016)
• BG Burullus Phase IXB – subsea
• Namcor Kudu Gas Line – offshore pipelines
• Eni Zabazaba – FPSO and subsea – New (Post 2016)
• Eni Loango field development – fixed facilities – New
• BP Platina URF – subsea – New (Post 2016)
• Exxon Qua Iboe Power Plant – downstream
• Quantum Methanol (early works) – downstream3
• E-Chem Petrochemical Complex – downstream – New

Central Asia/Europe

• Lukoil Filanovsky Phase 2 – offshore fixed facilities
• BP Shah Deniz Ph. 2 Operational Construction Vessel – subsea
• TAP / TANAP – offshore pipelines
• NCOC Kashagan Trunklines Add. Repair 18'' – off. Pipelines – New
• INA Refinery – downstream
• Gazprom Moscow Refinery Upgrading FEED – downstream
• oBUP Ammonia Urea – downstream – New
• Re-gas LNG Terminal – LNG - New

OPPORTUNITY ONSHORELEGEND

SAIPEM AWARD / SAIPEM AWARD

OPPORTUNITY OFFSHORE

oNEW OPPORTUNITY

Asia Pacific

• BP Tangguh – offshore fixed facilities and pipelines
• PTTEP Zawtika Phase 1C – offshore fixed facilities – New
• Hess Equus – subsea/offshore pipelines – New (post 2016)
• Chevron Gehem Gendalo – FPU and subsea (post 2016)
• Shell Inpex Masela FEED – FLNG and subsea (post 2016)
• Petronas RAPID – downstream
• BP Tangguh – LNG
• Agri Nutrients Balance Ammonia/Urea – downstream - New
• Pertamina CEPU – upstream - New

Middle East

• S. Aramco Hasbah – offshore fixed facilities
• S. Aramco 4 CRPOs LTA – offshore fixed facilities – New
• S. Aramco Safanya LTA development – offshore fixed facilities - New
• QP Bul Hanine EPCI – off. fixed facilities - New
• KNPC New Refinery pipeline – onshore pipelines
• ADCO BAB Integrated Facilities – upstream
• BGC Ar Ratawi NGL Gas Plant – upstream ( post 2016 )
• S. Aramco Uthmaniyah Gas Plant - upstream – New
• KOC GC32 – upstream – New (post 2016)
• ADCO Al Dabbiya ASR Development – upstream – New
• DUQM Refinery – downstream – New
• Oman TTC Ras Markaz Terminal – downstream – New (post 2016)

East Africa

• oEni Mamba – subsea – New (post 2016)
• Anadarko Golfinho – subsea
• Anadarko Onshore – LNG4

Total Value of opportunities: approx. €38 bn

141. Engineering phase ongoing. Execution phase subject to obtainment of environmental permits. 2. Preselected contractor for FEED and EPCM execution. Ongoing OBE updating to consolidate basis for client final investment decision. 3. Early Works awarded. 4. Selected contractor, award subject to client final investment decision.

UPDATE ON DRILLING

Offshore Drilling fleet contracts

			Co i d t te m m		S d- ta n	by	Ne w	tra t co n c
										C L I E N T	L O C A T I O N
R E T A W - P E E D	Sa ip 1 2 0 0 0 em									-	-
	Sa ip 1 0 0 0 0 em									i En	Wo l dw i de r
	Sc be 9 ar a o									En i	la An g o
	Sc be 8 ar a o									En i	No h Se t r a
	Sc be 7 ar a o									En i	An la / In do ia g o ne s
	Sc be 6 ar a o									Bu l lus ru	Eg t y p
	Sc be 5 ar a o									S i l ta to	h No Se t r a
MID WA TE R	Sc be 4 ar a o			SC RA PP	ED					-	-
	Sc be 3 ar a o									-	-
R	C E HI	Pe Ne 8 rro g ro								C N D	A bu D ha b i
E T	P S	Pe Ne 7 rro g ro								Sa d i Ar u am co	d b Sa i Ar ia a u
A W		Pe Ne 5 rro g ro					CO	NT RA CT ED TO	20 24 >>	Sa d i Ar u am co	Sa d i Ar b ia u a
- W O L L A H	D R A D N A T S	Pe Ne 4 rro g ro								Pe be l tro	Eg t y p
		Pe Ne 3 rro g ro								C N D	A bu D ha b i
		Pe Ne 2 rro g ro								N D C	bu ha b A D i
S		T A D								En i	Co ng o
			2 0 1 4	2 0 1 5	2 0 1 6	2 0 1 7	2 0 1 8	2 0 1 9	2 0 2 0

Onshore drilling fleet utilization rate 2015: 90.5%

UPDATE ON DELIVERY OF STRATEGY

UPDATE ON DELIVERY OF STRATEGIC OBJECTIVES

S i S i i l l t t 's a p e m r a e g c p a r s	P f d t r o g r e s s a s o o a y
1 B i f l i f t s n e s s p o r o o r e o c s u u	d C d l, d l P i i i B i U K A i t r o g r e s s n o n s n g a n a a, r a a n s r a a  w z z u E i l S i d R V i b i i l d t g g  n v r o n m e n a e r v c e s a n o m a- o e n n e e r n s o S f l f d i i I i i i i i t t t t t t t r a e g c r e e o a a n n r a s r c r e a c e s a n  v w u u v l d F P S O i e a s e s o n g o n g
2 i k i h b i d l D t e -r s n g e u s n e s s m o e	h d S j i t t t g g  r e n e n e p r o e c s c r e e n n p r o c e s s l f f % f 2 0 6 L i ( 4 1 ) t t o -m a r g n e g a c c o n r a c s r n o o r e e n e s  w y u v u
3 C i i i f f i i t t t & o s o p m s a o n p r o c e s s e c e n c y	f h d € 1 5 0 E B I T i i i H 2 / 1 5, t t g  m o m p r o v e m e n s a c e v e n s r o n h d d i t t e a c o n r e c o n u u O i i i d i f d d i i l i t t t g g g  n o n r e v e w o e n y a o n a s a v n s
4 h l d i i T t e c n o o g y a n n n o v a o n	A l l i b S i d A k t  a n c e e w e e n a p e m a n e r h f N i i i i t t t e o r g a n s a o n o e n a n c e n n o a o n o c s  w v u
5 D b d i d i l d i i l i t t t e r e u c o n a n c a p a s c p n e	b h l d € 3. 5 i i t t g  n r s s s u e c o m p e e S f l d b d h d i i i t t c c e s s e s n c a o n a c e e  u u y v

UPDATE ON COST OPTIMISATION PROGRAMME

Avoided Costs €0.5bn, including additional savings of ~€200mm identified in October 2015

COST OPTIMISATION PROGRAMME ON TRACK

T l i € b t 1. 5 o a s a n g s n v	2 0 1 5 A h i t c e v e m e n s	/ 2 0 1 6 2 0 1 7 A i t c o n s
S f f C l C t & t t a e n r a o s s € 0. 4 5 b n	d h l d Y i i i ( A C ) t g g g  a r r s z n n o a, a n a a O f h l i i i i t t p m a o n o p e r p e r a  z i t t g o p e r a n c e n r e s R i f H R l i i  e v e w o p o c e s	R h f i i i t t t g s e o e r s e a s s p p o r n c o n s  z v u u ( l l d l ) t o c a a n e x p a p e r s o n n e O f f h i I T i g  s o r n s e r v c e s G l l i l i i t t t g g  r o u p e a e n y s r e a m n n
P j O i t & t r o e c p e r a o n C t o s s b € 0. 5 5 n	F b i i i t t g  a r c a o n m p r o v e m e n p r o r a m S l i i i t t p p e r r e n e g o a o n s  u V l i d i t e s s e m a n e n a n c e a n m a n n n g  i i i t t o p m s a o n	R i i i i d l t t e v e w c o n s r c o n s p e r v s o n m o e  u u O i i i l i i t t p m z e r g o g s c s  S l h i i i i t t u p p y c a n o p m z a o n 
A i d d C t v o e o s s b € 0. 5 n	R d i f i i i t t g g e u c o n o e n n e e r n o v e r c a p a c y  S f b l d i l l i d f f h t g  c r a p o o s o e e r n a n o s o r e l e s s e s v	A d d i i l i i f i t t t o n a e n g n e e r n g o o p r n  i i i t t o p m z a o n f l O i i i i t t t  p m z a o n o e x e r n a s e r v c e s h i h i i f d F t t t u r e r r g s z n g o a s s e s a n r e s o u r c e s 
H d d i t t e a c o u n r e u c o n F T E 8, 8 0 0 s	W k f Y E 2 0 1 5 4 3, 6 0 0 F T E t  o r o r c e a : O l l d f 0 0 0 i ~7 F T E t e r a r e c o n o  v u ,	T f i d t g  a r e c o n r m e h d b d F i i t t r e r r e c o n e n g p r s e  u u u u

SNAPSHOT OF SAIPEM-AKER ALLIANCE

Two leaders in their respective markets

SURF EPCI contractor leveraging on engineering, assets, local content, subsea technologies

SPS technology driven manufacturer leveraging onengineering and products

Vertical integration of complementary SPS/SURF 'Delivery and Life-of-Field Service' model

Strategic Advantages

• Leverage technology by coordinated approach and deployment of own products and systems and development of new and innovative solutions
• Early engagement, fit for purpose solutions and cost reduction
• Expand market perimeter accessing high value segments: SPS and Life of Field
• Extend / optimise geographical presence

GUIDANCE

2016 GUIDANCE

M i t e r c s	F Y 2 0 1 6
R e v e n u e s	€ 1 1 b  > n 7 4 % d b b k l g  c o v e r e y a c o
E B I T % i m a r g n	€ 6 0 0 m m  > % 5. 5  ~
N f i t t e p r o	€ 3 0 0 m m  ~
C A P E X	€ 0 0 5 m m  ~
N f i i l i i t t e n a n c a p o s o n	b € 1. 5 n  <

TAKEAWAYS

TAKEAWAYS

2015 guidance met

Strengthened balance sheet

2016 guidance underpinned by backlog, opportunities and efficiencies

Continuous review of costs, disciplined commercial effort