Saipem

Investor Presentation • Mar 23, 2017

Value creation through Innovation

giovedì 23 marzo 2017

STRATEGY UPDATE

Why Saipem must always keep innovating?

Correlation between Innovation and Growth

Innovation is necessary to Survive

Source: Accenture, 2016

Our industry current scenario

Over the last 10 years

• Project cost increased 5-fold
• Productivity declined
• Project schedule slippage increased 1-2 yrs
• Construction cost 25% -> 50% of EPC
• Craft labour ~ 30% to 40% of project budget
• Competition stronger than ever
• O&G projects increasingly complex

Our industry future scenario

GLOBAL ENERGY DEMAND ANNUAL DEMAND GROWTH BY SOURCE

Our way to cope with both scenarios

Our Strategic Roadmap - Offshore business

SUBSEA as a prime area of election by - our business footprint into SUBSEA PROCESSING

• TIE-BACKS and Subsea-to-Shore distances, Ultra Deep Waters EXTENDING
• our URF EPCI offering into the LIFE OF FIELD

Exploit the growing DECOMMISSIONING business Consolidate our leadership in T&I and TRUNKLINE

Diversify in RENEWABLES market (Offshore Wind Farms)

Complement our FLEET capabilities with equipment, enabling or optimizing installation and maintenance operations

Explore GAME CHANGING innovative solutions

Our Technology Roadmap – Subsea

Our Strategic Roadmap - Onshore business

Our Strategic Roadmap – Digital Transformation

Digital Transformation Agenda

Engineering & Construction Corporate Activities & Global Functions

Technology Development 1/4

Technology Lab Technology Application Execution Corporate Technology Innovation ROVs/Subsea Engineered Systems Technology Innovation Centers

worked hours by year

Technology Development 2/4

* referred to 2012-16 timeframe

Technology Innovations

accounted within the formal R&D budget

Technology Applications

development activities done in commercial or investment projects (i.e. offshore fleet)

Technology Development 3/4

PATENTS PORTFOLIO (December 2016)

334 PATENT FAMILIES 2308 PATENTS IN FORCE

LICENSED PROPRIETARY TECHNOLOGIES

REFINERY/PETROCHEMISTRY

SnamprogettiTM UREA TECHNOLOGY

Technology Development 4/4

COLLABORATIONS WITH UNIVERSITIES, SPIN-OFFS, RESEARCH CENTERS, INSTITUTES

Transformative Innovation 1/4

A crowd-innovation initiative open to the external ecosystem will be launched soon

Technology Intelligence 1/1

TARGET scout disruptive technologies chase new value propositions discover growth opportunities

SOURCESuniversities R&D centres start-ups traditional O&G partners non-O&G firms

TECHNOLOGY EXPERIENCE

Are you too busy to Innovate?