Saipem — Investor Presentation 2017

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?