Saipem — Investor Presentation 2018

Jul 25, 2018

FIRST HALF 2018 RESULTS PRESENTATION

25 July 2018

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

OPENING REMARKS

Strategy Update:

• Portfolio review defining Divisional strategic priorities
• Full autonomy given to Divisions, effective by year-end

1H adjusted EBITDA resilient, despite lower volumes

• Margin: higher in E&C Offshore and Drilling Onshore; resilient in Drilling Offshore
• E&C Onshore margin does not include losses from a project-related equity affiliate

Solid Cash Flow from operations in 1H offsetting Constellation acquisition Reported net result affected by Special Items

Strong contract awards driving 1H book-to-bill ratio above 1x Backlog up at €12.6bn Good award momentum expected to continue in 2H

Full year guidance confirmed

1H 2018 RESULTS

1H 2018 RESULTS YoY COMPARISON (€ mn)

(*) 1H 2018 Adjusted Revenues: €3,839mn

(**) Loss from a project-related equity affiliate is included in Adjusted Net Result

1H 2018 ADJUSTED RESULTS – E&C YoY COMPARISON (€ mn)

• Higher volumes in Middle East partially offsetting Kazakhstan and Latin America decrease

• Operational efficiency driving margin improvement

• Lower volumes in Far and Middle East and West Africa partially offset by Latin America and Caspian

• Loss from a project-related equity affiliate is included in Adjusted Net Result only

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

1H 2018 ADJUSTED RESULTS – Drilling YoY COMPARISON (€ mn)

• Lower volumes mainly due to idleness of Semisubs Scarabeo 5 and Scarabeo 8

• Stable margin year-on-year

• Volumes in line year-on-year

• Margin improvement thanks to effective cost optimisation program

1H 2018 RESULTS – TAX RATE

Current market conditions and lower pre-tax profit

• Limited recognition of Deferred Tax Assets
• Higher incidence of witholding tax
• Loss from equity accounted affiliate in 1H 2018

1H 2018 NET RESULT RECONCILIATION (€ mn)

Net Result

1H 2018 NET DEBT EVOLUTION (€ bn)

Good cash flow generation in 2Q offsetting Constellation acquisition

(*) Includes full payment for Constellation vessel

(**) Includes payment of Algeria settlement

CAPITAL STRUCTURE AS OF JUNE 30, 2018 (€ mn)

• EMTN programme and GIEK export facility availability period both extended
• Average debt maturity c.3.9 years. Overall financing interest rate c.4% including treasury hedging
• Undrawn committed cash facilities totalling c.€1.8bn, in addition to c.€0.4bn of uncommitted facilities
• Available cash and equivalent c.€1.1bn**

(*) Committed (**) Not including trapped cash for c.€0.6bn

STRATEGY UPDATE

PORTFOLIO REVIEW: STRATEGIC GOALS AND PRIORITIES GOALS STRATEGIC PRIORITIES CORE BUSINESS OPEN TO PARTNERSHIPS SELECTIVE APPROACH TO INVESTMENTS (e.g. Saipem Constellation) E&C OFFSHORE STRENGTHEN LEADING COMPETITIVE POSITION PORTFOLIO REPOSITIONING PERFORMANCE RECOVERY MINIMAL CAPEX E&C ONSHORE CONTINUE TURNAROUND FLEXIBLE APPROACH TO STRATEGIC OPTIONS OPTIMISE COST STRUCTURE & ECONOMIC PERFORMANCE MAINTENANCE & REPLACEMENT CAPEX ONLY DRILLING ONSHORE & OFFSHORE MAXIMISE THE VALUE OF BUSINESSES

DIVISIONAL AUTONOMY – FURTHER STEPS

PHASE 1 OF DIVISIONAL ORGANIZATION: COMPLETED

• Procedures and cost structure tailored Division by Division
• Higher accountability: commercial, engineering, procurement, technical and staff functions directly reporting to the respective heads of the divisions

PHASE 2: NOW LAUNCHED, TO BE COMPLETED BY YEAR END

• Full autonomy of Divisions:
• Strategy
• Partnerships
• Commercial policy
• Procurement and project execution
• Capex
• Technology & R&D
• Portfolio strategy by group CEO
• Centralised finance
• Transformation in separate Legal Entities subject to specific strategic options

BUSINESS UPDATE

MAIN E&C AWARDS - 2Q 2018

BARZAN PIPELINE PROJECT

• Client: Barzan Gas Company Limited
• Location: Qatar
• Scope of work: EPCI of two export lines and two intrafield pipelines, service lines, and brownfield modifications
• Main vessels employed: De He and Castoro 2

PROJECT HIGHLIGHTS:

• Sour gas project
• Saipem Internal Plasma Welding technology a key success factor

HIGH SPEED TRAIN BRESCIA-VERONA

• Client: Rete Ferroviaria Italiana (RFI)
• Location: Italy
• Scope of work: first route section of the High Speed Brescia-Verona, encompassing the laying of 48 km of the railway line, crosses the regions of Lombardy and Veneto

PROJECT HIGHLIGHTS:

• Immediate activities are related to: land acquisitions, archaeological surveys, environmental monitoring and executive planning
• Optional section to be exercised within 12 months
• Complexity: highly urbanised territory

NONG FAB LNG TERMINAL

• Client: PTT LNG Company Limited
• Location: Thailand
• Scope of work: EPC works for the Nong Fab terminal, with a maximum receiving capacity of 9 MMTPA, for the receipt, storage and regasification of liquefied natural gas

PROJECT HIGHLIGHTS:

— Strategic client in a strategic country

1H 2018 BACKLOG (€ mn)

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

18

1H 2018 BACKLOG BY YEAR OF EXECUTION (€ mn)

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

NEAR TERM E&C OPPORTUNITIES

INCREASED VISIBILITY ON TENDERS PIPELINE

E&C ONSHORE: FOCUS ON LNG

LNG: A PROMISING MARKET DRIVEN BY SOLID DEMAND GROWTH

A SIGNIFICANT NUMBER OF VISIBLE MARKET OPPORTUNITIES:

Mozambique LNG (Anadarko): 2 trains (12MTPA)

Mozambique Rovuma Venture: FEED undergoing for 2 trains (15MTPA)

• NLNG T7 (at Bonny): FEED undergoing of combined
• trains (8MTPA)
• Arctic LNG2: FEED undergoing for 3 GBS

A RECOGNIZED PLAYER IN THE LNG MARKET

OFFSHORE DRILLING FLEET CONTRACTS

* ON STACKING MODE - TOTALLY WRITTEN OFF

UPDATE ON ONSHORE DRILLING FLEET

GUIDANCE AND CLOSING REMARKS

2018 GUIDANCE - REMINDER

(*) Inclusive of loss from a project-related equity affiliate

CLOSING REMARKS

SOLID OPERATIONAL PERFORMANCE IN LINE WITH GUIDANCE

GOOD CASH FLOW GENERATION OFFSETTING CONSTELLATION ACQUISITION

AWARDS AND NEAR TERM VISIBILITY PROVIDE COMFORT ON FUTURE REVENUES

PORTFOLIO REVIEW: DIVISIONAL AUTONOMY TO ACHIEVE STRATEGIC PRIORITIES

APPENDIX

2Q 2018 RESULTS QoQ TREND (€ mn)

(*) 2Q 2018 Adjusted Revenues: €1,924mn

(**) Loss from a project-related equity affiliate is included in Adjusted Net Result

2Q 2018 ADJUSTED RESULTS QoQ TREND (€ mn)

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

1H 2018 RESULTS - D&A and FINANCIAL CHARGES

FFF2.0 – OPTIMISATION PROGRAMME

NEW DIVISIONAL INITIATIVES INCREASING TARGET SAVINGS TO €150mn

NEW DIVISIONAL INITIATIVES INCREASING YEARLY SAVINGS TO c. €40mn**

• South America right-sizing
• Vessels performance improvement program
• Corporate optimization