Saipem — Investor Presentation 2018

Apr 24, 2018

1Q 2018 RESULTS PRESENTATION

24 April 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

1Q 2018 RESULTS

BUSINESS UPDATE

CLOSING REMARKS AND 2018 GUIDANCE UPDATE

OPENING REMARKS

1Q 2018 overall profitability resilient, despite declining volumes

• Healthy margin in Offshore E&C and Drilling
• E&C Onshore margin on track
• Efficiency initiatives supportive of Drilling Onshore

Positive net cash generation during quarter, despite settlement in Algeria Backlog at €11.5bn, €1bn New Awards in 1Q

Saipem Constellation Rigid Reeling vessel acquisition

• Complementing the range of subsea development solutions
• Access to new strategic segments

2018 Net Debt and Capex Guidance updated to reflect vessel investment

1Q 2018 RESULTS

1Q 2018 RESULTS YoY COMPARISON (€ mn)

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

• Middle East partially offsetting lower activity elsewhere
• Good operational performance delivering solid margin

• Margin on track

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

1Q 2018 RESULTS – Drilling YoY COMPARISON (€ mn)

• Declining revenues due to higher idleness
• Margin still resilient

• Cost saving and higher rig utilization sustaining EBITDA and margin

1Q 2018 NET DEBT EVOLUTION (€ bn)

Good Cash Flow generation positively impacting Net Debt

(*) Includes payment of Algeria settlement

CAPITAL STRUCTURE AS OF MARCH 31, 2018 (€ mn)

Average debt maturity c.4.1 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. €1.3bn**

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

BUSINESS UPDATE

NEW E&C OFFSHORE ASSET: SAIPEM CONSTELLATION 1/3 RIGID REEL-LAY AND SUBSEA DEVELOPMENT VESSEL

• Immediate access to Reel-Lay solutions with latest generation vessel (built 2013)
• Multipurpose "one stop shop":
• 800mT tension, for the deepest waters
• 3000mT mast crane
• Subsea installation
• Less spoolbase dependent, for remote locations

COMPLEMENTING THE RANGE OF SUBSEA DEVELOPMENT SOLUTIONS NEW E&C OFFSHORE ASSET: SAIPEM CONSTELLATION 2/3

CONSTELLATION

EXTENDING FLEET SURF CAPABILITIES NEW SEGMENT: SUBSEA TIE BACK PROJECTS

ACCESS TO BROADER RANGE OF INTEGRATED SUBSEA PROJECTS (SPS + SURF)

MULTIPURPOSE VESSEL FOR GREENFIELD PROJECTS

NEW E&C OFFSHORE ASSET: SAIPEM CONSTELLATION 3/3 ACCESSIBLE MARKET

CONSIDERABLE NUMBER OF VISIBLE RIGID REELING INITIATIVES ACCESSIBLE MARKET OF c.\$7bn IN 2019-2020

POTENTIAL FOR 2018 DEPLOYMENT ON ONGOING PROJECTS

MAIN AWARDS 2018

E&C ONSHORE

DUQM Refinery Package 3

• Client: Duqm Refinery and Petrochemical Industries Company
• Location: Oman
• Scope of work: EPC works for a new grassroots Crude Tank Farm at Ras Markaz composed by 8 crude oil tanks with a cumulative volume of 824,000 m3

E&C OFFSHORE

ConocoPhillips Decommissioning KJO Crude Pipeline

• Client: ConocoPhillips
• Location: North Sea UK sector

• Scope of work: decommissioning of marine structures

• Client: Al Khafji Joint Operations (KJO)

• Location: Arabian Gulf
• Scope of work: engineering, construction, installation and commissioning of a crude pipeline
• OFFSHORE DRILLING

Scarabeo 8 – North Sea Norwegian sector

• Client: Total
• Location: offshore Norway
• Terms: 1 well project with start in 4Q18

Scarabeo 8 – North Sea Norwegian sector

• Client: Shell
• Location: offshore Norway
• Terms: option for second well exercised

Scarabeo 8 – North Sea Norwegian sector

• Client: AkerBP
• Location: offshore Norway
• Terms: 4 wells project + 2 optional wells, start within the end of 4Q18

Saipem TAD - Congo

• Client: Total
• Location: offshore Congo
• Terms: 5 firm wells + up to 5 optional wells

GOOD VISIBILITY ON NEW OPPORTUNITIES

1Q 2018 BACKLOG (€ mn)

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

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

OFFSHORE DRILLING FLEET CONTRACTS

* ON STACKING MODE - TOTALLY WRITTEN OFF

UPDATE ON ONSHORE DRILLING FLEET

CLOSING REMARKS AND 2018 GUIDANCE UPDATE

2018 GUIDANCE UPDATED

(*) Updated post vessel acquisition

CLOSING REMARKS

GOOD PROJECT EXECUTION DELIVERING SOLID OPERATIONAL MARGINS

POSITIVE CASH GENERATION DRIVING NET DEBT REDUCTION

GOOD VISIBILITY ON NEW PROJECTS - NOT YET REFLECTED IN FIDs / AWARDS

ACCESS TO TIE-BACK MARKET, STRENGTHENING SAIPEM GLOBAL SUBSEA OFFERING

APPENDIX

1Q 2018 RESULTS QoQ TREND (€ mn)

1Q 2018 RESULTS QoQ TREND (€ mn)

4Q17 1Q18 4Q17 1Q18 Revenues Adj. EBITDA DRILLING OFFSHORE 116 137 53 81

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

E&C ONSHORE - OPPORTUNITIES

KEY SEGMENTS

E&C OFFSHORE - OPPORTUNITIES

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