Saipem — Investor Presentation 2019

Apr 18, 2019

FIRST QUARTER 2019 RESULTS PRESENTATION

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

1Q 2019

Good results on trend with 2019 guidance

• E&C Offshore: solid, effective execution
• E&C Onshore: turnaround progressing
• Drilling: higher volumes, margins adjusting to current environment

Contract awards for c.€2.5bn, book to bill 1.2x Backlog at €14.8bn, including non-consolidated projects 2019 coverage improving

Visibility remains strong on selected near-term opportunities

Stable net debt

1Q 2019 RESULTS

IFRS 16 FIRST ADOPTION 1/2 2019 IMPACTS

BALANCE SHEET INCOME STATEMENT Net Debt EBITDA Net Income Financial Charges

IFRS 16 FIRST ADOPTION 2/2 1Q 2019 RECONCILIATION

1Q 2019 RESULTS

(*)1Q 2019 Adjusted Results not including €8mn of provisions for redundancies

1Q 2019 RESULTS – E&C YoY COMPARISON (€ mn)

IFRS 16 Impact

• Higher volumes in Middle East
• Good execution underpinning solid margin, stable YoY
• Higher volumes in various regions more than offsetting lower activity in West Africa
• 9 • Adjusted EBITDA margin up, due to turnaround effort

1Q 2019 RESULTS – Drilling YoY COMPARISON (€ mn)

DRILLING OFFSHORE DRILLING ONSHORE 140 Revenues Adjusted EBITDA Revenues Adjusted EBITDA 38.6% pre IFRS 16 40.0% IFRS 16

IFRS 16 Impact

• Higher volumes driven by Scarabeo 8 and Pioneer offsetting idle TAD
• EBITDA margin adjusting to current environment

• Increasing activity in Middle East, Argentina and Peru more than compensating tightening Caspian

10

• Good margin though slightly lower YoY

1Q 2019 NET DEBT EVOLUTION

(€ bn)

BUSINESS UPDATE

18 April 2019

MAIN RECENT AWARDS 1/2 1Q 2019

E&C Offshore

BERRI AND MARJAN FIELD DEVELOPMENT

• Client: Saudi Aramco
• Location: Kingdom of Saudi Arabia Arabian Gulf
• Scope of work: EPCI of Platforms, with associated subsea pipelines, cables and infrastructures
• Main vessels employed: DeHe, Castoro II

HIGHLIGHTS:

More than 25 E&C Offshore projects carried out for Saudi Aramco

BP TORTUE MARINE CIVIL WORKS

• Client: BP
• Location: Maritime border of Mauritania and Senegal
• Scope of work: EPCI of berthing and loading facilities, in consortium with Eiffage
• Main vessels employed: Saipem 3000

HIGHLIGHTS:

Up to 22,000 tons of marine structures

NEW CONTRACT AWARDED IN 2Q FOR THE HUB TERMINAL FACILITIES

Drilling Onshore

NEW CONTRACTS IN SAUDI ARABIA AND BOLIVIA AND VARIOUS OTHER EXTENSIONS

• 3 New long-term contracts with Saudi Aramco ranging from 3 to 5 years
• 3 Additional contract extensions with Saudi Aramco
• 1 New long-term contract in Bolivia with duration of c. 30 months
• Various other new contracts and extensions in Q1 and Q2 in Latin America

HIGHLIGHTS:

Consolidating presence in the Middle East; market improving in Latin America

MAIN RECENT AWARDS 2/2

1Q 2019

Drilling Offshore

PERRO NEGRO 8

• Client: ADNOC
• Location: United Arab Emirates
• Terms: 9 months, in continuation from previous engagement

PERRO NEGRO 7

• Client: Saudi Aramco
• Location: Saudi Arabia
• Terms: 4 years, in continuation from previous engagement

HIGHLIGHTS FOR PN7 AND PN8 :

Consolidation of relationship with strategic clients in a key area

SCARABEO 8

• Client: Wintershall
• Location: Norway
• Terms: 2 wells firm plus 2 wells option, expected to start around 4Q 2019

HIGHLIGHTS:

Improving market; new important relationship extending client base

1Q 2019 BACKLOG

(€ mn)

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

BACKLOG BY YEAR OF EXECUTION

(€ mn)

NON-CONSOLIDATED BACKLOG BY YEAR OF EXECUTION

	2019	2020	2021+
€ mn	154	425	1,265

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

2019 E&C OPPORTUNITIES

GOOD VISIBILITY ON SELECTED INITIATIVES

GOOD VISIBILITY ON c.€28bn PROJECTS FOR SANCTION IN 2019

OFFSHORE DRILLING FLEET

Committed New awards in 1Q19 Optional period

ONSHORE DRILLING FLEET

CLOSING REMARKS

CLOSING REMARKS

GOOD OPERATIONAL RESULTS SUSTAINED BY HIGHER VOLUMES AND EFFECTIVE EXECUTION IN E&C

1Q19 BOOK-TO-BILL GREATER THAN 1x: DRIVEN BY AWARDS IN E&C OFFSHORE AND IMPROVING ACTIVITY IN DRILLING

GOOD VISIBILITY ON SELECTED NEAR TERM E&C OPPORTUNITIES

WELL POSITIONED TO DELIVER YEARLY GUIDANCE

APPENDIX

18 April 2019

1Q 2019 RESULTS

QoQ TREND (€ mn)

1Q 2019 RESULTS

QoQ TREND (pre IFRS 16 - € mn)

4Q18 1Q19 4Q18 1Q19

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

CAPITAL STRUCTURE AS OF MARCH 31, 2019 LIQUIDITY AND MATURITY PROFILE (€ mn)

• Average debt maturity c.3.4 years. Overall financing interest rate c.4%, including treasury hedging
• Undrawn committed cash facilities totalling c.€1.2bn, in addition to c.€0.2bn of uncommitted facilities
• Available cash and equivalent c.€1.0bn**

(*) Committed (**) Not including trapped cash and marketable securities/other credit for c.€0.7bn

SOUND FINANCIAL STRUCTURE

Metrics	FY 2019*
Revenues	 c. €9bn
Adjusted EBITDA % margin	 >10%
CAPEX	c. €500mn 
Net financial position	 c. €1.0bn