Saipem

Investor Presentation • Feb 26, 2020

FULL YEAR 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.

TABLE OF CONTENT

• 01 OPENING REMARKS
• 02 DELIVERING OUR STRATEGY
• 03 FY 2019 RESULTS
• 04 FOCUS ON DIVISIONS
• 05 GUIDANCE AND CLOSING REMARKS
• 06 APPENDIX

OPENING REMARKS

OPENING REMARKS

A VERY GOOD YEAR: OPERATIONAL EXCELLENCE, RECORD ORDER INTAKE AND DELEVERAGING

• FY 2019 targets achieved, driven by operational results:
  • E&C Offshore: good operational performance
  • E&C Onshore: turnaround on track
  • Drilling: volume increase, margins still adjusting to current environment
• Exceptional order intake of €17.6bn, leading to 1.9x book to bill
• Record backlog of c.€25bn*
• Reported net profit of €12mn, vs a loss of €472 million in FY 2018
• Net debt pre-IFRS 16 at €472mn, vs €1,159mn in FY 2018
  • Reflecting strong cash flow
  • Early redemption of 2021 bonds in progress
• Proposed to AGM a dividend** of €1 cent per share, first distribution since 2013***

* Of which c.€3.6bn non-consolidated

** For ordinary and savings shares. Ex-dividend date 18 May 2020, payment date on 20 May 2020 *** For ordinary shares

DELIVERING OUR STRATEGY

MARKET OUTLOOK

• Oil price volatility, also driven by geopolitics
• Offshore FIDs and drilling rates recovery slower than expected
• New wave of sizeable LNG project awards

• : a decade-long gradual process, but policies may accelerate energy mix shift
• Low-carbon emission sources:
  • natural gas to remain an essential source
  • renewables fundamental in power generation and mobility
• New cross-sectors opportunities will arise from green technologies, decarbonization and digitalisation
• E&C market:
  • Opportunities in Middle East offshore

2020E

• Selected initiatives in deepwater, especially in Africa
• LNG awards expected to continue after 2019 peak
• Good visibility on downstream
• Increasing client focus on green technologies, shifting towards lowcarbon solutions
• Drilling market:
  • Offshore expected to mildly recover, with harsh environment more promising
  • Onshore: Middle East to continue, mixed LatAm

STRATEGY DELIVERY

ON TRACK FOR A NEW SAIPEM

BUSINESS PORTFOLIO REFOCUS

• DIVISIONALIZATION COMPLETED IN 2018
• SOLID & RENEWED MANAGEMENT TEAM
• DIVERSIFYING OFFER FOR THE
• STRATEGIC OPTIONS FOR DRILLING

TECHNOLOGY & INNOVATION

• ENHANCED INNOVATION CULTURE AND BUDGET
• NEW SOLUTIONS FOR CLIENTS:
  • DIGITAL
  • COST EFFECTIVE
  • DIVERSIFIED
  • ENABLERS OF

DEBT REDUCTION & CAPITAL DISCIPLINE

• CASH FLOW SUPPORTED BY WORKING CAPITAL MANAGEMENT
• SELECTIVE APPROACH ON CAPEX
• SOLID FINANCIAL STRUCTURE AND LIQUIDITY:
  • LEVERAGE RATIO BELOW 0.5x*

DE-RISKING THE BUSINESS MODEL

• COMMERCIAL DISCIPLINE AND TENDER SELECTIVITY
• EARLY ENGAGEMENT (XSIGHT)
• NO UNBILLED REVENUES UNDER LITIGATION

COST OPTIMISATION & PROCESS EFFICIENCY

• E&C ONSHORE TURNAROUND WELL ON TRACK
• EFFICIENCY PROGRAMS CONTINUING
• STRENGTHENED AND RATIONALISED ASSET BASE

PIVOTAL IN THE ENERGY TRANSITION

LEADING TODAY, READY FOR TOMORROW

ESG IS AT THE CORE DRIVEN BY SUSTAINABILITY

ESG: A TOP PRIORITY FOR CEO AND BOARD OF DIRECTORS

• Active engagement with stakeholders on material issues to set priorities
• Monitoring system to track and report sustainability performance
• Targets on sustainability KPIs included in top management remuneration

INCLUDED IN KEY SUSTAINABILITY STOCK INDICES

Confirmed for the 10th year in FTSE4Good Index Series

Confirmed as the sector's leader in DJSI World and Europe indices

2019 CLIMATE: FROM STRATEGY TO ACTION

In accordance with TCFD* recommendations Risk and opportunities analysis

FY 2019 RESULTS

FY 2019 RESULTS

YoY COMPARISON (€ mn)

FY 2019 RESULTS – E&C

YoY COMPARISON (€ mn)

|13 * E&C Onshore including Floaters business and XSight

FY 2019 RESULTS – DRILLING YoY COMPARISON (€ mn)

FY 2019 NET RESULT

RECONCILIATION ADJUSTED-REPORTED

Net Result (€ mn)

PROPOSED TO AGM A DIVIDEND OF €1 CENT PER SHARE***, FIRST DISTRIBUTION SINCE 2013****

* Write-down in 2Q 2019 of jackup Perro Negro 5 and related working capital

** Net impact of release of provision from Algerian legal case and outcome of some pending litigation

• *** For ordinary and savings shares
• **** First distribution since 2013 for ordinary shares

FY 2019 NET DEBT EVOLUTION

(€ bn)

SIGNIFICANT DELEVERAGING

PRE-IFRS 16 (€ bn)

FOCUS PHASING 2019/20

* Net debt (pre-IFRS 16) / EBITDA adjusted (pre-IFRS 16)

** Disclosed in 1H 2019 results presentation; mainly driven by net cash advances on major awards

*** Mainly driven by collection of overdue receivables

CAPITAL STRUCTURE AS OF DECEMBER 31, 2019

LIQUIDITY AND MATURITY PROFILE (€ mn)

Average debt maturity c.2.8 years****; average all-in interest rate c.4%, including treasury hedging

• Undrawn committed credit facilities totalling c.€1.0bn, in addition to c.€0.2bn of uncommitted facilities
• Available cash and cash equivalents c.€1.8bn**

* Committed ** Not including trapped cash and marketable securities/other credit for c.€0.8bn *** The notes will be redeemed on March 3, 2020 **** c. 3.2 years pro-forma (excluding 2021 bonds)

AVAILABLE CASH TO BE USED FOR EARLY REPAYMENT OF 2021 BONDS

FOCUS ON DIVISIONS

2019 E&C OFFSHORE MAIN AWARDS

A DIVERSIFIED SET OF AWARDS, SUPPORTING BOOK TO BILL >1x IN FY 2019

E&C OFFSHORE STRATEGY

LEADING GLOBAL SOLUTION PROVIDER FROM EARLY ENGAGEMENT TO END OF ASSET LIFE

2019 E&C ONSHORE MAIN AWARDS

RECORD-HIGH SET OF AWARDS, BOOK TO BILL AT 2.6x IN FY 2019

2019 E&C ONSHORE CONTRACT ACQUISITIONS €11bn (€13bn incl. non consolidated)

E&C ONSHORE STRATEGY

THE PARTNER OF CHOICE FOR THE LOW-CARBON ENERGY TRANSITION

Energy transition

SHORTENING TIME-TO-MARKET CARBON-NEUTRAL OPERATIONS ALONG THE EPC VALUE CHAIN

|23

LEADING CONTRACTOR IN LNG

MAJOR LNG ONGOING PROJECTS

Tangguh Expansion (T3) for BP, Indonesia

• Brownfield environment and remote area
• EPC project fully executed locally
• Saipem leader of the JV, activities rapidly progressing
• Consolidated relationship with major client

Arctic LNG 2 (GBS + topsides) for Novatek consortium, Russia

• Remote area in harsh environment
• Engineering, Procurement and Construction of 3 GBSs and topsides of the LNG plant
• Strong partnership with solid track record for the topsides

FOCUS ON MOZAMBIQUE

Rovuma Basin Area 1 LNG for Total, Mozambique

• Saipem as leader of the Italy-based JV with direct responsibility on core activities
• Long-lead items purchased, early works at site started
• Long-term relationship in the area with clients both offshore and onshore
• Activities are ongoing and progressing on schedule

XSIGHT STRATEGY

RE-DESIGNING AND DISRUPTING TRADITIONAL PROCESSES

CROSS-DIVISIONAL INNOVATION ENGINE

2019 DRILLING MAIN AWARDS

FLEET UTILIZATION AND VISIBILITY SIGNIFICANTLY IMPROVED YOY

OFFSHORE DRILLING FLEET

2019 2020 2021

ONSHORE DRILLING FLEET

OFFSHORE DRILLING STRATEGY

FIRST TIER CONTRACTOR PROVIDING FLEXIBILITY AND INNOVATION

ONSHORE DRILLING STRATEGY EFFICIENT AND RELIABLE INTERNATIONAL CONTRACTOR

FY 2019 BACKLOG

^* E&C Onshore including Floaters business and XSight

FY 2019 BACKLOG BY YEAR OF EXECUTION (€ mn)

NON-CONSOLIDATED BACKLOG BY YEAR OF EXECUTION

	2020	2021	2022+
€ mn	815	1,197	1,613

2020 MAIN AWARDS YEAR-TO-DATE GOOD START OF THE YEAR FOR E&C OFFSHORE

CABAÇA AND AGOGO EARLY PHASE 1

• Client: Eni
• Location: Angola
• Scope of work: EPCI of risers, production flowlines, jumpers and the installation of a Subsea Production System

HIGHLIGHTS:

Water depths ranging between 400 and 600m Main vessels: Saipem FDS and Saipem 3000

ALEN PIPELINE

• Client: Noble Energy
• Location: Equatorial Guinea
• Scope of work: T&I of a 70 km gas pipeline connecting the Alen Platform to Punta Europa

HIGHLIGHTS:

Main vessels: Castorone and Saipem 3000

LTA 53

• Client: Saudi Aramco
• Location: Saudi Arabia
• Scope of work: EPCI of a 36" carbon steel pipeline and brownfield activities on fixed platforms

HIGHLIGHTS:

Carbon steel pipeline with 5" of thermal insulation

DECOMMISSIONG & HEAVY LIFTING

• Various Clients
• Location: UK and USA
• Scope of work:
  • Decommissioning of existing infrastructures located in the Thistle Field in the North Sea
  • T&I of offshore structures in the Walker Ridge area in the Gulf of Mexico

HIGHLIGHTS:

Offshore activities performed by Saipem 7000

E&C OPPORTUNITIES

GOOD VISIBILITY ON NEAR-TERM INITIATIVES CONFIRMED

GUIDANCE AND CLOSING REMARKS

A VERY GOOD YEAR: 2019 TARGETS ACHIEVED PRE-IFRS 16

Metrics	FY 2019 guidance	FY 2019 actual
Revenues	 c. €9bn	 €9.1bn
Adjusted EBITDA % margin	 >10%	 11.7%
CAPEX	 c. €450mn	 €336mn
Net debt*	 <€0.8bn	 €0.5bn

2020 GUIDANCE

Metrics	FY 2020
Revenues	 c. €10bn
Adjusted EBITDA (post-IFRS16)	 > €1.1bn
CAPEX	 c. €600mn
Net debt (pre-IFRS16)	 < €0.7bn

GOOD PROGRESS ON OUR LONG-TERM STRATEGY

SIGNIFICANT DELEVERAGING

DIVIDEND PROPOSAL TO AGM

RECORD BACKLOG

A KEY PARTNER IN THE ENERGY TRANSITION

E&C OFFSHORE STRATEGY - FOCUS LEADING GLOBAL SOLUTION PROVIDER FROM EARLY ENGAGEMENT TO END OF ASSET LIFE

E&C OFFSHORE STRATEGY - TECHNOLOGY

LEADING GLOBAL SOLUTION PROVIDER FROM EARLY ENGAGEMENT TO END OF ASSET LIFE

&C ONSHORE STRATEGY - FOCUS

THE PARTNER OF CHOICE FOR THE LOW-CARBON ENERGY TRANSITION

DRILLING OFFSHORE STRATEGY - FOCUS FIRST TIER CONTRACTOR PROVIDING FLEXIBILITY AND INNOVATION

DRILLING ONSHORE STRATEGY - FOCUS EFFICIENT AND RELIABLE INTERNATIONAL CONTRACTOR

4Q 2019 RESULTS QoQ TREND (€ mn)

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4Q 2019 RESULTS - DIVISIONS QoQ TREND (pre IFRS 16 - € mn)

* E&C Onshore including floaters business and XSight

DERISKED WORKING CAPITAL

UNBILLED REVENUES LINKED TO LEGAL DISPUTES

FY 2019 RESULTS – D&A, FINANCE CHARGES AND TAX RATE

IFRS 16 IMPACT RECONCILIATION