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Presentation to Saipem LimitedPresentation to Saipem Limited
Saipem 2011 Consolidated ResultsSaipem 2011 Consolidated Results
P. Galizzi – Saipem Limited - UK, 20th March 2012
2
Forward-Looking Statements
By their nature, forward-looking statements are subject to risk and uncertainty since they
are dependent on upon circumstances which should or are considered likely to occur in the
future and are outside of the Company’s control. These include, but are not limited to:
monetary exchange 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.
Actual results could therefore differ materially from the forward-looking statements.
The Financial Reports contain in-depth analyses of some of the aforementioned risks.
Forward-looking statements are to be considered in the context of the date of their release.
Saipem S.p.A. does not undertake to review, revise or correct forward-looking statements
once they have been released, barring cases required by Law.
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.
3
Presentation Outline
FY 2011 Financial Results and Backlog Analysis
Oil & Gas Industry Market Outlook
Focus 1: High Quality Fleet Additions
Capex Plan: Reinforced Industrial Model
2012 Guidance
Saipem Legal Department
Focus 2: Yards - a Pillar of EPIC and Local Content Strategies
2.1 Karimun Yard – Indonesia: Strengthening EPIC Capabilities
2.2 Guarujà New Yard - Brazil: Reinforcing Local Presence in Key E&C Offshore Market
2.3 Edmonton New Yard - Canada: Reinforcing Local Presence in Key E&C Onshore Market
4
FY 2011 Financial Results and Backlog AnalysisFY 2011 Financial Results and Backlog Analysis
2011 Consolidated Results
5
Top 10 Italian companies per capitalization (5° March 2012)
data in Billion € approx
6
FY 2011 Financial Results
Record Results and Dividend - Proposed dividend per share: € 0.70 Record Results and Dividend - Proposed dividend per share: € 0.70
OnshoreDrillingOffshoreOffshore
Onshore
Revenues EBITDA EBIT Net ProfitAdjusted
20112010 2011201020112010 20112010
921
828
50755075
59455945
1259312593
833833
941941
443443
518518
21352135
233233
686686
222222
483483
14931493
% on Revenues
102102
18361836
% on Revenues
(18.5%)
(53.2%)
(31.5%)
(8.7%)
(13.5%)
(26.7%)
(8.1%)
(13.8%)
44864486
52365236
1116011160
750750688688
740740
832832
402402
409409
193193
(18.5%)
(53.6%)
(28.1%)
(7.8%)
613613
258258
370370
13191319
7878
(13.7%)
(34.4%)
(7.1%)
(11.3%)
% on Revenues
% on Revenues
(17.0%)
(16.5%)
(11.9%)
(11.8%)
(Mln €)
7
Capex
OnshoreOffshore
Drilling Offshore
Onshore
Outflows
Sources and Application of Funds, Net Debt & D/E Ratio
32633263 31923192
Net Debt @ Dec. 2011
D/E =0.68D/E =0.68
Sources of Funds FY2011
Application of Funds FY2011
Net Debt @Dec. 2010
D/E = 0.80D/E = 0.80
Inflows
Dividends & Shares Buyback
Capex
Cash Flow
15101510 15811581
(Net Profit +Depreciation)
Working Capital and Others
11991199
2727
FY 2011 Financial Results
2010 2011 2012E
5959
15451545
254254
713713
553553122122
509509
509509
11991199
284284
(Mln €)
~900~900
2525
Cash from Disposals
1818
15631563
8
FY 2011 Contract Acquisitions & Backlog
Contract Acquisitions Backlog
OnshoreDrillingOffshore
OffshoreOnshore
1250512505
61316131
50065006
588588
780780
66006600
33013301
96049604
2041720417
912912
2011201120102010 Dec., 31 ‘1Dec., 31 ‘111Dec., 31 ‘10Dec., 31 ‘10
1293512935
77447744
46004600
326326265265
55445544
33543354
1054310543
10641064
(Mln €)
2050520505
9
30%
12%
12%
46%
2012
2013
2014
2015+
59%
5%
2%
7% 5%
5%5%12%
Saudi Arabia Algeria Angola Nigeria Canada BrazilKazakhstan Others
Backlog Analysis
Saipem Backlog € 20.42 Bln @ Dec., 31 2011
by Geo Area
by Client by Year of Execution
by Country – Local Content Focus
40%+of present backlog in Countries where
Saipem has a strong Local Content Commitment
55%
33%
8% 4%
Major & Supermajor National
Independent Others
32%
3%10% 8%
18%18%
11%
Middle East EuropeAmerica West & South AfricaNorth Africa Asia PacificCI S
OnshoreOnshoreOffshoreOffshoreDrilling Off. Off. On. On.
33043304 48184818906906423
2012 Backlog split by Business Unit
10
ParisMilan
Project Execution Centres
Engineering CentresYards & Main Logistic BasesOther Main Areas and Rep. Offices
Fano
Chennai
Human Resources monthly report – February 2012• 41,045 people
* @ February 29th,
2012
• 129 Nationalities
Human Resources* headcount based on balance consolidation criteria
36.46839.249
40.830 41.045
13.92516.405
17.67917.877
2009 2010 2011 February
total resources
key resources
Key resources development:
11
COST EFFECTIVENESS
HUMAN RESOURCES by NationalityHUMAN RESOURCES by Nationality
< 2,0%each
HUMAN RESOURCES by HUMAN RESOURCES by classificationclassification
COST EFFECTIVENESSCOST EFFECTIVENESS
1% 11%
46% 42%
Sn Manager Manager Employee ManualWorker
Malaysia2%
Saudi Arabia2%
Azerbaijan2%
United Kingdom2%
Indonesia3%
Angola3%
Morocco3%
Peru4%
Algeria4%
Kazakhstan5%
Venezuela5%
France5%Philippines
6%
Nigeria8%
India10%
Italy17%
Other19%
Human Resources
12
Oil & Gas Industry Market Outlook Oil & Gas Industry Market Outlook
2011 Consolidated Results
13
0
5000
10000
15000
20000
25000
30000
2007 2008 2009 2010 2011 2012E 2013E
0
20
40
60
80
100
120
140
oil gas oil price
0
150
300
450
600
2007 2008 2009 2010 2011E 2012E
Despite global economic uncertainties Oil & Gas Services outlook remains Positivein the Short and Medium term
Despite global economic uncertainties Oil & Gas Services outlook remains Positivein the Short and Medium term
Oil & Gas Industry Market Outlook
E&P Spending ForecastE&P Spending Forecast
E&P Investments to continue positive trend (+10% 2012 vs 2011)
Latin America and Africa projects showing strong progression
Estimated Capex on U/DW(>1,500m) developments*Estimated Capex on U/DW(>1,500m) developments*
Spending to reach record levels, +50% compared to last cycle trough
Strong momentum in ultra-deepwater set to continue
Oil and Gas Projects - Reserves sanctioned by year*Oil and Gas Projects - Reserves sanctioned by year*
Trend of sanctioned reserves showing good growth
Asian Gas-driven projects arguably set for improvement to offset Japanese nuclear supply shortfall
0
15
30
45
60
75
2007 2008 2009 2010 2011E 2012E 2013E
Africa Asia-Pacific Latin America Middle East North America
Bln
US
$
Source: Goldman Sachs - Jan. 2012; * From GS Top 330 projects
Bln
US
$
Rese
rves
sanct
ioned
b
y Y
/ m
m B
OE
Oil
Pri
ce
US
$/b
l
Source: Goldman Sachs - Jan. 2012; * From GS Top 330 projects
Source: Barclays Capital – Dec. 2011
14
Capex Plan: Reinforced Industrial Model
Capex Plan: Reinforced Industrial Model
2011 Consolidated Results
Focus 1: High Quality Fleet Additions Focus 1: High Quality Fleet Additions
15
CastoroneCastorone
Husky Oil: Liwan 3-1 Field Deepwater 2x22’’x79km pipeline and subsea structures - 1,500m max w.d.
Petrobras: Guara & Lula NE Gas Export Pipelines 18’’x54km, 18’’x22km - 2,200m max w.d. Petrobras: P55 Risers 25km flowlines, 16 catenary risers 8’’-12’’x50km rigid pipes - 1,900m max w.d. Petrobras: Lula NE - Cernambi Gas Export Pipelines 18’’x19km - 2,200m max w.d.
Amberjack P.C. LLC (Chevron): Walker Ridge Export Pipeline 24’’x220km - 2,140m max w.d. Enbridge: Big Foot Lateral Export Pipeline 20’’x60km – 2,200m max w.d. Williams (Discovery LLC): Keathley Canyon Gas Export Pipeline 20’’x350km - 2,100m max w.d.
FDS 2FDS 2
Petrobras: Tupi NE - Cabiunas Trunkline 24’’x380km - 2,200m max w.d.*
INPEX: Ichthys Gas Export Pipeline 42’’x889km - 275m max w.d.
2012 2013 2014 FDS 2
Castorone Awards:
1.1 New E&C Assets’ Awards: Full Utilization after Delivery
Post Delivery: Strong Evidence of New Vessels’ Key Role in Offshore Oil & Gas developmentPost Delivery: Strong Evidence of New Vessels’ Key Role in Offshore Oil & Gas development
Future Potential: appears even more promising -Extreme Pipelines, Brazil Ultradeep ‘Ramp Up’, West Africa, Australia
Future Potential: appears even more promising -Extreme Pipelines, Brazil Ultradeep ‘Ramp Up’, West Africa, Australia
C1
Castorone Awards:
FDS 2 Awards:
China:
Brazil:
US GoM:
Brazil:
Australia:
Awarded Projects ScheduleAwarded Projects Schedule
* Contract under final negotiation with Client
16
1.2 New Drilling Assets’ Awards: Full Utilization after Delivery
Post Delivery: Full Assets exploitation resulting in Increasing Revenue trend Post Delivery: Full Assets exploitation resulting in Increasing Revenue trend
2011 20132010 20142012 2015 2016 2017Scarabeo 9
S12000
2011 20132010 20142012 20152009
PN 6
PN 8
PN 7
Perro Negro 8Perro Negro 8Perro Negro 7Perro Negro 7Perro Negro 6Perro Negro 6
2008
Client: Eni (assignment Repsol)Location: CaribbeanContract term: 5Y
Client: Eni Location: NorwayContract term: 5Y
Scarabeo 9Scarabeo 9
Client: Total Location: AngolaContract term: 7Y
Saipem 12000Saipem 12000
Client: Sonangol Location: AngolaContract term: 2.5Y Client: Saudi Aramco
Location: Saudi ArabiaContract term: 3+3Y
Client: Eni Location: ItalyContract term: 1+1Y
Scarabeo 8
Client: Chevron Location: AngolaContract term: 3Y
17
37%
63%
Backlog from New Assets Other Backlog
Backlog from new Drilling Assets on Total Drilling Offshore Backlog
@ Dec., 31 2011
Backlog from new E&C Assets on Total E&C Offshore Backlog
Pro-forma* @ Feb., 13 2012
1.3 New Offshore Assets
New Assets becoming a material Contributor to overall Offshore ActivityNew Assets becoming a material Contributor to overall Offshore Activity
FDS 2FDS 2 CastoroneCastorone Saipem 12000Saipem 12000 Scarabeo 9Scarabeo 9
67%
33%
Backlog from New Assets Other Backlog
* Pro-forma data includes Ichthys
18
Capex Plan: Reinforced Industrial Model
Capex Plan: Reinforced Industrial Model
2011 Consolidated Results
Focus 2: Yards - a Pillar of EPIC and Local Content Strategies Focus 2: Yards - a Pillar of EPIC and Local Content Strategies
19
Rumuolumeni Yard - Nigeria
Pointe-Noire Yard – Republic of CongoSoyo Yard – Angola
Ambriz Yard – Angola
Dammam Yard – Saudi Arabia
Kuryk Yard - Kazakhstan
Baku Yard - AzerbaijanArbatax Yard - Italy
Karimun Yard – Indonesia
Guarujá Yard – Brazil
Edmonton Yard – Canada
Focus 2: Yards - a Pillar of EPIC and Local Content Strategies
N. Of Yards Total Man HoursTotal Fabrication CapacityTotal Surface
11 36,890,000 per year250,750 tons per year6,378,000 sqm
Under Development
Commenced
Newly Completed
20
Tax-Free zone close to Singapore
Inaugurated Dec., 2011
825m Quays - suitable for loadout of large structures (Topsides, Modules), mooring and integration of large FPSOs, FPUs, FLNG
Large Fabrication Capacity: 35,000 tons/year
▪ Al Wasit (Saudi Arabia)▪ Gorgon (Australia)▪ Iraq Crude Oil Export
Expansion (Iraq)▪ Liwan (China)▪ Bien Dong (Vietnam)
Saipem Projects ongoing:
Strengthening EPIC Capabilities while Reducing EPIC Risks…Strengthening EPIC Capabilities while Reducing EPIC Risks…
Access to wider bid list
Direct control over crucial fabrication phase of the EPIC process
Minimize/Avoid subcontract bottlenecks
2.1 Karimun Yard – Indonesia: Strengthening EPIC Capabilities
… also Key Local Asset for Indonesian Oil & Gas Market… also Key Local Asset for Indonesian Oil & Gas Market
21
2.2 Reinforcing Local Presence in Key E&C Offshore Market - Brazil
Saipem Scheduled Projects in BrazilSaipem Scheduled Projects in Brazil
% E&C Offshore Backlog in Brazil% E&C Offshore Backlog in Brazil
0%
10%
20%
2009 2010 2011
7.6%7.6%13.6%13.6% 14.4%14.4%
2012 - early 2013 ▪ Guara & Lula NE Pipelines▪ P55 Risers
Supported using Brazilian Subcontractors
Late 2013 - 2014▪ P55 Pipelines▪ Lula NE - Cernambi▪ Tupi NE - Cabiunas*
Supported by New Saipem Guarujà Yard
Offshore Installation:
Approach Evolution: from an Occasional Contractor to Permanent PlayerApproach Evolution: from an Occasional Contractor to Permanent Player
Bln
US
$
0
5
10
15
2009 2010 2011E 2012E 2013E 2014E
mm
BO
E/d
0
2
4
2009 2010 2011E 2012E 2013E 2014E
Brazilian market expected to continue its growth across the near to medium term
Liquid Reserves: 31.35 billion barrels (1st Jan. 2012) Gas Reserves: 17.98 tcf (1st Jan. 2012)
Source: Nomura – Jan. 2012
Brazil Oil & Gas Production ForecastBrazil Oil & Gas Production Forecast Brazil E&C Capex Forecast Brazil E&C Capex Forecast
* Contract under final negotiation with Client
22
Guarujá Yard details Guarujá Yard details
Site acquired primarily for fabrication of subsea and floating structures, and provision of support-services for the highly specialized ultra-deep water fleet
Strategically located, approx. 350 km from Santos Basin and 650 km from Campos Basin, ideal to support development of new ultra-deep water fields
Area of 35 hectares in Guarujá, within the industrial hub of Santos, the largest port and industrial area in Brazil: excellent pool of resources and services
2.2 Reinforcing Local Presence in Key E&C Offshore Market – Brazil (cont’d)
A complete provider of state-of-art Fleet & Subsea Fabrication services to benefit from Pre-Salt Development post 2013
A complete provider of state-of-art Fleet & Subsea Fabrication services to benefit from Pre-Salt Development post 2013
Scheduled completion to support recently acquired projects
23
0
4
8
2009 2010 2011E 2012E 2013E 2014E
mm
BO
E/d
Canada Oil & Gas Production Forecast Canada Oil & Gas Production Forecast
% E&C Onshore Backlog in Canada% E&C Onshore Backlog in Canada
0%
5%
10%
15%
2009 2010 2011
Saipem Activities in CanadaSaipem Activities in Canada
Husky Oil - Sunrise Oil Sands Project, Central Processing Facilities
Completion: 1Q 2014
2.3 Reinforcing Local Presence in Key E&C Onshore Market - Canada
0%0%
7.2%7.2%9.8%9.8%
Canadian Natural Resources Ltd - Horizon Oil Sands Project, Upgrader Phase II
Completion: 2Q 2015
Investments in Canada to remain at significant levels, sustained by a steady oil price
01020304050
2009 2010 2011E 2012E 2013E 2014E
Canada E&C Capex Forecast Canada E&C Capex Forecast
Bln
US
$
Liquid Reserves: 74.22 billion barrels (1st Jan. 2012) Gas Reserves: 21.17 tcf (1st Jan. 2012)
Source: Nomura – Jan. 2012
24
2.3 Reinforcing Local Presence in Key E&C Onshore Market – Canada (cont’d)
Innovative Approach leveraging on Integrated Supply of combined Engineering Services and Construction Capabilities
Innovative Approach leveraging on Integrated Supply of combined Engineering Services and Construction Capabilities
30 Hectares North East of Edmonton, Alberta Capacity 14,000 Tons/year (140 standard Modules) Workforce: 400 employees Currently under development: 1st module delivery in Nov.2012
Edmonton Pre-Fabrication Yard:Edmonton Pre-Fabrication Yard:
Local office provides full service for projects execution on: Upstream Pipelines Refining
Dedicated local construction company Mastered local project execution
requirements: Modularization Harsh Climate Logistics
>400 engineers to date
Canadian Local PresenceCanadian Local Presence
Oil Sands processing Shale gas
25
2012 Guidance
Revenues: ~ € 13 bln
EBIT: ~ € 1.6 bln
Capex: ~ € 0.9 bln
Net profit: ~ € 1 bln
2012 Guidance
26
Saipem Legal Department Saipem Legal Department
2011 Consolidated Results
27
S. BOGO
Saipem S.p.A. Legal Department Chart – March 2012
LEGAL AFFAIRSGENERAL COUNSEL
______________________P. GALIZZI
SAIPEM LUXEMBOURG
(Luxembourg)_____________
M. BARONE
SNAMPROGETTI CANADA
(Calgary,Canada) _____________
T.B.A.
SAIPEM SERVICES SA
(Belgium)_____________
T.B.A.
SAIPEM MEDITERRANEAN SERVICES(Rijeka, Croatia)_____________
D. CVEK
SAIPEM CONTRACTING
ALGERIA(Algeri, Algeria)____________H. FERHAT
SAIPEM CONTRACTING
NIGERIA (Lagos, Nigeria)_____________
T.B.A.
SAIPEM SINGAPORE &
APAC REGION(Singapore)
_____________P. MAGRI
SAIPEM AMERICA INC. (Houston, USA)_____________F. LOMBARDO
ERSAI(Aktau,
Kazakhstan)_____________
A. CALCOPIETRO
SAIPEM UK LIMITED(London-
Aberdeen, UK)_____________
M. DELIA
LITIGATION, EXTRAORDINARY
OPERATIONS & ANTITRUST______________________
F. DEL GIUDICE
CONTRACT MANAGEMENT, PROCUREMENT & FINANCIAL
OPERATIONS_____________________
G. ZANINI
SAIPEM SA(Paris, France)
_____________G. MARTIN
CONTRACT ADMINISTRATION
______________________A. GRILLI
INTEGRATED PROJECTS CONTRACT
ADMINISTRATION______________________
M. MILLER
MILAN CONTRACT ADMINISTRATION
______________________P. SANVITO
SAIPEMDO BRASIL
(Rio de Janeiro, Brasil)
_____________J. TADEU
ANTI-CORRUPTION UNIT & LEGAL COMPLIANCE
______________________E. VAILATI
LEGAL AREA COORDINATORS
F. DEL GIUDICE – Central and South Africa; AngolaP. MARCARINI – North EuropeA. GRILLI – Middle East, India and Pakistan; North
Africa P. MAGRI – Far East and China; Caspian SeaG. MARTIN – South AmericaD. QUARANTA – East Europe and Russia; NigeriaG. ZANINI – North and Central America
SAIPEM S.p.A. SHARJAH BRANCH
(Sharjah, UAE)_____________M. DI FLURI
SAIPEM INTERNATIONAL
B.V.
(Amsterdam, The Netherlands)
_____________A. BIANCHI
ITALY LITIGATION & LEGAL KNOWLEDGE
MANAGEMENT______________________
M. GRINZI
OVERSEAS LITIGATIONS
______________________A. BIANCHI
E. VOLOVIK
FANO LITIGATION______________________
V. SARTORELLI
SAIPEM MARITIME ASSETS
MANAGEMENT(Luxembourg)
_____________M. BARONE
CLAIM MANAGEMENT TEAM
______________________F. THUAULT
DRILLING CONTR. MNGET. PROCUREMENT &
FINANCIAL OPERATIONS CONTR. MNGT.
______________________I. DE RISI
DOWNSTREAM CONTRACT MANAGEMENT
______________________D. QUARANTA
CONTRACT MANAGEMENTINTEGRATED PROJECTS
_____________________J. BRILLI
UPSTREAM & TRANSPORT SYSTEMS CONTRACT
MANAGEMENT______________________
S. BENZI
F. LUCCHESIG. ROMANI
COORDINATOR PEC PARIS CONTRACT
ADMINISTRATION______________________
P. MARCARINI
COORDINATOR PEC MILAN CONTRACT
ADMINISTRATION______________________
G. GALLERI
COORDINATOR PEC LONDON CONTRACT
ADMINISTRATION______________________
M. DELIA
COORDINATOR PEC SINGAPORE CONTRACT
ADMINISTRATION______________________
P. ARRICA
COORDINATOR DRILLING CONTRACT
ADMINISTRATION______________________
M. BARONE
FANO & ROME PROJECT EXECUTION CENTRE
CONTRACT ADMINISTRATION
______________________R. BOI
ABU DHABI PROJECTS CONTRACT
ADMINISTRATION______________________
W. STAEHNKE
COORDINATOR PEC SHARJAH CONTRACT
ADMINISTRATION______________________
A. ESCALONA
STAR GULF AZERBAIJAN
BRANCH(Baku,
Azerbaijan)_____________
E. KUCICH