Pr e se ntation to the F inanc ial Community Pr e liminar y - - PowerPoint PPT Presentation

SLIDE 1

F e br uar y 2011

Pr e se ntation to the F inanc ial Community Pr e liminar y 2010 Consolidate d Re sults

SLIDE 2

2

F

• r

war d- L

• oking State me nts

By the ir natur e , for war d- looking state me nts ar e subje c t to r isk and unc e r tainty sinc e the y ar e de pe nde nt on upon c ir c umstanc e s whic h should or ar e c onside r e d like ly to oc c ur in the futur e and ar e outside of the Company’s c ontr

• l. T

he se inc lude , but ar e not limite d to: mone tar y e xc hange and inte r e st r ate fluc tuations, c ommodity pr ic e volatility, c r e dit and liquidity r isks, HSE r isks, the le ve ls of c apital e xpe nditur e in the oil and gas industr y and othe r se c tor s, politic al instability in ar e as whe r e the Gr

• up ope r

ate s, ac tions by c ompe titor s, suc c e ss of c omme r c ial tr ansac tions, r isks assoc iate d with the e xe c ution of pr

• je c ts (inc luding ongoing

inve stme nt pr

• je c ts), in addition to c hange s in stake holde r

s’ e xpe c tations and othe r c hange s affe c ting busine ss c onditions. Ac tual r e sults c ould the r e for e diffe r mate r ially fr

• m the for

war d- looking state me nts. T he F inanc ial Re por ts c ontain in- de pth analyse s of some of the afor e me ntione d r isks. F

• r

war d- looking state me nts ar e to be c onside r e d in the c onte xt of the date of the ir r e le ase . Saipe m S.p.A. doe s not unde r take to r e vie w, r e vise or c or r e c t for war d- looking state me nts onc e the y have be e n r e le ase d, bar r ing c ase s r e quir e d by L aw. F

• r

war d- looking state me nts ne ithe r r e pr e se nt nor c an be c onside r e d as e stimate s for le gal, ac c ounting, fisc al

• r

inve stme nt pur pose s. F

• r

war d- looking state me nts ar e not inte nde d to pr

• vide assur

anc e s and/ or solic it inve stme nt.

SLIDE 3

3

Pr e se ntation Outline

• F

Y 2010 F inanc ial Re sults and Bac klog Analysis

• Offshore
• Onshor

e

• Offshore Dr

illing

• 2011 Guidanc e
• Oil & Gas Industr

y Mar ke t Outlook

• Saipe m Pe r

spe c tive s

• Be yond the Cape x Plan
• Saipe m 2011 & Be yond

SLIDE 4

4

F Y 2010 F inanc ial Re sults and Bac klog Analysis

SLIDE 5

5

F Y 2010 F inanc ial Re sults

(Mln €)

All- time Re c ords a c ross the boa rd Propose d divide nd pe r share : € 0.63 (+14.5% )

5

Onshor e Drilling Offshore

Offshor e Onshor e

Re ve nue s E BIT DA E BIT Ne t Pr

• fit

Adjuste d

4486 4486 688 688 5236 5236

11160 11160 2010 2010 2009 2009 732 732 828 828 2010 2010 2009 2009 2010 2010 2009 2009 2010 2010 2009 2009

750 750 832 832 402 402 409 409

1836 1836

% on Re ve nue s

(18.5%) (53.6%) (28.1%) (7.8%)

193 193 613 613 258 258 370 370

1319 1319

(13.7%)

% on Re ve nue s

(34.4%) (7.1%)

78 78

(11.3%)

4341 4341 554 554 4831 4831

10292 10292

566 566 810 810 287 287 338 338

1596 1596

% on Re ve nue s

(18.7%) (50.7%) (29.1%) (7.0%)

161 161 615 615 192 192 290 290

1156 1156

(14.2%)

% on Re ve nue s

(33.9%) (6.0%)

59 59

(10.6%)

SLIDE 6

6

1000 1000

Cape x (Mln €) Cape x

Onshore Offshore Dr illing

Offshore Onshor e

F Y 2010 F inanc ial Re sults

2010 2010 2011 E 2011 E 2009 2009 1545 1545

254 254 713 713 553 553 25 25

Outflows

Sour c e s and Applic ation of F unds, Ne t De bt & D/ E Ratio

2845 2845 3263 3263

Ne t De bt @ De c . 2010

D/ E =0.80 D/ E =0.80

Sour c e s of F unds F Y2010 Applic ation

• f F

unds F Y2010 Ne t De bt @ De c . 2009

D/ E = 0.83 D/ E = 0.83 Inflows

Divide nds & Share s Buybac k Ca pe x Adjuste d Ca sh F low 1545 1545

1816 1816

1345 1345

(Adjuste d Ne t Pr

• fit

+ De pr e c iation)

1398 1398

Working Ca pita l a nd Othe rs 228 228 Ca sh from Disposa ls 53 53

1615 1615

200 200 697 697 690 690 28 28

43 43

SLIDE 7

7

F Y 2010 Contr ac t Ac quisitions & Bac klog

(Mln €) Ne w Contr ac t Ac quisitions Bac klog

Onshor e Drilling Offshore

Offshor e Onshor e

2010 2010 2009 2009 De c . 31, De c . 31, ‘

‘10

10 De c . 31, De c . 31, ‘

‘09

09

5430 5430 3778 3778 8035 8035

18730 18730

1487 1487

9917 9917

5089 5089 3665 3665 578 578 585 585

12935 12935

4600 4600 7744 7744 265 265 326 326 5544 5544 3354 3354 10543 10543

20505 20505

1064 1064

All- time Re c ord Ba c klog (€ 20.5 Bln)

7

SLIDE 8

8

7% 5% 5% 64% 15% 4%

Alg e ria Ang ola Sa udi Ara bia Nig e ria Ka za khsta n Othe rs

Bac klog Analysis

Sa ipe m Bac klog € 20.5 Bln @ De c , 31 2010

by Ge o Are a by Clie nt by Ye ar of E xe c ution by Country – L

• c a l Conte nt F
• c us

36%

• f pr

e se nt bac klog in Countr ie s whe r e Saipe m has a str

• ng

L

• c al Conte nt

Commitme nt (*) Mainly-do wnstre am, Smalle r and Othe rs

36% 57% 4% 3%

Ma jor & Supe rma jor Na tiona l Inde pe nde nt Othe rs*

27% 4% 13% 5% 18% 17% 16%

Middle E a st North Afric a E urope Ame ric a We st Afric a CIS Asia Pa c ific 8

Onshore Onshore Offshore Offshore Drilling

Off.

• Off. On.

On.

3156 3156 4757 4757 704 704 412 412

44% 29% 13% 14%

2011 2012 2013 2014+

2011 Ba c klog split by Busine ss Unit

SLIDE 9

9

Oil & Gas Industr y Mar ke t Outlook

SLIDE 10

10 200 400 600 800 1 9 9 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 1 E 2 1 1 E 2 1 2 E

Oil & Gas Industr y Mar ke t Outlook

Oil & Ga s Industry Ma rke t Outlook turning positive

10 ‘E &C’ Cape x ‘E xplor ation, appr aisal & de ve lopme nt of we ll’ Cape x*

Oil&Ga s Inve stme nts e xpe c te d to re turn to re c ord 2008 le ve ls in 2012… Oil&Ga s Inve stme nts e xpe c te d to re turn to r

e c or d 2008 le ve ls in 2012…

Sour c e : De utsc he Bank & Wood Mac ke nzie

• Jan. 2011

Global E xploration and E &C Cape x Outlook

Bln US$

Global E &C Cape x Outlook

100 200 300 400 500 2008 2009 2010E 2011E 2012E

Bln US$ Onshor e Offshore

• 10%

+4% +2% +3%

Sour c e : De utsc he Bank & Wood Mac ke nzie

• Jan. 2011

… with E &C Ca pe x unde rpinning the re c ove ry … with E &C Ca pe x unde rpinning the re c ove ry

(*) E xc lude s rig c o nstruc tio n se rvic e Cape x

SLIDE 11

11

Spe nding “hot the me s”

100 200

2010E 2011E 2012E

+3% +13% Bln U S$

Outlook Outlook

Saipe m Pe r spe c tive s

• Offshor

e -

2011: fir st mild signals of a r e c ove r y e xpe c te d to oc c ur ste a dily in 2012 2011: fir st mild signals of a r e c ove r y e xpe c te d to oc c ur ste a dily in 2012

• DW &

Ultr a- DW

• DW &

Ultr a- DW

• E

xtr e me Pipe line s

• E

xtr e me Pipe line s

• F

rontie r De ve lopme nts

• F

rontie r De ve lopme nts

• Global Offshor

e E &C Spe nding F

• r

e c ast -

• Global Offshor

e E &C Spe nding -

Saipe m: re silie nt in tough time s Saipe m: re silie nt in tough time s

Bln U S$

100 200

2008 2009 2010E

• 7%
• 9%

So urc e : DB & Wo o d Mac ke nzie

• Jan. 2011

Offshore – Re silie nt, Disc ipline d throug h Re c e ssion, Poise d to e xploit Ma rke t Re c ove ry

Ne w Asse ts alr e ady c ontr ibuting to Bac klog and E xe c ution Ne w Asse ts alr e ady c ontr ibuting to Bac klog and E xe c ution Pr e par e d for str

• ng mome ntum in De e p/ Ultr

a- de e pwate r De ve lopme nt and E xtr e me Pipe line s Pr e par e d for str

• ng mome ntum in De e p/ Ultr

a- de e pwate r De ve lopme nt and E xtr e me Pipe line s

11

Ca storOne Ca storOne

Walke r Ridge E xpor t Pipe line

L

• c ation: US GOM

SoW: 220 Km Ø 24” oil pipe line

Usan F ie ld De ve lopme nt

L

• c ation: Nige r

ia SoW: E PIC URF F DS 2 F DS 2

2 4 6 8

2008 2009 2010

• Saipe m Offshor

e Bac klog - Bln €

+16% +2%

Re c e nt History Re c e nt History

So urc e : DB & Wo o d Mac ke nzie

• Jan. 2011

SLIDE 12

12

Outlook Outlook

• Onshor

e -

Mar ke t e xpe c te d to stabilize on pe ak le ve l sinc e 2010 r e c ove r y Mar ke t e xpe c te d to stabilize on pe ak le ve l sinc e 2010 r e c ove r y

• Global Onshor

e E &C Spe nding F

• r

e c ast -

Gra dua l Re ve nue a nd Ma rg in Improve me nt Gra dua l Re ve nue a nd Ma rg in Improve me nt E

• P- C Mode l Continuous Improve me nt
• F

le xibility & Cost E ffe c tive ne ss

• Pr
• je c t-to-Pr
• je c t le ar

ning loops

• Impr
• ve E

ffic ie nc y – Re duc e Risk

Saipe m dive r sifie d busine ss line s and pr e se nc e in ke y onshor e mar ke ts e xploiting positive marke t ac ross Busine ss Se gme nts and Ge ogr aphic Ar e as Saipe m dive r sifie d busine ss line s and pr e se nc e in ke y onshor e mar ke ts e xploiting positive marke t ac ross Busine ss Se gme nts and Ge ogr aphic Ar e as

Saipe m Pe r spe c tive s

Re c e nt History Re c e nt History Ba c klog Qua lity & Qua ntity inc re a se d in c omple x ma rke t Ba c klog Qua lity & Qua ntity inc re a se d in c omple x ma rke t

100 200 300 400

2008 2009 2010E

• Global Onshor

e E &C Spe nding -

5 10 15

2008 2009 2010

Bln U S$

• 12%

+11%

• Saipe m Onshor

e Bac klog - Bln €

• 13%

Bln U S$

100 200 300 400

2010E 2011E 2012E

+2%

• 1%

Spe nding “hot the me s”

• Ir

aq

• Ir

aq

• NOCs
• NOCs
• L

NG

• L

NG

Onshor e – E xploiting Str

• ng Mar

ke t with Unique Industr ial Mode l

12 +31% So urc e : DB & Wo o d Mac ke nzie

• Jan. 2011

So urc e : DB & Wo o d Mac ke nzie

• Jan. 2011

SLIDE 13

13

Re c e nt History Re c e nt History

F loate r s >3000ft. F loate r s >3000ft.

Outlook Outlook

Jac kup* Jac kup* F loate r s <3000ft. F loate r s <3000ft. F loate r s >3000ft. F loate r s >3000ft.

90 115 140 2010 2011E 2012E 230 255 280 2010 2011E 2012E 390 415 440 2010 2011E 2012E

Immine nt Capac ity availability to e xploit Impr

• ving Dayr

ate s Be ne fiting fr

• m L
• ng- T

e r m Contr ac ting Polic y: Dayr ate s loc ke d- in c ompar e we ll with mar ke t tr e nd

2011 = 100% 2012 = 92% 2011 = 94% 2012 = 67% 2011 = 67% 2012 = 18%

Jac kup* Jac kup* F loate r s <3000ft. F loate r s <3000ft.

Dayr ate s

Wor ldwide Mar ke t F

• r

e c ast (Ave r age )

Dayr ate s

Wor ldwide Mar ke t F

• r

e c ast (Ave r age )

U S$x1000/ dd

Nic he F le e t outpe rforms the ma rke t Nic he F le e t outpe rforms the ma rke t

* All J- UP <400 ft, e xc luding Wor kove r

• only
• Offshor

e Dr illing -

Saipe m Pe r spe c tive s

U S$x1000/ dd U S$x1000/ dd

6 F

loate r s >3000ft.

% of Sa ipe m Capac ity Cur r e ntly c ontr ac te d % of Sa ipe m Capac ity Cur r e ntly c ontr ac te d

3 F

loate r s <3000ft.

6 Jac kup*

Utilisa tion Ra te

Saipe m F le e t VS Wor ldwide F le e t

Utilisa tion Ra te

Saipe m F le e t VS Wor ldwide F le e t

80% 90% 100% 2008 2009 2010 70% 80% 90% 100%

2008 2009 2010 Sour c e : ODS Pe tr

• da ta

Rig s unde r c ontr ac t, mar ke te d utilisa tion Sour c e : ODS Pe tr

• da ta

80% 90% 100% 2008 2009 2010 * All J- UP <400 ft, e xc luding Wor kove r

• only

SLIDE 14

14

Be yond the Cape x Plan

SLIDE 15

15

… ma inta ining F ina nc ia l Disc ipline … ma inta ining F ina nc ia l Disc ipline

12.0% 14.2% 16.5% 15.5%

1 1.5 2 2.5 2007 2008 2009 2010 0.5 0.75 1 2007 2008 2009 2010 6 8 10 12 2007 2008 2009 2010

• Re ve nue s -

Bln €

• Ne t Pr
• fit Adjuste d -

Bln € +25% +1% +13% +6% +2% +8%

Saipe m 2007- 2010: Gr

• wth - without str

e ssing Balanc e She e t

Ca pe x Pla n la rg e ly funde d by solid c a sh flow g e ne ra tion

Ne t De bt @De c , 31 2006 D/ E = 0.90 D/ E = 0.90 Divide nds Dive stme nts

1,417 1,417 3,263 3,263

Ne t De bt @De c , 31 2010 D/ E =0.80 D/ E =0.80

Sour c e s of F unds Applic ation

• f F

unds

6,848 6,848 5,070 5,070 841 841 Cape x Cash F low 813 813

DD&A

N.I.

Robust r e sults ba se d

• n Str
• ng Industr

ial Mode l Robust r e sults ba se d

• n Str
• ng Industr

ial Mode l

Cape x ~ € 8 Bln

(inc luding ’11E )

Cape x ~ € 8 Bln

(inc luding ’11E )

...while funding a ma ssive Cape x Plan…

15

De c , 31 2006 – De c , 31 2010:

Ne t De bt inc r e ase < 2 Bln € Ge ar ing still be low par ity

De c , 31 2006 – De c , 31 2010:

Ne t De bt inc r e ase < 2 Bln € Ge ar ing still be low par ity

• E

BIT DA -

Bln €

E BIT DA margin

+25% +11% +15%

Saipe m re c e nt Sound Growth… Saipe m re c e nt Sound Growth…

F PSO: Vitòr ia Gimboa Pe r r

• Ne gr
• 6 - 7 - 8

Caspian F le e t T AD T AD

In Se rvic e T

• Be De live r

e d

C C a stor

• 7

L and L and Rig s Kar imun Yard Kar imun Yard Castor One F DS 2 F PSO: Aquila 2 Sc ar a be o 9 Sc ar a be o 8 Saipe m 12000 S S

SLIDE 16

16

Re ve nue s: +5% E BIT DA: +10% Cape x: ~ € 1 Bln Ne t Pr

• fit Adjuste d: +5%

(inc luding the impa c t of a dditiona l ~ € 100 Mln de pre c ia tion and inc re ase d financ ial c harge s)

2011 Guidanc e

SLIDE 17

17

2011 & Be yond 2011 & Be yond … Ge ne ra ting Re sourc e s for

Saipe m 2011 & Be yond: poise d for a fur the r solid gr

• wth
• 2011 Cape x T

ar ge t : € 1 Bln

• F

rom 2012 - Ma inte na nc e Ca pe x to pre se rve qua lity: ~ € 400 Mln pe r ye a r

• E

nlar ge d F le e t, dominate d by Powe rful Distinc tive Asse ts

• Susta ine d Ca sh F

low Ge ne ra tion fur the r r e infor c e d by…

• Ne w ‘L
• c a l Conte nt’ Pote ntial - e xa mple s: Bra zil, Ira q
• Pote ntial Ne w F

PSO inve stme nt

• T

e c hnolog y to ta c kle future ‘F rontie rs’ - e xample s: Ultra- DW, Arc tic

• De - le ve ra g ing
• E

nc our aging Mar ke t Outlook

• …

17

• F

utur e Oppor tunitie s:

SLIDE 18

18

E nd of Pre se ntation