Eni S.p.a. · MIL:ENI
Eni — Investor Presentation (October 2023)
41 slides from Eni's investor presentation, October 2023
Slide 1: Investor Presentation October 2023
INVESTOR PRESENTATION October 2023
Slide 2: Disclaimer
DISCLAIMER • This document contains forward-looking statements regarding future events and the future results of Eni that are based on current expectations, estimates, forecasts, and projections about the industries in which Eni operates and the beliefs and assumptions of the management of Eni. In a
Slide 3: Eni's Ultimate Goal
ENI’S ULTIMATE GOAL OUR TRIPLE MANDATE: SUSTAINABILITY, ENERGY SECURITY & VALUE CREATION … To provide effective answers to the energy trilemma and contribute to providing abundant, affordable and environmentally sustainable energy, Eni has developed an innovative business and financial model that al
Slide 4: Table of Content
TABLE OF CONTENT INTRO NATURAL ENERGY TECHNOLOGY FINANCIALS RESOURCES EVOLUTION • Eni at a glance • Best in class • Enilive: a • New energy • Growing returns: exploration winning multi- solutions: a earnings & • Our approach energy hub portfolio of cashflow delivery to the energy • Superior upstream
Slide 5: Eni at a Glance
ENI AT A GLANCE INTRO NATURAL RESOURCES ENERGY EVOLUTION FINANCIALS NATURAL RESOURCES Decarbonizing and value Growing profitably while Aligning industrial and financial 70 enhancing our upstream transforming strategy YEARS OF INNOVATION portfolio HISTORY FOUNDED IN 1953 32K EXPLORATION ENERGY EVOLUT
Slide 6: Our Approach to the Energy Trilemma
OUR APPROACH TO THE ENERGY TRILEMMA INTRO NATURAL RESOURCES ENVIRONMENTAL Themes ENERGY SUSTAINABILITY SECURITY Energy mix and geographical diversification Deployment of new technologies ENERGY EVOLUTION Focus on gas as a bridge energy source New business and financing models Time-to-market TECHNOLO
Slide 7: Our Transition
OUR TRANSITION INTRO OUR LEGACY OUR PRESENT OUR FUTURE NATURAL RESOURCES MEDIUM TERM GROWTH WITH SHIFT TO GAS IMPROVED RISK-RETURN PROFILE ORGANIC, DUAL EXPLORATION MODEL 60% GAS WEIGHTED PORTFOLIO AT 2030 PHASED DEVELOPMENT WITH FOCUS ON TIME TO MARKET CCS AT SCALE TO TACKLE UNABATED DE-RISKED PORT
Slide 8: Towards a Net Zero Energy Business
TOWARDS A NET ZERO ENERGY BUSINESS INTRO MULTIPLE BUSINESS LEVERS TO REACH TARGETS UPSTREAM NATURAL RESOURCES NET ABSOLUTE GHG EMISSIONS (SCOPE 1+2+3) Production plateauing and gas share growing 2018 505 to 60% by 2030 MtCO 2 eq BIOENERGY Capacity to reach >5 MTPA by 2030 ENERGY EVOLUTION (>20% CAGR
Slide 9: A Winning Value Proposition
A WINNING VALUE PROPOSITION INTRO TO ADDRESS THE CHALLENGES OF THE CURRENT ENERGY MARKET NATURAL RESOURCES COMPETITIVE ADVANTAGES A DISTINCTIVE APPROACH SHAREHOLDER DISTRIBUTION A valuable and diversified energy company Unlocking value through dedicated satellite AMONG HIGHEST IN THE SECTOR companie
Slide 10: Best in Class Exploration
BEST IN CLASS EXPLORATION INTRO EXPLORING FOR A PURPOSE AND VALUE LEADING THE SECTOR IN VALUE CREATION Feeding upstream growth & value NATURAL RESOURCES 25 Value creation in 2012-2021 20 (@ base price $bn) 15 10 5 0 -5 -10 -15 ENERGY EVOLUTION Eni Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 FOCUS ON E
Slide 11: Superior Upstream Portfolio
SUPERIOR UPSTREAM PORTFOLIO INTRO FEEDING OUR GROWTH NATURAL RESOURCES FOCUS ON EFFICIENCY UNEQUALLED PAST AND ADDING HIGH VALUE & COMPETITIVENESS PRESENT QUALITY OF ASSETS RESERVES Rolling averages of technical costs ($/BOE)* Impairments reported in 2017-2022 (B$) DNCF/BOE OF PROVED RESERVES, AVG 2
Slide 12: E&P Outlook
E&P OUTLOOK INTRO VALUE CREATION: HIGH QUALITY BARRELS WITH LOW EMISSIONS NATURAL RESOURCES UPSTREAM PRODUCTION UPSTREAM NET GHG SCOPE 1+2 ORGANIC FCF* PER BARREL ~3-4% CAGR (2022-2026) EMISSIONS vs PRODUCTION (@ constant 2023 scenario) >14 Mboed ~3-4% indexed $/boe 1.64-1.66 ~800kboed 12 1.61 new p
Slide 13: Global Gas & LNG Portfolio
GLOBAL GAS & LNG PORTFOLIO INTRO RESILIENT AND RE-SHAPED LNG EVOLUTION (contracted volumes, MTPA) NORWAY NATURAL RESOURCES >18 UK ITALY 11 CYPRUS 9 ALGERIA LIBYA EGYPT UNITED ARAB EMIRATES QATAR NIGERIA ENERGY EVOLUTION INDONESIA 2022 2023 2026 CONGO GAS SOURCES ANGOLA MOZAMBIQUE AUSTRALIA by region
Slide 14: Rising to the Transition Challenge
RISING TO THE TRANSITION CHALLENGE INTRO ADDING VALUE TO CARBON NEUTRALITY CUTTING SCOPE 1 & 2 CCS AN EMERGING OPPORTUNITY NATURAL RESOURCES Sleipner TOWARDS NET ZERO UK START UP Mid 2020s Ph. 1 (storage injection: 4.5 MTPA) through flaring down, energy efficiency, Hynet After 2030 Ph. 2 (storage in
Slide 15: Agri Hubs: A New Upstream
AGRI HUBS: A NEW UPSTREAM INTRO GLOBAL PRESENCE WITH DIVERSIFIED PORTFOLIO AGRI-FEEDSTOCK FIRST OIL: 2022: Kenya NATURAL RESOURCES 2023: Congo, Italy, Ivory Coast, Mozambique KAZAKHSTAN ITALY ENERGY EVOLUTION KEY SELECTION CRITERIA: UNITED ALGERIA STATES COUNTRY OF PRESENCE (LEGACY) VIETNAM Upstream
Slide 16: Enilive
ENILIVE INTRO A WINNING MULTIENERGY, MULTISERVICE HUB NATURAL RESOURCES BIOENERGY MARKETING & SALES 2nd in HVO production in Europe & Global presence: 3rd largest operator globally for bio capacity • EU: 5.300 stations, of which ~200 methane 22 biogases plants • Other: Egypt, China and Ecuador ~22%
Slide 17: Traditional & Bio Refining System Footprint
TRADITIONAL & BIO REFINING SYSTEM FOOTPRINT INTRO STRATEGIC PRESENCE WITH RESPECT TO END MARKETS AND SUPPLIES TRADITIONAL OWNERSHIP % CAPACITY K-BBL/D ITALY NATURAL RESOURCES SCHWEDT SANNAZZARO 100 180 TARANTO 100 104 BAYERNOIL LIVORNO 100 84 WHOLLY-OWNED 368 ITALY SANNAZZARO VENICE MILAZZO 50 200 L
Slide 18: Versalis Transformation
VERSALIS TRANSFORMATION INTRO LEADING SUSTAINABLE CHEMISTRY, DRIVING CHANGE, CREATING VALUE HIGH-SPECIALIZED NATURAL RESOURCES POLYMERS PORTFOLIO LEADERSHIP IN BIO-BASED VERSALIS PORTFOLIO EVOLUTION CHEMISTRY (REVENUES %) STRONG PARTICIPATION IN END-USER MARKETS 30% 40% 20% 35% ENERGY EVOLUTION ACQU
Slide 19: Plenitude: A Journey of Growth
PLENITUDE INTRO A JOURNEY OF GROWTH STRONG GROWTH: NATURAL RESOURCES RENEWABLES RETAIL E-MOBILITY 100% solar and wind Supply and energy solutions EV charging network 2026 EBITDA 3x vs 2022 EBITDA (€ BLN) 1.8 ENERGY EVOLUTION >11 E-MOBILITY >7 >30 1.5 10 >10 ~20 >3 13 RETAIL 2.2 ~0.9 >0.6 2022 2023 2
Slide 20: New Energy Solutions
NEW ENERGY SOLUTIONS INTRO A PORTFOLIO OF TECHNOLOGIES TO MEET DECARBONIZED ENERGY NEEDS NATURAL RESOURCES OUR PATH TOWARDS DECARBONIZED ENERGY SOLUTIONS CAPITAL ALLOCATION 2023 2026 2030 SHORT TERM MEDIUM TERM LONG TERM 2023-26 2026-30 POST 2030 85% ENERGY EVOLUTION 70% BLUE GREEN H2 H2 BIOFUELS BL
Slide 21: Magnetic Fusion: A Star in a Bottle
A TURNING POINT IN THE ENERGY SECTOR INTRO THROUGH MAGNETIC FUSION NATURAL RESOURCES SAFE, SUSTAINABLE, INEXHAUSTIBLE CLEAN ENERGY SOURCE BUSINESS TARGET BENEFITS ROLE OF ENI ENERGY EVOLUTION Breakthrough technology Carbon free Largest shareholder in CFS*, “A STAR IN for clean energy No polluting su
Slide 22: Growing Returns
GROWING RETURNS INTRO EARNINGS & CASHFLOW DELIVERY IN A STRONGER BALANCE SHEET NATURAL RESOURCES FCF 23-26 | € BLN CAPEX LEVERAGE | % CAPITAL STRUCTURE YE 2022 Scenario upside ~€9.0 BLN IN 2023 Successful in progressive deleveraging € <20 BLN LONG-TERM DEBT 0.31 (70% OF THE TOTAL) E&P investing for
Slide 23: Shareholder Distribution
SHAREHOLDER DISTRIBUTION INTRO A priority commitment funded from organic cashflow NATURAL RESOURCES ONE OF THE HIGHEST A SIMPLIFIED POLICY ENHANCED DISTRIBUTION SHARING VALUE REMUNERATION YIELD IN THE SECTOR (remuneration yields 2023, estimated - %) Target ~25-30% OF CFFO €0.94 ~10.5% YIELD Via a co
Slide 24: Concluding Remarks
CONCLUDING REMARKS ‘’L’energia di sempre e Simplifying l’energia nuova’’: and enhancing tackling the trilemma our distribution policy Operational The satellite model and financial delivery: that differentiates us platform for positive outlook Integration, diversification, Value to us flexibility and
Slide 25: Appendix
APPENDIX
Slide 26: 9M 2023 | Group Results
9M 2023 | GROUP RESULTS CONTINUING MOMENTUM THROUGH 2023 KEY QUARTER ACHIEVEMENTS EBIT € 11.0 BLN CONFIRMING ONE OF ENI’S STRONGEST PERFORMANCES Geng north-1 discovery largest in industry in 2023 PROFIT FROM € 1.3 BLN CAPTURING HIGHER EARNINGS VIA SATELLITES Baleine startup < 2 years from discovery
Slide 27: Top Ranked ESG Ratings
TOP RANKED ESG RATINGS LEADING THE PEER GROUP ON ENVIRONMENT MOODY’S ESG MSCI SUSTAINALYTICS ISS CDP CLIMATE CDP CA100+ NZ CARBON TRACKER SOLUTIONS ESG ESG RISK RATING ESG CHANGE WATER BENCHMARK Absolute Impact 2022 ADVANCED AAA NEGLIGIBLE RISK A+ A A #alignedmetrics ADVANCED* 29 1° *** A- B 21 A A
Slide 28: Focus on Indonesia
FOCUS ON INDONESIA A NEW PRODUCTION HUB IN THE KUTEI BASIN FROM SIZEABLE PLAYS... GENG ALIGNS TO OUR DISTINCTIVE STRATEGY We have been in the country since 2001 NORTHERN Equity production is around 80 kboed FOCUSING ON GAS Indonesia AREA Discovered Exploration REINFORCING EQUITY POSITION ALONG LNG r
Slide 29: Neptune Acquisition
NEPTUNE ACQUISITION STRATEGICALLY ALIGNED, VALUE ENHANCING EXCEPTIONAL COMPETITIVE ASSETS A COMPELLING TRANSACTION low risk fit and high-quality EFFECTIVE DATE 1 JANUARY 2023, ANNOUNCEMENT 23 JUNE 2023, FURTHER ENHANCING GGP CLOSING EXPECTED IN 1Q24 1 EQUITY SUPPLY & MATERIALITY 100% CASH TRANSACTIO
Slide 30: Carbon Offset
CARBON OFFSET REDD+ PROJECTS & OTHER OFFSET LEVERS OFFSETTING RESIDUAL EMISSIONS WITH HIGH QUALITY CARBON CREDITS DISTRIBUTION OF HIGH EFFICIENCY COOKSTOVES REDUCING THE AMOUNT OF NON-RENEWABLE BIOMASS REQUIRED FOR COOKING MEXICO SENEGAL VIETNAM, INDONESIA, MALAYSIA DECREASING ASSOCIATED GHG EMISSIO
Slide 31: Upstream Key Start-ups in the Plan [1/2]
UPSTREAM KEY START-UPS IN THE PLAN [1/2] COUNTRY PROJECT OPERATOR W.I. PRODUCTS FID START UP PRODUCTION (KBOED)A Agogo West Hub Integrated J 18% Liquids 2022 2026 (FPSO) 175 (100%) ANGOLA (Azule Energy) NGC Quiluma & Mabuqueiro J 19% Gas 2021 2026 100 (100%) CONGO Congo LNG Y 65% Gas 2022 2023 123 (
Slide 32: Upstream Key Start-ups in the Plan [2/2]
UPSTREAM KEY START-UPS IN THE PLAN [2/2] COUNTRY PROJECT OPERATOR W.I. PRODUCTS FID START UP PRODUCTION (KBOED)A Baleine ph.1 Y 83% Liquids/Gas 2022 2023 18 (100%) IVORY COAST Baleine ph.2 Y 83% Liquids/Gas 2022 2024 38 (100%) 2026 LIBYA A&E Structure Y 50% Gas 2023 (Struct. A) 160 (100%) Balder X N
Slide 33: Biorefining Key Projects 2023-26
BIOREFINING KEY PROJECTS 2023-26 COUNTRY PROJECT W.I. START UP CAPACITY STATUS ADDITIONAL NOTES Production capacity increase 2024 from 360 to 560 kt/y ITALY 100% 560 Firm - (VENICE) Enhanced flexibility to kton/y allow other biomass Ph1 in 2023 processing (incl. low bio Ph2 in 2027 ILUC) Product mix
Slide 34: Plenitude Key Projects
PLENITUDE KEY PROJECTS Solar PV Onshore Wind Offshore Wind B Storage EQUITY YEARLY WORKING COUNTRY PROJECT INSTALLED TECHNOLOGY COMPLETION PRODUCTION INTEREST CAPACITY (MW) (GWH) SPAIN Guillena & Caparacena 100% 380 2024 800 USA Brazoria 100% 263 2022 450 USA Guajillo 100% 200 B 2024 150 SPAIN Orens
Slide 35: 2022 A Year of Delivery
2022 A YEAR OF DELIVERY REINFORCING FINANCIAL PERFORMANCE € 20.4 STRONG CONTRIBUTIONS ROBUST CASH GENERATION STRENGHTENING BALANCE SHEET AND EBIT FUNDING INVESTMENTS AND DISTRIBUTION BLN FROM EACH BUSINESS LINE CASHFLOW RESULTS | € BLN PROFIT FROM € 2.6 GROWING CONTRIBUTION ASSOCIATES BLN AT ASSOCIA
Slide 36: 2023 Guidance
2023 GUIDANCE GUIDANCE PRODUCTION 1.64-1.66 MBOED DISCOVERED RESOURCES >700 MBOE GGP EBIT € 2.7 – 3.0 BLN PLENITUDE EBITDA 1 ~ € 0.9 BLN • FOCUSING ON DELIVERY DOWNSTREAM EBIT 1 ~ € 1.0 BLN • GROWING BUSINESSES ENILIVE EBITDA 1 ~ € 1.0 BLN • GENERATING CASH • DISCIPLINED CAPEX EBIT ~ € 14 BLN • SHAR
Slide 37: Scenario Assumptions
SCENARIO ASSUMPTIONS SCENARIO 2023 * Brent dated ($/bbl) 84 FX avg ($/€) 1.08 Std. Eni Refining Margin ($/bbl) 10.4 PSV (€/kcm) 474 EBIT ADJ Net adj CFFO before WC SENSITIVITY 2023 (€ bln) (€ bln) (€ bln) Brent (1 $/bbl) 0.18 0.13 0.13 European Gas Spot Upstream (1 $/mmbtu) 0.15 0.12 0.13 Std. Eni R
Slide 38: Summary of Main Business Targets
SUMMARY OF MAIN BUSINESS TARGETS 2023 2025 2026 2030 2035 2040 2050 CUSTOMER RETAIL BASE MLN POD a >10 >11 >15 >20 RENEWABLES INSTALLED >3 >7 >15 >30 60 CAPACITY GW a b EV CHARGING POINTS k a ~20 >30 ~35 ~160 BIO BIO REFINING >3 >5 REFINING MLN TON/Y NATURAL GAS OIL & GAS PRODUCTION | 60 >90 % ON PO
Slide 39: Summary of Main Decarbonization Targets
SUMMARY OF MAIN DECARBONIZATION TARGETS 2024 2025 2030 2035 2040 2050 GHG EMISSIONS UPS NET ENI NET NET ZERO CARBON FOOTPRINT SCOPE 1+2 a UPS -50% UPS -65% ZERO ZERO NET NET GHG LIFECYCLE EMISSIONS SCOPE 1+2+3 VS 2018 a -35% -55% -80% ZERO NET CARBON INTENSITY SCOPE 1+2+3 VS 2018 a NET -15% -50% ZER
Slide 40: Notes
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Slide 41: Notes
NOTES 41