Saipem S.p.a. · MIL:SPM
Saipem — FY2007 Earnings Presentation
20 slides from Saipem's earnings presentation, February 2008
Slide 1: Presentation to the Financial Community 2007 Results
Presentation to the Financial Community 2007 Results February 2008
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-looking statements are based on a number of assumptions and expectations that could ultimately prove inaccurate, as they are subject to risks and variables, outside the company’s control, that could cause actual results to differ materially, including currency fluc
Slide 3: Presentation Outline
Presentation Outline • FY 2007 Financial Results • Capex: in Depth View ¾ 1. Offshore ¾ 2. Offshore Drilling ¾ 3. Onshore Drilling • Cost Structure Optimisation and LT Sustainability • Disposal Programme Update • US Dollar Devaluation Impact • Conclusions 3
Slide 4: FY 2007 Financial Results
FY 2007 Financial Results 4
Slide 5: Financials
Financials (Mln €) Revenues EBITDA EBIT Net Profit 9530 1148 % on Revenues 867 % on Revenues 7325 298 (5.6%) 875 5337 252 (4.7%) 810 Revenues % on 78 (25.2%) 586 Revenues % on Capital Capital Gain Gain 3508 52 (16.8%) 194 (5.5%) from from Disposals Disposals 200 (47.6%) 151 (4.3%) 140 (33.3%) 310 52
Slide 6: Financials: Capex, Sources and Application of Funds, Net Debt
Financials (Mln €) Capex Sources and Application of Funds, Net Debt & D/E Ratio D/E =0.74 1644 1600 1792 1694 110 50 D/E = 0.90 148 150 1515 267 1417 241 700 692 413 1644 593 55 103 37 700 861 575 398 Net Debt Application Sources of Net Debt 2006* 2007 2008E @ Dec. 2006 of Funds FY2007 Funds FY2007
Slide 7: Contract Acquisitions & Backlog
Contract Acquisitions & Backlog (Mln €) New Contract Acquisitions Backlog 15390 12011 12863 10708 7003 6236 6058 4487 701 338 635 376 3471 2230 2247 1644 3653 3496 4182 4215 2006* 2007 Dec. 31, ‘06* Dec. 31, ‘07 (*) 2006 data restated: Camom and Haldor Topsøe included for the first 6 months only. Of
Slide 8: Capex: in Depth View
Capex: in Depth View 8
Slide 9: Capex: Context
Capex: in Depth View Context Industry Competitors Saipem Global Upstream Capex Oil Services Peer Group* AVG Capex (€ Mln) Capex (€ Mln) 35 Growth Positive *Peer Group of 9 Companies: 30 Expectations to 3 Offshore; 1 Offshore&Onshore; 2 Onshore; 3 Drilling +372% 3840 25 be outweighed % Growth 20 agai
Slide 10: Capex: 1. Offshore
Capex: 1. Offshore in Depth View Saipem Investment Plan 06-08 Offshore Investment Plan 06-08 € 3,840 Mln € 1,673 Mln 12% Offshore 700 575 43% Onshore 398 Offshore 39% Drilling Onshore 6% Drilling 2006A 2007A 2008E Major Capex Items Details Rationale ¾ S-lay, ¾ S-lay, DP, DP, harsh harsh environment,
Slide 11: Capex: 1. Offshore (contd)
Capex: 1. Offshore in Depth View (contd) Saipem Investment Plan 06-08 Offshore Capex Programme € 3,840 Mln New New Pipelayer Pipelayer 12% Offshore Saipem Saipem FDS FDS 2 2 43% Onshore New New Diving Diving Support Support Vessel Vessel 9 Main investments already sanctioned 39% Offshore Drilling Le
Slide 12: Capex: 2. Offshore Drilling
Capex: 2. Offshore Drilling in Depth View Saipem Investment Plan 06-08 Offshore Drilling Investment Plan 06-08 € 3,840 Mln € 1,495 Mln 6% Offshore 692 700 39% Onshore Offshore 103 43% Drilling Onshore Drilling 2006A 2007A 2008E 12% Strategy to date Contract : Scarabeo 8 - 6th generation Semisub Inve
Slide 13: Capex: 3. Onshore Drilling
Capex: 3. Onshore Drilling in Depth View Saipem Investment Plan 06-08 Onshore Drilling Investment Plan 06-08 € 3,840 Mln € 454 Mln 39% Offshore 267 12% Onshore 150 Offshore 37 6% Drilling Onshore Drilling 2006A 2007A 2008E 43% Strategy to date Investment in New Rigs assuming Long Term Contract (3 ye
Slide 14: Cost Structure Optimisation and Long Term Sustainability
Cost Structure Optimisation and Long Term Sustainability 14
Slide 15: Long Term Sustainability and Cost Structure Optimisation
Long Term Sustainability and Cost Structure Optimisation Further Reinforcement of High Quality HR 2007 Achievement Aggressive Engineers & Project Managers hiring campaign. Net increase: 1,000 resources 9 Repeat Same 2008 Guideline Growth in 2008 Engineers & Project Managers net increase: 1,000 resou
Slide 16: Disposal Programme Update and US Dollar Devaluation Impact
Disposal Programme Update and US Dollar Devaluation Impact 16
Slide 17: Disposal Programme Update
Disposal Programme Update Detailed Disposal Programme Overview Disposed Share Pre-tax (Representing entire Company Status Proceeds Saipem shareholdings) capital gain: Disposals in FY 2007 100% CAMOM Completed Overall pre-tax Overall proceeds: Haldor capital gain: 50% Payment € 413 million Topsoe A/S
Slide 18: Euro/USD Exchange Rate Devaluation Impact
Euro/USD Exchange Rate Devaluation Impact Saipem hedging policy: Typical Typical Revenue Revenue ‘Mix’: ‘Mix’: Hedge “currency exposure” ~~ 70% 70% USD USD ~~ 30% 30% Euro Euro (revenues less costs) at contract acquisition 2008 2008 Expected Expected Revenues Revenues accounting accounting exchange
Slide 19: Conclusions
Conclusions 19
Slide 20: Conclusions
Conclusions In excess of € 10 Bln (despite USD devaluation) Revenues Growth across Business Units Onshore Offshore Drilling Despite Camom and Haldor Planned maintenance to temper Underpinned by big projects Offshore Drilling growth; Topsøe disposals progression in West Africa and New rigs entering o