Saipem S.p.a. · MIL:SPM
Saipem — H1 2008 Earnings Presentation
20 slides from Saipem's earnings presentation, July 2008
Slide 1: Presentation to the Financial Community 1H 2008 Results
Presentation to the Financial Community 1H 2008 Results July 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 • 1H 2008 Financial Results • Growth in the Present • Growth for the Future ¾ 1. Capex Update ¾ 2. Addressing Weaknesses • Disposal Programme Update and US Dollar Devaluation Impact • Conclusions 3
Slide 4: 1H 2008 Financial Results
1H 2008 Financial Results 4
Slide 5: Financials
Financials (Mln €) Revenues EBITDA EBIT Net Profit 4523 4619 % on 652 Revenues 489 % on Revenues 528 % on 154 (6.3%) 501 2442 Revenues 394 2452 % on 131 (5.4%) Revenues 129 (5.3%) 60 (30.3%) Capital Capital Gain Gain 110 (4.5%) 33 (16.7%) from from Disposals Disposals 34 (23.4%) 123 (51.7%) 145 198
Slide 6: Financials: Capex, Sources and Application of Funds, Net Debt
Financials (Mln €) Capex Sources and Application of Funds, 1900 Net Debt & D/E Ratio 50 D/E =0.74 1636 D/E = 0.74 1923 350 102 1694 267 700 979 1185 692 216 956 149 513 323 800 979 575 484 Net Debt Application Sources of Net Debt 1H 2007* 2007* 1H 2008 2008E @ Dec. 2007 of Funds 1H08 Funds 1H08 @ Ju
Slide 7: Contract Acquisitions & Backlog
Contract Acquisitions & Backlog (Mln €) New Contract Acquisitions Backlog 16191 13348 5471 5616 4781 1055 6440 1287 784 2607 213 3446 380 149 2188 3419 144 5842 1881 4340 1H 2007* 1H 2008 June 30, ’07* June 30, ‘08 (*) 1H 2007 figures have been restated to reflect the effects of disposals of Camom a
Slide 8: Growth in the Present
Growth in the Present 8
Slide 9: Growth in the Present: Upstream Capex and Backlog vs Competitors
Growth in the present Global Upstream Capex Growth LEGEND E&P Spending Further Improvement in ‘08 500 +20% Forecast from +11% y/y +28% Bln. US$ @ June 08 400 Forecast @Dec. ‘07 +27% to Forecast 300 +27% @ Dec. 07 +14% +20% y/y 200 Actual Forecast @June ‘08 100 2003 2004 2005 2006 2007 2008E Source:
Slide 10: Saipem Backlog: Growth and Quality
Growth in the present Saipem Backlog: Growth and Quality Saipem Backlog New All-time Record Backlog € € 16,191 Mln Q2 ‘06 - Q2 ‘08 = +31% Bln Boosted by 17 wth € 5,491 Mln New Orders Awarded in 1H ‘08 16 ro Snamprogetti Acquisition si veG s 15 gre 1H 2008 Major Awards examples: Pro 14 Project Busine
Slide 11: Saipem Backlog Resilience
Growth in the present Saipem Backlog Resilience Dec. 31, 2006 Dec. 31, 2007 June 30, 2008 Large Balanced Business Portfolio in Core Sectors 20% 28% 38% 32% 27% 27% 48% 46% 34% Offshore Onshore Drilling Wide Geographic Spread of Activities 6% 8% 4% 12% 5% 4% 10% 5% 4% 9% 24% 12% 21% 13% 24% 23% 17% 2
Slide 12: Growth for the Future
Growth for the Future 12
Slide 13: Growth for the Future: Capex Update - Major Capex Items
Growth for the Future 1 - Capex Update - Major Capex Items Saipem Capex Plan 06-08 € 4130 Mln Offshore 2008 Milestones New NewPipelayer Pipelayer Delivery DeliveryQ3 Q3 1900 Leased LeasedFPSO FPSOGimboa Gimboa Operational OperationalQ4 Q4 300 Saipem SaipemFDS FDS22 Caspian CaspianFleet: Fleet: Ersai
Slide 14: Additional 2008 Capex: € 300 Mln
Growth for the Future 1 - Capex Update - Additional 2008 Capex: € 300 Mln Main Changes Details Rationale ¾ Enhancement ¾ Enhancement of of Focus on Future Challenges Saipem 7000 Saipem 7000 J-Lay Saipem 7000 J-Lay System System J-lay System for for pipelaying pipelaying Fleet Primacy: in 3,000 in 3,
Slide 15: Addressing Weaknesses: Entering the LNG market
Growth for the Future 2. Addressing Weaknesses: Entering the LNG market Arzew LNG-3 Awarded to Saipem - July 2008 For the First Time Saipem is the Main Contractor of a Large Gas Liquefaction (LNG) Plant 9 Client: Sonatrach PROJECT DESCRIPTION 9 Lump-sum turn key contract 9 EPC of a single-train gas
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 2008 Disposals Programme Disposed Share Pre-tax (Representing entire Company Status Proceeds Saipem shareholdings) capital gain: 30% GTT GAZTRANSPORT & TECHNIGAZ Finalised Overall Overall expected expected pre-tax proceeds: capital gain: Under € 400 million € 200 million 20
Slide 18: Euro/USD: Further Devaluation Impact on P/L
Euro/USD : Further Devaluation Impact on P/L Saipem hedging policy: Typical Revenue ‘Mix’: Hedge “currency exposure” ~ 70% USD ~ 30% Euro (revenues less costs) at contract acquisition 2008 Expected Revenues accounting exchange rate ¾ Already in Backlog and Hedged Mix of contracts: ¾ Yet to be acquir
Slide 19: Conclusions
Conclusions 19
Slide 20: Conclusions
Conclusions Around € 10 Bln (despite further USD devaluation) Revenues Growth across Business Units Onshore Offshore Drilling Despite Camom and Haldor Planned maintenance to temper Underpinned by large projects Offshore Drilling growth; Topsøe disposals progress in West Africa and New rigs entering