2013 - 2016 Strategy Presentation

eni.com
2013-2016 Strategy
14 March 2013

2
the new eni: ideally positioned to deliver growth and returns
Exceptional growth opportunities
 production to reach ~2.5m boe/d by 2022
 returns supported by low costs of new giant projects
e&p
Positioning business for sustainable profitability
 aligning supply with European hub pricing
 focus on sales and trading integration and premium sales segments
g&p
Restructuring to positive contribution
 continuous focus on efficiencies
 profit enhancement through integration, innovation and portfolio
refocusing
r&m
chemicals
Transformed balance sheet
 €19bn financial improvement from divestments achieved in 2012
 continuing pragmatic approach to capital management
capital
allocation

3
E&P capital employed by region
the new eni: more e&p...
% capital employed in E&P
increasing exposure to
higher-returns activities
managing risk through
diversification
48%
54%
61%
2011 2012 2016
2012 2016
Others
FSU
N Africa
Sub-Saharan
OECD + Far East

4
... a business with a transformed opportunity set...
re-loaded growth opportunities
Per year Cumulative Cumulative
production
bln boe
~7.5
2008-2012: extraordinary
exploration success
 discovered over twice the
barrels produced
 excluding Mozambique track
record of ca. 1bln/yr
 revolutionised resource base
 time to market: within 8 years
for 90% of new discoveries
Exploration performance
Mozambique
0
1
2
3
4
5
6
7
8
2008 2009 2010 2011 2012 2008-12
3.2

5
1,701
... converted into superior, organic production growth...
2012-2016: >4% production CAGR
high visibility and deliverability:
 90% of production post-FID by YE
2013
 80% from conventional projects,
onshore and shallow water
2016-2022: >3% production CAGR
visible project pipeline from:
 Further phases of development of
giant projects
 Recent exploration success
CAGR
de-risked and deliverable growth
2012 2016 2022
Production growth
Kboe/d
>3%
>4%
Price scenario: 90$bbl 2013-2016 +2%/year afterwards

6
resilient
returns
..with robust returns
Exploration
Capex
Opex
New production to 2016 costs
<30$/boe
Royalties
and taxes
Well-positioned on the cost
curve
 industry-leading exploration
costs
 contained development costs
 focus on synergic giant
projects
 onshore/shallow water
exposure
 key position in Africa
$/boe
low costs of new production

7
g&p: demand and pricing put pressure on margins
2012 EBITDA proforma adj
difficult environment through to 2014
1.3
Semi Regulated
& International transport
LNG
Retail
Normalization for one offs
Wholesale and powergen
bln €
2009 2011 2012 20132008 2010
€ per
1000m3
Proxy European import price
Deteriorating market environment
EU 27
demand
(bcm)
-550
-450
300 -
0 -

8
g&p strategy: positioning for sustainable profitability
Semi
regulated &
international
transport
Retail and
commercial
Wholesale,
power &
trading
LNG Total
~1.5
 stable
earnings
 increase
number of
clients to
14m
 supply
renegotiation
 added value
commercial
products
 leverage trading
integration
 synergies with
e&p development
EBITDA proforma adj. 2016
bln €

9
r&m: continuous improvement
EBIT adj
>€500m
improvement
at 2012
scenario
scenario
2011 2012
2016
Efficiency and
optimisation
Efficiency and
optimisation
breakeven in
2014 at 2012
scenario
 On track with 2012-2015
efficiency and enhancement
programme:
 2012-2015 target: €550m
 2012 achievement: ~€150m
of repeatable efficiencies
 New target >€500m of ebit
enhancement to 2016
 €400m from completion of
previous plan
 Additional benefit from Venice
green refinery
bln €

10
versalis: more aggressive turnaround plan
Further rationalisation and
integration
 Reduction of ethylene
exposure, also through the
reconversion of critical sites
 Energy, logistics and
personnel savings
Refocusing to high value
segments and growing
markets
 >60% growth in elastomer
production
 Focus on green chemicals
 Signed JVs in Asia with
Honam and Petronas
EBIT adj. at constant scenario
2012 2016
break
even
~€500 mln of EBIT at 2012 scenario
2017-18
EBIT (including pro-
forma JVs)
bln €
Rationalization and integration Refocusing

eni.com
Exploration & Production
Claudio Descalzi

12
main actions
 accelerating conversion
 focus on rapid time-to-market
Convert efficiently
resources into production
 strong growth targets
 diversified, synergic and low-risk portfolio
 efficient cost position
 strong project returns over time
Deliver on development
project pipeline
 continuously rejuvenating acreage
 high-materiality initiatives
Pursue further upside from
exploration
Ensure efficiency, deliver robust
returns
 sustainability and continuous improvement of HSE
 access to energy, health and education
Leverage distinctive approach

13
the eni model
Operational Results Sustainability
TRIR*
Zero blow-outs
Blow-out frequency
(per thousand)
avg drilled operated
wells per year
eni model of sustainability:
 access to energy: power projects in Nigeria,
Congo, Mozambique
 Agriculture and local development: programs
in Nigeria, Congo, Angola
 Health and educational projects
Zero flaring target
*n. of TRI/Mln of worked hours
293 307 320
0 0 0
2005-09 2010-11 2012
1,82
0,91
2007-11 2012 0
30
60
0
15
30
2007 2008 2009 2010 2011 2012
flared gas (Mscm/d)
flared gas/total production (toe/ktoe)
Mscm/d

14
transformed resource base...
bln boe
brent
($/boe)
111
2P P3 & Contingent
2008 2011 2012
34.5
32.1
111
+7,5%
Risked exp
2012 - P3 & Contingent
onshore
shallow water
deepwater
arctic
+25%
North Africa & ME SS Africa
Europe America
29.5
+9%
+35%
56
Total resources
Russia & Central
Asia
Far East &
Pacific

15
... efficiently converted into reserves and production
Time-To-Market*
90% discovered resources
with start up in <8 years
Reserve Replacement
average organic RRR >130%
in the next 4 years
<4 years 5-8 years >8 years
*2008-2012 discoveries
 Major 2013-2014 FIDs
 15/06 East Hub - Angola
 Yaro-Yakhinskoye - Russia
 Urengoyskoye ph.2 - Russia
 Jangkrik Complex - Indonesia
 Mamba initial developments –
Mozambique
 Skrugard / Havis - Norway
 OPL 245 - Nigeria
 Kutei Basin - Indonesia
 Val D’Agri ph.2 - Italy

16
strong growth targets
2012 2016 2022
Production growth
Brent ($/boe)
2013/2016 2022
90 +2%/year
>4%
cagr
>3%Kboe/d
producing fields new projects

17
our development pipeline: diversified and synergic…
2013-2014 2015-2016 Beyond 2016
North Africa
 MLE
 Wafa Compression
 El Merk
 Bahr Essalam ph.2
 CAFC oil
Far East
 Kutei Basin
 Jangkrik complex
Kazakhstan
 Kashagan EP
 Kashagan further
phases
 Karachaganak ph.3
Venezuela
 Perla EP
 Junin 5 EP
 CBM FF
Others
 Jasmine
 Hadrian South
 Val D’Agri ph.2
 Hadrian West
 Junin 5 FF
 Perla FF
Norway Barents  Goliat  Asgard & Mikkel  Skrugard/Havis
Yamal - Russia
 Yaro-Yakhinskoye
 Urengoyskoye ph.1
 Urengoyskoye ph.2  Yevo-Severo
Sub-Saharan
 ALNG
 Abo ph.3
 15/06 West Hub
 15/06 East Hub
 OPL 245 ph.1
 Kizomba sat. ph.2
 Litchendjili
 Mafumeira Sul
 Mozambique
 Brass LNG
 Sankofa
 OPL 245 ph.2
 Congo – Nené
40mainprojects
> 700 kboed new production at 2016
 CAFC gas

18
… leading to a balanced and robust profile
Production by operator
SS Africa North Africa & ME
Europe Russia/Caspian Area
America Asia Pacific
equity
production
equity
production
equity
production
2012 2016 2022 2012 2016 2022 2012 2016 2022
onshore
shallow water
deepwater
operated
non operated
Production by region Production by type

19
key growth drivers to 2016
project country op equity production at 2016 physical progress
MLE Algeria  15
Kashagan EP Kazakhstan  60
ALNG Angola 25
CAFC Gas Algeria  5
El Merk Algeria 15
Abo ph 3 Nigeria  10
Jasmine UK 20
Junin EP* Venezuela  30
Goliat Norvegia  50
Wafa Compression Libya  60
15/06 West Hub Angola  25
Perla EP Venezuela  20
Hadrian South USA 15
Urengoyskoye Russian Federation  45
Yaro-Yakhinskoye Russian Federation  50
Other cumulative projects Various NA >60
start up
~180
kboe/d
~265
kboe/d
20132014
15 major projects worth 60% of new production at 2016
Start-ups 2013-14
*anticipated early production
**progress to KCP
FID 2013
NA
12%
15%
27%
28%
47%
54%
~100%
99,9%**
>90%
72%
<10%
96%
>90%
>80%

20
key 2013 start-ups: development on track
 MLE started in January, ramping up together with
CAFC early gas
 El Merk started up in March
 onshore plant: commissioned with sweet gas and
fuel
 A-island: ready for production by march
 D-island: achieved mechanical completion of train 1
 June: start up of production in line with
commitments
Algeria
Kashagan ep

21
Kashagan EP – Bolashak onshore facilities

22
 Urengoyskoye ph.1:
 drilling activities progressing
 ongoing construction of facilities
 Yaro Yakhinskoye:
 2 drilling rigs in operation
 civil works for drilling pad ongoing
 progress 54%
 drilling activities progressing in line with plan
 completed installation of subsea production systems
and flowlines
 FPSO sailaway planned in 1Q 14
Yamal developments
Goliat

23
 drilling to start in June 2013
 FPSO is expected to arrive in Angola in early 2014
 fabrication of christmas trees in progress
 Junin 5 EP
 achieved start up of anticipated early production
 Perla EP
 awarded contract for offshore platforms and flowlines
 onshore construction of processing facility to start in
March
Angola 15/06 west hub
Venezuela

24
further growth drivers to 2016
major projects on track
Project Country Op FID ~ equity production at 2016
CAFC Oil Algeria   10
Litchendjili Gas Congo   10
Asgard Mikkel Norway  10
Mafumeira Sul Angola   10
Kizomba Sat. Ph.2 Angola  10
Urengoskoye Ph.2 Russia  2013 25
Jangkrik Complex Indonesia  2013 25
15/06 East Hub Angola  2013 15
Bahr Essalam ph.2 Libya  2014 15
OPL 245 ph.1 Nigeria  2014 10
Hadrian West USA 2014 10
Other cumulative projects Various NA NA >50
Start-ups 2015-16
150
kboe/d

25
long-term growth drivers: Mozambique
Area 4Area 1
10 km
Mamba S-1
Coral -1
Mamba S-2
Mamba NE-1
Mamba NE-2
Mamba N-1
Coral - 3
eni discoveries
Coral-2
Exploration programme
Development programme
 8 wells drilled so far
 75 Tcf GIIP discovered
 27 Tcf fully contained in area 4
 2013 drilling program
 1 appraisal + 1 exploration wells
 straddling resources
 HOA signed with Anadarko
 Initial development of 2+2 LNG trains of 5 MTPA
 Concept Selection in 2013, FID in 2014
 non straddling resources
 Ongoing studies to select best development
options

26
long-term growth drivers: Barents Sea and Indonesia
 high potential oil hub in OECD
 skrugard-havis
 single development project, leveraging synergies to maximize
value
 500 Mboe recoverable resources (100%)
 start up within 2018
 ~200 kboed equity production at 2022
 multiple material gas projects accessing high LNG prices:
Jangkrik, IDD, Jau
 FID in 2013-14
 start-ups within 2016
 > 100 kboed equity production at 2022
Barents Sea & Norway
Indonesia
WD@FPU120m
WD@Subsea500m
Production Flowlines
Umbilicals
Jangkrik Barge FPU
Condensate Export
Gas Export
Jangkrik Jangkrik NE
Gas & Condensates
Export to shore

27
assets for future exploration
confirmed target of 1 Bboe discoveries/yr, UEC 2$
Russia & Barents
Far East
East Africa
West Africa
East Europe
>80 000 km2
New acreage 2012
West Africa
 Pre-salt play
 Nearfield
Arctic
 Norwegian & Russian Barents Sea
Russian black Sea
Cyprus
 Levantine Basin
Pacific Gas
 Vietnam
 Indonesia
 Australia
Pakistan nearfield
East Africa
 Rovuma Basin further potential
 Kenya Ultra Deep Water
North Africa
 Egypt
 Tunisia
GoM
China Unconventional
 Sichuan Basin

28
investment plan
dev exp other
bln €
44.8
47.2
Production optimization
Projects with production
within 2016
Projects with production
beyond 2016
Development
frontier
proven basins
Near field
Exploration
37,6
39,9
5,5
5,5
1,7
1,8
2012-15 2013-16
+5.5%

29
increasing efficiency
** XOM, CVX, COP, BP, RDS, TOT, eni. Company data and Wood Mackenzie
F&DOpex
$/boe$/boe
5.8
6.4
6.8
7.9
0
2
4
6
8
10
12
08-10 09-11 10-12 13-16E
Benchmark group** eni
0
10
20
30
40
50
05-07 06-08 07-09 08-10 09-11 10-12 13-16E
Discovery cost Development cost F&D cost

30
robust returns
cashflows
Unit cashflows +15% excluding scenario effects
 Increasing proportion of oil vs gas
 Limited increase of unit cash costs on planning horizon
project
returns
IRR around 20% on new projects at 90$/bbl
 Contained unit capex through giant synergic developments
 Quick payback through timely project delivery
BEP confirmed at 45 $/bbl
Decrease in inactive capital from 30% to 20%
 Prudent approach to project phasing
strong value creation

31
main actions
 RRR of >130%
 Rapid time to market of new discoveries
Efficiently convert
resources into production
 >4% CAGR to 2016
 >3% CAGR to 2022
 Unit cashflow growth
 IRR of new projects around 20%
Deliver on development
project pipeline
 1bn boe a year of new discoveries
 UEC of $2
Pursue further upside from
exploration
Ensure efficiency, deliver robust
returns
 Continuous improvement in HSELeverage distinctive approach

eni.com
Gas & Power
Marco Alverà

33
the deteriorating near-term environment…
Declining Italian pricing
PSVPremiumtoTTF
€/kcm
2013 PSV Contract
Differential
0
10
20
30
40
50
60
70
gen-12 apr-12 lug-12 ott-12
TTF – PSV Transport Cost
 Italian hub prices rapidly
converging with European
hubs
 Deteriorating commercial
environment
 Power demand down
Increased
margin
pressure in
2013-14

34
… requires an accelerated supply response
Long term gas supply
bcm
 Price Level
 ~100% hub level – transport costs
 Increased flexibility
 Take or pay volumes
aligning supply prices with hubs minus costs
Gazprom
Sonatrach
GasTerra
Statoil
Libya
Equity &
Other
Supply
>80%
Targets

35
… and integration and innovation in wholesale, trading and lng
returning wholesale to profitability and leveraging integration
LNG
Industrials &
Wholesale
 Expertise in
innovative offering
structure
 Leverage reloading
opportunities
 Synergies with E&P
development
Asset backed
trading & power
 Leverage on the
volatility of gas, oil
and power prices
to extract value
from flexible G&P
assets
 Multi-country offers
proposed to smaller
clients
 Flexible and
innovative contracts
 Contract
performance tools
 Web solutions
 New products
2016PROFORMAEBITDA

36
 Solid and reliable counterparty
 Portfolio flexibility and trading
capability
 Innovative product offering for
industry
 Access to pipe, storage and LNG
infrastructure
 ~20% market share in Europe
further upside from market recovery
additional upside potential
 Production decline
 Nuclear and old power
plant phase-out
 CO2 price increase
 Gas for transport
 Economic upturn
Impact
 Increased value of
flexibility
 Enhanced trading
opportunities
 Potential volume benefit
Gas market recovery

eni.com
Financial Strategy
Massimo Mondazzi

38
0
0,1
0,2
0,3
0,4
0,5
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
consolidated financial structure
 Target leverage range 10-30%
 Coherent with new business profile
 Stronger liquidity position: ca. 2 years of financial independence
Leverage
target range
Leverage = Net Debt / Equity

39
growth strategy fuelled by broadly stable investments…
53.8
56.8
2012-15
capex plan
forex effect e&p others 2013-16
capex plan
e&p g&p r&m saipem chemical Others
Mainly:
 Mozambique
 Indonesia
 Nigeria
Mainly:
 e&c +0.4
 chemicals +0.4
 g&p - 0.2
 r&m - 0.4
bln €
E&P
E&P
Investments
focused on E&P
E&P: more than 83% of
capex plan….
… and 90% of
discretionary capex
1.4
1.1
0.5
*
* Excluding Snam
chemicals

40
...selective and focused on high-return opportunities...
R&M
2.4 bln €
G&P
1.2 bln €
Chemicals
 G&P: selective plan - power upgrades; stable transport & distribution business
 R&M: resilient projects - Venice conversion
 Versalis: turnaround plan - increasing elastomers , green chemicals, efficiency
Semi-regulated
and international
transport
New
initiatives
Market
Power
Marketing
Refining
2 bln €
Stay in
business
Efficiency

41
capex more than fully funded by strong cashflow growth
Sensitivity Cash Flow @110$/bbl
2013-16 Cash Flow
FCF
@ 90
$/bbl
FCF
upside
Avg capexdisposalsCFFO
 Robust organic
cash flow
 Disposal plan
>€10bn
 Snam
 Galp
 Other assets
 Further upside
from price scenario
Strong free
cash flow

eni.com
Closing remarks
Paolo Scaroni

43
shareholder distribution policy
Progressive dividend New buyback programme
1 2
Dividend rising in line with
OECD inflation
2010-2012 policy
New policy
The new eni

44
1
a growing, reliable income stream
A progressive dividend policy
Based on:
 The board’s view of Eni’s underlying
growth and value creation prospects
 E&P production levels
 G&P contract negotiations
 Downstream refocusing, efficiency
 Our plan scenario
 $90/bbl Brent
 Gradual recovery in European markets
2013 dividend
increased to €1.10
per share
(~2% vs 2012)

45
2
A flexible buyback programme
Activated when, on a through-cycle basis:
 Leverage is satisfactory, and in any
case well within our 30% ceiling
 Growth opportunities in the business
are funded
 Dividend payments are covered
flexible upside from higher oil prices
€6 bln overall
authorisation

46
the new eni: ideally positioned to deliver growth and returns
Exceptional growth opportunities
 production to reach ~2.5m boe/d by 2022
 returns supported by low costs of new giant projects
e&p
Positioning business for sustainable profitability
 aligning supply with European hub pricing
 focus on sales and trading integration and premium sales segments
g&p
Restructuring to positive contribution
 continuous focus on efficiencies
 profit enhancement through integration, innovation and portfolio
refocusing
r&m
chemicals
Transformed balance sheet
 €19bn financial improvement from divestments achieved in 2012
 continuing pragmatic approach to capital management
capital
allocation

2013 - 2016 Strategy Presentation

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2013 - 2016 Strategy Presentation