Domenico DispenzaCOO
Gas & Power
2
Disclaimer
This presentation 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 particular, among other statements, certain statements with regard to management objectives, trends in results of operations, margins, costs, return on equity, risk management and competition are forward-looking in nature. Words such as ‘expects’, ‘anticipates’, ‘targets’, ‘goals’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’, ‘estimates’, variations of such words, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Therefore, Eni’s actual results may differ materially and adversely from those expressed or implied in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, economic conditions globally, the impact of competition, political and economic developments in the countries in which Eni operates, regulatory developments in Italy and internationally and changes in oil prices and in the margins for Eni products. Any forward-looking statements made by or on behalf of Eni speak only as of the date they are made. Eni does not undertake to update forward-looking statements to reflect any changes in Eni’s expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any further disclosures Eni may make in documents it files with the US Securities and Exchange Commission.
3
2005 Gas Sales
89
2004
35
54
96
58
38
+8%
2005
Bcm
Italy
International*
20052004
54 58+8%
Self consumption drivenby EniPower
33Pro quota volume sales
GVS (50%)Galp (33.3%)UF Gas (50%)
36
21 23
7
2004 2005
8
+9%
Associates
ConsolidatedDirect sales in SpainTigazNorth Sea G&PSales in TurkeyShippers
E&P 5 5
(*) Including gas sales in South America (2 bcm) and E&P equity gas sold in Europe (5 bcm)
EUROPE
4
G&P: adjusted operating profit by activities
Marketing & Distribution
Powergen
International pipelines
Snam Rete Gas
2005
3,448
2004
3,531
396
1,827
1,164
61 144
448
1,777
1,162
Million €
2005 main drivers
Higher international and Italian gas sales
Continuing power-generation capacity build up in Italy
Ongoing expansion of the international transportation activities
225 million euro provision for pending Authority regulation nr. 248 in the domestic market
+2.4%
5
Income from AssociatesMillion €
2004 2005
Marketing &Distribution
LNGInternationaltransportation
+90.4%
48
178
65
65
121
339
208
6-
518
17441407
GVS Union Fenosa GasGALPOthers (Greece, Argentina)
65 208Marketing & Distribution
-
65
30
91
Blue StreamTransportation(TAG, Tenp, Others)
48 10LNG (Nigeria)*
65 121Transportation
10
2004 2005
(*) LNG activities tranferred into E&P Division from January 2006
Adjusted net profit contribution from international marketing and transportation activities
6
Gas Sales in Europe
Eni Sales2009 TARGET
Rest of Europe salesCAGR: +8%
2009 TARGET
Rest of Europe salesCAGR: +8%
(*) Eni estimates on WoodMackenzie data
(bcm)
~50
~50
94 >100
2012Estimate
>110
2009Target
2005
36
58
Rest of Europe(including E&P sales)
Italy
Demand growth 2003-2015* in Eni target market
2.62.41.3
ItalyUKGermany
CAGR % ∆ Volume
293316
7.04.63.1
IberiaTurkeyFrance
331519
Overall EuropeCAGR +2.6 ∆ Volume: +187
∆ VolumeCAGR %
7
3.23.3
0.62.9
0.5
0.7 3.0
International Gas SalesBcm
Sales in Europe Iberian peninsula
4.83.8
1.5
2.75.3
7.5
2005 2009
2005 2009Target
2012Estimate
>5549
4
37
8
36
5
23
8
Consolidated
Associates
Market share
E&P sales
CAGR+8%
CAGR+8%
17%
Germany
3.9
6.1
2005 2009
6%
UK
4.22.7
4.22.7
2005 2009
3%
Turkey
5.12,5
5.1
2.6
2005 20090,1
19%
1.2
3.0
2005 2009
France
5%
Leading player in Europe
8
Italian Activities
20092005
4.55.5
20092005
4.46
20092005
2330
2001-2005 2006-2009
Final market share ∼8%
in 2009
Final market share ∼8%
in 2009
20092005
58 50-55Leverage on gas demand growth
EniPower
Eni sales
Gas ConsumptionInstalled Capacity Production
2012:maintain Italiansales in line with
2009
2012:maintain Italiansales in line with
2009
(Bcm)(Gw) (TWh)
~ 130
Further ~ 60Maximize efficiency in regulated business
(Million €)
(Bcm)
9
0
2004 2005 2006 2008 2009
Diversifying and increasingSupply Sources to Italy and Europe
Accelerated increase in transportation capacity: TAG (6.5 bcm/y) and TTPC (6.5 bcm/y) by 2008/9Increase third parties access capacity into Italian market
(Bcm)
Diversify supply sources: LibyaGas sold to gas players under long term take or pay contacts
0.5
88 8
4
Greenstream Pipeline Build Up
TAG and TTPC expansion
TTPC
TMPC
TAG
Greenstream
10
(Bln euro)
2005-08 Plan SRG Internationalpipelines
Power Others 2006-09 Plan2005-08Plan
2006-09Plan
0.40.6 (0.5)
(0.4)
Capex
2006-09 vs 2005-08
2009 Capex*
2009
<0.5
* SRG deconsolidated
2006-09 Plan
4.2 4.3
Average2006-09
~1.1
PowergenMarketing & DistributionSRGInternational pipelines
16%
19%
47%
18%
11
Free Cash Flow Generation
Regulated business
International pipelinesMarketing and Power
Activity
2005 2009
58%
35%
7%
74%
11%15%
2005 2009
71%
29%
55%
45%
Free cash flow~ 1.9 bn € Areas
ItalyInternational
TARGET
Appendix
13
G&P: investments profile
2001 2002 2003 2004 2005 Aver.2006-09
1.8
1.3
1.1 ~1.1
16%
19%
47%
Billion €
18%
1.5
2009 Capex*
2009
<0.5
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
1.2
Investments: ~ 4.3 bln € in 2006-2009
Powergen Marketing & Distribution
SRG Internationaltransportation
* SRG deconsolidated
14
Eni Well Positioned to catch European Gas Demand GrowthBcm*
(*) Eni estimates on WoodMackenzie data
Iberian peninsula
CAGR+2.4%
123 134101 120
2003 2005 2009 2015
UK
ItalyCAGR+2.6%
45 5926 35
2003 2005 2009 2015
GermanyCAGR+1.3%
CAGR+4.6%
TurkeyCAGR+3.1%
France
CAGR+7.0%
695
508 531595
Powergen
Other
201520092003 2005
+2.6%European gas demand
93 10677 86
2003 2005 2009 2015
103 11094 100
2003 2005 2009 2015
56 6344 51
2003 2005 2009 201527 3621 23
2003 2005 2009 2015