Saipem Spa

Good morning. This is the conference operator. Welcome and thank you for joining the SIPEM full year 2024 results and strategy update presentation. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Alessandro Puliti, CEO and General Manager. Please go ahead, sir.

Good morning and welcome to the presentation of the SIPEN full year 2024 results and strategy update. I'm here with Paolo Calcagnini, our CFO, and with the rest of the top management team. I will start today. with the key highlights, and then Paolo will cover the financial results in more detail. We will then cover our strategic update, including 2025 guidance and medium term targets. After our presentation, there will be time for Q&A. Let's start with the key highlights. I'm pleased to report In the fourth quarter of 2024, SIPM recorded a further acceleration on all key metrics. In Q4, we posted the highest quarterly revenue ever and the highest quarterly reported EBITDA since 2012. Revenue stood at 4.4 billion euros. growing by 26% year-on-year and 19% quarter-on-quarter. EBITDA stood at 424 million euro, growing by 48% year-on-year and 25% quarter-on-quarter. EBITDA margin reached 9.6%. an improvement of 40 basis points compared to the previous quarter. The strong results achieved are even more remarkable considering they incorporated additional provisions on Courcelles and Thai Oil projects. We reduced our net debt position by 174 million euro in Q4. Net debt has decreased both on a pre- and post-IFRS basis. We are now in net cash territory, even post-IRFS 16, which is a remarkable achievement. The order intake in the third quarter was very strong, at 5.3 billion euro, corresponding to a book-to-bill of 1.2 times. and was mostly concentrated in offshore ENC. Our backlog currently stands at an all time high level of 34 billion euro. On slide number five, you can appreciate the growth trajectory over the last three years. Revenue has more than doubled from Q1 2022 to Q4 2024. And EBITDA has increased by a factor of four. In addition, our EBITDA margin has increased by four percentage points. This impressive trajectory in EBITDA is also reflected in our operating cash flow. which has steadily increased in the last three years, achieving a conversion rate of 80% in 2024. On slide six, we have summarized our results compared to our guidance. For the third consecutive year, we have overperformed the guidance. In particular, in 2024, despite various headwinds, such as the Saudi Aramco suspensions, we met or exceeded our guidance, in particular on cash flow generation. The performance of SIPM in 2024 was remarkable, especially in terms of cash flow generation. In 2024, we have generated €505 million of free cash flow post repayment of lease liabilities, a significant outperformance compared to our guidance at the beginning of the year. This outperformance allows us to propose a dividend which is more than three times higher than the initial indications. It is important to note that we are retaining an equivalent cash buffer compared to our initial expectation. We will cover shareholders remuneration in more detail later in the presentation. Let's now take a closer look to the 5.3 billion euro order intake in the last quarter. Four major awards significantly contributed to this figure. Each one holds a unique significance for Saipem. The Suriname project presents a great opportunity for Saipem to enter into a promising new oil and gas development area. The project in Indonesia embeds a specific CO2 management scope of work. Again, the 143 km of CO2 transportation sea line project in the UK represents an important award in relation to the energy transition. The new project in Nigeria further strengthens our position in sub-Saharan Africa. Moving to page nine, we are currently managing the largest backlog ever at Saipem. More than 60% is in offshore engineering and construction. Thanks to this level of backlog, we have a strong visibility on our top line for the next two years. around 90% of expected 2025 revenues are covered by existing backlog. And this number is 70% for 2026.

Now, let me provide you with an update on Courses.