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CDP Group’s activity with Mozambique

About CDP

2

Italian Ministryof Economy and

Finance

82.8%

Treasury

shares

1.3%

Banking

Foundations

15.9%

CDP Shareholder Structure Overview

• CDP Group represents one of the largest financial

institutions in Italy with €36bn of resources mobilized in

2018 and Total Assets equal to €425bn(1)

• CDP has an equity investments portfolio of more than

€33bn(1) and is the leader equity investor on the Italian

stock market

(1) Data as of 31.12.2018

CDP as DFI and Italian Export Hub

• CDP Group has a traditional institutional role in

supporting the Italian economy

• In recent years however, CDP has significantly enlarged

its scope of activities, operating as the Italian Export

Hub through Sace and Simest since 2012

• The new CDP International Development Finance

Business Unit also operates both with private and

sovereign counterparties in Developing Countries

through its Development Finance and International

Cooperation division respectively

3

Strong performance, in line with Business Plan’s ambitions

Results consolidate CDP’s role as promoter of the Italian economy

FY 2018

TotalAssets

Total Equity

Net Income(2)

425

37

4,3

25

2,5

Group CDP SpA(1)

TotalAssets

Shareholders’Equity

Net Income

€bn

(1) CDP SpA is the parent company (2) CDP Group’s consolidated net income

370

Key figures

CDP Group: A global actor mobilizing capital internationally

4

Internationalisation1

• Project Finance

• Sovereign and

Corporate Lending

• Structured Finance

Debt and equity

instruments supporting

private and public

counterparties in

Developing Countries

• Guarantees

• Factoring

• Export credit

Debt instruments

supporting Italian

companies

international activities

• Corporate lending

covered by SACE’s

guarantee

• Subsidised loans

• Interest rate subsidy

• Quasi-Equity Investments

in Italian SMEs

Guarantees and trade credit

insurance supporting export from

Italian companies and their

internationalisation

Quasi-equity investing and

subsidies supporting Italian SMEs

in their growth through

internationalisation

Untied TiedTiedTied

Mostly developed countries Mostly developed countries Mostly developed countriesExclusively Developing Countries

Export Credit & Internationalisation32 International FinancingDevelopment Cooperation

35%

16%15%

11%

8%

7%

8%

Kenya

Ethiopia

Other(1)

Angola

South Africa

Mozambique

Cameroon

5

The recent growth of CDP Group’s commitment in Subsaharan Africa

CDP Group’s current exposure in Subsaharan Africa Overview

• CDP, through SACE SIMEST (its Export Hub for Italian

companies), has progressively increased its commitment in

the Subsaharan Africa geographical area in recent years,

with an average growth equal to +18% p.a. on its exposure

• The last four years have been particularly dynamic, with

new commitments amounting to €4,7bn in 2015-2017, of

which €1bn in 2015, €1,6bn in 2016 and €2,1bn in 2017

• In 2017 the total stock exposure reached a record volume

equal to €4,5 bn (+ 543% vs 2011)

• Most of the new commitments in the region are relative to

operations in Kenya, Ethiopia, Mozambique, Angola and

Cameroon.

(1) Including Zambia, Ghana, Senegal, Nigeria, Madagascar, Uganda, Tanzania, Ivory Coast, Mauritania, Rwanda, Benin, Swaziland, Togo, Congo, Mali, Gabon

CDP Group’s total exposure in Subsaharan Africa

675 951 7851.247

1.586

2.894

4.488 4.342

2016 20172011 2012 2013 2014 2015 3Q 2018

6

Mozambique as a strategic commercial partner for Italy and CDP

Mozambique is a strategic partner for Italy in Subsaharan

Africa: commercial interchange for the year 2018 was

equal to €524m (+18% vs 2018)(1)

Mozambique represents the third source of italian imports

deriving from the Subsaharan Africa geographical area(3)

(€460m in 2018)(1)

Approximatively 50 Italian companies are based in the

country

Italy has been the main European investor in the country

(third globally) in the past 7 years ($3,2bn total FDI)(2)

(1) Source: Eurostat (2) Source: Infomercati Esteri (3) Source: Ministry of Economic Development (4) Source: Italian Embassy

2

3

4

1

Italian Foreign Direct Investments(4) flows

Key points

Italian import & export for the year 2018

0,3

1,7

0,3

1,5

2,51,9

2,1

0,4

2,9

1,1

0,5

0,6

Export

Import

€bn

€m

245

320

204

604

2015 2016 2017 2018

Import €460m +64% vs 2017

Export €63m +59% vs 2017

+14% vs 2017

Total Commercial interchange(1), (2012-2017)

CDP’s Development Cooperation in Mozambique

Section 1

8

CDP can invest in all Subsaharan African countries as a Development Finance Institution targeting DAC-OECD countries

Other subsaharan countries eligible for CDP’s Development Cooperation investments

Mozambique, Burkina Faso, Ethiopia, Kenya, Niger, Pakistan, Senegal, Somalia, Sudan, South Sudan

Remaining Subsaharan African DAC-OECD countries

Priority target countries

Subsaharan Africa as a key priority of CDP’s Development Cooperation

a. Lending to:

Sovereign and Multilateral entities

Private Sector in co-financing with DFIs, MDBs and other partner

b. Blending with concessional funds from the Italian Government, the EU and other public and private donors

c. Management of the Revolving Fund for Development Cooperation’s Official Development Assistance

loans

CDP’s three main roles in Subsaharan Africa as the Italian IFI for Development Cooperation:

9

BA

Renewable Energy Agribusiness

CDP Development Cooperation in Mozambique

Currently evaluating potential transactions in Mozambique in the private sector in the following industries:

Mozambique is a priority country for the Italian cooperation. In this framework, further than grants, Italy, through the

Revolving Fund for Development Cooperation (RFDC), has already supported Mozambique with 11 ODA loans for a total

commitment of €133m. Currently, the RFDC is managing the disbursement of two highly concessional ODA loans in

Mozambique:

a. Implementation of a rainwater drainage system in Maputo

b. Support to local reforms in the field of technical and professional education

SACE SIMEST’s focus on its portfolio in Mozambique and business opportunities

Section 2

11

A single point of contactfor Italian enterprises and their business needsrelated to growth in international markets

Since 2016 the Italian Export Hub of the CDP Group

12

A positive result in supporting the Italian

economy and SMEs, proved by a record

growth in deployed resources from SACE

SIMEST

DEPLOYED RESOURCES (2016 – 2018)

2016 2017 2018

17.9

+41%

25.3 28.6

+13%

€bn

Positive growth in supporting enterprises

13

Total exposure(1) by geo-economic region

(1) Exposure related to SACE as of 31.12.2018

Total exposure(1) by industrial sector

EU27%

Middle Est and North Africa

26%

Americas18%

Other European

Countries and CIS 16%

Sub-SaharianAfrica 7%

East Asia and Pacific 5%

Mozambique (1.1%)

Coral FLNG Project

Cruise lines41%

Oil&Gas18%

Infrastructure and

construction10%

Chemicals/petrochemicals

7%

Electric6%

Banks4%

Other sectors14%

Focus on developing economies and strategic industrial sectors

14

The Project

• First project sanctioned by the Area 4 Partners

for the development and production of the

considerable gas sources Eni discovered in

Mozambique.

• First FLNG project financing and first LNG

Project in Mozambique

• Production and monetization of the gas

contained in the southern part of the Coral gas

reservoir by means of a floating LNG plant

• Multi ECA financing with the participation of

several commercial banks

Coral South FLNG Project

15

• One concession; multiple projects and

operators

• Innovative technology and completion test

Main Challenges

• Price projections in low oil price environment

• Split between upstream project and FLNG

project

• Sizeable SACE participation in consideration of

ENI role

Coral South FLNG Project

16

The Project

• First project sanctioned by the Area 1 Partners for the

development and production of the considerable gas

sources Anadarko discovered in Mozambique

• The Area 1 Mozambique LNG project is an integrated LNG

development that consists of upstream development, two

LNG liquefaction trains and associated infrastructure

• Production and monetization of the gas contained in the

Golfinho/Atum reservoir

• Multi ECA financing with the participation of several

commercial banks

Area 1 Mozambique Project

17

Main Challenges

• Difficult LNG market with oversupply

and shift to shorter term offtake contracts

• Sizeable SACE participation in

consideration of Saipem role as EPC

Contractor

• One concession; multiple projects

• Change in Area 1 shareholding

Area 1 Mozambique Project

18

The Project

• Second project by the Area 4 Partners to be

sanctioned for the development and

production of the considerable gas sources

Eni discovered in Mozambique

• Rovuma LNG project consists of the

construction of two onshore LNG liquefaction

trains

• Production and monetization of the gas

contained in the Mamba gas reservoir

• Multi ECA financing with the participation of

several commercial banks

Rovuma LNG Project

19

Main Challenges

• One concession; multiple projects and

operators

• Split between upstream project and Rovuma

LNG project

• Sizeable SACE participation in consideration

of ENI role and the involvement of Italian

suppliers/subsuppliers

• Difficult LNG market with a shift to the spot

market

Rovuma LNG Project