EniG R O U P

Presentation to the Financial Community

2004 First Half Results

September 2004

EniG R O U P

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 fluctuations, the level of capital expenditure in the oil and gas industry as well as other industries, the timing of development of energy resources, construction and project risks, armed conflict or political instability in the Persian Gulf or other regions, the strength of competition and interest rate fluctuations.

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Presentation Outline

• Conclusions

• Business Environment

• Financials

• Oil & Gas Industry Long Term Market Trends vsSaipem Strategy & Positioning

• Challenges

1

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Business Environment

2

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E&P Spending Outlook

20

30

40

50

2000A 2001A 2002A 2003A 2004E

+11.9%-8.7%+31.6%

Bil. $ +1.8%

+0.7%+0.7%

North America E&P Spending

Worldwide E&P SpendingBil. $

60

80

100

120

140

160

2000A 2001A 2002A 2003A 2004E

+24.8%

+9.4%+3.4%

+7.5%

+4.4%+4.4%

International E&P Spending

2030405060708090

100110

2000A 2001A 2002A 2003A 2004E

Bil. $

+21.0%

+10.2%

+10.7%+8.2%

+6.4%+6.4%Forecast @ June 2004

Forecast @ Dec. 2003

Source: Saipem elaboration based on Citigroup S.B.3

EniG R O U P

Drilling Weakness ‘Bottoming’ - Signs of Recovery at Frontiers

4

Project Development at Frontiers Project Development at Frontiers Largely UnaffectedLargely Unaffected

Mature AreasMature AreasGOM GOM North Sea North Sea ConventionalConventional

20032003

WeakWeakWeak

1H 20041H 2004

Weakness‘Bottoming’WeaknessWeakness

‘‘BottomingBottoming’’

2H 20042H 2004

Signs of RecoverySigns of Signs of

RecoveryRecovery

Frontiers SegmentFrontiers SegmentDeepwater Deepwater West Africa West Africa FSU FSU OPECOPEC

Resilient

Mixed

ResilientResilient

MixedMixedResilientResilientResilient RecoveringRecoveringRecovering

‘‘OVERSPILLOVERSPILL’’

EniG R O U P Onshore - Upstream Plants & Pipelines - Examples

Middle EastMiddle East

• Juaymah Fractionation Plant - Aramco

• Hawiyad Gas Plant Expansion - Aramco

• Several Pipeline Projects - Aramco

• 4th LPG Train - Adgas

• Habshan Gas Expansion - Gasco

•• JuaymahJuaymah Fractionation Plant Fractionation Plant -- Aramco Aramco

•• HawiyadHawiyad Gas Plant Expansion Gas Plant Expansion -- Aramco Aramco

•• Several Pipeline Projects Several Pipeline Projects -- Aramco Aramco

•• 44th th LPG Train LPG Train -- Adgas Adgas

•• HabshanHabshan Gas Expansion Gas Expansion -- Gasco Gasco

! Saudi Arabia!! Saudi ArabiaSaudi Arabia

! U.A.E.!! U.A.E.U.A.E.

Short –Term uncertainty

LEGEND:Yellow: Not yet awardedGreen: Awarded to Saipem

• Kashagan (Onshore Package) - Kazakhstan - KCO

• Karachaganak Extension - Kazakhstan - KPO

• CPC Extension - CPC - Russia

• Other Projects - Plants/Pipelines - Russia

" Sakhalin Several Phases - Russian Far East

•• KashaganKashagan (Onshore Package) (Onshore Package) -- Kazakhstan Kazakhstan -- KCO KCO

•• KarachaganakKarachaganak ExtensionExtension -- Kazakhstan Kazakhstan -- KPOKPO

•• CPC Extension CPC Extension -- CPC CPC -- RussiaRussia

•• Other Projects Other Projects -- Plants/Pipelines Plants/Pipelines -- RussiaRussia

"" Sakhalin Sakhalin SeveralSeveral PhasesPhases -- Russian Far EastRussian Far East

Isolated AreasIsolated Areas! Caspian!! CaspianCaspian

! Sakhalin!! SakhalinSakhalin• Block 208 Gas Dev. - Sonatrach/Anadarco

• Medgaz (Onshore Package) - Sonatrach

• Rourde Nouss Field Dev. - Sonatrach

• Escravos EGTL Project - Gas-To-Liquid Plant -- ChevronTexaco

• Rumuji-Bonny Gas Pipeline - NAOC

• Gbaran Ubi Integrated Oil & Gas Project - Shell

• Southern Swamp Associated Gas Gathering Plant & Facilities - Shell

• Several Plants/Pipeline Projects - NAOC

•• Block 208 Gas Dev. Block 208 Gas Dev. -- SonatrachSonatrach//Anadarco Anadarco

•• MedgazMedgaz (Onshore Package) (Onshore Package) -- Sonatrach Sonatrach

•• RourdeRourde NoussNouss Field Dev. Field Dev. -- SonatrachSonatrach

•• EscravosEscravos EGTL Project EGTL Project -- GasGas--ToTo--Liquid Plant Liquid Plant ---- ChevronTexaco ChevronTexaco

•• RumujiRumuji--Bonny Gas Pipeline Bonny Gas Pipeline -- NAOCNAOC

•• GbaranGbaran UbiUbi Integrated Oil & Gas Project Integrated Oil & Gas Project -- ShellShell

•• Southern Swamp Associated Gas Gathering Plant & Southern Swamp Associated Gas Gathering Plant & Facilities Facilities -- Shell Shell

•• Several Plants/Pipeline Projects Several Plants/Pipeline Projects -- NAOC NAOC

North & West AfricaNorth & West Africa

! Algeria!! AlgeriaAlgeria

! Nigeria!! NigeriaNigeria

Short Term Lull - Good Medium Term ProspectsShort Term Lull Short Term Lull -- Good Medium Term ProspectsGood Medium Term Prospects5

EniG R O U P

LEGEND:Yellow: Not yet awardedWhite: Awarded to othersGreen: Awarded to Saipem

Offshore Field Development & Pipelines - Examples

Good prospects for Large/EPIC projects in West Africa, Isolated Areas & Global Gas Pipelines

Good prospects for Large/EPIC projects in West Africa, Good prospects for Large/EPIC projects in West Africa, Isolated Areas & Global Gas PipelinesIsolated Areas & Global Gas Pipelines

PipelinesPipelinesPipelines" Dolphin Pipelines - Qatar - Dolphin Energy - 350 km

" Balgzand to Bacton Project - Holland to UK - Gasunie Gas Transp. Serv. - 230 km

" Medgaz - Algeria to Spain - Medgaz - 200 km

" Tangguh GPF Pipeline - Indonesia - BP

" Third Transmission Pipeline - Thailand - PTT - 600 + 110 km

"" Dolphin Pipelines Dolphin Pipelines -- Qatar Qatar -- Dolphin Energy Dolphin Energy -- 350 km 350 km

"" BalgzandBalgzand to to BactonBacton Project Project -- Holland to UK Holland to UK -- GasunieGasunie Gas Gas TranspTransp. . ServServ. . -- 230 km230 km

"" MedgazMedgaz -- Algeria to Spain Algeria to Spain -- MedgazMedgaz -- 200 km 200 km

"" TangguhTangguh GPF Pipeline GPF Pipeline -- Indonesia Indonesia -- BP BP

"" Third Transmission Pipeline Third Transmission Pipeline -- Thailand Thailand -- PTT PTT -- 600 + 110 km600 + 110 km

" Amenam AMD 3 - Total " Akpo - Total" Agbami - ChevronTexaco

" Rosa - Total " Marimba - ExxonMobil" Kizomba C Phase 1 - ExxonMobil

"" AmenamAmenam AMD 3 AMD 3 -- Total Total "" AkpoAkpo -- TotalTotal"" AgbamiAgbami -- ChevronTexacoChevronTexaco

"" Rosa Rosa -- Total Total "" Marimba Marimba -- ExxonMobilExxonMobil"" KizombaKizomba C Phase 1 C Phase 1 -- ExxonMobil ExxonMobil

West AfricaWest AfricaWest Africa

! Angola!! AngolaAngola

! Nigeria!! NigeriaNigeria

Isolated AreasIsolated AreasIsolated Areas

" Kashagan (several packages) - Kazakhstan - KCO

" AGC Full Field Dev. Phase 3 - Azerbaijan

" Sakhalin Several Phases - Russian Far East

"" KashaganKashagan (several packages) (several packages) -- Kazakhstan Kazakhstan -- KCOKCO

"" AGC Full Field Dev. Phase 3 AGC Full Field Dev. Phase 3 -- AzerbaijanAzerbaijan

"" Sakhalin Sakhalin SeveralSeveral PhasesPhases -- Russian Far EastRussian Far East

! Caspian!! CaspianCaspian

! Sakhalin!! SakhalinSakhalin

6

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LNG Receiving Terminals - Examples

Strong Market Growth!Strong Market Growth!Strong Market Growth!

Asia PacificAsia Pacific" Fujian - CNOOC - China PRC" Shanghai - CNOOC - China PRC" West Java - BP - Indonesia " Hazira Phase 2 - Shell - India" Cochin - Petronet - India

" Fujian - CNOOC - China PRC" Shanghai - CNOOC - China PRC" West Java - BP - Indonesia " Hazira Phase 2 - Shell - India" Cochin - Petronet - India

" Port Pelican GBS - ChevronTexaco - USA

" Freeport - Freeport LNG - USA

" Golden Pass - ExxonMobil - USA

" Long Beach, CA - Sound Energy Solutions - USA

" Costa Azul - Shell/Sempra - Mexico

" Lazaro Cardenas - Repsol - Mexico

" Ocean Cay - AES Ocean Express - Bahamas

" Port Pelican GBS - ChevronTexaco - USA

" Freeport - Freeport LNG - USA

" Golden Pass - ExxonMobil - USA

" Long Beach, CA - Sound Energy Solutions - USA

" Costa Azul - Shell/Sempra - Mexico

" Lazaro Cardenas - Repsol - Mexico

" Ocean Cay - AES Ocean Express - Bahamas

GoM & Caribbean AreaGoM & Caribbean Area

EuropeEurope" FOS LNG - GDF - France" Zeebrugge LNG Expansion - Fluxys - Belgium" Milford Haven LNG I - Dragon LNG - UK" Milford Haven LNG II (South Hook) - ExxonMobil - UK" Cartagena LNG Expansion - Enagas - Spain" Barcelona LNG Expansion - Enagas - Spain" Canary Island - Gas Canarias - Spain" Livorno FRSU - Cross Energy - Italy" Brindisi - BG - Italy" North Adriatic Terminal - ExxonMobil (ex-Edison) - Italy

" FOS LNG - GDF - France" Zeebrugge LNG Expansion - Fluxys - Belgium" Milford Haven LNG I - Dragon LNG - UK" Milford Haven LNG II (South Hook) - ExxonMobil - UK" Cartagena LNG Expansion - Enagas - Spain" Barcelona LNG Expansion - Enagas - Spain" Canary Island - Gas Canarias - Spain" Livorno FRSU - Cross Energy - Italy" Brindisi - BG - Italy" North Adriatic Terminal - ExxonMobil (ex-Edison) - Italy

LEGEND:Yellow: Not yet awardedWhite: Awarded to othersGreen: Awarded to Saipem

7

EniG R O U P

Oil & Gas Industry Long Term Market Trends vs

Saipem Strategy & Positioning

8

EniG R O U P

Oil & Gas Industry Long Term Market Trends-- Major Oil Companies Capex Forecast 2003-2013: USD 350 Bln. --

1%

7%

6% 6%4%

7%

8%

10%

22%

15%

6%

6%

OPEC OPEC OilOil

Oil Oil SandsSands

GTLGTLOtherOther OilOil

1%

7%

6%2%

Russia OilRussia OilFSU PipelineFSU Pipeline

Caspian OilCaspian Oil

Russia GasRussia Gas

6%4%

7%

8%

DeepwaterDeepwater10%

Piped Gas Piped Gas ExcludingExcluding FSU FSU && MMiddleiddle EEastast

LNGLNG

Middle East Middle East Piped GasPiped Gas

LNG LNG ReRe--GasGas

22%

15%

6%

6%

ExcludingExcludingRegassificationRegassification

RUSSIA & CASPIAN

FRONTIERS25%

Russia OilRussia OilFSU PipelineFSU Pipeline

Caspian OilCaspian Oil

Russia GasRussia Gas

6%4%

7%

8%

DeepwaterDeepwater DEEPWATER10%

10%

OPEC OPEC OilOil

Oil Oil SandsSands

GTLGTLOtherOther OilOil

OTHERS16%

1%

7%

6%2%

GASExcl. FSU

49%

Piped Gas Piped Gas ExcludingExcluding FSU FSU && MMiddleiddle EEastast

LNGLNG

Middle East Middle East Piped GasPiped Gas

LNG LNG ReRe--GasGas

22%

15%

6%

6%

ExcludingExcludingRegassificationRegassification

More than 80 % Majors Capex addressed to :FSUFSU Frontiers Frontiers -- Deepwater Deepwater -- GasGas--toto--MarketMarket

Source: Deutsche Bank

9

EniG R O U P

Saipem Strategy and Positioning

•• Large/DeepwaterLarge/Deepwater•• Isolated AreasIsolated Areas•• Traditional Oil Traditional Oil ProvProv..•• GasGas--toto--MarketMarket

SAIPEMSAIPEMLEADING POSITION INLEADING POSITION IN::

Exploiting BUExploiting BUSynergiesSynergies

A Strong Model - Getting Stronger 10

EniG R O U P

Large/DeepwaterKizomba A/B Projects

Saibos FDSSaibos FDS

11

Flow AssuranceExport Line System FatigueDeepwater Methods

Project ChallengesProject Challenges IncludeInclude::

High Spec. Construction Vessel: Saibos FDSHigh Spec. Construction Vessel: High Spec. Construction Vessel: Saibos Saibos FDSFDS

2001-2005: Large SURF projects located Offshore Angola in 1,100-1,200 m W.D.

EniG R O U P

Sakhalin IslandSakhalin Island

Booster-Compression Station N. 1

LUNLUN--AA

PAPA--BB

PAPA--AA

LNG Plant& Oil Export Terminal

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Isolated Areas Sakhalin - Russian Far East

Total Onshore & Offshore Combined Value: ~ USD 1 Bln.

! EPC Turnkey Contract for ‘Twin’ 800 Km Onshore Oil & Gas Pipelines

Offshore 2004/2006 ! EPIC Contract for Offshore Oil & Gas Pipelines (several segments

150 km total), Subsea Power & Communication Cables for Lunskoye and Piltun-Astokhskoye fields plus Oil Export Line at Aniva Bay

! T & I of 2 Platform Topsides (LUN-A & PA-B)(Towing/ Floatover / Mating of 2 topsides, 20,000+ tons each)

Onshore 2003/2006

12

• 7000 km East of Moscow (7 hours Time diff.)• Minimal Infrastructure • Scarce Local Manpower• Min. Temperature -50°C• Sea Ice (5 - 7 months) • Seismic/ Environmentally Fragile Area

Sakhalin Island

Projects Ongoing

Aniva Bay

EniG R O U P

Traditional Oil Provinces A Permanent Presence- Nigerian Example -

Difficult EnvironmentDifficult Environment

2000: 2000: AG Gathering Pipelines SystemAG Gathering Pipelines System

Port Harcourt, NigeriaPort Harcourt, Nigeria

2003: 2003: RumuolumeniRumuolumeni BaseBaseExpansionExpansion

ExploitingExploitingBusiness Units SynergiesBusiness Units Synergies

Offshore Offshore DrillingDrilling

M.M.O.M.M.O.

Onshore Onshore DrillingDrilling

OffshoreOffshore

Leased FPSOLeased FPSO

OnshoreOnshore

1313(*) As of June 30, 2004

2,100 Local employees* in Nigeria 2,100 Local employees* in Nigeria About 2/3 of the total Saipem workforceAbout 2/3 of the total Saipem workforce

EniG R O U P

Gas-To-MarketGreenstream Gas Sealine Libya to Italy

Sabratha Platform & Bahr-Essalam Sealines

LIBYA: LIBYA: SABRATHA SABRATHA PlatformPlatform

Saipem 7000Saipem 7000

Castoro Sei

World Record Pipelay DN 32”1127 m W.D. October 2003

World Record World Record PipelayPipelay DN 32DN 32””1127 m W.D. October 20031127 m W.D. October 2003 14

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Challenges

15

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Euro/USD Exchange Rate Devaluation Impact

Dual Dual Impact:Impact:

•• Translation Effect Translation Effect -- 30 30 MlnMln..

•• Margins Erosion Margins Erosion -- 50 50 MlnMln..

Overall Hypothetical Effect:Overall Hypothetical Effect:-- 80 80 MlnMln. . Operating IncomeOperating Income

Estimated Hypothetical Effect on 2004 Operating IncomeEstimated Hypothetical Effect on 2004 Operating Income (Based on Average Exch. Rate: 1.15)(Based on Average Exch. Rate: 1.15)

€€€€ €€

16

Devaluation Impact Devaluation Impact -- Average Lag:Average Lag: 1 Year 1 Year

Exchange Rates Exchange Rates Euro/USD :Euro/USD :

•• Average Exchange rate applicable to 2003: 1.00Average Exchange rate applicable to 2003: 1.00•• Average Exchange rate applicable to 2004 : 1.15 (Est.) Average Exchange rate applicable to 2004 : 1.15 (Est.)

(75% Contract Awarded 2002)(75% Contract Awarded 2002)

•• Remaining Operating Costs Remaining Operating Costs ‘‘AdjustableAdjustable’’ depending on Revenue depending on Revenue ‘‘MixMix’’

~ 70% USD ~ 70% USD ~ 30% Euro~ 30% Euro

Revenue Revenue ‘‘MixMix’’::

Cost Basis:Cost Basis: •• 600 Mil. Euros 600 Mil. Euros ‘‘StructuralStructural’’

Revenue/Cost Background:Revenue/Cost Background:

(Typical)(Typical)

(Milan & Paris Operating Centres, (Milan & Paris Operating Centres, Depreciation & Amortisation, etc.)Depreciation & Amortisation, etc.)

2002 2002 AVG.AVG.0.9450.945

2003 2003 AVG.AVG.1.1321.132

2001 2002 2003

2020%*%*

0.8

1.0

1.2

1.4

Jan.

Apr

.

Jul.

Oct

.

Jan.

Apr

.

Jul.

Oct

.

Jan.

Apr

.

Jul.

Oct

.

2002 2002 AVG.AVG.0.9450.945

2003 2003 AVG.AVG.1.1321.132

2001 2002 20032001 2002 2003

2020%*%*

0.8

1.0

1.2

1.4

Jan.

Apr

.

Jul.

Oct

.

Jan.

Apr

.

Jul.

Oct

.

Jan.

Apr

.

Jul.

Oct

.

* Euro appreciation : AVG. 2003 VS AVG. 2002

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Euro/USD Exchange Rate - Impact Absorption

•• Cost Synergies from exCost Synergies from ex--BOS IntegrationBOS Integration

•• Positive Pricing Effect Positive Pricing Effect (70% of Saipem business is exposed to weak USA competition)(70% of Saipem business is exposed to weak USA competition)

Positive Recovery Factors on 2004 Results:Positive Recovery Factors on 2004 Results:

•• Increased VolumesIncreased Volumes

17

Most of Margin Erosion and Translation Effects AbsorbedMost of Margin Erosion and Translation Effects Absorbed

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Typical FEED Endorsement ProcessTypical FEED Endorsement Process

FEED FEED (12(12--18 Months)18 Months)

33rdrd PartyParty

FEED ENDORSEMENTFEED ENDORSEMENT(3 Months)(3 Months)

SIGN OF EPIC SIGN OF EPIC TURNKEY CONTRACTTURNKEY CONTRACT

RESULT OF RESULT OF ‘‘UNRELIABLEUNRELIABLE’’ FEEDFEED

EngineeringEngineering

ProcurementProcurement

InstallationInstallationHook Up/Com.Hook Up/Com.

Margin & Margin & ContingencyContingency

COSTS @BID

Original Original ScopeScope

ConstructionConstruction

CONTRACTOR TROUBLES STEM FROM CONTRACTOR TROUBLES STEM FROM UNBALANCED RISK/REWARDUNBALANCED RISK/REWARD

BUT BUT EPICEPIC REMAINS THE MOST EFFICIENT REMAINS THE MOST EFFICIENT PROCESS HELPING TO PREVENT PROCESS HELPING TO PREVENT

UNCONTROLLED COST OVERRUN!UNCONTROLLED COST OVERRUN!

ORIGINAL SCOPE OF WORK

EFFECTS

DELAYEDACTIVITIES

DISRUPTION OF PLANNED SEQUENCES

LOSS OF EFFICIENCY

LOW IMPACT (ABSORBED

EFFECTS)

ENGINEERING

PROCUREMENT

PREFABRICATION TRANSPORT

ASSEMBLY

ERECTION

‘ADDITIONS’

ORIGINAL SCOPE OF WORK

EFFECTS

DELAYEDACTIVITIES

DISRUPTION OF PLANNED SEQUENCES

LOSS OF EFFICIENCY

LOW IMPACT (ABSORBED

EFFECTS)

ENGINEERING

PROCUREMENT

PREFABRICATION TRANSPORT

ASSEMBLY

ERECTION

‘ADDITIONS’

‘‘ADDITIONSADDITIONS’’ CAUSE DISRUPTIONS CAUSE DISRUPTIONS IN ALL PROJECT PHASESIN ALL PROJECT PHASES

Costs of ‘Additions’

Final Final ContractContractRevenuesRevenues

Contract Contract LossLoss

Delta tore-establish Contractor Profitability

Disruptions Disruptions due to due to

‘‘AdditionsAdditions’’

MarginMargin

DETAILED DETAILED ENGINEERINGENGINEERING ‘ADDITIONS’‘ADDITIONS’

18

EPIC Contract Risk - Example: Scope of Work - FEED Impact

EniG R O U P

19

10 Relevant 10 Relevant SubcontractorsSubcontractors

& & Suppliers Suppliers

-- Survey Survey --10 Major Offshore 10 Major Offshore

Oil Services Oil Services PlayersPlayers

30%

80%

0%

20%

40%

60%

80%

100%

Suppliers Oil Services

% Reporting % Reporting ‘‘LossLoss’’ in 2002 or 2003in 2002 or 2003

! Subcontractors & Suppliers: Losses imply Unreliability

Source: Source: SaipemSaipem

! Contractors: Large Losses imply very weak ‘Universe’

Oil Services Contracting Sector:

A New Relationship

A Healthy Contracting Industry Requires:

• Contractors with appropriate Industrial Model (EPIC)

• Fair Contracting Strategy with appropriate Risk/Reward Balance

Looking ForwardLooking Forward……

E&C Industry - Current Status & Looking Forward

Current StatusCurrent Status

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Financials

20

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Results

Contribution from Operations (*)

0

50

100

150

200

250

(Mln €)(Mln €Mln €)

1H 2003 1H 2004

12

94

437

3313

2195216**

117

94

2310

33

185

7

EBIT

0

50

100

150

1H 2003 1H 2004

138127

82829090

2

30302828

18181515

206**

Offshore Onshore

Floating Production LNG

Onshore Drilling

Offshore Drilling MMO

(*) Contribution from Operations: EBIT before G&A

(**) Contribution from Operations Before BOS Goodwill Amortisation

Net Income

Income taxes

Minority Interests

Net financial expenses

21

EniG R O U P

(Mln €)(Mln €Mln €)

0

100

200

300

400

2003 2004E*1H 2004

158

4949

55551010

272

200200

120120

5050

3030

133

1H 2003

88

Sources and Applications of Funds,Net Debt

Net Debt Dec. 31, 2003

Net Debt June 30, 2004

Application of Funds 1H 04

Sources of Funds 1H 04

10091009953953

263263207207

202202

44

9696888865651010 44 11

Investments

Net Working CapitalFleet FPSO Acquisitions Cash FlowInvestments

DivestmentsProject Related Local ContentDividends

Employee term. benefits

(*) Guidance Target excluding Leased-FPSO Buy Back

Delta Exch. rate 22

EniG R O U P

Contract Acquisitions & Backlog

New Contract Acquisitions Backlog(Mln €)(Mln €Mln €)

0

500

1000

1500

2000

2500

3000

1 H 2003 1 H 2004

25302530

16281628

11114949

200200

326326213213

103103

19341934

11221122

319319213213194194

40403737

99

0

1000

2000

3000

4000

5000

6000

Dec.31, 2003 June 30,2004

52255225

32653265

142142499499

179179776776

3183184646

52485248

32163216

817817434434

117117

399399 138138127127

Onshore

Onshore Drilling

Offshore DrillingOffshore

Floating Production LNG MMO

23

EniG R O U P

Conclusions

24

EniG R O U P

•• Revenues: further growth vs. 2003 record levels despite USD DevRevenues: further growth vs. 2003 record levels despite USD Devaluationaluation

•• FY Backlog: higher than 2003FY Backlog: higher than 2003

•• AvrAvr. financial debt: lower than 2003 . financial debt: lower than 2003 AvrAvr., leading to a decrease in net ., leading to a decrease in net financial expenses financial expenses 2004 2004

GuidanceGuidance

Results in line with or close to 2003 record resultsResults in line with or close to 2003 record results

Conclusions

25

Strong Growth Potential Strong Growth Potential Despite Increased Risk EnvironmentDespite Increased Risk Environment

•• Saipem Strategy closely Saipem Strategy closely matches Industry Trendsmatches Industry Trends

•• A Strong Model A Strong Model Getting StrongerGetting Stronger

!! Risk/Reward Unbalance Risk/Reward Unbalance !! Weakened IndustryWeakened Industry!! Euro/USD Exchange Rate ImpactEuro/USD Exchange Rate Impact

Identified Risks:Identified Risks:

MediumMediumTerm Term