Financial Analysis - Saipem S.p.A. offers construction and offshore and onshore drilling services. The Company installs sub-sea pipelines, installs fixed platforms, manages complete onshore construction projects, and drills.pdf

21.02.2013

Company Analysis - Overview Ticker:

Saipem SpA

SPM IM

Currency: Sector: Energy

Benchmark: FTSE MIB INDEX (FTSEMIB)

BrsaItaliana: SPM, Currency: EUR

Industry: Energy Equipment & Services

Year:

Telephone 390-2-5203-4347 Revenue (M) Website www.saipem.it No of Employees Address Via Martiri do Cefalonia 67 20097 San Donato Milanese Milan Italy Share Price Performance in EUR Price 20.39 1M Return 52 Week High 40.12 6M Return 52 Week Low 18.61 52 Wk Return 52 Wk Beta 0.91 YTD Return Credit Ratings Bloomberg S&P Moody's Fitch

13'369 41'415 -35.5% -47.2% -45.7% -30.4%

HY1 -

Date Date Date

12/09 14.3x 11.6x 8.4x 1.0x 3.1x 2.3%

12/10 19.1x 14.8x 10.6x 1.4x 4.0x 1.7%

12/11 15.6x 11.9x 8.5x 1.1x 3.1x 2.1%

12/12 14.3x 1.0x 2.4x 2.3%

12/13E 20.3x 8.8x 0.7x 1.7x 1.6%

12/14E 12.3x 6.9x 0.6x 1.5x 2.7%

12/15E 8.7x 5.7x 0.6x 1.3x 3.8%

12/09 Gross Margin EBITDA Margin 15.6 Operating Margin 11.3 Profit Margin 7.1 Return on Assets 5.2 Return on Equity 23.6 Leverage and Coverage Ratios 12/09 Current Ratio 0.8 Quick Ratio 0.5 EBIT/Interest 13.7 Tot Debt/Capital 0.5 Tot Debt/Equity 1.1 Eff Tax Rate % 27.1

12/10 16.4 11.8 7.6 5.8 22.5

12/11 16.7 11.9 7.3 6.0 21.0

12/12 16.5 11.1 6.7 7.0 17.8

12/13E 18.9 11.4 5.8 3.3 3.4 8.5

12/14E 21.0 14.0 8.8 5.5 5.1 12.7

12/15E 63.7 16.0 10.4 7.0 6.3 15.7

12/10 0.9 0.6 20.6 0.5 1.0 27.8

12/11 0.8 0.5 12.9 0.5 0.9 28.4

12/12 0.4 0.8 29.1

-

Outlook Outlook Outlook

Saipem S.p.A. offers construction and offshore and onshore drilling services. The Company installs sub-sea pipelines, installs fixed platforms, manages complete onshore construction projects, and drills for oil mainly in Italy, Algeria, Nigeria, and the Arabian peninsula.

Business Segments in EUR Onshore Engineering & Construction Offshore Engineering & Construction Offshore Drilling Onshore Drilling

Sales (M) 6175 5356 1088 750

Geographic Segments in EUR West Africa North Africa Asia CIS Europe Americas Australia

Sales (M) 1

6%

-

8%

Valuation Ratios P/E EV/EBIT EV/EBITDA P/S P/B Div Yield Profitability Ratios %

46%

40% 100% Onshore Engineering & Construction Offshore Engineering & Construction West Africa Offshore Drilling Onshore Drilling

Current Capitalization in EUR Common Shares Outstanding (M) Market Capitalization (M) Cash and ST Investments (M) Total Debt (M) Preferred Equity (M) LT Investments in Affiliate Companies (M) Investments (M) Enterprise Value (M)

Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: [email protected] |

441.4 9001.4 0.0 4278.0 0.0 0.0 148.0 13427.4

Company Analysis - Analysts Ratings Saipem SpA

62%

5

15

0

10

20% 14%

0%

5 0

févr.12

mars.12

avr.12

mai.12

juin.12

Buy

juil.12

Hold

août.12

Sell

sept.12

Price

oct.12

nov.12

déc.12

janv.13

Target Price

Date

Buy

Hold

Sell

Date

31-Jan-13 31-Dec-12 30-Nov-12 31-Oct-12 28-Sep-12 31-Aug-12 31-Jul-12 29-Jun-12 31-May-12 30-Apr-12 30-Mar-12 29-Feb-12

14% 62% 66% 66% 72% 79% 75% 74% 63% 70% 70% 65%

62% 34% 31% 34% 24% 18% 21% 22% 33% 26% 26% 31%

24% 3% 3% 0% 3% 4% 4% 4% 4% 4% 4% 4%

21-Feb-13 20-Feb-13 19-Feb-13 18-Feb-13 15-Feb-13 14-Feb-13 13-Feb-13 12-Feb-13 11-Feb-13 8-Feb-13 7-Feb-13 6-Feb-13 5-Feb-13 4-Feb-13 1-Feb-13 31-Jan-13 30-Jan-13 29-Jan-13 28-Jan-13 25-Jan-13 24-Jan-13 23-Jan-13 22-Jan-13 21-Jan-13 18-Jan-13 17-Jan-13 16-Jan-13 15-Jan-13 14-Jan-13 11-Jan-13

Price Target Price 20.42 20.54 20.68 20.36 20.99 20.85 20.90 20.78 21.04 21.47 21.80 20.71 20.24 20.20 20.09 20.90 20.01 30.45 31.56 31.49 32.36 32.16 31.75 31.60 31.70 31.43 31.25 31.25 30.91 30.80

22.75 22.75 22.66 22.66 22.66 22.66 22.75 22.60 22.74 22.74 23.08 23.16 24.07 24.07 24.31 25.12 25.08 36.26 37.06 37.34 37.60 37.60 37.60 37.60 37.60 37.81 37.81 37.81 37.81 37.81

Broker

Analyst

AlphaValue Canaccord Genuity Corp Mediobanca SpA ICBPI Equita SIM SpA Societe Generale Banca IMI HSBC Macquarie Banca Akros(ESN) S&P Capital IQ Liberum Capital Ltd Barclays ABN Amro Bank N.V. Morgan Stanley Goldman Sachs RBC Capital Markets Exane BNP Paribas JPMorgan Natixis Nomura Day by Day EVA Dimensions Deutsche Bank CA Cheuvreux Kepler Capital Markets Ricerca Finanza

ALEXANDRE ANDLAUER JAMES EVANS ANDREA SCAURI LUCA ARENA LUIGI DE BELLIS GUILLAUME DELABY ROBERTO RANIERI PHILLIP LINDSAY DAVID FARRELL DARIO MICHI CHRISTINE TISCARENO ANDREW WHITTOCK MICK PICKUP MARK VAN DER GEEST ROBERT PULLEYN HENRY TARR KATHERINE TONKS ALEXANDRE MARIE ANDREW DOBBING ANNE PUMIR CHRISTYAN MALEK VALERIE GASTALDY CRAIG STERLING SEBASTIAN YOSHIDA GEOFFROY STERN ENRICO COCO FRANCESCO MANZI

Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: [email protected] |

Recommendation reduce hold underperform sell hold buy reduce overweight underperform hold buy hold equalweight hold Equalwt/Attractive neutral/neutral sector perform neutral neutral neutral neutral hold hold hold outperform hold outperform

Ricerca Finanza

66%

CA Cheuvreux

66%

Kepler Capital Markets

72%

Deutsche Bank

75%

Day by Day

74% 63%

EVA Dimensions

70%

Natixis

70%

10

20

Nomura

65%

79%

15

25

JPMorgan

62%

40%

20

30

Exane BNP Paribas

60%

25

35

RBC Capital Markets

34%

30

40

Morgan Stanley

31%

45

Goldman Sachs

24%

Barclays

34%

Brokers' Target Price 35

ABN Amro Bank N.V.

33%

24%

50

3%

S&P Capital IQ

18%

3%

Liberum Capital Ltd

21%

0%

Banca Akros(ESN)

22%

3%

HSBC

4%

Macquarie

4%

Banca IMI

26%

4%

Societe Generale

26%

4%

ICBPI

4%

Equita SIM SpA

31%

4%

Mediobanca SpA

80%

4%

AlphaValue

100%

Canaccord Genuity Corp

Buy and Sell Recommendations vs Price and Target Price

Price

Broker Recommendation

Target price in EUR

Target

Date

19.40 23.00 19.00 21.00 23.00 25.00 16.31 26.00 17.60 20.00 30.00 20.00 22.00 21.00 25.00 23.00 22.00 21.00 26.20 22.00 22.00

21-Feb-13 20-Feb-13 19-Feb-13 18-Feb-13 15-Feb-13 14-Feb-13 14-Feb-13 14-Feb-13 14-Feb-13 14-Feb-13 14-Feb-13 14-Feb-13 14-Feb-13 14-Feb-13 13-Feb-13 13-Feb-13 13-Feb-13 13-Feb-13 12-Feb-13 7-Feb-13 6-Feb-13 31-Jan-13 31-Jan-13 30-Jan-13 30-Jan-13 30-Jan-13 1-Jun-10

21.00 30.00 25.00

21.02.2013

Saipem SpA

Company Analysis - Ownership Ownership Type

Ownership Statistics Shares Outstanding (M) Float Short Interest (M) Short Interest as % of Float Days to Cover Shorts Institutional Ownership Retail Ownership Insider Ownership

19%

18.87% 81.08% 0.05% 81%

Institutional Ownership

Retail Ownership

Insider Ownership

Pricing data is in EUR Top 20 Owners: Holder Name ENI SPA FMR LLC BLACKROCK ALLIANZ ASSET MANAGE VANGUARD GROUP INC OPPENHEIMERFUNDS INC MFS INSTITUTIONAL AD MFS FINANCIAL SERVIC UMB BANK N A SCHRODER INVESTMENT T ROWE PRICE ASSOCIA SARASIN MFS INVESTMENT MGMT DEUTSCHE BANK AG MFS INTERNATIONAL UK MASSACHUSETTS FINANC SNS INVESTMENT FUND UNION INVESTMENT GMB AMERICAN CENTURY COM MFS INVESTMENT MANAG

Geographic Ownership

Geographic Ownership Distribution

0%

441.4 56.8%

Italy United States Luxembourg Britain France Germany Unknown Country Others

69.38% 11.02% 6.78% 4.68% 1.94% 1.58% 0.91% 3.71%

Institutional Ownership Distribution Corporation Investment Advisor Mutual Fund Manager Other Others

68.83% 26.30% 3.85% 0.84% 0.18%

2%

2% 1% 4%

5% 7%

11% 68%

Italy

United States

Luxembourg

Britain

France

Germany

Unknown Country

Others

TOP 20 ALL

Position 189'447'556 21'088'746 7'885'773 5'177'433 5'054'648 2'662'857 2'590'416 2'255'030 2'187'281 1'513'680 1'414'646 1'222'030 1'204'742 1'061'416 992'919 990'749 952'030 948'419 908'676 856'117

Position Change 0 -1'638'416 -173'664 -114'027 124'129 4'881 0 0 97'214 1'311'599 535'767 -55'854 0 120'134 0 16'834 -107'051 412'019 -131'277 0

Market Value 3'862'835'667 429'999'531 160'790'911 105'567'859 103'064'273 54'295'654 52'818'582 45'980'062 44'598'660 30'863'935 28'844'632 24'917'192 24'564'689 21'642'272 20'245'618 20'201'372 19'411'892 19'338'263 18'527'904 17'456'226

% of Ownership 42.93% 4.78% 1.79% 1.17% 1.15% 0.60% 0.59% 0.51% 0.50% 0.34% 0.32% 0.28% 0.27% 0.24% 0.23% 0.22% 0.22% 0.21% 0.21% 0.19%

Report Date

Holder Name

Position

Position Change

Market Value

% of Ownership

Report Date

TALI PIETRO FRANCO MEOMARTINI ALBERTO VERGINE UMBERTO

205'000 1'500 1'420

06.02.2013 31.01.2013 19.02.2013 31.12.2012 31.12.2012 30.12.2012 06.02.2013 06.02.2013 31.12.2012 28.09.2012 31.12.2012 28.12.2012 06.02.2013 31.12.2012 06.02.2013 31.12.2012 29.06.2012 28.09.2012 31.12.2012 06.02.2013

Source Research ULT-AGG ULT-AGG ULT-AGG MF-AGG MF-AGG Research Research MF-AGG MF-AGG MF-AGG ULT-AGG Research MF-AGG Research MF-AGG MF-AGG MF-AGG MF-AGG Research

31.12.2011 31.12.2011 31.12.2011

Research Research Research

Top 5 Insiders:

4'179'950 30'585 28'954

0.05% 0.00% 0.00% 0.05%

Source

Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: [email protected] |

Institutional Ownership

Country ITALY UNITED STATES UNITED STATES GERMANY UNITED STATES UNITED STATES UNITED STATES AUSTRALIA UNITED STATES BRITAIN UNITED STATES ITALY GERMANY n/a UNITED STATES NETHERLANDS GERMANY UNITED STATES LUXEMBOURG

1% 4%

0%

26%

69%

Corporation

Investment Advisor

Other

Others

Mutual Fund Manager

Company Analysis - Financials I/IV Saipem SpA Financial information is in EUR (M) Periodicity:

Fiscal Year

Equivalent Estimates 12/02

12/03

12/04

12/05

12/06

12/07

12/08

12/09

12/10

12/11

12/12

12/13E

12/14E

12/15E

3'167

4'105

4'306

4'528

7'517

9'530

10'094

10'292

11'160

12'593

13'369

13'567

14'063

14'810

2'557

2'953

9'434

2'923 6

3'821 9

3'988 6

4'174 6

6'968 23

8'729 21

9'054 17

9'156 17

9'858 12

11'138 12

11'898

Operating Income - Interest Expense - Foreign Exchange Losses (Gains) - Net Non-Operating Losses (Gains)

302 121 0 -75

303 95 0 -55

328 1 0 22

365 10 41 -21

599 42 -6 19

867 17 9 -282

1'084 208 56 -397

1'163 85 -41 56

1'319 64 89 -73

1'493 116 -36 34

1'481

781

1'231

1'543

Pretax Income - Income Tax Expense

256 62

263 67

305 67

335 76

544 157

1'123 245

1'217 285

1'063 288

1'239 345

1'379 392

1'349 393

633

1'087

1'481

Income Before XO Items - Extraordinary Loss Net of Tax - Minority Interests

194

196

387 0 3

878 0 3

775

894

987

0

259 0 4

932

3

238 0 3

18

43

50

66

956 0 54

444 1.00 0.33 0.33

768 1.65 0.54 0.33

1'042 2.33 0.78 0.33

1'541

1'974

2'372

Income Statement Revenue - Cost of Goods Sold Gross Income - Selling, General & Admin Expenses (Research & Dev Costs)

Diluted EPS Before XO Items Net Income Adjusted* EPS Adjusted Dividends Per Share Payout Ratio %

132

0.87

1.98

2.07

1.66

1.92

2.09

2.04

191 0.43 0.14 33.2

196 0.45 0.15 33.1

197 0.45 0.15 27.7

255 0.59 0.19 32.2

384 0.87 0.29 33.2

580 1.31 0.44 21.9

724 1.57 0.55

732 1.66 0.55

844 1.91 0.63 31.2

921 2.09 0.70 33.3

902 2.04 0.68 33.3

Total Shares Outstanding Diluted Shares Outstanding

441

439

438

441

429 442

436 442

435 442

436 440

438 440

438 440

441 441

EBITDA

558

561

527

561

829

1'148

1'437

1'601

1'833

2'101

2'207

*Net income excludes extraordinary gains and losses and one-time charges.

Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: [email protected] |

Company Analysis - Financials II/IV Periodicity:

12/02

12/03

12/04

12/05

12/06

12/07

12/08

12/09

12/10

12/11

12/12

Total Current Assets + Cash & Near Cash Items + Short Term Investments + Accounts & Notes Receivable + Inventories + Other Current Assets

1839 250 0 859 177 553

2394 549 0 1'020 307 518

2492 595

3101 877

7912 1'398 36 3'384 1'397 1'697

6787 986 36 3'242 1'071 1'452

6718 1'029

922

1'265 490 469

7247 2'170 0 2'897 998 1'182

6616 930

1'067 388 442

6084 1'322 0 2'929 1'053 780

3'550 791 1'345

2'822 1'353 1'514

Total Long-Term Assets + Long Term Investments Gross Fixed Assets Accumulated Depreciation + Net Fixed Assets + Other Long Term Assets

2'676 35 3'347 1'639 1'708 933

2'571 2 3'431 1'737 1'694 875

2'623 0 3'617 1'905 1'712 911

2'851 4 3'959 2'056 1'903 944

3'447 9 4'718 2'373 2'345 1'093

4'439 13 5'954 2'392 3'562 864

6'081 2 7'790 2'619 5'171 908

7'326 2 9'190 2'895 6'295 1'029

8'412 2 10'709 3'306 7'403 1'007

9'134 1 11'923 3'899 8'024 1'109

Total Current Liabilities + Accounts Payable + Short Term Borrowings + Other Short Term Liabilities

2'646 718 1'105 823

2'845 877 933 1'035

2'941 1'046 979 916

3'694 1'129 1'483 1'082

6'621 2'292 1'940 2'432

8'091 2'626 3'038 2'427

9'677 3'276 2'620 3'781

8'348 2'602 2'147 3'599

7'565 2'698 1'329 3'538

7'963 2'954 1'722 3'287

570 406 164

729 578 151

651 487 164

615 423 192

1'325 894 431

1'296 891 405

1'538 1'106 432

2'270 1'796 474

3'309 2'887 422

3'066 2'576 490

Total Liabilities + Long Preferred Equity + Minority Interest + Share Capital & APIC + Retained Earnings & Other Equity

3'216 0 24 503 772

3'574 0 23 503 865

3'592

4'309

9 503 1'011

13 490 1'140

7'946 0 4 496 1'085

9'387 0 4 496 1'799

11'215 0 21 496 2'261

10'618 0 61 496 2'938

10'874 0 94 496 3'564

11'029 0 114 496 4'213

5'405

Total Shareholders Equity

1'299

1'391

1'523

1'643

1'585

2'299

2'778

3'495

4'154

4'823

5'553

Total Liabilities & Equity

4'515

4'965

5'115

5'952

9'531

11'686

13'993

14'113

15'028

15'852

2.89 0.84

3.12 1.18

3.46 1.55

3.69 1.80

3.69 1.71

5.26 3.54

6.34 4.60

7.88 6.15

9.28 7.54

10.74 9.03

12/13E

12/14E

12/15E

12.32

13.69

15.50

Balance Sheet

Total Long Term Liabilities + Long Term Borrowings + Other Long Term Borrowings

Book Value Per Share Tangible Book Value Per Share

Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: [email protected] |

922 9'126

756 8'370

4'495 4'278 217

0 148

12.24 -6.45

Company Analysis - Financials III/IV Periodicity:

12/02

12/03

12/04

12/05

12/06

12/07

12/08

12/09

12/10

12/11

12/12

12/13E

12/14E

12/15E

191 256 23 203

196 258 -13 163

235 199 59 -123

255 196 53 -178

384 230 22 -33

875 281 -383 292

914 353 -363 658

732 438 218 -421

844 514 -61 27

921 608 -528 548

902 726 34 -1'438

457

753

1'076

Cash From Operating Activities + Disposal of Fixed Assets + Capital Expenditures + Increase in Investments + Decrease in Investments + Other Investing Activities

673 9 -197 -2 0 -1'214

604 12 -247

370 7 -186 -12 4 -7

326 3 -350 -12 0 -12

603 9 -600 -9 4 -40

1'065 8 -1'407 -237 406 -7

1'562 46 -2'031 -3 310 -19

967 8 -1'601

1'324

1'549

-1'533

-1'100

224 8 -1'016

-897

-699

-777

12 -14

5 73

3 -87

Cash From Investing Activities + Dividends Paid + Change in Short Term Borrowings + Increase in Long Term Borrowings + Decrease in Long Term Borrowings + Increase in Capital Stocks + Decrease in Capital Stocks + Other Financing Activities

-1'404 -56 325 352 0 22 0 172

-252 -63 -151 220 -26

-371 -65 419 0 -11 0 -30 14

-636 -82 361 432 -2 0 -36 -195

-1'237 -126 1'130

-1'595 -239 -631 1'099 -65 7

-1'455 -263 -778 2'437 -1'400 35

-1'184 -297 -49 186 -117 11

-1'008

-54

-1'697 -192 -333 26 -6

-33

-194 -65 -29 2 -6 16 -24 1

-13 83

-50 -82

45

44

0

-331

815

-53

-105

327

478

1'020

-637

216

75

-266

-302

84

299

71

282

445

848

-772

-412

-56

99

-1'086

476

357

184

-24

3

-342

-469

-634

-209

449

-792

387

880

1'026

568 1'162 1.08

428 412 0.81

185

-16

33

0.42

-0.05

0.01

-329 742 -0.78

-310 -736 -1.08

-572 -223 -1.46

-163 50 -0.48

532 469 1.02

-1.79

Cash Flows Net Income + Depreciation & Amortization + Other Non-Cash Adjustments + Changes in Non-Cash Capital

Cash From Financing Activities Net Changes in Cash Free Cash Flow (CFO-CAPEX) Free Cash Flow To Firm Free Cash Flow To Equity Free Cash Flow per Share

5 -22

Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: [email protected] |

29

Company Analysis - Financials IV/IV Periodicity:

12/02

12/03

12/04

12/05

12/06

12/07

12/08

12/09

12/10

12/11

12/12

12/13E

12/14E

12/15E

Valuation Ratios Price Earnings EV to EBIT EV to EBITDA Price to Sales Price to Book Dividend Yield

14.6x 13.5x 7.3x 0.9x 2.2x 2.3%

14.4x 12.5x 6.8x 0.7x 2.1x 2.3%

19.7x 14.5x 9.0x 0.9x 2.6x 1.7%

23.5x 19.6x 12.8x 1.3x 3.8x 1.4%

22.4x 16.7x 12.1x 1.1x 5.4x 1.5%

13.7x 15.8x 12.0x 1.3x 5.2x 1.6%

5.6x 6.9x 5.2x 0.5x 1.9x 4.7%

14.3x 11.6x 8.4x 1.0x 3.1x 2.3%

19.1x 14.8x 10.6x 1.4x 4.0x 1.7%

15.6x 11.9x 8.5x 1.1x 3.1x 2.1%

14.3x

20.3x

12.3x

8.7x

1.0x 2.4x 2.3%

8.8x 0.7x 1.7x 1.6%

6.9x 0.6x 1.5x 2.7%

5.7x 0.6x 1.3x 3.8%

Profitability Ratios Gross Margin EBITDA Margin Operating Margin Profit Margin Return on Assets Return on Equity

17.6% 9.5% 6.0% 5.1% 15.7%

13.7% 7.4% 4.8% 4.1% 14.8%

12.2% 7.6% 5.5% 4.7% 16.3%

12.4% 8.1% 5.6% 4.6% 16.2%

11.0% 8.0% 5.1% 5.0% 23.9%

12.0% 9.1% 9.2% 8.2% 45.1%

14.2% 10.7% 9.1% 7.1% 36.2%

15.6% 11.3% 7.1% 5.2% 23.6%

16.4% 11.8% 7.6% 5.8% 22.5%

16.7% 11.9% 7.3% 6.0% 21.0%

16.5% 11.1% 6.7% 7.0% 17.8%

18.9% 11.4% 5.8% 3.3% 3.4% 8.5%

21.0% 14.0% 8.8% 5.5% 5.1% 12.7%

63.7% 16.0% 10.4% 7.0% 6.3% 15.7%

0.70 0.42 2.50 0.54 1.16

0.84 0.55 3.19 0.52 1.09

0.85 0.57 328.00 0.49 0.96

0.84 0.58 36.50 0.54 1.16

0.92 0.64 14.26 0.64 1.79

0.90 0.63 51.00 0.63 1.71

0.82 0.50 5.21 0.57 1.34

0.81 0.51 13.68 0.53 1.13

0.87 0.59 20.61 0.50 1.01

0.84 0.48 12.87 0.47 0.89

0.44 0.77

0.85 4.69

0.87 4.37

0.85 4.13

0.82 3.88

0.97 3.58

0.90 3.27

0.79 3.21

0.73 3.11

0.77 3.29

0.82 3.95

1.03

24.2%

25.5%

22.0%

22.7%

28.9%

21.8%

23.4%

27.1%

27.8%

28.4%

29.1%

Ratio Analysis

Leverage & Coverage Ratios Current Ratio Quick Ratio Interest Coverage Ratio (EBIT/I) Tot Debt/Capital Tot Debt/Equity Others Asset Turnover Accounts Receivable Turnover Accounts Payable Turnover Inventory Turnover Effective Tax Rate

Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: [email protected] |

Company Analysis - Peers Comparision SAIPEM SPA Latest Fiscal Year:

SUBSEA 7 SA

TECHNIP SA

12/2012 40.12 17.09.2012 18.61 30.01.2013 1'158'356

12/2011 148.39 02.04.2012 106.91 25.06.2012 793'053

Current Price (2/dd/yy)

20.42

52-Week High % Change

-49.1% 9.7% 441.4

52-Week High 52-Week High Date 52-Week Low 52-Week Low Date Daily Volume

52-Week Low % Change Total Common Shares (M)

Market Capitalization Total Debt Preferred Stock Minority Interest Cash and Equivalents

Enterprise Value Total Revenue

EV/Total Revenue

EBITDA

EV/EBITDA

EPS

P/E

Revenue Growth EBITDA Growth EBITDA Margin

LFY LTM CY+1 CY+2 LFY LTM CY+1 CY+2 LFY LTM CY+1 CY+2 LFY LTM CY+1 CY+2 LFY LTM CY+1 CY+2 LFY LTM CY+1 CY+2 1 Year 5 Year 1 Year 5 Year LTM CY+1 CY+2

SCHLUMBERGER LTD

HALLIBURTON CO

12/2012 92.36 22.10.2012 69.21 04.06.2012 489'259

12/2012 82.00 14.02.2013 59.12 26.06.2012 6'397'047

12/2012 43.96 14.02.2013 26.28 26.06.2012 15'695'675

131.30

80.27

78.53

41.62

-11.5% 22.8% 338.7

-13.1% 16.0% 108.7

-4.2% 32.8% 1'328.0

-5.3% 58.4% 929.0

ENI SPA

CIE GENERALE DE TRANSOCEAN LTD

12/2012 19.59 18.01.2013 14.94 25.07.2012 7'163'920

NOBLE CORP

DIAMOND OFFSHORE

WOOD GROUP (JOHN

PETROFAC LTD

MCDERMOTT INTL

12/2011 25.76 09.10.2012 15.58 04.06.2012 366'754

12/2011 59.50 14.02.2013 39.32 04.06.2012 3'819'082

12/2012 41.56 16.03.2012 28.73 25.06.2012 5'740'118

12/2012 76.08 15.02.2013 54.07 26.06.2012 1'638'594

12/2011 883.50 19.10.2012 649.00 26.06.2012 195'771

12/2011 1'784.00 20.04.2012 1'324.00 27.06.2012 384'860

17.38

20.09

54.32

37.84

73.05

794.50

-11.3% 16.3% 3'634.2

-22.0% 28.9% 159.2

-8.7% 38.1% 349.8

-8.9% 31.7% 252.7

-4.0% 35.1% 139.0

-10.1% 22.4% 371.3

OCEANEERING INTL

TIDEWATER INC

12/2011 15.35 01.03.2012 9.04 04.06.2012 3'826'510

12/2012 65.37 14.02.2013 43.22 25.06.2012 706'989

03/2012 63.27 24.02.2012 42.33 16.11.2012 618'966

1'572.00

12.79

61.97

48.92

-11.9% 18.7% 340.1

-16.7% 41.5% 235.1

-5.2% 43.4% 107.9

-22.7% 15.6% 51.3

9'014.6

46'190.5

9'065.2

104'307.9

38'622.8

63'162.1

3'542.8

20'306.5

9'562.9

10'156.2

2'964.9

5'437.4

3'016.4

6'687.0

2'416.5

4'278.0 148.0 1'029.0

893.4 51.5 803.4

2'087.9 21.7 2'808.7

11'630.0 107.0 6'274.0

4'820.0 25.0 2'484.0

24'463.0 3'514.0 8'066.0

1'501.0 67.5 410.7

13'536.0 106.0 4'017.0

4'634.4 765.1 282.1

1'496.1 1'485.6

230.5 10.0 226.6

77.2 3.1 1'602.0

93.7 74.1 680.4

94.0 106.1

1'010.0 320.7

13'541.6

8'504.7

8'894.7

109'770.9

40'983.8

83'073.1

4'905.1 Valuation

28'415.5

14'680.3

10'166.6

4'641.0

7'524.8

2'523.2

6'703.4

3'292.3

13'369.0 13'369.0 13'566.9 14'063.2 1.6x 1.6x 1.0x 0.9x 2'207.0 2'186.0 1'540.5 1'973.7 9.5x 9.4x 8.6x 6.3x 2.04 2.05 1.00 1.65 10.0x 20.3x 12.3x 6.2% 8.3% 5.0% 14.0% 16.4% 11.4% 14.0%

5'476.5 6'103.3 6'243.0 6'756.9 1.5x 1.4x 1.3x 1.2x 870.8 1'050.1 1'137.7 1'274.6 9.7x 8.1x 7.4x 6.5x 1.26 2.14 1.65 1.62 10.8x 10.8x 14.1x 14.3x 131.2% 35.4% 81.8% 23.6% 17.2% 18.2% 18.9%

8'203.9 8'203.9 9'203.3 10'364.3 1.2x 1.2x 0.9x 0.8x 883.5 1'012.6 1'233.7 1'473.9 10.9x 9.5x 6.8x 5.3x 0.00 4.59 5.72 7.02 17.5x 24.5x 14.0x 11.4x 20.4% 3.4% 11.2% 12.8% 13.4% 14.2%

42'149.0 42'841.0 46'176.7 51'872.0 2.3x 2.3x 2.3x 2.0x 11'020.0 11'055.0 12'404.7 14'531.9 8.8x 8.8x 8.7x 7.1x 4.16 4.19 4.74 5.83 18.7x 18.7x 16.6x 13.5x 14.0% 14.7% 12.5% 5.5% 25.8% 26.9% 28.0%

28'503.0 28'503.0 29'769.0 32'970.3 1.2x 1.2x 1.4x 1.2x 5'787.0 5'787.0 6'184.6 7'544.0 6.0x 6.0x 6.6x 5.2x 3.02 3.08 3.02 3.96 13.5x 13.5x 13.8x 10.5x 14.8% 14.5% (5.1%) 7.5% 20.3% 20.8% 22.9%

127'271.0 127'271.0 121'289.6 123'474.0 0.7x 0.7x 0.7x 0.6x 24'564.0 24'564.0 28'813.8 30'201.0 3.5x 3.5x 2.8x 2.6x 1.93 2.39 2.00 2.15 7.3x 8.2x 8.7x 8.1x 16.1% 5.9% (4.5%) (1.1%) 19.3% 23.8% 24.5%

79.1% 43.5% 1.957x 1.957x 18.112x

15.5% 13.3% 0.861x 0.303x 21.554x

57.2% 36.2% 2.078x -0.181x 22.889x

33.5% 25.0% 1.052x 0.484x 32.412x

30.6% 23.4% 0.833x 0.404x 19.419x

41.3% 28.1% 0.996x 0.668x 27.909x

-

-

BBB+ 27.05.2010 -

A+ 11.12.2002 A1 03.06.2003

A 20.08.2007 A2 01.05.2007

A 17.01.2012 A3 16.07.2012

2'267.7 2'594.7 2'720.7 3'559.7 2.2x 1.9x 1.8x 1.4x 596.1 753.5 844.1 1'200.4 8.5x 6.7x 5.7x 4.0x -0.21 0.40 0.74 1.73 51.3x 51.3x 26.8x 11.5x 3.7% 3.1% 2.5% 5.1% 29.0% 31.0% 33.7%

9'142.0 9'768.0 9'667.9 10'171.3 2.7x 2.5x 2.9x 2.8x 1'853.0 1'748.0 3'406.5 4'051.5 13.1x 13.9x 8.3x 6.9x -5.78 -3.92 3.50 4.74 15.5x 11.5x (3.4%) 17.3% (54.2%) 2.5% 17.9% 35.2% 39.8%

3'547.0 3'547.0 4'438.4 5'405.3 3.9x 3.9x 3.5x 2.9x 1'529.6 1'529.6 2'128.7 2'779.6 9.1x 9.1x 7.4x 5.6x 2.04 2.02 3.28 4.88 18.7x 18.7x 11.5x 7.8x 31.6% 5.3% 35.6% (3.0%) 43.1% 48.0% 51.4%

2'986.5 2'986.5 3'057.8 3'973.8 3.2x 3.2x 3.8x 3.0x 1'336.9 1'335.9 1'289.8 1'960.7 7.1x 7.1x 9.1x 6.2x 5.09 5.08 4.58 7.50 14.4x 14.4x 16.0x 9.7x (10.1%) 3.6% (18.9%) (1.6%) 44.7% 42.2% 49.3%

5'666.8 6'547.2 6'838.8 7'292.4 0.7x 0.6x 0.7x 0.6x 396.0 460.5 511.3 596.0 10.4x 8.9x 9.0x 7.4x 0.40 0.33 0.84 1.00 36.3x 24.3x 14.4x 12.2x 38.7% 11.5% 39.0% 7.3% 7.0% 7.5% 8.2%

5'800.7 6'331.4 6'437.8 6'771.1 1.2x 1.1x 1.2x 1.2x 764.0 888.8 929.6 1'098.6 8.8x 7.6x 8.4x 7.2x 1.57 1.82 1.85 2.08 13.2x 13.3x 13.0x 11.5x 33.2% 26.2% 19.8% 30.8% 14.0% 14.4% 16.2%

3'445.1 3'461.8 3'615.1 3'126.9 0.7x 0.7x 0.7x 0.8x 335.1 404.4 416.5 400.9 7.1x 5.9x 6.0x 6.2x 0.63 0.73 0.91 0.88 17.5x 17.5x 14.1x 14.6x 43.3% (0.8%) (20.4%) (4.9%) 11.7% 11.5% 12.8%

2'782.6 2'782.6 3'181.6 3'576.2 2.1x 2.3x 2.0x 1.8x 605.1 605.1 708.6 831.5 9.9x 10.7x 9.2x 7.6x 2.66 2.66 3.21 3.87 23.3x 23.3x 19.3x 16.0x 26.9% 11.3% 24.5% 9.6% 21.7% 22.3% 23.2%

1'067.0 1'205.2 1'230.8 1'393.2 2.9x 2.6x 2.7x 2.4x 265.2 331.9 337.9 439.8 11.6x 9.3x 9.9x 7.6x 1.88 2.66 2.68 4.07 18.4x 18.4x 18.3x 12.0x 1.1% 0.6% (0.6%) (12.1%) 27.5% 27.5% 31.6%

86.2% 46.1% 8.081x 4.648x 2.808x

60.0% 35.3% 3.030x 2.845x 17.835x

32.7% 24.6% 1.120x 0.008x 28.927x

11.7% 10.5% 0.624x 0.233x 28.905x

6.9% 6.5% 0.075x -0.872x 115.768x

5.6% 5.1% 0.268x -1.383x 35.921x

5.2% 4.9% 0.155x 0.155x 143.452x

40.0% 28.6% 2.802x 2.639x 7.157x

-

BBB+ 08.12.2011 Baa1 23.05.2006

A27.07.2004 A3 28.06.2012

-

-

BB 30.03.2010 -

-

-

Leverage/Coverage Ratios Total Debt / Equity % Total Debt / Capital % Total Debt / EBITDA Net Debt / EBITDA EBITDA / Int. Expense

51.1% 33.3% 2.044x 1.699x 4.716x

Credit Ratings S&P LT Credit Rating S&P LT Credit Rating Date Moody's LT Credit Rating Moody's LT Credit Rating Date

BB29.11.2012 Ba3 *25.09.2012

Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: [email protected] |