Targets and performance drivers

2015-2018 targets

Cash flow and value generation

Increase the value of explorative resources

Growth in Upstream cash generation

Return to structural profitability in the Gas & Power business

Turnaround in Refining & Marketing and Chemical businesses

R&M: EBIT adjusted and cash flow from operation breakeven in 2015

Chemical: EBIT adjusted and cash flow from operation breakeven in 2016

Focus on efficiency

transforming eni
creating value

Transforming Eni, creating value
Eni is completing its transformation process. We are creating a more robust and resilient company, capable to continue to grow and generate value even in a low price scenario.
In 2014 we took major steps towards our target.
The first one was to pass from a divisional model to a fully integrated one. Secondly, we deeply reviewed our company’s cost structure and implemented a strategic program that allowed us to:
- Achieve positive results in gas & power one year in advance
- Progress the turnaround of refining & marketing and chemicals
- Beat our cash flow growth target
- And lower our leverage
This was done months ahead of the oil downturn, putting the company in a stronger position to face this challenging scenario.

In the 4 year plan, we are going to complete the actions started in 2014.
In practical terms:
- In exploration & production, we will continue to grow, leveraging on our distinctive exploration, our diversified portfolio, and our development approach aimed at minimizing time to market.
- In mid-downstream, we will complete our turnaround, reaching the structural breakeven in the next two years.

Our production will continue to increase substantially, with an average growth rate of 3,5%.
Exploration in the near term will be more focused on near field wells and appraisals, and will give us about 2 billion barrels of oil equivalent.
The successes of the past 7 years have increased eni’s potential by more than 10 billion barrels, corresponding to a growth of 35% in our resource base.
Upstream efficiency remains a key target, and we plan a self financing ratio growing from 106% in the next two years to 130% in 2017-18, at the top of our historical trend.
The resources come not only from the major find in Mozambique, but also from discoveries in other basins such as Angola, Congo, Indonesia, Ghana, Gabon and Ecuador.

In G&P we will complete the transformational plan that we accelerated last year.
In 2014, we reversed the previous year’s losses and reported a positive result of 300 mln €. In the 4 years plan we will continue to grow profitability. We will reach a structural positive EBIT result from 2016 and generate a cash contribution of €3billion over the 4YP.

In R&M, we reduced capacity by 30% lowering our average refineries’ break-even by $2/barrel. We will continue to cut capacity up to 50%, while improving operations in the remaining plants, reducing refinery break-even to $3/barrel. Thanks to these actions, R&M will reach EBIT and operating cash flow break even in 2015, while the Refining section will reach the target in 2017.

In chemicals, in 2014 we completed the rationalization of our sites. We will continue to grow in specialty products and improve the efficiency of our plants. EBIT and operating cash breakeven is confirmed in 2016.

Eni’s management team is fully committed to delivering its transformation process.
We firmly believe that at the end of this journey, eni will be a stronger and more flexible company, well positioned to create value growth even in a challenging market environment.