Press release - Eni strategic plan 2021-2024: towards zero emissions

PRICE SENSITIVE

BOOSTING OUR TRANSFORMATION

Eni strategic plan 2021-2024: towards zero emissions

"Eni is strongly committed to continue to play a key role in sustainability and innovation, supporting social and economic development in all our activities.

Today we are taking another step forward in boosting our transformation. We commit to the full decarbonization of all our products and processes by 2050. Our plan is concrete, detailed, economically sustainable and technologically proven.

Today we are also announcing the merge of our renewable and retail businesses. With this new entity, our large customer base will continue to grow in synergy with our renewable business.

Additionally, the combination of our bio-refining and marketing businesses will play an important role in delivering sustainable mobility. These initiatives will greatly contribute to the decarbonization of our products, impacting positively on our customers. Finally, thanks to a strong financial discipline and a resilient cash generation, we can upgrade our distribution policy reflecting the strategic progress of our plan."

Claudio Descalzi, Eni CEO

San Donato Milanese (Milan), 19 February 2021 - Claudio Descalzi, Chief Executive

Officer of Eni, has presented today to the financial community the company's Strategic

Plan for 2021-2024.

STRATEGY HIGHLIGHTS

•  Leading Energy Transition. Decarbonization of operations and products to deliver a mix of entirely decarbonized products.

  • o Net Zero emissions at 2050, introducing new target for absolute emissions of -25% at 2030 vs 2018 and -65% at 2040;

• o Net Zero Carbon Intensity by 2050: introducing new intermediate targets of -15% at 2030 instead of 2035. Reduction will reach -40% in 2040.

•  Leveraging Integration. Diversification and expansion of retail and renewables businesses, bio-products and circular economy.

  •  Merge of retail and renewable businesses:

    • o accelerated growth of customer base to 15 million customers;

    • o growth of renewable installed capacity to 15GW by 2030;

    • o EBITDA will double in the plan to almost €1bln in 2024.

•  Financial Robustness to absorb price volatility. Selective growth, increased efficiency and right-sizing to ensure value and high returns in all activities.

  • o Reduction of group cash neutrality covering capex and dividend floor (0.36€/share) below $40/bbl over the four-year plan.

•  Stakeholder Value Creation. Enhanced remuneration policy:

  • o dividend floor set at €0.36 at $43/bbl vs the previous level of $45/bbl;

  • o €300mln/year buyback to re-start at $56/bbl. Confirmed buyback at €400mln/year from $61/bbl and €800mln/year from $66/bbl.

DECARBONIZATION

In 2020 Eni announced its target covering scope 1, 2 and 3 emissions, based on its fully comprehensive methodology of GHG assessment, considering all the activities and every traded product, to reach a reduction of its absolute emissions by 80% in 2050.

This year Eni improves this target, committing to reach the complete carbon neutrality by 2050.

Full decarbonization of Eni's products and operations will be achieved through existing technologies:

•  Bio-refineries: doubling capacity to around 2mln tons by 2024, increasing capacity five times by 2050;

•  Circular economy: larger use of biogas, waste and recycling final products;

•  Efficiency and digital solutions in operations and customer services;

•  Renewables capacity increasing up to 4GW in 2024, 15GW in 2030 and 60GW in 2050, fully integrated with Eni's clients;

•  Blue and green hydrogen for Eni's bio-refining system and other hard to abate activities;

•  Natural or artificial carbon capture to remove residual emissions;

•  REDD+ initiatives: offsetting more than 6MTPA of CO2 by 2024 and more than 40MTPA by 2050;

•  CCS projects: total storage capacity of approximately 7MTPA at 2030, 50MTPA at 2050.

In the long term, gas will represent more than 90% of Eni's production and will support the energy transition as a back-up of intermittent sources.

NATURAL RESOURCES

•  Production: CAGR 4%;

•  Exploration: 2bln boe of new resources in the four-year plan (UEC <$2/boe);

•  Capex at €4bln in 2021, approx. €18bln over the plan (Upstream capex coverage $28/bbl by 2024);

•  Free cash flow generation expected at €2bln in 2021, reaching a cumulative €19bln in the plan period;

•  Synergies between Upstream and Global Gas & LNG: LNG contracts to reach 14MTPA by 2024 (50% growth vs. 2020);

•  Enhanced decarbonization of Upstream and gas marketing operations:

  • o CO2 storage capacity of 7MTPA by 2030;

  • o REDD+ projects to absorb 6MTPA of CO2 by 2024 and over 20MTPA by 2030

Production will grow at an average of around 4% per year during the plan, mainly organically. For 2021, a transition year before fully recovering from Covid-19, production guidance is confirmed at around 1.7Mboed. During the four-year plan 14

major projects will be brought on stream, operating over 70% of the new production. These are mainly in Angola, Indonesia, Mexico, Mozambique, Norway and United Arab Emirates. In terms of future production mix, around 55% of P1 reserves will be gas in 2024, vs. 50% today. Upstream free cash flow will be in excess of €18bln at Eni scenario in the four-year plan and will amount at approximately €14bln assuming a flat scenario of $50/bbl, covering two times the company's distribution needs.

Over the four-year plan, Exploration activities will be a distinctive factor as the main source of Eni's diversification toward gas, fast time-to-market and low breakeven portfolio with an average unit exploration cost below $2/bbl. It will focus on (almost 90%) infrastructure lead and near field opportunities in proven basins, the large part with a high gas potential, targeting 2bln boe of resources.

Upstream capex will amount to around €4.5bln per year on average, of which approximately 50% to fight depletion and 50% devoted to growth. More than 55% of Capex in the last two years of the plan is uncommitted, and this flexibility will allow to absorb price volatility if needed. Upstream capex coverage will drop by almost 10$ to $28/bbl by the end of the plan.

Contractual LNG volumes are expected to exceed 14MTPA by 2024, a 45% growth vs. 2020 levels. This growth will be driven by new projects in Indonesia, Nigeria,

Angola, Mozambique and Egypt, where the start-up of Damietta LNG plant has been completed and the first cargo is being loaded.

Reduction of carbon footprint towards net zero emissions is achieved with the contribution of Forestry and CCS initiatives:

•  REDD+ projects to preserve primary and secondary forests are being developed mainly in Africa, South Asia and Latin America, targeting to offset more than 6MTPA of CO2 by 2024 and more than 40MTPA by 2050;

•  the CCS business is synergic with Upstream; it aims to create worldwide storage hubs to decarbonize the company's own industrial activities, such as power