L’esperienza degli IR Officer Jadran Trevisan IR manager Milano, 14 Giugno 2005

Presenza in 70 paesi con ~ 400 imprese (300 all’estero) Eni nel mondo* Presenza in 70 paesi con ~ 400 imprese (300 all’estero) Dipendenti  71.000 Capitale Investito Netto 43 miliardi di € Ricavi 58 miliardi di € Risultato operativo 12,5 miliardi di € Risultato netto 7,3 miliardi di € * Dati al 31 Dicembre 2004

Market capitalization: Eni vs Peers miliardi di US$ 361 218 208 144 115 105 76 30 Exxon BP RD/Shell Total CVX Eni Conoco Phillips Repsol YPF Sulla base delle quotazioni dell’8 giugno 2005 Tutte le società europee sono quotate sul mercato nazionale e su quello americano e di conseguenza redigono il 20F (USGAAP)

Maggiore affinità principi IFRS e USGAAP PRINCIPALI DIFFERENZE IT GAAP/US GAAP PRINCIPALI DIFFERENZE IFRS/US GAAP Definizione area consolidamento (Valutazione di Saipem e delle joint venture a patrimonio netto) Attività mineraria Imposte sul reddito differite e anticipate Ammortamenti Immobilizzazioni immateriali (goodwill) Oneri finanziari Smantellamento e ripristino siti Altri fondi per rischi e oneri Contratti derivati Rimanenze (ammesso il LIFO secondo gli USGAAP) Attività mineraria (gli IFRS ammetto il mantenimento del trattamento in essere ITGAAP) TFR Piano di ammortamento Gasdotti Snam rete gas Italian Gaap 10 anni 10% 40 anni 2,5% Gasdotti Snam rete gas US 25 anni 4% Rete di distribuzione ITG Italian Gaap 12,5 anni 8% 50 anni 2% Rete di distribuzione ITG US fino al '99 dal 2000 La rettifica riguarda principalmente i gasdotti, le centrali di compressione e le reti di distribuzione che fino al bilancio dell’esercizio 1999 sono stati ammortizzati, seguendo una prassi diffusa in Italia, con le aliquote massime fiscalmente consentite (rispettivamente 10%, 10% e 8%) sia a livello di bilancio di esercizio sia a livello di bilancio consolidato. Nei bilanci redatti secondo gli US GAAP questi beni sono stati invece ammortizzati con l’aliquota del 4% (corrispondente a 25 anni). La vita utile dei gasdotti, delle centrali di compressione e delle reti di distribuzione è stata riesaminata nel 2000 a seguito della determinazione da parte dell’Autorità per l’energia elettrica e il gas della vita tecnica dei gasdotti in 40 anni, delle centrali di compressione in 25 anni e delle reti di distribuzione in 50 anni. In relazione a ciò, considerando la modifica delle vite utili come una revisione di precedenti stime, a partire dall’esercizio 2000 il valore dei beni, al netto del fondo ammortamento al 31 dicembre 1999, è stato ammortizzato sulla base della loro vita utile residua sia ai fini Italian GAAP sia ai fini US GAAP. Tenuto conto dell’equivalenza di principio tra US GAAP e IFRS, i valori di iscrizione dei gasdotti e delle reti di distribuzione al 1° gennaio 2004 sono stati adeguati ai valori US GAAP di 2.813 milioni di euro, corrispondenti alla differenza tra l’ammontare degli ammortamenti stanziati alle massime aliquote fiscali fino all’esercizio 1999 e l’ammontare degli ammortamenti stanziati a US GAAP con l’aliquota del 4%. L’adeguamento ha determinato l’aumento delle immobilizzazioni materiali di 2.914 milioni di euro in contropartita al patrimonio netto (1.828 milioni di euro) e al fondo imposte differite (1.086 milioni di euro) per tener conto degli effetti fiscali.

Criteri contabili adottati: confronto con i Peers Prima Dopo Società DOMESTIC GAAP USGAAP IFRS Eni ITGAAP P Total FRGAAP ExxonMobil Chevron RD/Shell NLGAAP Repsol SPGAAP BP UKGAAP ConocoPhillips L’uniformità dei principi contabili adottati facilita il confronto all’interno del settore in termini di: Indicatori industriali Indicatori finanziari

Applicazione IFRS: criticità affrontate dalla funzione IR First application: redazione situazione patrimoniale di apertura (1/1/2004) restatement delle situazioni contabili esercizio 2004 Limitata conoscenza specifica da parte degli analisti finanziari Individuazione delle grandezze economico finanziarie più rilevanti ai fini dei modelli di valutazione degli analisti Le altre majors Oil & Gas hanno presentato con largo anticipo gli impatti della transizione agli IFRS (BP best practice) Scelta del timing presentazione transizione agli IFRS

Implementazione IAS “first application”: metodologia di lavoro Gennaio / Febbraio Riunioni interne Condivisione dati a criteri IFRS sulla base del 3° forecast 2004 1° Marzo Road Show: Anticipazione temi introduzione IFRS Marzo / Aprile Consuntivo 2004 Inizio revisione e analisi dati 2004 a criteri IFRS

Implementazione IAS “first application”: metodologia di lavoro 27 Aprile Conference Call Press release Predisposizione area dedicata nella pagina IR del sito istituzionale con documentazione specifica: presentazione tematica slide di back up file excel con dati di dettaglio 1Q04 press release 11 Maggio Presentazione risultati 1Q05 a principi IFRS 30 Maggio La PwC emette la relazione sulla revisione contabile sull’adozione degli IFRS 2ª metà Giugno Pubblicazione dati trimestrali del 2004 a principi IFRS

Transition to IFRS Marco Mangiagalli CFO Milan, 27th April, 2005

IFRS: Highlights No impact on group strategy and financial targets Minor movement in cash generation No change on economic value More in line with USGAAP (20-F) IFRS implemented starting from 1st January 2005 with 2004 comparatives(*) IFRS adoption review by external auditors almost completed (*) With regard to IAS 32 and IAS 39 (evaluation of financial instruments including derivatives contracts) Eni has chosen January 1, 2005, as transition date As you know, IFRS application starts from the 1st January 2005 and it requires, for comparison purposes, the restatement of the accounts starting from January 1, 2004 also on a quarterly basis. With regard to IAS 32 and IAS 39 (evaluation of financial instruments including derivatives contracts) Eni has chosen January 1, 2005, as transition date, as permitted by IFRS 1*. The audit of PriceWaterhouseCoopers on first time application is not totally completed yet and therefore, the figures that I will disclose represent our current best estimates and they should be treated accordingly. Moreover, the presentation is based on IFRS standards and IFRIC interpretations presently issued and endorsed by the European Union. The results presented herein could be subject to the effects, if any, of further IFRS pronouncements which may be issued by 31st December, 2005. To begin, I would like to point out that the new accounting standards are more in line with the US GAAP under which we already report for 20-F purposes. Following the implementation, we expect only a minor movement in cash generation and, as I already mentioned last month during the Stategy Presentation, we can state that neither the Group strategy nor the financial targets will be affected by the new principles. * In the last three years, the pre tax impact of the derivatives valuation at fair value, according to USGAAP, is the following: € +54 million (2002), € -51 million (2003), € - 106 million (2004)

IFRS – Impacts on Net Capital Employed as at 1st January 2004 and 2004 Net Result Review of assets’ useful life Inventories Higher financial charges capitalized Abandonment costs Employee termination benefits Goodwill amortization Reclassification of extraordinary income/charges Deferred tax adjustments Saipem and joint ventures now equity method accounted (mainly E&P and E&OS) + 2.6 44.5 - 0.2 41.9 ITGAAP IFRS (billion euro) 7.3 7.1 In the following slide you can see the overall IFRS impact on the balance sheet and the profit and loss account. On one hand, Eni estimates a growth in the net capital employed at January 1, 2004 of about 2.6 bilion euro mainly related to the review of useful life of assets accounted for in the regulated gas business. On the other hand, the 2004 net result is expected to show a slight decrease of around 200 million euro mainly as a consequence of the above mentioned capital employed revaluation and the related deferred tax adjustments. Our previous best estimates of a 3.2 - 3.3 billion euro impact on the capital employed implied, for Saipem and the Joint Ventures, their consolidation line by line or proportionately in the past while, as a consequence of a recent strict interpretation of the new accounting principles, they have to be equity method accounted. Net capital Employed 1st January 2004 2004 Net result

IFRS Main Impacts on Net Capital Employed as at 1st January 2004 Billion € 2.5 Overall +2.6 IAS 19 IAS 27/28 IAS 31 IAS 12 0.8 0.6 Saipem and JV now equity accounted 0.3 Employee benefits Deferred tax adjustments Let me now address the main factors leading to said results which, as regards the net capital employed, are: first, the change of the net book value of the natural gas transport and distribution networks based on the revision, on a retrospective basis, of their useful life taking into account the decisions of the Authority for Electricity and Gas, starting from the year 2000; second, the replacement of the Lifo method with the weighted average cost method for the evaluation of hydrocarbon inventories; third, the recognition of higher capitalized financial charges; fourth, the capitalization, as a contra to a specific reserve, of the present value of estimated costs for site restoration and abandonment; fifth, the use of actuarial techniques for the evaluation of employee termination benefits; sixth, the fact that Saipem and the Joint Ventures (mainly in the upstream and in the engineering and oilfiled services business) are now accounted for with the equity method while previously they were consolidated line by line or proportionately. I would like to add that according to the Italian civil code Eni will continue to control and coordinate Saipem’s activities; and finally, the deferred tax adjustments. Review of useful life Inventory Financial charges capitalized Abadonment cost -0.1 -0.5 IAS 16 IAS 2 IAS 23 IAS 16 & 37 -1.0

IFRS First Application: Review of Assets’ Useful Life Review (extension) of the useful life of transportation & distribution networks on a retrospective basis Lower net result related to higher amortization Main impact in G&P business No impact on cash generation 2.1 Snam Rete Gas 0.3 Italgas 0.1 Stoccaggi Gas (E&P) Group impact (billion euro) Until 1999, in accordance with Italian practice, the depreciation of natural gas transport and distribution networks was accounted for by applying rates established by the Italian tax authorities on a straight-line basis (10 years for transport and 12.5 years for distribution). The enactment of legislative decree no. 164 of May 23, 2000, which set for, inter alia, the criteria for the determination of transport and distribution tariffs by the Authority for Electricity and Gas, led Eni to reassess the useful life of these assets effective January 1st, 2000. According to the IFRS, which require to assess the useful life of property and plant items on a retrospective basis using the best information from time to time available, we have firstly revised the asset value of the gas pipelines up to 1999 adopting the international estimates of the useful life of 25 years as we were doing for 20F (under USGAAP) reporting purposes only. [A longer period if compared to the above mentioned 10 years for transport and 12.5 years for distribution]. Secondly from 2000 onwards, the residual value has been depreciated according to the useful life then established by the Authority (40 years for transport networks and 50 years for distribution networks). As a result, the IFRS new value of the assets will show an increase of 2.513 M € , equal to the net book value of these assets under US GAAP. Net of the related deferred tax provision (157 M €), net capital employed and net equity increase by 2.356 M €. The 2004 result of operations will decrease because of higher amortizations (-113 M €). Opening 2004 net capital employed before tax +2.5 2004 operating result -0.1 2004 net result -0.05 Cash generation -

IFRS First Application: Inventory From LIFO to weighted average costs Higher volatility on inventory valuation according to market scenario Main impact in R&M business No impact on cash generation 0.5 billion euro related to R&M business Group impact (billion euro) Opening 2004 net capital employed before tax +0.8 2004 operating result +0.3 2004 net result +0.2 Cash - Hydrocarbon inventories have been recognised so far under Italian GAAP according to the LIFO method. The method we will apply under IFRS is the Weighted Average Cost. As a consequence, the value of the inventories at the transition date will be higher (+764 M €). Net of the related deferred tax provision (285 M €), net capital employed and net equity increase by 479 M €. The 2004 operating and net result will increase by around 300 (316 M €) and 200 Mil. € respectively because of higher oil prices. This change will increase from now on the volatility of the results on the basis of the different oil prices scenario.

IFRS First Application: Financial Charges Higher financial charges capitalized Negligible impact on net result (higher amortizations offset by lower financial charges) No impact on cash generation Group impact (billion euro) Opening 2004 net capital employed before tax +0.6 2004 operating result -0.05 2004 net result negligible Cash - According to the IFRS, financial charges can be capitalized as an increase of the asset book value for the amount of financial charges that could have been saved if capital expenditures had not been made. Italian GAAP provided for more restrictive criteria for the capitalization of financial charges(1). At the transition date, the application of this principle increases the fixed asset value (+615 M €) and consequently, net capital employed and net equity increase by 394 M €, net of the related deferred tax provision (221 M €). This outcome is in line with the US GAAP. There is a negligible impact on 2004 net income because higher amortizations related to the retrospective capitalization of financial charges are offset by lower financial charges recognised in the 2004 income statement due to the capitalizations of the year. (1) Under Italian GAAP financial charges are capitalized when incurred on loans directed to specific capital expenditure projects and within the amount incurred in relation with capital expenditure not financed by internally-generated funds

IFRS First Application: Abandonment Costs Capitalization of abandonment costs (at present value) In line with US GAAP Impact on E&P business No impact on cash generation Group impact (billion euro) Opening 2004 net capital employed before tax +0.3 2004 operating result +0.2 2004 net result +0.1 Cash - Under Italian GAAP, site restoration and abandonment costs were evaluated annually on an undiscounted basis and accrued-on pro rata over the productive life of the assets using the units-of- production (UOP) method. Under IFRS, the present value of said costs is capitalized on the related assets, as a contra to a specific provision, and consequently depreciated. Over time, the liabilities are increased for the change in their present value as a contra to financial charges. We have to keep in mind that the provisions for site restoration and abandonment costs are based upon future cost estimates and consequently incorporate many assumptions such as time to abandonment, future inflation rates and the discount rate represented by the risk free rate adjusted for the Company’s specific risk (credit adjusted risk-free rate). At the transition date, due to the application of this principle, net capital employed net of the related defferred tax increases by 152 M € (deferred tax effect of 158 M €). The 2004 net income increases due to the lower amount of abandonment costs recognized in the 2004 income statement (61 M €). This outcome is consistent with US GAAP (SFAS n. 143 - asset retirement obligation).

IFRS First Application: Employee Termination Benefits Actuarial techniques for the provisions’ valuation Negligible impact on net result No impact on cash generation Group impact (billion euro) Opening 2004 net capital employed before tax -0.1 2004 net result negligible Cash - Employee termination benefits: Differently from Italian GAAP (and Italian Law as far as TFR - reserve for employee termination indemnities - is concerned) IAS 19 requires the use of actuarial techniques for the evaluation of post employment benefit plans (including Italian TFR, medical assistance funds and jubilee awards). At the transition date, due to the application of the new principle, employees benefit provisions increase by 132 M €. Net of related deferred tax asset of 53 M €, net capital employed and net equity decrease of 79 M €. There is a negligible impact on 2004 net income (7 M€).

IFRS First Application: Goodwill Amortization No more goodwill amortization Impairment test at least on a yearly basis No asset write down following the first adoption No impact on cash generation (million euro) Inpact on operating result Italgas: +43 Lasmo: +18 61 Impact on net income from investments GALP: +106 Saipem SA +20 UFG: +10 GVS +8 144 Overall impact 205 Group impact (billion euro) Opening 2004 net capital employed before tax - 2004 net result +0.2 Cash Goodwill: According to IFRS, goodwill is no longer amortized and the capacity to recover it is assessed at least annually (impairment test). This principle is the same as with US GAAP. IFRS 1 does not require to apply this principle on a retrospective basis and therefore there is no impact on net capital employed and net equity at the transition date. The 2004 net income increases by 205 M € as a result of discontinuing goodwill amortization.

IFRS First Application: Saipem and Joint Venture now Equity accounted for Main impact on Engineering & Oilfield Services and Exploration & Production Divisions Minor impact on cash generation Group impact (billion euro) Opening 2004 net capital employed -0.5 2004 net financial debt at closing +0.3 2004 operating result -0.3 2004 net result No impact Cash Minor impact Saipem and Joint ventures equity accounted: IFRS prohibit to consolidate on a line-by-line basis an affiliate of which you do not hold the majority of the voting rights even though you exercise control at this affiliate’s Annual General Meetings (AGM). In such cases, according to IFRS, you have to adopt the equity method. This principle is in contrast with Italian GAAP, which allow for the full consolidation of an affiliate in which the parent company holds a stake lower than 50% but large enough to exercise control at AGMs, but is consistent with US GAAP. As a consequence of the IFRS application, Saipem SpA (Eni’share 43%) is now accounted for under the equity method, while under Italian GAAP it was fully consolidated. Also certain joint ventures, mainly in the Exploration & Production and Engineering segments, are now accounted for with the equity method while under Italian GAAP they were consolidated on a proportional basis. The overall result, at the transition date, showed a net capital employed decrease by 466 M€; the year end 2004 net financial debt increases by 316 M€ and finally the opearting result decreases by 344 M€. All these impacts are mainly related to Saipem.

1st January 2004 Consolidated Balance Sheet: ITGAAP vs IFRS In this slide and in the following ones are respectively shown : the opening balance sheet as at 1st January 2004, the closing one as at 31st December 2004 and the Profit and loss Account all restated according to IFRS. In the Appendix section of this presentation, you will also find the impact of IFRS first application on the net capital employed and profit and Loss account for each business division. Please contact our IR team for any further details on these issues I do not want to comment them line by line, I just want to remind you that, overall, we record an increase of 2.6 billion euro in the net capital employed and a slight increase (around 190 M€) in the net debt.

31st December 2004 Consolidated Balance Sheet: ITGAAP vs IFRS

2004 Income Statement: ITGAAP vs IFRS I’ve already anticipated the expected 2004 net result decrease of around 200 million euro due to the capital employed revaluation and the related deferred tax adjustments. In this slide nr. 15, you can also see the details related to the fact that all the items recorded by Eni as extraordinary under Italian GAAP would not qualify any more as extraordinary under IFRS and have been accordingly reallocated. Therefore, net extraordinary expenses of 56 million euro have been reclassified as follows: 608 million euro (mainly related to the gain on sale of Snam Rete Gas’ stake) in “net income from investments”; Expenses of 48 million euro in “income taxes”; Other net extraordinary expenses of 616 million euro in “Operating Income”.

Adjusted Results Billion € Adjusted operating and net income defined as: Excluding special items Excluding weighted average cost valuation on inventory Special items details provided to financial analiysts (by business and nature) Commento importante per gestire il consensus del 1Q05 e preparare il mercato al diverso modo di rappresentare i risultati 2004 adjusted operating income 2004 adjusted net income 12.5 6.8 12.1 6.7 Turning to the adjusted results, a figure which financial analysts are used to focus on in order to have a clearer view of the industrial trends, let me highlight that from 2005 on, we will adopt a new definition both at the operating and net level. We will consider as adjusted the result excluding both special items, which we will continue to provide separately to financial analysts, and the impact of inventory evaluation. Under this definition, Eni 2004 adjusted results increse at the operating and net level. In particular the operating income increses by 400 M€ while the net result increses by 100 M€. IT GAAP RECLASS. IFRS IT GAAP RECLASS. IFRS

Debt and Gearing: ITGAAP vs IFRS Bn € ITALIAN GAAP IFRS Debt to equity ratio 13.5 13.7 10.2 10.5 0.48 0.45 0.30 0.31 As to debt and gearing, the IFRS adoption determines the following results: An increase of the net financial position from 10.2 billion euro to 10.5 billion euro mainly related to the deconsolidation of Saipem (+145 M€) and of other JV in the E&P and engineering and oil services business now equity accounted (+171 M€). A slight decrease of the gearing level given the increase of net equity mainly as a consequence of the increase in the net value of the assets in the gas business 1st January 2004 31st December 2004 1st January 2004 31st December 2004

No impact on cash generation Tax rate guideline unchanged IFRS - 2005 onwards No impact on cash generation Tax rate guideline unchanged Higher volatility on inventory valuation according to market scenario Wider use of fair value in place of historical cost Coming to the end of this presentation, let me point out some final comments on the issues we will have to consider from now on following IFRS adoption: First, the absence of impacts both on the tax rate (you can continue to assume a range of 40%-42%) and on our cash generation. Second, a higher volatility on inventory evaluation according to changes in the market scenario; Third, a wider use of the fair value in place of historical cost; Lastly, let me remind you that additional details are available on our website in the IR section. If you need any assistance do not esitate to contact IR team. Thank you for your attention and now we are pleased to answer to any questions you may have. More details on IFRS first application and 1Q 2004 on our website at the following internet page: www.eni.it/investor

Risultati 1° trimestre 2005 a criteri IFRS Gestione Consensus: rischio informativa asimmetrica nuova nozione di risultato “adjusted” alta volatilità soprattutto nel business R&M agevolazione confronto con risultati 1Q04 a principi IFRS

Gestione del Consensus: nuova rappresentazione dei risultati economici ITGAAP 1Q05 - IFRS Utile operativo reported P 4.387 Profit (loss) on stock 194 Utile operativo a valori correnti 4.193 Special Items (92) Utile operativo adjusted 4.285 Utile netto reported 2.445 122 Utile netto a valori correnti 2.323 (62) Utile netto adjusted 2.385 Maggiore articolazione nella modalità di rappresentazione dei risultati Presentazione Press release e tabelle per analisti Dati di dettaglio 1Q04 disponibili in formato excel

Maggiore volatilità del risultato: Special items & Inventory valuation R&M – Operating Income Million € Reported Adjusted* Maggiore volatilità del risultato: Oltre il 50% del risultato operativo del 1Q05 è ascrivibile agli inventory gains +115.2% 269 +55.1% 152 125 98 Brent $/boe €/boe Special items & Inventory valuation 1Q04 1Q05 Inventory gains 25 Redundancy incentives (5) Others 7 Inventory gains 143 Provisions for environmental laws and decommissioning (25) Redundancy incentives (4) Others 3 1Q05/1Q04 Δ% $/boe +48.7 €/boe +41.7 * Excluding special items and gains (losses) on inventory

Principali impatti adozione IFRS su attività IR Maggiore volatilità del risultato Rappresentazione dei risultati più articolata Agevola il confronto con i peers: Indicatori di performance industriali Indicatori economici Maggiore complessità nella gestione del consensus

L’esperienza degli IR Officer Jadran Trevisan IR manager 14 Giugno 2005, Milano