ENI S.p.A. (E) | Analysis of Investments

Investment Accounting Policy

Held for trading financial assets and available-for-sale financial assets are measured at fair value with gains or losses recognized in the profit and loss account under "Financial income (expense)" and to the equity reserve related to other comprehensive income, respectively. Changes in fair value of available-for-sale financial assets recognized in equity are charged to the profit and loss account when the assets are derecognized or impaired. The objective evidence that an impairment loss has occurred is verified considering, interalia, significant breaches of contracts, serious financial difficulties or the risk of insolvency of the counterparty; asset write downs are included in the carrying amount. Available-for-sale financial assets include financial assets other than derivative financial instruments, loans and receivables, held for trading financial assets and held-to-maturity financial assets. The fair value of financial instruments is determined by market quotations or, where there is no active market, it is estimated adopting suitable financial valuation models which take into account all the factors adopted by market operators and prices obtained in similar recent transactions in the market.

Interests and dividends on financial assets stated at fair value are accounted for on an accrual basis in "Financial income (expense)" and "Other gain (loss) from investments", respectively. When the purchase or sale of a financial asset is under a contract whose terms require delivery of the asset within the time frame generally established by regulation or convention in the market place concerned, the transaction is accounted for on the settlement date.

Source: ENI S.p.A., Annual Report

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

ENI S.p.A., adjustment to Net Profit Attributable To Eni

	12 months ended	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	Net profit attributable to Eni (as reported)
	Add: Change in the fair value of available-for-sale securitiesnet of the tax effect
	Net profit attributable to Eni (adjusted)

Adjusted Ratios: Mark to Market Available-for-sale Securities (Summary)

ENI S.p.A., adjusted ratios

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	Net Profit Margin
	Reported net profit margin	%	%	%	%	%
	Adjusted net profit margin	%	%	%	%	%
	Return on Equity (ROE)
	Reported ROE	%	%	%	%	%
	Adjusted ROE	%	%	%	%	%
	Return on Assets (ROA)
	Reported ROA	%	%	%	%	%
	Adjusted ROA	%	%	%	%	%

Adjusted Net Profit Margin

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	As Reported
	Net profit attributable to Eni (USD $ in millions, translated from EUR €)
	Net sales from operations (USD $ in millions, translated from EUR €)
	Net profit margin1	%	%	%	%	%
	Adjusted: Mark to Market Available-for-sale Securities
	Adjusted net profit attributable to Eni (USD $ in millions, translated from EUR €)
	Net sales from operations (USD $ in millions, translated from EUR €)
	Adjusted net profit margin2	%	%	%	%	%

2011 Calculations

Adjusted Return On Equity (ROE)

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	As Reported
	Net profit attributable to Eni (USD $ in millions, translated from EUR €)
	Eni shareholders’ equity (USD $ in millions, translated from EUR €)
	ROE1	%	%	%	%	%
	Adjusted: Mark to Market Available-for-sale Securities
	Adjusted net profit attributable to Eni (USD $ in millions, translated from EUR €)
	Eni shareholders’ equity (USD $ in millions, translated from EUR €)
	Adjusted ROE2	%	%	%	%	%

2011 Calculations

Adjusted Return On Assets (ROA)

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	As Reported
	Net profit attributable to Eni (USD $ in millions, translated from EUR €)
	Total assets (USD $ in millions, translated from EUR €)
	ROA1	%	%	%	%	%
	Adjusted: Mark to Market Available-for-sale Securities
	Adjusted net profit attributable to Eni (USD $ in millions, translated from EUR €)
	Total assets (USD $ in millions, translated from EUR €)
	Adjusted ROA2	%	%	%	%	%

2011 Calculations