Modec, Inc. · TSE:6269
Modec — Investor Presentation (February 2021)
29 slides from Modec's investor presentation, Feb 9, 2021
Slide 1: MODEC Group Mid-term Business Plan 2021-2023
MODEC Group Mid-term Business Plan 2021-2023 February 9, 2021
Slide 2: Outline
Outline 1. Company Overview 2. Our Strengths & Competencies 3. Business Environment 4. Long-term Vision 5. Business Model Evolution 6. Path to Long-term Vision 7. Review of Mid-term Business Plan 2018-2020 8. Mid-term Business Plan 2021-2023 9. Financial Highlights 10. Long-term Profit Base 2
Slide 3: Company Overview & Business Environment
Company Overview & Business Environment 3
Slide 4: 1. Company Overview
1. Company Overview MODEC is a leading provider of Founded in 1968, Diverse team comprised of floating production solutions, MODEC has been leading the over 5,000 employees from 25 such as FPSOs*1, FSOs *2 and offshore industry for over 50-years countries TLPs*3, to the offshore oil & gas industry.
Slide 5: 1. Company Overview
1. Company Overview Projects 54 units in 18 countries Offices 18 offices in 14 countries 5
Slide 6: 2. Our Strengths & Competencies
2. Our Strengths & Competencies Floating Solution Project management capability enabling robust and smooth execution from project development to EPCI to operations Unparalleled offshore development expertise accumulated in our long history of O&M service Track record and technical capabilities
Slide 7: 2. Our Strengths & Competencies: Digitalization
2. Our Strengths & Competencies Digitalization Our FPSO, MV29, was recognized as a “Lighthouse” of the Fourth Industrial Revolution, Started as a corporate initiative to solve pain points by World Economic Forum in January 2020. in FPSO operations and maintenance Unique cloud-based platform opti
Slide 8: 3. Business Environment
3. Business Environment Energy Demand Trends and Topics of the Energy Industry President Joe Biden has signed an executive order to rejoin Mtoe the Paris Agreement. 5,000 Oil Gas Prime Minister Boris Johnson announced a ban on the sale 4,000 of new petrol and diesel cars from 2030, five years earlie
Slide 9: 3. Business Environment: FPSO/FSO & TLP Market Trends
3. Business Environment: FPSO/FSO & TLP Market Trends Although some investment decisions are suspended due to the impact of COVID-19, potential demand is expected to remain consistent at the current oil price level*, and development of new projects is expected to proceed steadily. * The U.S. Energy
Slide 10: Long-term Vision
& MODEC Long-term Vision ee
Slide 11: 4. Long-term Vision
4. Long-term Vision Our Goal Become the Offshore Industry’s Global Leader exploring Potential of the Ocean and Sustainable Future Self-innovation & Reshaping Industry New Business Creation of Business Model Core Business Development of Next- Environmentally-Friendly Business Evolution Generation FPS
Slide 12: 5. Business Model Evolution
5. Business Model Evolution Developing Next-Generation FPSO and new businesses by applying core technologies New Built Hull / Autonomous Operation / Low Carbon Technology FPSO Business FPSO Evolution New Business Creation Core Technology Digital Application to Clients Digital Floating Floating Solut
Slide 13: 6. Path to Long-term Vision
6. Path to Long-term Vision Business model evolution with continued cycle of “Reinforcement of FPSO Business Profitability”, “Investments in R&D” and “Response to Environmental and Social Changes” FUTURE Contribution to Sustainable Society with Business Model Reinforcing FPSO Evolution Business Prof
Slide 14: Review of Mid-term Business Plan 2018-2020
Review of Mid-term Business Plan 2018-2020 14
Slide 15: 7. Review of Mid-term Business Plan 2018-2020
7. Review of Mid-term Business Plan 2018-2020 Strategic Targets Achievements The concept of Lifecycle Value is firmly established as our corporate culture with implementation of initiatives such as the Maximizing Lifecycle Value organizational reinforcement and risk analysis, as well as Evolutio
Slide 16: 7. Review of Mid-term Business Plan 2018-2020: Challenges
7. Review of Mid-term Business Plan 2018-2020 Challenges Change in Net Income (Billion JPY) Key factors for net loss Current status / Impacts on (2019 and 2020) Mid-term Business Plan (MTP) (Record high) 21.0 21.9 Heavy impact on operations and constructions due to 19.4 COVID-19 COVID-19 pandemic in
Slide 17: Mid-term Business Plan 2021-2023
Mid-term Business Plan 2021-2023 17
Slide 18: 8. Mid-term Business Plan 2021-2023
8. Mid-term Business Plan 2021-2023 Plotting the three years of the Mid-term Business Plan as a period of steady recovery and foundation rebuilding towards the Long-term vision ～2030 Next MTP MTP 2021-23 Recovery and Next Generation FPSO Income Stabilization Reinforcement FPSO Digital Business Comme
Slide 19: Our Themes & Initiatives
8. Mid-term Business Plan 2021-2023 Our Themes & Initiatives Long-term Mid to Long-term Key Themes in Mid-term Major Initiatives Vision Strategies Business Plan (MTP) Intensive maintenance campaign for early-stage FPSO/FSO in Brazil Continue LCV maximization (next generation new built FPSO hulls
Slide 20: Asset Integrity Improvement: Maintaining Aged Vessels in Brazil
MTP Key Theme 1 Asset Integrity Improvement Maintaining Aged Vessels in Brazil FSO Cidade de Macaé MV15 Large FPSOs for ultra deep-water built in early days before Back- establishment of industry standards have different challenges ground from recent FPSOs in terms of securing asset integrity FPSO C
Slide 21: Accelerated Digitalization Strategy
MTP Key Theme 2 Accelerated Digitalization Strategy Three digitalization strategies to evolve MODEC’s business MTP 2018-2020 MTP 2021-2023 2024- Setting up Digital Solution Business Digital as our new Preparation for setting Deliver “Digital Solutions” proven in MODEC’s FPSO business to services u
Slide 22: Incubation of next business after FPSO: Floating Offshore Wind Power
3 MTP Key Theme Incubation of next business after FPSO: Floating Offshore Wind Power Applying our floating technology and Tension-Leg Platform (TLP) design to wind turbines, we aim to commercialize offshore wind power generation (EPCI and O&M) Expanding business as one of our main products World-wid
Slide 23: Incubation of Next Business after FPSO: Seabed Mining Technology
3 MTP Key Theme Incubation of Next Business after FPSO: Seabed Mining Technology Applying our FPSO technology, we aim to actualize seabed resource mining (such as methane hydrate) in the Japan sea and its commercialization in the long term. Compared to natural Contributing to domestic Hokkaido gas,
Slide 24: Respond to Environmental and Social Demand
MTP Key Theme 4 Respond to Environmental and Social Demand Approach to Sustainable Development Goals(SDGs): SDGs are universal goals which were adopted by all UN Member States in 2015. They consist of 17 goals and 169 targets to end poverty, protect the planet and improve lives. While we recognize t
Slide 25: Financial Highlights
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Slide 26: 9. Financial Highlights
9. Financial Highlights Path to profitability recovery Target for 2023 Net Profit Forecast Net Profit : USD 200 MM Net Profit Forecast ROE :12% USD MM 200 FCF : Covers large investment CF with operating CF 200 - 150 Profitability Recovery 100 45 50 Minimizing losses from operation and asset manage
Slide 27: 9. Long-term Profit Base
9. Long-term Profit Base Expanding stable income base by increasing long-term charter & operation projects 2010 2020 2030 2040 1 FPSO Sangomar Woodside As of 2021 February (fixed) 2 32.5 FPSO Anita Garibaldi MV33 Petrobras EPC(I) period 25y Charter period (fixed) 3 35.0 FPSO Almirante Barroso MV
Slide 28: 9. Expanding Charter Profit Base
9. Expanding Charter Profit Base Profit from Charter Business (excl. O&M) 350 300 250 FPSO Charter 200 150 Five Charter FPSO are under construction at this moment and those charters will commence 100 in Mid-term Business Plan period 50 Assuming normal operational uptime and continuous award of n
Slide 29: Going Beyond That Is What We Do Everyday
GOING BEYOND THAT IS WHAT WE DO EVERYDAY