Slide 1: MODEC, Inc. 2016 Financial Results Analysts Presentation
MODEC, Inc. 2016 Financial Results Analysts Presentation February 9, 2017
Slide 2: Agenda: Highlights, Market Review & Outlook, Financial Results
MODEC, Inc. 2016 Financial Results Market Review Financial Highlights & Outlook Results 2
Slide 3: FY2016: Delivered Units
FY2016 : Delivered Units FPSO Prof. John Evans Atta Mills (MV25) FPSO Cidade de Caraguatatuba MV27 Client Tullow Oil Client Petrobras Charter period 10 years (10 one-year options) Charter period 20 years Field TEN (Tweneboa, Enyenra, Ntomme) Field Lapa field, Brazil Field, Ghana Water depth 2,126m W
Slide 4: FY2016: Highlights
FY2016 : Highlights Revenue Gross Profit Operating Profit Billion JPY Billion JPY Billion JPY 400 378.5 40 20 18.0 31.5 295.5 30 15 254.4 229.9 21.9 20.0 200 186.8 20 10 16.7 8.5 13.6 5.0 10 5 3.4 3.7 0 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Gross profit and
Slide 5: FY2016: Highlights
FY2016 : Highlights Ordinary Profit Other Income Leased Units Equity in earnings of affiliates Billion Billion Balance between interest 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 JPY JPY income and interest expense 30 29.4 10 9.6 MV29 As of February 2017 MV27 8.3
Slide 6: FY2016: Highlights
FY2016 : Highlights Profit Attributable to ROE Dividends per Share Owners of Parent Equity Billion JPY % Billion JPY Yen 25 20.0 150 40 37.50 18.7 21.0 35 20 30 15.0 100 15 25 20 10 10.1 10.0 50 5.8 15 5.1 4.9 5.4 7.9 5 6.5 10 5.9 0 5.0 0 5 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Targets
Slide 7: Market Review & Outlook
MODEC, Inc. 2016 Financial Results Market Review Financial Highlights & Outlook Results “We estimate that, if new project approvals remain low for a third year in a row in 2017, then it becomes increasingly unlikely that demand and supply can be matched in the early 2020s without the start of a new
Slide 8: Market Review
Market Review Oil Supply & Consumption Oil Demand & Price Million bpd Million bpd Million bpd 105 7 120 300 Supply/consumption to Forecast balance after Q1 2017 100 6 100 250 Supply (left axis) 95 5 Oil demand Consumption (left axis) 80 200 90 4 USD /bbl 60 IEA judges around USD 80/bbl 150 85 3 in 2
Slide 9: Market Review
Market Review Oil Price (WTI) FPSO Awards (Historical + Forecast) Global Upstream Oil and Gas Investment Lease Turnkey USD No of Lease (forecast) Turnkey (forecast) Billion USD /bbl FPSO awards Speculative Petrobras serial FPSOs 800 160 30 700 140 25 600 120 20 500 100 400 80 15 300 60 Oil price 10
Slide 10: Offshore Oil Production in Brazil
Offshore Oil Production in Brazil Oil Production in Brazil Oil Production from Pre-salt non-Petrobras Petrobras Onshore Petrobras Other offshore Petrobras Pre-salt MODEC Pre-salt % 1.27Mbpd FPSOs (December 2016) 40% Million bpd 3.0 45% 2.0 30% Santos Basin Campos Basin Rio de Janeiro MV27 2016~ ★ MV
Slide 11: Main Prospective Projects (as of February 2017)
Main Prospective Projects (as of February 2017) Europe North America & Gulf of Mexico Asia & Pacific Africa Latin America Ghana Indonesia Brazil FPSO (Charter) FPSO (Charter) FPSO (Charter) FPSO (Charter) India FPSO (Charter) 11
Slide 12: FY2017: Outlook
FY2017 : Outlook Revenue Operating Profit Ordinary Profit Profit Attributable to Owners of Parent Billion JPY Billion JPY Billion JPY Billion JPY 400 378.5 20 40 25 18.0 21.0 15.0 20 295.5 29.4 18.0 15 30 254.4 25.0 229.9 15 200 190.0 10 20 18.3 8.5 15.8 10 12.8 5.0 5.8 5 3.7 10 4.9 5.4 5 0 0 0 0
Slide 13: Financial Results
MODEC, Inc. 2016 Financial Results Market Review Financial Highlights & Outlook Results 13
Slide 14: Profit & Loss
Profit & Loss 2015 2016 Variance Million JPY Revenue 295,596 229,987 (65,609) Gross profit increased by 11.4 billion yen Gross Profit 20,078 31,544 11,466 year-on-year due to EPC profit Selling, General and Administrative Expenses 15,003 13,526 (1,477) improvements and additional revenue from earl
Slide 15: Equity in Earnings of Affiliates
Equity in Earnings of Affiliates Operating Profit (as if consolidating affiliates basis) Equity in Earnings of Affiliates A A : Consolidated Operating Profit A+B B : Operating Profit (equity method portion) A+B+C C : Influence of Deferred/Realized Profits Billion JPY Million USD 40.3 40 39.1 100 MV2
Slide 16: Ordinary Profit
Ordinary Profit Influence of Deferred/Realized Profits Ordinary Profit (as if consolidating affiliates basis) A A : Consolidated Ordinary Profit Deferred Realized Balance A+B+C B : Ordinary Profit (equity method portion) C : Influence of Deferred/Realized Profits 2012 2013 2014 2015 2016 Billion JPY
Slide 17: New Orders / Revenue / Order Backlogs
New Orders / Revenue / Order Backlogs New Orders Revenue Order Backlogs Order backlogs for MODEC EPC(I) period Group’s share in the “Lease, Charter and O&M services” of Culzean the affiliates accounted for by Billion JPY MV29 the equity method MV27 987.9 1,000 MV25 896.6 MV26 MV24 OSX-3 761.6 MV23 7
Slide 18: Balance Sheet
Balance Sheet 2015 2016 Variance Million JPY Accounts Receivable - trade 145,752 95,544 (50,208) Accounts receivable decreased due to timing difference between EPC(I) Short-term Loans Receivable 20,239 55,012 34,773 progress and receiving of payment Total Current Assets 242,120 218,042 (24,078) Pr
Slide 19: Key Financial Indicators
Key Financial Indicators EBITDA Interest-Bearing Debt EBITDA (after adjustment*) Total interest-bearing debt (after adjustment*) EBITDA Interest Coverage Ratio Total interest-bearing debt/EBITDA Billion JPY X times Billion JPY X times 60 57.8 12.0 300 6.0 5.1 47.1 4.3 43.9 10.0 222.7 8.2 3.8 202.8 4
Slide 20: EPC(I) / Charter / O&M Period
As of February 2017 EPC(I) period Time Charter fixed period EPC(I) / Charter / O&M Period Time Charter option period O&M period 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 1 Culzean FSO (EPC契約) Maersk 2 Stampede TLP (ECM契約) Hess FPSO Cidade de Campos dos 3 1 29.4 Pe