Slide 1: MODEC, Inc. 2015 Half-Year Financial Results Analysts Presentation
MODEC, Inc. 2015 Half-Year Financial Results Analysts Presentation August 6, 2015
Slide 2: Agenda
2015 Half-Year Highlight Market Review & Outlook Financial Results Mid-term Business Plan 2017 2
Slide 3: 2015 Half-Year: Highlight
2015 Half-Year : Highlight Revenue Ordinary Profit (billion JPY) 1H 2H (billion JPY) 1H 2H 400 378.5 20 18.3 216.5 15.8 12.4 300 254.4 5.9 186.8 147.1 9.2 200 10 129.9 101.2 7.2 9.8 161.9 156.7 5.0 100 72.5 107.2 2.3 5.8 85.6 57.3 2.6 2.0 2.6 0 0 2011 2012 2013 2014 2015 1H 2011 2012 2013 2014 2015
Slide 4: 2015 Half-Year: Highlight
2015 Half-Year : Highlight Recording of Expenses at MV11BV Increase in Equity Participation Production temporarily suspended due to Equity participation in MV26BV and failure; approx. 2 billion yen of impact at MV27BV increased; approx. 1 billion yen of MV11BV for repair cost and other related p
Slide 5: 2015 Half-Year: FPSO Cidade de Itaguai MV26
2015 Half-Year : FPSO Cidade de Itaguai MV26 Charter service to start in 3Q 2015 Rio de Janeiro Campos basin Santos basin Charter / O&M fleet in Brazil Santos Basin Campos Basin 2016~ MV27 ★ 2017~ MV29 MV26 ★ MV18 MV24 ★ MV15 MV23 ★ MV14 MV22 ★ Fluminense (O&M) MV20 ★ Pre-salt FPSO Cidade de Itagu
Slide 6: Units on Order
Units on Order FPSO FPSO FPSO FPSO Hess Cidade de Prof. John Evans Cidade de Cidade de Campos Stampede Itaguai Atta Mills Caraguatatuba dos Goytacazes TLP MV26 (MV25) MV27 MV29 Client Petrobras Tullow Petrobras Petrobras Hess Contract EPCI + Time Charter EPCI + Time Charter EPCI + Time Charter EPCI
Slide 7: Time Charter / O&M Period
As of August 2015 Time Charter (Own & Operate) Time Charter / O&M Period in operation 13 units 10 FPSOs 3 FSOs under construction 4 FPSOs Time Charter fixed period O&M (Operate) Time Charter option period in operation 4 FPSOs O&M period 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 202
Slide 8: Market Review & Outlook
2015 Half-Year Highlight Market Review & Outlook Financial Results Mid-term Business Plan 2017 8
Slide 9: 2015 Half-Year: Market Review
2015 Half-Year : Market Review FPSO Awards Petrobras BMP 2015-2019 Year – Installed/Fist Oil Production Units to be bid Production Units on order GOM Europe Pacific Asia Africa Brazil Petrobras Production Targets (Oil & NGL) (mil bpd) Previous BMP Production Targerts 26 4 • Marlim I Revitalization I
Slide 10: Prospective Projects
Prospective Projects UK GOM • FSO (EPCI) • FPSO (EPCI + Charter) • TLP, Semi or FPSO (TBA) Norway • TLP Europe North America Asia Africa & Pacific South Ghana America • FPSO (TBD) • TLP Angola • FPSO (EPCI + O&M) Indonesia • FPSO (EPC + O&M) • FPSO (EPCI + Charter) Brazil • FPU (EPCI + Charter) • Pe
Slide 11: FY2015: Outlook
Exchange Rate on Closing Dates ($/¥) FY2015 : Outlook 2011 2012 2013 2014 2015(F) 77.74 86.56 105.37 120.56 110.00 Revenue Operating Profit (billion JPY) (billion JPY) 400 378.5 10 8.5 300.0 254.4 186.8 200 5 3.7 129.9 3.4 3.0 0.2 0 0 2011 2012 2013 2014 2015(F) 2011 2012 2013 2014 2015(F) Ordinary
Slide 12: Financial Results
2015 Half-Year Highlight Market Review & Outlook Financial Results Mid-term Business Plan 2017 12
Slide 13: Profit & Loss
Profit & Loss Variance 2014 1H 2015 1H 2014 1H 2014 (million JPY) 2015 1H Revenue 161,977 156,773 (5,204) 378,523 - FPSO construction on track - Recorded FPSO repair cost at a consolidated Gross Profit 9,112 5,136 (3,976) 21,958 subsidiary - Equity participation in affiliates accounted for by the Se
Slide 14: Revenue
Revenue Revenue Project Timeline EPC(I) Period Time Charter Period (billion JPY) 400 378.5 MV29 300 254.4 MV27 200 186.8 156.7 MV25 129.9 100 MV26 0 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 1H 14
Slide 15: Operating Profit
Operating Profit Equity Method Affiliates Influence of Deferred Profit & Deferred Profit Deferred/Realized Profit recorded during construction phase Operating Profit equivalent to MODEC's share in affiliates Deferred Realized Balance accounted for by the equity method Operating Profit (Before Adjust
Slide 16: New Orders & Order Backlogs
New Orders & Order Backlogs New Orders Order Backlogs MODEC Group's share in the "Lease, Charter and O&M services" of the affiliates accounted for by the equity method (billion (billion (billion JPY) JPY) JPY) 987.9 1,000 1,000 1,000 896.6 821.9 745.2 703.8 543.6 551.2 518.4 500 500 500 395.7 342.6
Slide 17: Balance Sheet
Balance Sheet 2014 2015 1H Variance (million JPY) - Decrease due to collection of loans receivable from Short-term Loans Receivable 41,008 36,131 (4,877) SPCs Total Current Assets 259,992 252,446 (7,546) Property and Equipment 16,924 21,555 4,631 Intangible Assets 7,795 7,484 (311) Investments and O
Slide 18: Key Financial Indicators
Key Financial Indicators Operating Profit & EBITDA Interest-Bearing Debt Operating profit (equity method portion) Total interest-bearing debt (after adjustment) EBITDA (after adjustment) Total interest-bearing debt/EBITDA (x times) (billion JPY) EBITDA Interest Coverage Ratio (x times) (billion JPY)