Slide 1: 2007 Full-Year Financial Results Analyst Presentation
2007 FULL-YEAR FINANCIAL RESULTS ANALYST PRESENTATION FEBRUARY 22, 2008
Slide 2: Agenda
AGENDA I. 2007 HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 II. MARKET REVIEW & PROSPECTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 III. 2007 FINANCIAL RESULTS & 2008 FORECAST . . . . . . . . . . . . .
Slide 3: I. 2007 Highlights
I. 2007 HIGHLIGHTS FSO Rong Doi MV12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 FPSO Cidade do Rio de Janeiro MV14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 FSO Cidade de Macae MV15 . . . . . . . .
Slide 4: 2007 Highlights: FSO Rong Doi MV12
2007 HIGHLIGHTS: FSO Rong Doi MV12 KNOC Rong Doi FSO Charter Start: January 2007 EPCI + Time Charter Charter Period: 7 years + twenty three 1-year options Rong Doi / Rong Doi Tay fields, Vietnam 4
Slide 5: 2007 Highlights: FPSO Cidade do Rio de Janeiro MV14
2007 HIGHLIGHTS: FPSO Cidade do Rio de Janeiro MV14 Petrobras RJS-409 Espadarte Sul FPSO Charter Start: January 2007 EPCI + Time Charter Charter Period: 8 years + four 1-year options Espadarte Sul field, Brazil 5
Slide 6: 2007 Highlights: FSO Cidade de Macae MV15
2007 HIGHLIGHTS: FSO Cidade de Macae MV15 Petrobras PRA-1 FSO Charter Start: November 2007 EPCI + Time Charter Charter Period: 20 years Marlim Sul, Roncador and Marlim Leste fields, Brazil 6
Slide 7: 2007 Highlights: FPSO Stybarrow Venture MV16
2007 HIGHLIGHTS: FPSO Stybarrow Venture MV16 BHP Stybarrow FPSO Charter Start: November 2007 EPC + Time Charter Charter Period: 10 years + five 1-year options Stybarrow field, Australia 7
Slide 8: 2007 Highlights: 2007 FPSO/FSO Operations
2007 HIGHLIGHTS: 2007 FPSO/FSO OPERATIONS FSO FPSO FPSO FPSO Rong Doi MV12 MV 8 Langsa Venture Jasmine Venture MV7 Cuulong MV9 (Charter started in January 2007) FSO Ta’Kuntah FSO Cidade de Macae MV15 (Charter started in November 2007) FPSO Fluminense FPSO Cidade do Rio de Janeiro MV14 FPSO FPSO FPSO
Slide 9: 2007 Highlights: 2007 New Awards
2007 HIGHLIGHTS: 2007 NEW AWARDS TSJOC Song Doc FPSO BHP Pyrenees FPSO First Oil: Planned mid 2008 First Oil: Planned first half of 2010 EPCI + Time Charter EPC + O&M Charter Period: 5 years + five 1-year options Charter Period: 15 years + possible extensions Song Doc field, Vietnam Pyrenees field,
Slide 10: 2007 Highlights: 2007-2008 Projects in Progress
2007 HIGHLIGHTS: 2007-2008 PROJECTS IN PROGRESS FPSO Cidade de Niteroi MV18 New Order in 2007 New Order in 2007 (Petrobras Opportunity Oil FPSO) BHP Pyrenees FPSO TSJOC Song Doc FPSO First Oil: Planned 4Q 2008 First Oil: Planned first half of 2010 First Oil: Planned mid 2008 MODEC will own and opera
Slide 11: 2007 Highlights: Other Topics
2007 HIGHLIGHTS: OTHER TOPICS Image courtesy of Velocys, Inc. Master Agreements with COSCO and GTL Joint Venture Agreement with COOEC Velocys and Toyo Engineering FPSO MV 8 Langsa Venture FPSO MODEC Venture 1 x Write off the investment made by • Terminated the oil production at MODEC Production (Lan
Slide 12: II. Market Review & Prospects
II. MARKET REVIEW & PROSPECTS MAJOR ORDERS IN 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 LEASE/OPERATION UNITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 PROSPECTIVE PROJECTS . . . . . . .
Slide 13: Major Orders in 2007
MAJOR ORDERS IN 2007 EnCana Deep Panuke MOPU (Canada) SBM 8 years Petrobras Chinook/Cascade FPSO (GOM) BW Offshore 5 years + 3 years Petrobras P-57 FPSO (Brazil) SBM 3 years (O&M) Petrobras 2 FSRUs (Brazil) 2 FSRUs Petrobras Golar(Brazil) LNG 10Golar yearsLNG 10 years TSJOC Song Doc BHP Pyrenees FPS
Slide 14: Lease/Operation Units
LEASE/OPERATION UNITS Under Cons truction In Operation North Am erica Europe 2 1 1 1 1 MODEC SBM Pros afe BW MODEC SBM Pros afe BW Offs hore Offs hore Wes t Africa As ia & Pacific Brazil 1 3 3 9 1 7 1 1 6 4 3 3 3 2 3 1 1 1 MODEC SBM Pros afe BW MODEC SBM Pros afe BW MODEC SBM Pros afe BW Offs hore O
Slide 15: Prospective Projects
PROSPECTIVE PROJECTS Anadarko K-2 Injection CP Semi (GOM) BP Tubular Bells TLP (GOM) Kosmos International West Cape Three Points FPSO (Ghana) Petrobras FSRU ChevronTexaco (Brazil) Block 14 FPSO (Angola) Petrobras TLP BP Block 18&31 (Brazil) FPSO (Angola) Petrobras Gas Opportunity #2 FPSO (Brazil) Ch
Slide 16: Time Charter / O&M Period
TIME CHARTER / O&M PERIOD Time Charter Contract O&M Contract Fixed period Option period Fixed period Option period 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 BHP Pyrenees FPSO - FPSO Cidade de Niteroi MV 18 * JV PC Rang Dong MV 17 FSO * T
Slide 17: Project Locations
PROJECT LOCATIONS FSO FSO Rong Doi FPSO FSO Nanhai FPSO Nanhai FPSO Kakap FPSO Anoa Vietsovpetro 01 MV12 Cuulong MV9 Sheng Kai Sheng Li Natuna Natuna Prince TLP JVPC Rang Dong MV17 FSO TSJOC Song Doc MV19 Marco Polo FPSO TLP FPSO Jasmine Venture MV7 Shenzi TLP FSO FSO Ta’Kuntah Pathumabaha FPSO MV 8
Slide 18: III. 2007 Financial Results & 2008 Forecast
III. 2007 FINANCIAL RESULTS & 2008 FORECAST SALES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 SALES BY SERVICE TYPES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 ORDIN
Slide 19: Sales
SALES SALES Sales Ordinary Incom e Net Incom e 144,040 200,000 150,000 10,000 144,040 150,000 99,149 (Mil. JPY) 100,000 (Mil. JPY) 99,149 71,614 100,000 66,751 71,614 5,000 66,751 51,891 51,891 50,000 50,000 0 0 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 (Mil. JPY) 2003 2004 2005 2006 2007
Slide 20: Sales by Service Types
SALES BY SERVICE TYPES Other SALES EPCI Lease, Charter and O&M 150,000 SALES form EPCI 100,000 (Mil. JPY) 121,892 • BHP Pyrenees FPSO • TSJOC Song Doc MV19 FPSO 83,016 50,000 • FPSO Cidade de Niteroi MV18 (Petrobras Opportunity FPSO) 57,864 54,974 39,422 • JVPC Rang Dong MV17 FSO 9,148 14,166 15,154
Slide 21: Ordinary Income
ORDINARY INCOME ORDINARY INCOME INFLUENCE OF DEFERRED PROFITS Def erred Realized Balance ORDINA RY INCOME ORDINA RY INCOME bef ore def erred prof its adjustment 2003 2004 2005 2006 2007 9,094 6,000 10,000 4,796 4,000 3,530 5,880 7,828 (Mil. JPY) 5,146 2,575 (Mil. JPY) 5,025 2,313 5,000 3,504 1,251 1
Slide 22: Net Income
NET INCOME NET INCOME 5,000 4,499 • Extraordinary loss: approx. 2 billion yen 3,213 3,305 Write off of the investment made by MODEC Production (Langsa) Pte Ltd. in the Langsa field development (Mil. JPY) 2,230 2,500 2,029 • Extraordinary profit: approx. 0.8 billion yen Sale of securities 0 2003 2004
Slide 23: Orders by Service Types
ORDERS BY SERVICE TYPES ORDERS Other EPCI Lease, Charter and O&M 2006 200,000 • FPSO Cidade de Niteroi MV18 (Petrobras Opportunity FPSO) • Shenzi TLP 150,000 • JVPC Rang Dong MV17 FSO (Mil. JPY) 109,084 126,864 • FPSO Stybarrow Venture MV16 100,000 73,963 50,000 59,204 2007 24,717 55,044 • BHP Pyren
Slide 24: Order Backlogs by Service Types
ORDER BACKLOGS BY SERVICE TYPES Other ORDER BACKLOGS Equity Method Portion ORDER BACKLOGS EPCI Lease, Charter and O&M Lease, Charter and O&M (Leas e, Charter and O&M) 400,000 300,000 300,000 200,000 99,413 (Mil. JPY) (Mil. JPY) 113,040 200,000 133,792 82,689 48,894 77,744 100,000 100,000 36,440 156,
Slide 25: Cash Flow
CASH FLOW Cash Flow f rom Operating Activities CA SH FLOW Cash Flow f rom Investing Activities Cash Flow f rom Financing A ctivities 19,003 20,000 11,878 11,716 11,867 9,623 10,000 7,290 5,452 5,164 5,157 -498 0 (Mil. JPY) -10,000 -8,629 -11,242 -14,402 -20,000 -20,043 -21,549 -30,000 2003 2004 2005
Slide 26: Key Financial Figures
KEY FINANCIAL FIGURES (Mil. JPY) 2003 2004 2005 2006 2007 Variance Operating profit 4,147 3,779 3,895 3,494 6,959 + 3,465 Depreciation and am ortization 1,834 635 1,116 662 1,656 + 994 Am ortization of cons olidated differences 13 26 26 26 13 - 13 Collection of leas e receivable (Cantarell FSO, Inc.
Slide 27: Forecast for FY2008
FORECAST FOR FY2008 SALES 200,000 144,040 140,000 150,000 Projects in progress in 2008 (Mil. JPY) 99,149 100,000 66,751 71,614 • BHP Pyrenees FPSO 51,891 • TSJOC Song Doc MV19 FPSO 50,000 • FPSO Cidade de Niteroi MV18 (Petrobras Opportunity FPSO) 0 • JVPC Rang Dong MV17 FSO 2003 2004 2005 2006 2007
Slide 28: Forecast for FY2008
FORECAST FOR FY2008 SALES ORDINARY INCOME 200,000 ORDINA RY INCOME ORDINA RY INCOME bef ore def erred prof its adjustment 144,040 140,000 10,000 9,094 150,000 (Mil. JPY) 99,149 5,880 7,828 (Mil. JPY) 100,000 5,025 5,146 66,751 71,614 6,500 5,000 3,504 51,891 5,408 50,000 4,664 3,701 3,190 0 0 2003 2