Slide 1: MODEC, Inc. Mid-term Business Plan 2017
MODEC, Inc. Mid-term Business Plan 2017 May 2015
Slide 2: Table of Contents
Table of Contents 1. Review of previous Mid-term Business Plan (2012-2014) 2. Environment analysis for the next three years 3. Countermeasures and strategies 4. Quantitative goals 5. What we want to be 10 years from now 2
Slide 3: 1. Review of previous Mid-term Business Plan (2012-2014)
1. Review of previous Mid-term Business Plan (2012-2014) 2. Environment analysis for the next three years 3. Countermeasures and strategies 4. Quantitative goals 5. What we want to be 10 years from now 3
Slide 4: 1-1. Review: Projects
1-1. Review : Projects Secured orders in Brazil and Africa, our major target regions 2012 2013 2014 Petrobras Petrobras Petrobras Carioca FPSO Tartaruga FPSO Iracema Norte (Brazil) (Brazil) FPSO (Brazil) Tullow TEN FPSO (Ghana) 4
Slide 5: 1-2. Review: Financial Results
1-2. Review : Financial Results Revenue 378.5 billion yen (3,140 million USD) Operating profit 8.5 billion yen (71 million USD) / (12.8 billion yen before deferred profit adjustment) Revenue Revenue Operating Profit Operating Profit (Million USD) (Million USD) 4,000 80.0 3,500 70.0 3,000 60.0 2,500
Slide 6: 1-3. Review: New Business Development
1-3. Review : New Business Development Executed R&D for LNG and other new business skwid DWAL LiBro® FLNG Floating Wind & Current Deep Water Air Lift Hybrid Power Generation system system Executed FEED* Completed prototype unit R&D ongoing Sunken unit under Cooperating with JOGMEC investig
Slide 7: 2. Environment analysis for the next three years
1. Review of previous Mid-term Business Plan (2012-2014) 2. Environment analysis for the next three years 3. Countermeasures and strategies 4. Quantitative goals 5. What we want to be 10 years from now 7
Slide 8: 2-1. External Environment
2-1. External Environment Later half of 2014-2015 2016 Mid-long term view Shale development will slow Energy demand will increase Macro Economy slowed down, down, energy demand will due to growth in global shale oil & geopolitical risks economy increase due to economic population and economy of impa
Slide 9: 2-1. FPS Market
2-1. FPS Market Floating Production Systems (in service, on order, prospects）as of April 2015 FPS market will continue to expand Northern Europe China Canada 27 9 8 10 48 16 2 Mediterranean Southeast Asia Gulf of Mexico 13 36 27 2 14 4 10 80 54 Africa Southwest Asia & Middle East Brazil 44 10 41 12
Slide 10: 2-2. Internal Environment
2-2. Internal Environment Revenue from EPCI has expanded due to increase in project Earning sizes and stable order intake Capability Constant profit from charter business has increased as an outcome of accumulation of good charter projects Project Management capability has been strengthened fo
Slide 11: 2-2. Robust Charter/O&M Experiences
2-2. Robust Charter/O&M Experiences 2000 2015-2017 O&M experiences: O&M experiences: 7 years + ■ Charter projects 200 years + （First oil during 2015-2017） EPCI track record: EPCI track record: MV29 11 projects + ■ Charter/O&M projects 45 projects + （including option periods） (At year-end 2000) (At y
Slide 12: 2-2. Focus on High-spec Projects
2-2. Focus on High-spec Projects FPSO Awards (2010-2015) As of April 2015 Production (bopd) Contractor managed project MODEC Project Oil company managed project 200,000 High-spec projects (Larger/Complex/Deeper) Larger production volume 150,000 100,000 50,000 Deeper 0 0 500 1,000 1,500 2,000 2,500 3
Slide 13: 2-3. Environment Analysis Summary
2-3. Environment Analysis Summary Internal External Strength Well-balanced earnings structure Oppor- Expansion of technically between EPCI and charter tunities challenging projects esp. in Track record in large scale and deep ultra-deep water market in a water projects long term Current 150
Slide 14: 2-4. What is ASSET INTEGRITY?
2-4. What is ASSET INTEGRITY? ASSET INTEGRITY is Asset To design and construct a Management facility which can produce oil and gas stably and efficiently in a long period as required by clients, FEED and To maintain the productivity ASSET and condition of the facility in INTEGRIGY order to provide e
Slide 15: 3. Countermeasures and strategies
1. Review of previous Mid-term Business Plan (2012-2014) 2. Environment analysis for the next three years 3. Countermeasures and strategies 4. Quantitative goals 5. What we want to be 10 years from now 15
Slide 16: 3-1. ASSET INTEGRITY enhancement
3-1. ASSET INTEGRITY enhancement Pursue higher customer satisfaction Provision of design and production service necessary Customer for long term and stable oil and gas production ASSET INTEGRITY enhancement perspective New technology, innovative production facility Execution of R&D ASSET INTEGRI
Slide 17: 3-2. New Business Development
3-2. New Business Development Continuous endeavor for the future business Natural gas hydrates Submarine hydrothermal Rare earth elements polymetallic ore deposit Source: JOGMEC Source: JOGMEC, University of Tokyo (Left) Burning of synthetic natural gas hydrates Source: MH21 Research Consortium Deve
Slide 18: 3-3. Strengthening Competitiveness
3-3. Strengthening Competitiveness Pursue higher customer satisfaction Customer Provision of FEED, EPCI and production services perspective with competitive price and quality Strengthening competitiveness Strengthening competitiveness Streamlining of EPCI and O&M, strengthening cost control, whi
Slide 19: 3-4. Countermeasures and Strategies
3-4. Countermeasures and Strategies Revenue 3,500 million USD Finance Net profit 100 million USD perspective ROE 10% Customer Pursue higher customer satisfaction perspective ASSET INTEGRIGY enhancement Internal Strengthening business competitiveness process perspective Execution of R&D Efficient org
Slide 20: 4. Quantitative goals
1. Review of previous Mid-term Business Plan (2012-2014) 2. Environment analysis for the next three years 3. Countermeasures and strategies 4. Quantitative goals 5. What we want to be 10 years from now 20
Slide 21: 4. Quantitative Goals
size Net profit 4. Quantitative Goals color Net profit ratio Robust & well-muscled structure to realize 20 Net profit (million USD) number Revenue 7% Net profit ratio(%) further growth (Million USD) Improvement of earning capability Expansion in 100 3,000 business scale 2.9% Increase in Revenue (wit
Slide 22: 5. What we want to be 10 years from now
1. Review of previous Mid-term Business Plan (2012-2014) 2. Environment analysis for the next three years 3. Countermeasures and strategies 4. Quantitative goals 5. What we want to be 10 years from now 22
Slide 23: 5. What we want to be 10 years from now
5. What we want to be 10 years from now MODEC WILL BE THE NO.1 ENERGY PRODUCTION SERVICE PROVIDER by utilizing variety of floating facilities. 23
Slide 24: Disclaimer
Disclaimer The information contained in this material is based on a set of assumptions and is not guaranteed as to its materialization of financial visions or corporate strategies. 24