Slide 1: MODEC, Inc. 2018 Financial Results Analysts Presentation
MODEC, Inc. 2018 Financial Results Analysts Presentation February 6, 2019
Slide 2: Highlight / Market Review & Outlook / Financial Results
Highlight Market Review & Outlook Financial Results
Slide 3: FY2018: New Award
FY2018 : New Award 2 3 5 4 Track Record in Gulf of Mexico FSO 1 FSO Ta’Kuntah 1 - EPCI + Time Charter TLP Stampede TLP Eni Mexico Area 1 FPSO 2 - EPCM + Commissioning Client Eni Mexico S. de R.L. de C.V. Contract EPCI＋Charter （15years + 5 one-year Shenzi TLP 3 extension options） - EPC + pre-commissi
Slide 4: FY2018: Delivered Units
FY2018: Delivered Units FPSO Cidade de Campos dos Goytacazes FSO Ailsa MV29 Client Maersk Client Petrobras Field Culzean Charter Period 20 years Water Depth 90m Field Tartaruga Verde & Tartaruga Mestiça Oil Handling 25,000 bopd Inlet Water Depth 765m Storage Production 150,000 bopd, 176 mmscfd 430,0
Slide 5: FY2018: Highlights
FY2018 : Highlights New Orders Revenue Billion JPY Billion JPY 800 400 378.5 700.9 295.5 229.9 221.9 395.7 191.1 400 200 253.6 188.7 92.7 0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Awarded a charter contract from ENI Revenue from both EPCI and O&M increased 5
Slide 6: FY2018: Highlights
FY2018 : Highlights Operating Profit Ordinary Profit Profit Attributable to Dividends per Share Owners of Parent Billion JPY Billion JPY Billion JPY Yen 29.4 60 20 30 28.7 25 18.0 21.8 52.50 21.0 50.00 24.3 19.4 14.9 20 15 37.50 20 18.3 40 35.00 11.4 15 32.50 10 8.5 12.8 10 5.0 10 20 5.4 5.8 5 5 0 0
Slide 7: FY2018: EPC(I)
FY2018：EPC(I) FSO Ailsa FPSO Cidade de FPSO FPSO Eni Mexico Campos dos Carioca MV30 Guanabara MV31 Area 1 FPSO Goytacazes MV29 Client Maersk Petrobras Petrobras Petrobras Eni Contract EPC EPCI + Time Charter EPCI + Time Charter EPCI + Time Charter EPCI + Charter （20 years） （21 years） （22 years） (15
Slide 8: EPC(I) / Charter / O&M Period
As of December 2018 EPC(I) period EPC(I) / Charter / O&M Period Time Charter fixed period Time Charter option period O&M period 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 1 TBD FPSO Area 1 Mexico MV34 Eni 15y 2 20.1 FPSO Guanabara MV31 Petrobras 22y 3 20.1 FPSO Car
Slide 9: Highlight / Market Review & Outlook / Financial Results
Highlight Market Review & Outlook Financial Results
Slide 10: Leased FPSOs (Share by Number of Leased FPSO)
Leased FPSOs (Share by Number of Leased FPSO)) As of July, 2016 As of December, 2018 MODEC, 13, Own Lease 15% Own Lease 107 85 109 86 MODEC, 14, 44% 56% 44% 19% 55% No.of leased FPSOs No. of leased FPSOs 22 On order In service 20 On order In service 20 20 14 14 13 13 13 12 10 9 10 8 10 6 4 4 3 2 2 2
Slide 11: Leased FPSOs (Share by Oil Production Capacity)
Leased FPSOs (Share by Oil Production Capacity)) As of July, 2016 As of December, 2018 MODEC MODEC 1,285 Kbpd 1,605 Kbpd 22% 25% Thousand bpd Thousand bpd 1,715 1,800 On order Inservice 1,800 1,605 1,435 1,285 1,200 1,200 921 786 835 711 574 549 600 600 369 299 185 200 161 171 170 161 0 0 MODEC Othe
Slide 12: Market View
Market View Oil & Natural Gas Prices (WTI/Henry Hub) FPSO Awards (Historical + Forecast) USD/bbl USD/Million BTU Lease Turnkey 150 15 No of Lease (forecast) Turnkey (forecast) FPSO awards Speculative Petrobras serial FPSOs 100 10 30 50 5 25 0 0 2000 2005 2010 2015 Source: EIA 20 Demand by Energy Typ
Slide 13: FY2019: Outlook
FY2019 : Outlook Revenue Operating Profit Ordinary Profit Profit Attributable to Owners of Parent Billion JPY Billion JPY Billion JPY Billion JPY 400 20 40 25 18.0 350.0 21.8 21.0 20 19.4 295.5 14.9 29.4 15 30 28.7 24.3 229.9 11.4 15 221.9 191.1 10 20 12.0 200 18.0 8.0 10 12.8 5.0 5.8 5 10 5 0 0 0 0
Slide 14: Highlight / Market Review & Outlook / Financial Results
Highlight Market Review & Outlook Financial Results
Slide 15: Profit & Loss
Profit & Loss 2017 2018 Variance Million JPY Revenue 191,182 221,909 30,727 Gross profit increased by 1.8 billion yen Gross Profit 24,804 26,557 1,753 mainly due to increase of EPCI revenue and improvement of profitability of O&M Selling, General and Administrative Ecpenses 13,356 11,628 (1,728) s
Slide 16: New Orders / Revenue / Order Backlogs
New Orders / Revenue / Order Backlogs New Orders Revenue Order Backlogs EPC(I) period Order backlogs for Mero MODEC Group’s Sépia share in the “Lease, Charter and O&M FSO Ailsa Billion JPY services” of the MV29 affiliates accounted for 1,200 1,144.4 Stampede by the equity method 1,087.6 MV27 MV25 98
Slide 17: Operating Income / Equity in Earnings of Affiliates
Operating Income/ Equity in Earnings of Affiliates Operating Profit Equity in Earnings of Affiliates (as if consolidating affiliates basis) A A : Consolidated Operating Profit A+B B : Operating Profit (equity method portion) A+B+C C : Influence of Deferred/Realized Profits Million USD Billion JPY MV
Slide 18: Ordinary Profit
Ordinary Profit Ordinary Profit (as if Influence of Unrealized Profits consolidating affiliates basis Deferred Realized Balance A A : Consolidated Ordinary Profit A+B+C B : Ordinary Profit (equity method portion) 2014 2015 2016 2017 2018 C : Influence of Deferred/Realized Profits Billion JPY Billion
Slide 19: Balance Sheet
Balance Sheet 2017 2018 Variance Million JPY Cash and deposits increased due to the temporary Cash and Deposits 31,380 51,215 19,835 retention of construction loan repayment from SPC Short-tem loans receivable decreased due to collection Short-term Loans Receivable 46,282 43,021 -3,261 of loans
Slide 20: Key Financial Indicators
Key Financial Indicators EBITDA Interest-Bearing Debt EBITDA（after adjustment*） Total interest-bearing debt（after adjustment*） EBITDA Instant Coverage Ratio Total interest-bearing debt/EBITDA Billion JPY X times Billion JPY X times 60 57.8 12.0 5.5 53.3 53.4 222.7 47.1 202.8 43.9 10.0 200 5.1 8.2 16
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