Modec, Inc. · TSE:6269
Modec — Investor Presentation (February 2024)
24 slides from Modec's investor presentation, Feb 14, 2024
Slide 1: MODEC Group Mid-term Business Plan 2024-2026
MODEC Group Mid-term Business Plan 2024-2026 February 14, 2024 Update on February 13, 2025: Revision of the financial targets for 2026 as shown in page 16
Slide 2: Outline
Outline Introduction Mid-term Business Plan 2024-2026 Overall Framework......................................................... 2 Overall Strategy..............................................................12 New Vision, Mission and Core Values............................. 5 Enhance Earning Power
Slide 3: Introduction
Introduction Overall Framework New Vision, Mission and Core Values Review of MTP 2021 – 2023 Business Environment Recognition
Slide 4: Overall Framework
Overall Framework Vision , Mission and Core Values p.5 Sustainability Foundation Code of Business Conduct & Ethics Materiality p.9 Stable and Sustainable Supply of Energy Climate Change Mitigation Operational Excellence New Value Creation through Innovation Organization with Integrity and Transparen
Slide 5: New Vision, Mission and Core Values
New Vision, Mission and Core Values VISION Pioneering a world where the ocean and humanity co-exist in harmony MISSION Unlocking the ocean's potential by supplying unique floating solutions for a sustainable future CORE VALUES MODEC is committed to our OCEAN One team Unifying a diverse MODEC through
Slide 6: Review of MTP 2021 - 2023
Review of MTP 2021 - 2023 Financial Results Strategies • Despite the COVID-19 pandemic maintained and Net Profit (*) improved asset integrity utilizing Flotels ROE 10.7% Asset (Million USD) Integrity • Developed innovative tank maintenance and 100 96 inspection method together with business partners
Slide 7: Business Environment Recognition
Business Environment Recognition • Increasing social requirements to mitigate climate change • Continuous growth of world population • Diversification of values and lifestyles Long-term (10 + years) Long-Term • Increasing geopolitical risks, uncertainty and complexity • Acceleration of worldwide eff
Slide 8: Materiality & Vision 2034
Materiality & Vision 2034 Our Materiality Vision 2034
Slide 9: Our Materiality
Our Materiality Materiality : the important sustainability challenges that the MODEC Group must address Stable and Sustainable Supply of Energy Climate Change Mitigation ・Contribute to a stable and sustainable energy supply ・Minimize GHG and other emissions across our business by ensuring reliable o
Slide 10: Vision 2034 Global Leading Player in Connecting Ocean and Humanity
Vision 2034 Vision 2034 “Global Leading Player in Connecting Ocean and Humanity” World's best FPSO builder and operator achieving the FPSO Smallest Carbon Footprint alongside safety and high uptime Materiality Floating Essential player in Floating Offshore Wind based on Offshore Wind our Unique Ocea
Slide 11: Mid-term Business Plan 2024-2026
Mid-term Business Plan 2024-2026 Overall Strategy Enhance Earning Power FY2026 Financial Target Strategic Resource Allocation & Acquisition Advance FPSO Decarbonization Pave the Way for Materializing New Business Enhancing Group Collaboration and Synergies Improving Group Governance pursuing Sustain
Slide 12: MTP 2024-2026 Explore a Sustainable Future with Innovation
Mid-term Business Plan 2024 - 2026 MTP 2024 - 2026 “Explore a Sustainable Future with Innovation” FPSO Floating Commence operation of Offshore Wind world’s first FPSO with GTCC (*) Development of 15MW class 1 2 2 3 4 or larger demo plant Pave the Way for Advance FPSO Materializing New Decarbonizatio
Slide 13: Enhance Earning Power
Mid-term Business Plan 2024 - 2026 3 4 1 2 Enhance Earning Power 5 6 Increased Profit Base Operational Excellence as Global Leading FPSO Player FPSO Under FPSO Delivered EPCI Operation Construction • Maximize customer value with our • Maintain higher uptime supported by improvement sophisticated sch
Slide 14: Enhance Earning Power: Project Prospects
Mid-term Business Plan 2024 - 2026 3 4 1 2 Enhance Earning Power 5 6 Project Prospects Project Timeline World Total Bidding & Final Design 56 Planning 90 Appraisal 36 China Canada 0 2 3 0 Northern Europe 2 1 1 6 2 Southeast Asia GOM 16 4 24 6 Mediterranean 5 4 4 2 Southwest Asia & Middle East Brazil
Slide 15: Order Backlog and Net Cashflow from Charter Business
Mid-term Business Plan 2024 - 2026 3 4 1 2 Enhance Earning Power 5 6 Order Backlog Net Cashflow from Charter Business * （Billion USD） （Million USD） 30.0 27.2 MTP 2024-2026 300 24.7 24.7 23.2 21.9 250 10.4 MODEC’s share of 20.0 SPC’s contractual cashflow 17.1 200 12.1 12.0 11.6 11.1 150 7.3 10.0 11.2
Slide 16: Financial KPIs and FY2026 Targets
Mid-term Business Plan 2024 - 2026 3 4 1 2 Enhance Earning Power 5 6 Financial KPIs （Million USD） FY 2026 Reason for the revision of financial targets for 2026 FY 2023 FY 2024 FY 2025 Feb 2024 Feb 2025 • The improved business performance due to the (Actual) (Actual) (Forecast) Original Targets Revis
Slide 17: Strategic Resource Allocation & Acquisition
Mid-term Business Plan 2024 - 2026 3 4 1 2 Strategic Resource Allocation & Acquisition 5 6 Add-Value to our FPSO • Advance FPSO decarbonization • Improve FPSO business safety and efficiency Enhance Earning • Strengthen project management capabilities Power Resources • EPCI delivery and quality New B
Slide 18: Advance FPSO Decarbonization
Mid-term Business Plan 2024 - 2026 3 4 1 2 Advance FPSO Decarbonization 5 6 Up to 2023 2024 - 2026 Vision 2034 Preparation for FPSO Carbon Intensity (*2) Incremental Reduction Radical Reduction Target Zero FPSO as a Strategic KPI Low Carbon FPSO Gen 1.0 Gen 2.0 Gen 3.0/4.0 • Reduced emissions by : •
Slide 19: Pave the Way for Materializing New Business
Mid-term Business Plan 2024 - 2026 3 4 1 2 Pave the Way for Materializing New Business 5 6 Floating Offshore Wind Alternative Energy • Move forward with development of 15MW class • Prepare for future needs in the emerging non-oil or larger floating offshore wind demo plant (ammonia, methanol, hydrog
Slide 20: Embedding Sustainability in our Business Foundation
Mid-term Business Plan 2024 - 2026 Embedding Sustainability in our Business Foundation Enhancing Group Collaboration Improving Group Governance 3 4 3 4 1 2 pursuing Sustainability 1 2 5 6 and Synergies 5 6 Digitally Enhanced Management System Sustainability Management • Implement an enhanced managem
Slide 21: Going Beyond
Going Beyond Our Aspiration for Net Zero 2050 Our View of the World : Ocean is Full of Potential
Slide 22: Our Aspiration for Net Zero 2050
Our Aspiration for Net Zero 2050 We aspire to achieve Net Zero(*1) carbon emissions by 2050 as a result of implementing the business strategy, including FPSO decarbonization with significantly reduced FPSO Carbon Intensity and new business development. Path Toward Net Zero 2050 We aspire to achieve
Slide 23: Our View of the World: Ocean is Full of Potential
Our View of the World : Ocean is Full of Potential Floating Floating Offshore Storage Logistics Plants Bases Ocean Floating Deepwater Residences Ocean Mineral Resources Leisure Our Vision Pioneering a world where Methane the ocean and humanity Hydrate Fisheries co-exist in harmony Food Oil and Gas A
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