Modec, Inc. · TSE:6269
Modec — FY2005 Earnings Presentation
25 slides from Modec's earnings presentation, Feb 17, 2006
Slide 1: Final Results 2005 Analysts Presentation
MODEC FINAL RESULTS 2005 ANALYSTS PRESENTATION February 17, 2006 P. 1
Slide 2: Contents
CONTENTS I. FY 2005 HIGHLIGHT P. 3 II. PROFIT & LOSS P. 13 III. BALANCE SHEET & CASH FLOW P. 18 IV. FINANCIAL INDICATOR P. 22 V. FORECAST for FY 2006 P. 24 P. 2
Slide 3: I. FY 2005 Highlight
I. FY 2005 HIGHLIGHT 1. NEWLY AWARDED PROJECTS 2. CHARTER START PROJECTS 3. PROGRESS OF EPCI WORKS 4. MARKETING ACTIVITIES in 2005 2ND HALF A: MAJOR PROSPECTIVE PROJECTS in 2006 B: MAJOR FPSO/FSO ORDERS in 2005~2006 C: CHARTER/O&M PROJECTS COMPARISON D: PROJECT LOCATION E: CHARTER and O&M PERIOD P.
Slide 4: Newly Awarded Projects
FY 2005 HIGHLIGHT 1. NEWLY AWARDED PROJECTS KNOC Rong Doi FSO (Vietnam) Client: KNOC (Korea National Oil Corporation) Charter project (New Built) Charter Period: 7 years + option (1 x max.23 years) First Oil: planned 2006 2nd half Shipyard: Yantai Raffles Shipyard (China) Petrobras PRA-1 FSO (Brazil
Slide 5: Charter Start Projects
FY 2005 HIGHLIGHT 2. CHARTER START PROJECTS PEARL Jasmine FPSO (Thailand) Client: PEARL Energy Pte Ltd. Charter period: 2.5 years + option (max. 7 years including option period) First Oil: June 2005 Charter start: June 2005 800,000 bbl Storage; 20,000 bopd Santos Mutineer-Exeter FPSO (Australia) Cli
Slide 6: Progress of EPCI Works
FY 2005 HIGHLIGHT 3. PROGRESS OF EPCI WORKS KNOC Rong Doi FSO (Vietnam) Charter project (New Built) First Oil: planned 2006 2nd half Petrobras PRA-1 FSO (Brazil) Shipyard: Yantai Raffles Shipyard (China) Charter project (Conversion) First Oil: planned 2007 1Q Shipyard: Jurong Shipyard (Singapore) Ya
Slide 7: Marketing Activities in 2005 2nd Half
FY 2005 HIGHLIGHT 4. MARKETING ACTIVITIES in 2005 2ND HALF - current status of prospective projects announced at analysts presentation in August 2005 - Vietsovpetro FSO Replacement (Vietnam) Unocal Gendalo FPSO (Indonesia) 9delayed MODEC, Inc. CNR Olowi FPSO (Gabon) (Tokyo) MODEC Int’l LLC 9delayed
Slide 8: A: Major Prospective Projects in 2006
A: MAJOR PROSPECTIVE PROJECTS in 2006 Truong Son Song Doc FPSO (Vietnam) Charter project (Conversion) Vietsovpetro Dragon FSO (Vietnam) EPCI project (New Built) JVPC Rang Dong FSO (Vietnam) Charter project (New/Conv.) MODEC, Inc. (Tokyo) MODEC Int’l LLC (Houston) Unocal Gendalo FPSO (Indonesia) EPCI
Slide 9: B: Major FPSO/FSO Orders in 2005~2006
B: MAJOR FPSO/FSO ORDERS in 2005~2006 MODEC (Tokyo/Houston) Rong Doi FSO Espadarte Sul FPSO PRA-1 FSO Stybarrow FPSO SBM (Netherlands/Monaco) Kikeh FPSO Mondo FPSO Saxi-Batuque FPSO Prosafe (Norway) Polvo FPSO Tui FPSO Bergesen (Norway) KuMaZa FPSO Saipem (Italy) ESS-132 FPSO Venture Chestnut FPSO (
Slide 10: C: Charter/O&M Projects Comparison
C: CHARTER/O&M PROJECTS COMPARISON Number of T/C and O&M projects as of February 2006 (includes projects under construction) MODEC: T/C 11 (4 under construction), O&M 1 SBM: 19 (4 under construction), O&M 1 FPSO FSO, other () under Rang Dong FPSO Total Jasmine FPSO construction T/C O&M Sub T/C Sub T
Slide 11: D: Project Location
D: PROJECT LOCATION Petronas Carigali Ruby FPSO (O&M) Under construction Note) Ruby FPSO was built by Prosafe CLJOC Su Tu Den FPSO (T/C) Decomissioned / Relocated KNOC Rong Doi FSO (T/C) O&M: Operate T/C: Own & Operate BBC: Own Vietsovpetro White Tiger FSO PEARL Jasmine FPSO (T/C) PTTEP Bongkot FSO
Slide 12: E: Charter and O&M Period
E: CHARTER and O&M PERIOD 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 BHPBP Stybarrow FPSO - Petrobras Espadarte Sul FPSO - Petrobras PRA-1 FSO - KNOC Rong
Slide 13: II. Profit & Loss
II. PROFIT & LOSS SALES SALES, ORDERS and ORDER BACKLOGS by SERVICE TYPES ORDINARY INCOME NET INCOME P. 13
Slide 14: Sales
SALES Sales Gros s Profit Operating Profit (Mil. JPY) Consolidated Sales: 71,614 million yen 80,000 12,000 66,751 71,614 Sales from EPCI services consists of 7 60,000 56,540 FPSO/FSO projects (includes newly 51,891 8,000 awarded charter projects) and 2 TLP projects 8,560 7,918 7,689 40,000 7,338
Slide 15: Sales, Orders and Order Backlogs by Service Types
SALES, ORDERS and ORDER BACKLOGS by SERVICE TYPES Sales , Orders and Order Backlogs Sales by Service Types (Mil. JPY) Leas e, Charter and O&M EPCI (Mil. JPY) Leas e, Charter and O&M EPCI Other Other Equity Method portion 250,000 231,031 80,000 71,614 66,751 48,894 2,472 56,540 710 200,000 60,000 51,
Slide 16: Ordinary Income
ORDINARY INCOME Ordinary Incom e Finance lease accounting method is applied to CNR Baobab FPSO project (Mil. JPY) Ordinary Incom e Ratio (%) 6,000 12 Deferred profits of approx. 1,000 5,408 million yen during the EPCI period was 4,000 3,893 3,701 8 realized at one time 3,190 7.6 6.9 7.1 Influenc
Slide 17: Net Income
NET INCOME Net Incom e Production start from 2 new charter (Mil. JPY) Net Incom e Ratio (%) projects (Mutineer-Exeter FPSO and 4,000 8 Baobab FPSO) and relocated Jasmine FPSO 3,213 boosted the equity in earnings of affiliates Yen depreciation in exchange rate at 3,000 6 2,230 2,029 December 31,
Slide 18: III. Balance Sheet & Cash Flow
III. BALANCE SHEET & CASH FLOW ASSETS LIABILITIES & SHAREHOLDERS’ EQUITY CASH FLOW P. 18
Slide 19: Assets
ASSETS (Mil. JPY) As s ets 04-05 Current As s ets Non-Current As s ets 2003 2004 2005 Valiance 104,698 Cash and time deposits 12,264 14,061 25,061 11,000 2005 48,832 55,866 Accounts receivable - trade 15,326 14,059 16,409 2,349 2004 42,700 23,820 66,521 Inventories 1,924 165 2,237 2,072 2003 42,782
Slide 20: Liabilities & Shareholders' Equity
LIABILITIES & SHAREHOLDERS’ EQUITY (Mil. JPY) Liabilities & Shareholders ' Equity 04-05 Liabilities Minority Interes ts Shareholders ' Equity 2003 2004 2005 Valiance Accounts payable - trade 11,329 10,255 18,889 8,634 2005 65,047 1,807 37,843 104,698 Short-term loans payable 8,529 12,663 27,960 15,2
Slide 21: Cash Flow
CASH FLOW (Mil. JPY) 04-05 CF from Operating Activities 2003 2004 2005 Valiance Cas h Flow from Operating Activities Income bef ore income taxes and 3,922 3,414 5,408 1,993 Cas h Flow from Inves ting Activities minority interests Cas h Flow from Financing Activities Cas h and Cas h Equivalents at En
Slide 22: IV. Financial Indicator
IV. FINANCIAL INDICATOR Santos Mutineer-Exeter FPSO P. 22
Slide 23: Financial Indicator
FINANCIAL INDICATOR (Mil. JPY) 2002 2003 2004 2005 04-05 Valiance Operating profit 4,863 4,147 3,779 3,895 116 Depreciation and amortization 3,668 1,834 635 1,116 480 Amortization of consolidated differences 13 26 26 0 Collection of lease receivable (Cantarell FSO, Inc., S.A. de C.V.) 1,283 1,321 1,
Slide 24: V. Forecast for FY 2006
V. FORECAST for FY 2006 Anadarko Marco Polo TLP P. 24
Slide 25: Forecast for FY 2006
FORECAST for FY 2006 Sales (Mil. JPY) Leas e, Charter and O&M EPCI Other Keep pursuing new project awards in 100,000 2006 80,000 75,000 66,751 71,614 Adding newly awarded projects in 56,540 51,891 2005, Sales from EPCI services will 50,000 remain on high level 54,974 44,738 57,864 39,422 Sales