Slide 1: MODEC, Inc. 2017 Half-Year Financial Results Analysts Presentation
MODEC, Inc. 2017 Half-Year Financial Results Analysts Presentation August 4, 2017
Slide 2: Agenda: Highlight, Market Review, Outlook, Financial Results
MODEC, Inc. 2017 Half-Year Financial Results Market Review Financial Highlight & Outlook Results 2
Slide 3: 2017 Half-Year : Highlight
2017 Half-Year : Highlight Revenue Operating Profit Ordinary Profit Profit Attributable to Owners of Parent 1H 2H 1H 2H Billion JPY Billion JPY 29.4 400 378.5 30 23.3 216.5 25 295.5 21.0 300 20 18.0 18.3 16.6 254.4 138.8 229.9 15.8 12.4 147.1 15.6 15 12.8 125.9 5.9 200 10.1 10 8.5 161.9 156.7 9.8 5.
Slide 4: 2017 Half-Year : Highlight
2017 Half-Year : Highlight FPSO Baobab ENI Coral South FSO Rang Dong FPSO Song Doc Ivoirien MV10 FLNG internal turret MV17 Pride MV19 Client CNR Client TechnipFMC/JGC Client JVPC Client PVEP Field Baobab Field Coral South Field Rang Dong Field Song Doc (Côte d'Ivoire) (Mozambique) (Vietnam) (Vietnam
Slide 5: 2017 Half-Year : EPC(I) (as of end-June 2017)
2017 Half-Year : EPC(I) (as of end-June 2017) FSO Ailsa FPSO Cidade de Campos Stampede TLP dos Goytacazes MV29 Client Maersk Oil Client Petrobras Client Hess Contract EPC Contract EPCI + Charter (20 yrs) Contract EPCM Field Culzean (UK) Field Tartaruga Verde & Tartaruga Field Stampede (US GOM) Mesti
Slide 6: EPC(I) / Charter / O&M Period
As of August 2017 EPC(I) period Time Charter fixed period EPC(I) / Charter / O&M Period Time Charter option period O&M period 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 1 Culzean FSO (EPC) Maersk 2 Stampede TLP (EPCM) Hess FPSO Cidade de Campos dos Goytacazes 3 1 2
Slide 7: R&D FSRWP™
R&D FSRWP™ FSRWP™ Floating Storage Regasification Water-Desalination & Power-Generation FSR-Power™ （Power only） FSR-Water™ （Water only） 7
Slide 8: Market Review
MODEC, Inc. 2017 Half-Year Financial Results Market Review Financial Highlight & Outlook Results 8
Slide 9: Market Review
Market Review Oil Supply & Oil Demand & Price Breakeven Improvement Consumption Million bpd Million bpd Million bpd ■ Breakeven improvement of a “best-in-class” 105 5 120 300 non-sanctioned offshore development Forecast 100 4 USD/ Downsizing and 100 250 bbl simplification Supply 80 Improved design a
Slide 10: FPSO Awards (2014~2017 1H)
FPSO Awards (2014~2017 1H) FPSO Awards & Oil Price Extra Large Latin Middle Small Mid Africa Brazil Asia Europe Small America East Total Kaombo ~10K >10~50K >50~100K >100K bpd bpd bpd bpd ENI Total YFP ENI BW Perenco East Hub Kaombo Aje OCTP Dussafu Yombo USD/ bbl Petrobras 100 Tartaruga Verde Petro
Slide 11: Main Prospective Projects (as of August 2017)
Main Prospective Projects (as of August 2017) North America & Gulf of Mexico Asia & Pacific Africa Latin America Ghana Indonesia Brazil FPSO (Charter) FPSO (Charter) FPSO (Charter) FPSO (Charter) India FPSO (Charter) FPSO (Charter) 11
Slide 12: FY2017 : Outlook
FY2017 : Outlook Revenue Operating Profit Ordinary Profit Profit Attributable to Owners of Parent Billion JPY Billion JPY Billion JPY Billion JPY 400 378.5 20 40 25 18.0 21.0 295.5 15.0 29.4 20 15 30 18.0 254.4 25.0 229.9 15 200 190.0 10 20 18.3 8.5 15.8 10 12.8 5.0 5.8 5 3.7 10 4.9 5.4 5 0 0 0 0
Slide 13: Financial Results
MODEC, Inc. 2017 Half-Year Financial Results Market Review Financial Highlight & Outlook Results 13
Slide 14: Profit & Loss
Profit & Loss 2016 1H 2017 1H Variance Million JPY Revenue 104,031 101,719 (2,312) Gross Profit 7,758 9,565 1,807 Gross profit increased by 1.8 billion yen year-on-year mainly due to profit Selling, General and Administrative Expenses 5,413 6,822 1,409 improvement in O&M business Operating Profit
Slide 15: New Orders / Revenue / Order Backlogs
New Orders / Revenue / Order Backlogs New Orders Revenue Order Backlogs EPC(I) period Order backlogs for MODEC Group’s share in the “Lease, Coral South Charter and O&M services” of FSO Ailsa the affiliates accounted for by Billion JPY the equity method MV29 987.9 1,000 Stampede MV27 896.6 MV25 MV26
Slide 16: Ordinary Profit
Ordinary Profit Influence of Deferred/Realized Profits Ordinary Profit (as if consolidating affiliates basis) A A : Consolidated Ordinary Profit Deferred Realized Balance B : Ordinary Profit (equity method portion) A+B+C C : Influence of Deferred/Realized Profits 2013 2014 2015 2016 2017 1H Billion
Slide 17: Balance Sheet
Balance Sheet 2016 2017 1H Variance Million JPY Accounts Receivable - trade 95,544 101,921 6,377 Short-term Loans Receivable 55,012 68,836 13,824 Construction loans to SPCs increased Total Current Assets 218,042 231,355 13,313 Property and Equipment 14,161 12,294 -1,867 Asset value decreased in
Slide 18: Key Financial Indicators
Key Financial Indicators EBITDA Interest-Bearing Debt EBITDA (after adjustment*) Total interest-bearing debt (after adjustment*) EBITDA Interest Coverage Ratio Total interest-bearing debt/EBITDA Billion JPY X times Billion JPY X times 60 57.8 12.0 300 6.0 5.1 47.1 43.9 10.0 222.7 4.3 8.2 202.8 3.6 4