Slide 1: 2008 Full-Year Financial Results Analyst Presentation
2008 FULL-YEAR FINANCIAL RESULTS ANALYST PRESENTATION FEBRUARY 27, 2009
Slide 2: Agenda
AGENDA I. 2008 HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 II. MARKET REVIEW & PROSPECTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 III. 2008 FINANCIAL RESULTS & 2009 FORECAST . . . . . . . . . . . . .
Slide 3: I. 2008 Highlights
I. 2008 HIGHLIGHTS 2008 OVERVIEW .......................................................4 MAJOR ORDERS IN 2008 ...........................................5 2008 FPSO/FSO OPERATIONS ..........................................6 LEASE/OPERATION UNITS ............................................7 2008 PR
Slide 4: 2008 Overview
2008 OVERVIEW • Awarded four large FPSO projects in Brazil and West Africa – Achieved the highest sales of 319,614 million JPY (200 percent increase over 2007) – Revenue base expands as vessels come online in 2010 and beyond • Additional costs resulted in a less profit. Operating profit decreased by
Slide 5: Major Orders in 2008
MAJOR ORDERS IN 2008 Premier Chim Sao & Dua BGEC Camago- FPSO Malampaya FPSO Anadarko K-2 Injection (Vietnam) (Philippines) CP Semi EMAS Offshore Nexus Floating (Gulf of Mexico) 6 years + 15 one-year Production FloaTec and Technip options 7 years Petrobras Cachalote (Brazil) SBM 12 years Tullow Jubi
Slide 6: 2008 Highlights: 2008 FPSO/FSO Operations
2008 HIGHLIGHTS: 2008 FPSO/FSO OPERATIONS FPSO Song Doc Pride FPSO Baobab FPSO Cuulong MV9 FSO Rang Dong MV17 FSO Ta’Kuntah MV19 (10 years in operation) Ivoirien MV10 (Charter started in Nov. 2008) FSO Rong Doi MV12 (Charter Completed in Oct. 2008) (Charter started in Nov. 2008) FSO Cidade de Macae
Slide 7: Lease/Operation Units
LEASE/OPERATION UNITS Under Construction In Operation North America Europe 1 2 1 1 1 MODEC SBM Prosafe BW MODEC SBM Prosafe BW Offshore Offshore West Africa Asia & Pacific Brazil 1 3 9 3 1 7 1 5 4 1 3 3 3 3 1 2 1 1 1 MODEC SBM Prosafe BW MODEC SBM Prosafe BW MODEC SBM Prosafe BW Offshore Offshore Of
Slide 8: 2008 Highlights: FPSO Song Doc Pride MV19
2008 HIGHLIGHTS: FPSO Song Doc Pride MV19 TSJOC Song Doc FPSO JVPC Rang Dong FSO Charter Start: November 2008 Charter Start: November 2008 EPCI + Time Charter EPCI + Time Charter Charter Period: 5 years + 5 one-year options Charter Period: 9 years + 5 one-year options Song Doc field, Vietnam Rang Do
Slide 9: II. Market Review & Prospects
II. MARKET REVIEW & PROSPECTS PROSPECTS FOR 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 PROJECT LOCATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 . . . . . . . . . . . . . . . . . . . . .
Slide 10: Prospects for 2009
PROSPECTS FOR 2009 Severe Business Environment • Worsening economic environment in the second half of 2008 • Crude oil prices: soared to $147 and sharply down to $37 – Oil companies are more conservative toward E&P – Obama Administration is committed to develop renewable energy sources • The number
Slide 11: Prospective Projects in 2009
PROSPECTIVE PROJECTS in 2009 Enterprise Production Semi-Submersible (Gulf of Mexico) Hess Pony TLP (Gulf of Mexico) Noble Benita FPSO (Equatorial Guinea) Petrobras Tupi No.2/No.3 FPSO (Brazil) ChevronTexaco Block 14 FPSO (Angola) Petrobras Papa Terra TLP (Brazil) Vietsovpetro Talisman Thang Long KEI
Slide 12: 2008-2009 Projects in Progress
2008-2009 PROJECTS IN PROGRESS FPSO Song Doc Pride MV19 BHP Pyrenees FPSO FPSO Cidade de Niteroi MV18 FPSO Cidade de Santos MV20 (TSJOC Song Doc FPSO) First Oil: Planned in 4Q 2009 (Petrobras Opportunity Oil FPSO) (Opportunity Gas #2 FPSO) First Oil: November 2008 MODEC will operate First Oil : Febr
Slide 13: EPCI in 2009
EPCI in 2009 EPCI Costs – Projects awarded in 2008: settle at inflated price (because it made outside order and procurement when prices were rising) – Unrealized profit is expected to be the highest in the history of MODEC Enhancement of the management system – Stringent review of EPCI costs and pro
Slide 14: Time Charter / O&M Period
TIME CHARTER / O&M PERIOD Time 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 FPSO Cidade de Angra dos Reis MV22 * Tullow Jubilee FPSO * BHP Pyrenees FPSO - F
Slide 15: III. 2008 Financial Results & 2009 Forecast
III. 2008 FINANCIAL RESULTS & 2009 FORECAST SALES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 SALES BY SERVICE TYPES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 ORDIN
Slide 16: Sales
SALES SALES Sales Ordinary Income Net Income 144,040 143,669 200,000 150,000 10,000 144,040 143,669 150,000 99,149 (Mil. JPY) 100,000 (Mil. JPY) 99,149 71,614 100,000 5,000 71,614 51,891 51,891 50,000 50,000 0 0 0 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 (Mil. JPY) 2004 2005 2006 2007 2008
Slide 17: Sales by Service Types
SALES BY SERVICE TYPES Other SALES EPCI Lease, Charter and O&M SALES from EPCI 150,000 - Shenzi TLP - JVPC Rang Dong MV17 FSO 100,000 - TSJOC Song Doc MV19 FPSO (Mil. JPY) 121,892 113,688 - Petrobras Opportunity Oil FPSO (FPSO Cidade de Niteroi MV18) - BHP Pyrenees FPSO 83,016 - Petrobras Tupi Pilot
Slide 18: Ordinary Income
ORDINARY INCOME INFLUENCE OF DEFERRED PROFITS Deferred Realized Balance ORDINARY INCOME 2004 2005 2006 2007 2008 6,254 ORDINARY INCOME ORDINARY INCOME before deferred profits adjustment 6,000 4,730 10,000 9,027 4,000 3,530 (Mil. JPY) 5,885 7,828 2,575 2,313 (Mil. JPY) 5,025 5,146 4,053 2,000 1,473 5
Slide 19: Net Income
NET INCOME NET INCOME • Large projects awarded -- Highest-ever sales 5,000 (319,614 million, 152.1% increase over 2007) 4,499 3,213 3,305 • Losses due to additional costs of EPCI (Mil. JPY) (JVPC Rang Dong FSO, TSJOC Song Doc FPSO) 2,500 2,230 1,357 • Loss in operating profit and ordinary income due
Slide 20: Orders by Service Types
ORDERS BY SERVICE TYPES Other ORDERS EPCI Lease, Charter and O&M New Orders in 2008 350,000 300,000 • BP Angola PSVM FPSO 250,000 • Petrobras Opportunity Gas #2 FPSO (Mil. JPY) 200,000 265,105 (FPSO Cidade de Santos MV20) 150,000 • Tullow Jubilee FPSO 109,084 126,864 100,000 73,963 • Petrobras Tupi
Slide 21: Order Backlogs by Service Types
ORDER BACKLOGS BY SERVICE TYPES Other ORDER BACKLOGS Equity Method Portion ORDER BACKLOGS EPCI Lease, Charter and O&M Lease, Charter and O&M (Lease, Charter and O&M) 400,000 300,000 300,000 168,218 99,413 (Mil. JPY) 200,000 (Mil. JPY) 221,487 113,040 200,000 133,792 82,689 48,894 77,744 100,000 100,
Slide 22: Cash Flow
CASH FLOW Cash Flow from Operating Activities CASH FLOW Cash Flow from Investing Activities Cash Flow from Financing Activities 30,000 28,794 19,003 20,000 11,878 11,716 11,867 9,623 10,000 5,164 5490 3,811 (Mil. JPY) 0 -498 -10,000 -6960 -9,887 -14,402 -20,000 -20,043 -21,549 -30,000 2004 2005 2006
Slide 23: Key Financial Figures
KEY FINANCIAL FIGURES (Mil. JPY) 2004 2005 2006 2007 2008 Variance Operating profit 3,779 3,895 3,494 6,959 1,973 - 4,986 Depreciation and amortization 635 1,116 662 1,656 1,619 - 37 Amortization of consolidated differences 26 26 26 13 26 + 13 Collection of lease receivable (Cantarell FSO, Inc., S.A
Slide 24: Forecast for FY2009
FORECAST FOR FY2009 SALES 200,000 Projects in progress in 2009 144,040 143,669 150,000 150,000 • BHP Pyrenees FPSO (Mil. JPY) 99,149 • Tullow Jubilee FPSO 100,000 71,614 • BP Angola PSVM FPSO 51,891 • FPSO Cidade de Santos MV20 50,000 • FPSO Cidade de Angra dos Reis MV22 0 2004 2005 2006 2007 2008 2
Slide 25: Forecast for FY2009
FORECAST FOR FY2009 SALES ORDINARY INCOME ORDINARY INCOME ORDINARY INCOME before deferred profits adjustment 200,000 144,040 143,669 150,000 10,000 9,027 150,000 (Mil. JPY) 99,149 5,600 5,885 7,828 (Mil. JPY) 100,000 5,025 5,146 71,614 4,053 5,000 51,891 5,408 50,000 4,664 3,701 2,529 2,400 0 0 2004