Slide 1: Mid-Term Business Plan 2014
Micklernm Business Plan 2Os4 June 2012 MODEC, imc.
Slide 2: Business environment: global economy and energy demand
• Global economy moderately grows while the European financial crisis may continue and affect the growth of the global economy. • In accordance with an energy paradigm shift, the dependency on hydrocarbon resources is increasing. • Global energy demand is projected to grow further in the mid-and-lon
Slide 3: Establish a firm position in the industry
Establish a firm position in the industry Grow by securing large size project orders as a leading company in the industry 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3
Slide 4: Finance our equity portion in charter projects by cash flow
Finance our equity portion in the charter projects by our cash flow Strengthen the financial capability by reengineering profit structure 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 4
Slide 5: Develop new product lines in offshore energy/resource field
Develop new product lines in offshore energy/resource field aa Be recognized as a reliable FLNG contractor Promote business activity for offshore gas production systems Accelerate R&D for future business in offshore energy/resource field 5
Slide 6: Strengths and growth of FPSO market
Track record of 40 Financial capability with FPSOs/FSOs/TLPs Advanced mooring technology backup of Japanese financial and cumulative 100 years applicable to complex projects institutions of O&M experience • Growth of FPSO market • Increase of deeper water projects Secure large size project orders by
Slide 7: Increased competitors and establishing firm position
Track record of 40 Financial capability with FPSOs/FSOs/TLPs Advanced mooring technology backup of Japanese financial and cumulative 100 years applicable to complex projects institutions of O&M experience • Increased number of competitors as a result of new entry into the market • Intense price comp
Slide 8: Enhance engineering capability and streamline group management
Strong demand for in-house Strong control is necessary for Large investment is required engineers with experience and value chain optimization in the for equity injection into SPC high capability group established for charter projects • Growth of FPSO market • Increase of deeper water projects Gener
Slide 9: Business process reengineering and R&D
Strong demand for in-house Strong control is necessary for Large investment is required engineers with experience and value chain optimization in the for equity injection into SPC high capability group established for charter projects • Increased number of competitors as a result of new entry into t
Slide 10: Grow core business and accelerate R&D
Grow our core business, i.e. floating production systems including FPSOs, FSOs and TLPs Accelerate R&D activity for developing technologies in the prospective business area • Floating LNG and Gas-to-Liquid • Application of floating production technology to new offshore energy/resource field 10
Slide 11: Secure orders from Brazilian and African markets
Secure orders from strong Brazilian market and emerging African market by utilizing the high quality technologies and services backed up with our strong track record • Secure orders by utilizing our strong track record and the reputation of strong commitment • Establish a strong position in African
Slide 12: Accelerate cost reduction effort
Accelerate the cost reduction effort, enhance the cost competitiveness and maximize the profit • Cost reduction in proposal and procurement stage • Cost reduction in EPCI stage • Establish a reliable vendor network by managing the supply chain • Business process reengineering through all project pha
Slide 13: Promote offshore gas production and FLNG/GTL R&D
• Promote business activity for offshore gas production systems • Accelerate R&D activity for applying the floating production technology to new offshore energy/resource field • Commercialize FLNG and GTL business • Invest and accelerate R&D activity 13 Image courtesy of Velocys
Slide 14: Performance Image: Revenue
Performance Image Revenue 250 billion JPY (2014) Operating Profit 10 billion JPY (Mil. JPY) Revenue 300,000 250,000 200,000 150,000 100,000 50,000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 MODEC aims to secure orders from strong Brazilian market and emerging African market. Reven
Slide 15: Performance Image: Operating Profit
(Mil. JPY) Operating Profit 10,000 8,000 6,000 4,000 2,000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Large size project will require larger investment in our SPC. MODEC aims to generate sufficient cash flows from our continuing operations. 15
Slide 16: Disclaimer
The information contained in this material is based on a set of assumptions and is not guaranteed as to its materialization of financial visions or corporate strategies.