Slide 1: MODEC, Inc. 2010 Financial Results Analysts Presentation
MODEC, Inc. 2010 Financial Results Analysts Presentation February 25, 2011
Slide 2: Market Overview & Operations Review; Financial Results & Outlook
Market Overview & Operations Review Financial Results & Outlook 2
Slide 3: Market Overview
Market Overview • Global demand for oil and gas steadily increases • Impact of BP Macondo incident will remain few years in Gulf of Mexico • Demand for Floating Production Systems continues to grow – US$ 80 billion worth investment in Floating Production systems expected during the next 5 years, mai
Slide 4: 2010 Overview
2010 Overview • MODEC delivered 4 FPSOs in 2010 • New order: FPSO Cidade de Sao Paulo MV23 (Petrobras Guara FPSO)) • Downside impact of appreciation of yen • Capital increase of JPY 15.6 billion; Equity ratio improved • Proposed dividend (per annum) – FY2011: FY2011 JPY 25 25.00/share 00/ h – FY2010
Slide 5: MODEC delivered 4 FPSOs in 2010
MODEC delivered 4 FPSOs in 2010 FPSO Cidade de Santos MV20 (Opportunity Gas) Urugua/Tambau Fields, Brazil FPSO Cidade de Angra dos Reis MV22 Tupi Field, Brazil FPSO Kwame Nkrumah FPSO Pyrenees Venture MV21 Pyrenees Field, Australia Jubilee Field Field, Ghana 5
Slide 6: 2 FPSOs are under construction
2 FPSOs are under construction COSCO Dalian China Jurong Singapore FPSO Cidade de Sao Paulo MV23 (Guara) S Scope off Work: W k EPC + Ti Time Ch Charter First Oil: Planned 1Q 2013 Guara Field, Brazil Brazilian local content requirement 65% FPSO PSVM Scope of Work: EPCI Fi t Oil First Oil: Planned Pl
Slide 7: Prospective Projects
Prospective p Projects j Russia Southeast Asia & Australia Shtokman Internal Disconnectable Turret (SOFEC) Malaysia Shell Malikai TLWP Indonesia INPEX Masela FLNG Australia Russia Woodside Browse LNG Development Southeast Asia West & Africa Australia Brazil West Africa G a a Ghana Tullow Jubilee No.
Slide 8: MODEC operates 17 FPSO/FSOs at 2010 yearend
MODEC operates p 17 FPSO/FSOs at 2010 yyearend FPSO MV 8 FPSO FPSO Song Langsa Jasmine Doc Pride FSO Rang FSO Rong FSO V t Venture V t Venture MV7 MV19 Dong MV17 Doi MV12 Ta’Kuntah Ta Kuntah FPSO Fluminense FPSO Cidade Cid d do Rio de Janeiro MV14 FSO Cidade de Macae MV15 FPSO Cidade de Niteroi MV18
Slide 9: FPSO/FSO Time Charter / O&M Period
FPSO/FSO Time Charter / O&M Period Time Charter Contract O&M Contract Fixed period Option period Fixed period Option period 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ＊ FPSO Cidade de Sao Paulo MV23 20yy ＊ FPSO Kw ame Nkrumah MV
Slide 10: Market Overview & Operations Review; Financial Results & Outlook
Market Overview & Operations Review Financial Results & Outlook 10
Slide 11: Revenue
Revenue (Mil. JPY) 2009 2010 Variance Remarks Revenue 204,225 146,660 (57,565) Total revenue decreased due to the completion of 4 FPSO projects Alth Althoughh th the revenue d decreased, d gross profit fit iincreased dddue tto Gross Profit 11,549 12,065 516 better project cost and process management
Slide 12: Revenue by Service Types
Revenue byy Service Types yp Projects EPC(I) Phase Revenue Lease, Charter and O&M EPCI Other 2008 2009 2010 (Mil. JPY) 250,000 FPSO Cidade de Sao Paulo MV23 FPSO PSVM 200,000 FPSO Kwame Nkrumah MV21 FPSO Cidade de Angra dos Reis MV22 150,000 FPSO Cidade de Santos MV20 180,961 FPSO SO Pyrenees y e ee
Slide 13: Ordinary Profit
Ordinaryy Profit Ordinary Profit & Ordinary Profit before Influence of Deferred Profits Deferred Profits Adjustment Deferred Realized Balance Ordinary Profit Ordinary Profit before Deferred Profits Adjustment (Mil. JPY) (Mil. JPY) 2006 2007 2008 2009 2010 15,000 15,000 10,396 10,000 10,079 10,000 9,
Slide 14: Orders & Order Backlogs by Service Types
Orders & Order Backlogs g by y Service Types yp Orders Order Backlogs Lease, Charter and O&M EPCI Other (Mil. JPY) Lease, Charter and O&M EPCI Other 400,000 (Mil. JPY) 2008 • FPSO Cidade de Santos MV20 (Opportunity Gas) 300,000 • FPSO Kwame Nkrumah MV21 (Jubilee) 221,487 400,000 • FPSO PSVM (BP Ango
Slide 15: Balance Sheet
Balance Sheet (Mil. JPY) 2009 2010 Variance Remarks Cash and Time Deposits 31,505 12,122 (19,383) Total Assets: 1. Cash decreased due to reinforcement of Group cash Total Current Assets 127,732 98,135 (29,597) management g and allocation for repayment p y of loans 2. Accounts receivable decreased du
Slide 16: Cash Flow
CF from Operating Activities Cash Flow Net income before tax + depreciation, as working capital it l was b balanced l d CF from Investing Activities Cash Flow Increase in construction loan financing to SPC Cash Flow from Operating g Activities CF from Financing Activities Cash Flow from Investing Ac
Slide 17: Key Financial Figures
Key y Financial Figures g (Mil. JPY) 2006 2007 2008 2009 2010 Operating profit 3,494 6,959 1,973 4,169 3,563 Depreciation and amortization 662 1,656 1,619 1,380 958 Amortization of consolidated differences 26 13 26 264 211 Collection of lease receivable (Cantarell FSO, Inc., S.A. de C.V.) 2,340 2,83
Slide 18: Forecast for FY2011
Forecast for FY2011 Ordinary Profit Ordinary Profit Revenue (Mil. JPY) (Mil. JPY) Ordinary Profit before Deferred Profits Adjustment 15,000 300,000 204,225 10,079 10,000 9,027 200,000 7,672 7,828 144,040 143,669 146,660 7,454 120,000 6,156 , 100,000 5,000 4,053 4,000 2,529 0 0 2007 2008 2009 2010 20