Slide 1: MODEC, Inc. 2021 Financial Results Analysts Presentation
MODEC, Inc. 2021 Financial Results Analysts Presentation February 14, 2022 1
Slide 2: Highlight / Market View & Outlook / Financial Results
Highlight Market View & Outlook Financial Results (Note) From the end of the current consolidated fiscal year, the Company's consolidated financial results have applied International Financial Reporting Standards (IFRS) instead of the conventional Japanese GAAP. In addition, the currency unit has be
Slide 3: FY2021: Highlights
FY2021 : Highlights FPSO Carioca MV30 Equinor Bacalhau FPSO ⚫ Recorded a large final loss (loss for the current term is US $ 363M) Client Equinor * Approximately US$296M is provision for future expected costs Contract Sales and Purchase Agreement ・ MV20 investment impairment : US$100M Field Location
Slide 4: FY2021: Factors for downturn (1)
FY2021 : Factors for downturn(1) Deterioration of the old fleets(MV15/MV18/MV20) ⚫ Decrease in income and increase in Coronavirus infection spread repair costs due to prolonged shutdown period ⚫ provisions for O&M repair costs of Corona infections in FPSO, and the number of old Brazilian fleets pass
Slide 5: FY2021: Factors for downturn (2)
FY2021 : Factors for downturn(2) Construction work(EPCI) Expected a large amount of additional cost due to extension of construction period, specification change, etc. ⚫ As a result of restriction on entry into China due to the influence of the coronavirus, the construction period has been extended.
Slide 6: FY2022: O&M/AM Forecast
FY2022 : O&M/AM Forecast O&M＋AM Gross Profit (UNIT：US$M) 2021(Actual) 2022(Forecast) O&M (53) 6 AM (128) (149) subtotal (181) (143) Provision/Reversal of provision (109) 74 Total (290) (69) ⚫ Due to the provision for repair costs for old Brazilian fleets in the current fiscal year, losses from the n
Slide 7: FY2022: Charter Forecast
FY2022 : Charter Forecast Equity in Earnings of Affiliates + interest income (UNIT：US$M) 2021(Actual) 2022(Forecast) Interest income 40 45 Equity in Earnings of Affiliates 29 81 Total 69 126 ⚫ In 2021, there are impacts from shutdown of MV18/20 and impairment loss of MV20 ⚫ Charter of MV31/34 will s
Slide 8: FY2021: EPC(I) (as of December 2021)
FY2021：EPC(I) (as of December 2021) FPSO FPSO FPSO FPSO FPSO FPSO Guanabara MIAMTE Almirante Anita Garibaldi Sangomar Bacalhau MV31 MV34 Barroso MV32 MV33 Client Petrobras Eni Mexico Petrobras Petrobras Woodside Equinor Contract EPCI + Time EPCI + Time EPCI + Time EPCI + Time Purchase EPCI + Short t
Slide 9: EPC(I) / Charter / O&M Period
As of January 2022 ◼ EPC(I) period ◼ Time Charter fixed period EPC(I) / Charter / O&M Period ◼ Time Charter option period ◼ O&M period 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 (*) 1 FPSO Bacalhau Equinor 2 FPSO Sangomar Woodside 10y 3 32.5 FPSO Anita Garibaldi MV33 Petro
Slide 10: Market View & Outlook
Highlight Market View & Outlook Financial Results 10
Slide 11: Energy Demand and Supply
FPSO/FSO & TLP Market Trends Energy Demand and Supply World Population Energy Demand Demand by Energy Type Billions Mtoe Mtoe 10 20,000 5,000 Oil Gas 4,000 Coal 3,000 5 10,000 2,000 Bioenergy Non-OECD Non-OECD Other renewables 1,000 Nuclear OECD OECD Hydro 0 0 0 2000 2010 2020 2030 2040 2000 2010 20
Slide 12: Floating Production Systems Planned or Under Study
FPSO/FSO & TLP Market Trends Floating Production Systems Planned or Under Study Projects in Planning Pipeline (Appraisal, Planning, and Bidding/Final Design) as of January 2022 World Total Bidding & Final Design 62 Planning 80 Appraisal 40 China Canada 1 0 2 3 Northern Europe 5 1 1 10 Southeast Asia
Slide 13: Competitive environment
FPSO/FSO & TLP Market Trends Competitive environment Share by Number of Leased FPSOs Share by Oil Production Capacity BW Offshore, Bumi Armada, 7, 8% Bluewater 8, 9% Altera Thousand bpd 200 Kbpd MISC, 7, 8% 264 Kbpd Other 3% 4% 665 Kbpd Yinson, 7, 8% Yinson 9% 368 Kbpd 5% MODEC, 15, SBM Own Lease Al
Slide 14: Future Outlook
Future Outlook Path to profit improvement (net income) (UNIT：US$M) <Breakdown of FY2021 investment impairment and provision for future expected costs (related to Brazil operation)> Item Amount MV20 investment impairment 100 MV15/18/20 provision for future expected 109 14 repair costs
Slide 15: FY2022: Outlook
FY2022 : Outlook Revenue Profit Attributable to Owners of Parent US$M 3,899 US$M 4,000 197 200 3,036 100 2,736 2,400 22 0 1,998 2,000 (100) (131) (200) (166) (300) (363) 0 (400) 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 • Revenue is expected to decrease from last year to US$ 2,400M because s
Slide 16: Financial Results
Highlight Market View & Outlook Financial Results 16
Slide 17: New Orders / Revenue
New Orders / Revenue New Orders Revenue EPC(I)period Bacalhau Sangomar US$M US$M MV33 MV33 MV33 8,000 8,000 MV32 MV34 MV34 MV31 6,202 MV30 5,804 FSO Ailsa MV29 2018 2019 2020 2021 2022 2023 3,899 4,000 4,000 3,148 3,036 2,902 2,736 2,284 1,998 1,691 0 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2
Slide 18: Order Backlogs
Order Backlogs Order backlogs for MODEC Group’s share in the “Lease, Charter and O&M services” of the affiliates accounted for by the equity method MV32 US$M 12,662 12,749 11,671 12,000 10,128 9,796 8,000 7,464 7,318 7,289 5,039 4,814 4,000 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 18
Slide 19: Operating Profit / Profit Attributable to Owners of Parent
Operating Profit / Profit Attributable to Owners of Parent Operating Profit Profit Attributable to Owners of Parent US$M US$M 300 300 MV32 223 197 187 200 172 200 100 100 0 0 (22) (100) (100) (138) (131) (200) (200) (166) (300) (300) (317) (400) (400) (363) 2017 2018 2019 2020 2021 2017 2018 2019 20
Slide 20: Equity in Earnings of Affiliates / Interest Income
Equity in Earnings of Affiliates / Interest Income Equity in Earnings of Affiliates Net Interest Income US$M US$M 55 54 100 88 50 85 45 41 40 56 50 25 29 21 0 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 20
Slide 21: Balance Sheet
Balance Sheet US$M 4000 3500 Cash and cash equivalents 3000 810 Trade & other payable 617 1,356 1,058 2500 Trade & Other receivable 288 379 2000 Contract assets Contract liabilities 621 490 704 405 84 Other current asset Bond & borrow ings 1500 368 165 168 426 242 Investments accounted Provisions fo
Slide 22: Thank you
Thank you 22