Slide 1: MODEC, Inc. 2018 Half-year Financial Results Analysts Presentation
MODEC, Inc. 2018 Half-year Financial Results Analysts Presentation August 2, 2018
Slide 2: Highlight / Market Review & Outlook / Financial Results
Highlight Financial Results Market Review & Outlook Financial Results 2
Slide 3: 2018 Half-Year: Highlights
2018 Half-Year : Highlights Revenue Operating Profit Ordinary Profit Profit Attributable to Owners of Parent 1H 2H 1H 2H Billion JPY 29.4 Billion JPY 30 400 378.5 23.3 24.3 25 216.5 21.0 16.0 19.4 295.5 20 18.3 300 18.0 16.6 138.8 13.1 229.9 15.6 12.4 15 12.8 11.4 191.1 14.3 200 125.9 10 8.5 10.1 8.
Slide 4: 2018 Half-Year: Highlight
2018 Half-Year : Highlight FPSO for Barossa FPSO Cidade de FPSO Cidade de FSO Ailsa Offshore Project Niteroi MV18 Campos dos Goytacazes MV29 Client Maersk Oil North Client ConocoPhillips Client Petrobras Client Petrobras Sea UK Limited Australia Field Marlim Leste Field Tartaruga Verde and Field Cul
Slide 5: 2018 Half-Year: EPC(I) (as of end-June 2018)
2018 Half-Year：EPC(I) (as of end-June 2018) FSO Ailsa FPSO Cidade de Campos FPSO FPSO dos Goytacazes MV29 Carioca MV30 Guanabara MV31 Client Maersk Petrobras Petrobras Petrobras Contract EPC EPCI + Time Charter EPCI + Time Charter EPCI + Time Charter （20 yrs） ( 21 yrs ) ( 22 yrs ) Delivery Delivered
Slide 6: EPC(I) / Charter / O&M Period
As of August 2018 EPC(I) period EPC(I) / Charter / O&M Period Time Charter fixed period Time Charter option period O&M period 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 1 20.1 FPSO Guanabara MV31 Petrobras 22y 2 20.1 FPSO Carioca MV30 Petrobras 21y FPSO Cidade de C
Slide 7: Market Review & Outlook
Highlight Market Review & Outlook Financial Results 7
Slide 8: FPSO Awards (2015-2018 1H)
FPSO Awards (2015-2018 1H) FPSO Awards & Oil Price Extra Latin Middle Large Africa Brazil Asia Europe Small Mid America East Small ~10K >10~50K >50~100K >100K Oil prices stabilized around $60-$70/bbl. level; bpd bpd bpd bpd Order intake is in recovery mode WTI 60 PetroChina Salawati Island Octanex R
Slide 9: FY2018: Outlook
FY2018 : 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 19.4 295.5 29.4 20 15 30 12.0 24.3 15.0 229.9 11.4 22.0 220.0 15 191.1 18.3 200 10 8.5 20 12.8 10 5.0 5.4 5.8 5 10 5 0 0 0 0
Slide 10: Financial Results
Highlight Market Review & Outlook Financial Results 10
Slide 11: Profit & Loss
Profit & Loss 2017 1H 2018 1H Variance Million JPY Revenue 101,719 112,843 11,124 Gross Profit 9,565 16,453 6,888 Gross profit increased by 6.8 billion yen due to realization of deferred profit of Selling, General and Administrative Ecpenses 6,822 5,609 (1,213) MV29 Operating Profit 2,743 10,844 8
Slide 12: New Orders / Revenue / Order Backlogs
New Orders / Revenue / Order Backlogs New Orders Revenue Order Backlogs EPC(I) period Order backlogs for Mero MODEC Group’s Billion JPY Sépia share in the “Lease, Charter and O&M FSO Ailsa services” of the 1,200 1,144.4 MV29 affiliates accounted for by the equity method Stampede 1,026.1 987.9 MV27 M
Slide 13: Operating Income / Equity in Earnings of Affiliates
Operating Income/ Equity in Earnings of Affiliates Operating Profit Equity in Earnings of Affiliates (as if consolidating affiliates basis) A A : Consolidated Operating Profit A+B B : Operating Profit (equity method portion) A+B+C C : Influence of Deferred/Realized Profits Million USD Billion JPY MV
Slide 14: Ordinary Profit
Ordinary Profit Ordinary Profit (as if Influence of Deferred/Realized Profits consolidating affiliates basis Deferred Realized Balance A A : Consolidated Ordinary Profit A+B+C B : Ordinary Profit (equity method portion) 2014 2015 2016 2017 2018 1H C : Influence of Deferred/Realized Profits Billion J
Slide 15: Balance Sheet
Balance Sheet 2017 2018 1H Variance Million JPY Cash and deposits increased due to the temporary Cash and Deposits 31,380 35,592 4,212 retention of construction loan repayment from SPC Accounts Receivable - trade 98,188 104,647 6,459 Accounts receivable increased in line with EPC(I) progress Sho
Slide 16: Key Financial Indicators
Key Financial Indicators EBITDA Interest-Bearing Debt EBITDA（after adjustment*） Total interest-bearing debt（after adjustment*） EBITDA Instant Coverage Ratio Total interest-bearing debt/EBITDA Billion JPY X times Billion JPY X times 60 57.8 12.0 300 6.5 53.3 47.1 222.7 43.9 10.0 202.8 8.2 8.3 200 5.0
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