Slide 1: MODEC, Inc. 2014 Financial Results Analysts Presentation
MODEC, Inc. 2014 Financial Results Analysts Presentation February 16, 2015
Slide 2: 2014 Full-Year Highlight
2014 Full-Year Highlight Market Review & Outlook Financial Results 2
Slide 3: FY2014: Highlight - New Orders and Revenue
FY2014 : Highlight New Orders Revenue New Order 395.7 billion JPY Revenue hit a record high of 378.5 New orders for 1 FPSO (Petrobras billion JPY Tartaruga MV29: EPCI + Charter) and EPCI progressed well on MV25 1 TLP (Hess Stampede: ECM) (Tullow TEN), MV26 (Petrobras Iracema Norte) and MV27
Slide 4: FY2014: Highlight - Profit Records
FY2014 : Highlight Operating profit, ordinary profit, net income, all hit record highs Operating Profit Ordinary Profit (billion JPY) (billion JPY) 10 20 18.3 8.5 15.8 9.2 5 10 3.5 3.4 3.7 6.1 5.0 0.2 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Exchange Rate on Closing Dates ($/¥) Net In
Slide 5: FY2014: Highlight - Equity, Debt, Dividends
FY2014 : Highlight Raised approx. 20 billion JPY by public offering and third-party allotment; Equity equity increased to 96.7 billion JPY (billion JPY) Accounts receivable and payable increased 96.7 100 by approx. 83 billion JPY and 72 billion JPY 70.8 respectively, due to EPCI progress and 53.
Slide 6: FY2014: New Awards
FY2014: New Awards Petrobras Tartaruga MV29 FPSO Petrobras Tartaruga Verde / Tartaruga Mestiça FPSO Project (November 2014) Client: Petrobras Contract: EPCI + Time Charter (20 years) Location: Tartaruga Verde & Tartaruga Mestiça fields (Brazil) Water Depth: 765m Delivery: 2017 3Q (planne
Slide 7: FY2014: EPCI Projects
FY2014: EPCI Projects FPSO FPSO FPSO FPSO Petrobras Hess Cidade de Cidade de Prof. John Cidade de Tartaruga Verde Stampede Mangaratiba Itaguai Evans Atta Mills Caraguatatuba MV29 FPSO TLP MV24 MV26 (MV25) MV27 New Award New Award Client Petrobras Petrobras Tullow Petrobras Petrobras Hess Contract EP
Slide 8: Time Charter / O&M Period
As of February 2015 Time Charter (Own & Operate) Time Charter / O&M Period in operation 13 units 10 FPSOs 3 FSOs Time Charter fixed period under construction 4 FPSOs Time Charter option period O&M (Operate) in operation 4 FPSOs O&M period 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2
Slide 9: Market Review & Outlook
2014 Full-Year Highlight Market Review & Outlook Financial Results 9
Slide 10: FY2014: Market Review - FPSO Awards
FY2014: Market Review FPSO Awards FPSO Awards in 2014 GOM Europe Pacific Asia Africa Brazil Production (bopd) Brazil Africa Europe Asia 26 200,000 4 Includes Petrobras Tartaruga Verde FPSO 3 8 serial FPSOs 150,000 14 13 12 2 11 2 2 3 16 4 3 4 100,000 2 3 4 4 5 3 3 2010 2011 2012 2013 2014 50,000 2 2
Slide 11: FY2014: Market Review - Oil Price and FPSO Awards
FY2014: Market Review Oil Price (WTI) & Number of FPSO Awards MODEC FPSO awards Total FPSO awards Number of units USD/bbl 140 WTI 30 120 26 100 21 20 20 80 14 14 14 60 12 12 11 9 11 10 40 7 20 4 2 1 2 2 1 2 1 2 1 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11 Source: Floating Pro
Slide 12: FY2014: Market Review - Oil Production and Energy Demand
FY2014: Market Review Oil Production Energy Demand Mb/d Mtoe 6.6 6.4 5,000 Oil 100 6.2 2.9 5.5 Coal 5.3 6.4 7.7 9.2 Unconventional 4,000 Gas 80 3.2 Tight oil (shale, oil sands) 24.3 24.8 25.1 25.3 25.3 Other unconventional oil 3,000 60 Conventional Bioenergy 2,000 40 Offshore Nuclear 56.8 57.8
Slide 13: Prospective Projects
Prospective Projects UK • FSO (EPCI + O&M) Norway • TLP Europe North America Asia Africa & Pacific South Ghana America • FPSO (TBD) • TLP Angola • FPSO (EPCI) • FPSO (EPCI + O&M) Indonesia Brazil • FPSO (EPCI + Charter) • FPSO (EPCI + Charter) • 8 Petrobras FPSOs • FPU (EPCI + Charter) (EPCI + Chart
Slide 14: FY2015: Outlook
Exchange Rate on Closing Dates ($/¥) FY2015 : Outlook 2011 2012 2013 2014 2015(F) 77.74 86.56 105.37 120.56 110.00 Revenue Operating Profit (billion JPY) (billion JPY) 400 378.5 10 8.5 300.0 254.4 186.8 200 5 3.7 129.9 3.4 3.0 0.2 0 0 2011 2012 2013 2014 2015(F) 2011 2012 2013 2014 2015(F) Ordinary
Slide 15: Financial Results
2014 Full-Year Highlight Market Review & Outlook Financial Results 15
Slide 16: Profit & Loss
Profit & Loss 2013 2014 Variance (million JPY) Revenue 254,401 378,523 124,122 - EPCI projects progressed well - Gross profit increased due to higher POC achieved Gross Profit 16,713 21,958 5,245 in EPCI projects - Costs incurred for crew cost escalation and asset Selling, General and Administrative
Slide 17: Revenue
Revenue Revenue Project Timeline EPCI Period Time Charter Period (billion JPY) 400 378.5 MV29 300 254.4 MV27 200 186.8 MV25 146.6 129.9 100 MV26 MV24 0 2010 2011 2012 2013 2014 2011 2012 2013 2014 2015 2016 2017 2018 Main EPCI projects • MV24 • MV26 • MV25 • MV27 • MV29 17
Slide 18: Ordinary Profit
Ordinary Profit Ordinary Profit Influence of Deferred Profits Ordinary Profit Deferred Realized Balance Ordinary Profit before Deferred Profits Adjustment (billion JPY) (billion JPY) 2010 2011 2012 2013 2014 25 20 22.6 16.2 15 20 18.3 11.9 11.9 10.3 10.5 15.815.8 10 15 5 3.3 10.6 3.0 10.0 10 9.2 0.9
Slide 19: New Orders & Order Backlogs
New Orders & Order Backlogs New Orders Order Backlogs Order Backlogs Equity Method Portion (billion JPY) (billion JPY) 987.9 600 1,000 896.6 518.4 543.6 500 395.7 359.3 400 229.9 342.6 277.7 0 2010 2011 2012 2013 2014 200 173.8 1,000 703.8 551.2 500 0 350.3 2010 2011 2012 2013 2014 186.7 144.7 0 201
Slide 20: Balance Sheet
Balance Sheet 2013 2014 Variance (million JPY) Short-term Loans Receivable - 41,008 41,008 Total Assets: - Accounts receivable temporarily increased in Total Current Assets 120,889 259,992 139,103 accordance with EPCI progress - Reclassification of loans to MV24 (from long-term Property and Equipmen
Slide 21: Cash Flow
Cash Flow Cash Flow Cash Flow from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities (billion JPY) 2010 2011 2012 2013 2014 30 22.8 Increased due to 21.4 increase in Increased due to 20 income before tax share issuance 12.3 11.7 11.3 10 7.5 7.6 4.7 0 -3.2 -
Slide 22: Key Financial Figures
Key Financial Figures Operating Profit & EBITDA Interest-Bearing Debt Operating profit (equity method portion) Total interest-bearing debt (after adjustment) EBITDA (after adjustment) Total interest-bearing debt/EBITDA EBITDA Interest Coverage Ratio 222.7 (billion JPY) (x times) (billion JPY) (x tim