Slide 1: MODEC, Inc. 2020 Half-year Financial Results Analysts Presentation
MODEC, Inc. 2020 Half-year Financial Results Analysts Presentation August 6, 2020 1
Slide 2: Highlight / Market View & Outlook / Financial Results
Highlight Market View & Outlook Financial Results 2
Slide 3: 2020 Half-Year: Highlights
2020 Half-Year : Highlights • Awarded 2 FPSOs • 6 FPSOs are under construction • Revenue is JPY 156.4 billion • Simulated cost increase due to COVID-19 was included in 1st quarter closing. • Net loss for 1st half-year is JPY 9.6 billion • No further downturn is incurred as of end of 2nd quarter. • A
Slide 4: 2020 Half-Year: New Awards
2020 Half-Year : New Awards Awarded 2 FPSOs FPSO Sangomar Equinor Bacalhau FPSO Client Woodside Client Equinor Contract Purchase Contract Contract Sales and Purchase Agreement Field Location Sangomar Field (Senegal) Field Location Bacalhau Field (ex Carcara Brazil) Water Depth 780m Water Depth 2,0
Slide 5: 2020 Half-Year: EPC(I) (as of June 2020)
2020 Half-Year：EPC(I) (as of June 2020) FPSO FPSO FPSO FPSO FPSO FPSO Carioca Guanabara MIAMTE Almirante Barroso Anita Garibaldi Sangomar MV30 MV31 MV34 MV32 MV33 Client Petrobras Petrobras Eni Mexico Petrobras Petrobras Woodside Contract EPCI + Time EPCI + Time EPCI + Time EPCI + Time EPCI + Time P
Slide 6: EPC(I) / Charter / O&M Period
As of June 2020 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 Sangomar Woodside 2 32.5 FPSO Anita Garibaldi MV33 Petrobras 25y 3 35.0 FPSO Almirante Barr
Slide 7: Market View & Outlook
Highlight Market View & Outlook Financial Results 7
Slide 8: Market View
Market View Oil & Natural Gas Prices (WTI/Henry Hub) USD/bbl USD/Million BTU 150 15 100 10 50 5 0 0 2000 2005 2010 2015 2020 8 Source: EIA
Slide 9: Possible FPS projects (as of Aug 2020)
Possible FPS projects (as of Aug 2020) Asia & Pacific Latin America Brazil Australia FPSO (Charter) 2020 FPSO (Charter or EPCI + O&M) 2021 FPSO (Charter) 2021 FPSO (Charter) 2021 FPSO (Charter) 2021 FPSO (EPC or Charter) 2021 FPSO (Charter) 2021 FPSO (EPCI + O&M) 2022 9
Slide 10: FY2020: Outlook
FY2020 : Outlook Revenue Operating Profit Ordinary Profit Profit Attributable to Owners of Parent Billion JPY Billion JPY Billion JPY Billion JPY 20 18.0 40 25 21.0 21.8 400 14.9 19.4 15 20 11.4 29.4 332.6 28.7 10 30 15 24.3 280.0 5 10 229.9 20 221.9 0 5 191.1 -4.8 200 (5) 0 10 (10) (5) 0.2 (15) 0 (
Slide 11: Financial Results
Highlight Market View & Outlook Financial Results 11
Slide 12: Profit & Loss
Profit & Loss 2019 2020 Variance Million JPY 1H 1H Revenue 148,428 156,446 8,018 Revenue increased due to the progress of EPCI projects Gross Profit 3,963 (6,321) (10,284) Gross profit decreased due to cost increase Selling, General and Administrative Expenses 6,259 5,769 (490) simulated with a
Slide 13: New Orders / Revenue
New Orders / Revenue MV32 New Orders Revenue EPC(I)period Sangomar MV33 Billion JPY Billion JPY MV32 MV33 MV33 800 MV34 800 MV31 MV34 700.9 MV30 635.0 FSO Ailsa MV29 Stampede MV27 MV25 2016 2017 2018 2019 2020 2021 400 400 332.6 253.6 229.9 221.9 191.1 167.6 156.4 92.7 0 0 2016 2017 2018 2019 2020 2
Slide 14: 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 Billion JPY MV32 1,387.0 1,244.5 1,200 1,144.4 1,087.6 817.6 800.1 800 648.9 569.4 534.5 494.7 400 0 2016 2017 2018 2019 2020 1H 2016 2017 2018 2019 202
Slide 15: Operating Income
Operating Income A A : Consolidated Operating Profit A+B B : Operating Profit (equity method portion) A+B+C C : Influence of Deferred/Realized Profits Billion JPY Billion JPY 40.3 39.1 38.4 40 40 35.6 33.1 29.3 30 30 20 18.0 20 18.0 16.6 14.9 14.9 15.4 11.4 11.4 10 10 0 0 -1.4 -1.6 -4.8 -4.8 (10) (1
Slide 16: Other Income
Other Income Equity in Earnings of Affiliates Net Interest Income Million USD Billion JPY MV29 5.1 MV25 MV27 4.9 100 5 88.6 85.7 82.5 3.6 2.5 50 3 1.8 21.7 19.2 0 0 2016 2017 2018 2019 2020 1H 16 2016 2017 2018 2019 2020 1H
Slide 17: Influence of Deferred/Realized Profits / Ordinary Profits
Influence of Deferred/Realized Profits / Ordinary Profits 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) 2016 2017 2018 2019 C : Influence of D
Slide 18: Impact of Covid-19
Impact of Covid-19 Impact of Covid-19(Jan-June) Billion JPY JPY 12.0 billion of cost increase simulated with a COVID-19 impact and JPY 1.8 billion of costs related to change order still under negotiation were recognized in 1st half-year. Ordinary profit is JPY 4.9 billion excluding two items. FP
Slide 19: Balance Sheet
Balance Sheet 2019 2020 1H Variance Million JPY Cash and Deposits 52,381 55,599 3,218 Accounts Receivable - trade 163,364 157,197 -6,167 Account receivable decreased due to timing difference between recognition of revenue and billing Short-term Loans Receivable 8,387 12,881 4,494 Short-term loan
Slide 20: Key Financial Indicators
Key Financial Indicators EBITDA Interest-Bearing Debt EBITDA（after adjustment*） Total interest-bearing debt（after EBITDA Instant Coverage Ratio adjustment*） Billion JPY X times Billion JPY Total interest-bearing debt/EBITDA 11.4 X times 57.8 60 53.3 53.4 11.5 11.0 10.0 200 166.1 9.0 161.6 159.7 170.
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