Modec, Inc. · TSE:6269

Modec — FY2006 Earnings Presentation

33 slides from Modec's earnings presentation, Feb 16, 2007

  1. Slide 1: MODEC Final Results 2006 Analysts Presentation

    MODEC FINAL RESULTS 2006 ANALYSTS PRESENTATION FEBRUARY 16, 2007 P. 1

  2. Slide 2: Contents

    CONTENTS I. FY 2006 HIGHLIGHT . . . . . . . . . . . . . . . . . . . . P. 3 II. MARKET REVIEW . . . . . . . . . . . . . . . . . . . . . . P. 10 III. PROFIT & LOSS . . . . . . . . . . . . . . . . . . . . . . . P. 13 IV. BALANCE SHEET & CASH FLOW . . . . . . . . . . . . . . P. 18 V. FINANCIAL INDICATOR

  3. Slide 3: I. FY 2006 Highlight

    I. FY 2006 HIGHLIGHT 1. NEWLY AWARDED PROJECTS 2. EPCI PROGRESS 3. OPERATION 4. ACQUISITION OF SHARES OF SOFEC AND NATCO JAPAN 5. MODEC ICHI-BAN REVOLUTION 6. SOCIAL CONTRIBUTION P. 3

  4. Slide 4: FY 2006 Highlight: Newly Awarded Projects

    FY 2006 HIGHLIGHT 1. NEWLY AWARDED PROJECTS † Petrobras Opportunity Oil FPSO (Brazil) Shenzi TLP ƒ EPCI + Time Charter ƒ Charter Period: 9 years + option (1x6 years) Rang Dong Deep Panuke † JVPC Rang Dong FSO (Vietnam) FSO MOPU ƒ EPCI + Time Charter ƒ Charter Period: 9 years + option (1x5 years) † B

  5. Slide 5: FY 2006 Highlight: EPCI Progress

    FY 2006 HIGHLIGHT 2. EPCI PROGRESS Oveng TLP Shenzi TLP Stybarrow FPSO † Delivered Units ƒ Petrobras Espadarte Sul FPSO (Brazil) ƒ KNOC Rong Doi FSO (Vietnam) ƒ Amerada Hess Oveng TLP & Okume/Ebano TLP Opportunity (Eq. Guinea) Oil FPSO † Ongoing EPCI Projects Rong Doi FSO ƒ Petrobras PRA-1 FSO (Braz

  6. Slide 6: FY 2006 Highlight: Operation

    FY 2006 HIGHLIGHT 3. OPERATION Elang/Kakatua FPSO Cantarell FSO † MODEC was operating 8 FPSO/FSOs in 2006 † 1 FPSO (Espadarte Sul FPSO) and 1 FSO (Rong Doi FSO) started time charter service in January 2007 Langsa FPSO Bijupira-Salema FPSO † MODEC will be operating 12 FPSO/FSOs by the end of 2007 ƒ C

  7. Slide 7: Acquisition of Shares of SOFEC and NATCO Japan

    FY 2006 HIGHLIGHT 4. ACQUISITION OF SHARES OF SOFEC AND NATCO JAPAN † Acquisition of 100% shares of SOFEC (As of December 31, 2006) ƒ Incorporate turret and mooring technologies into MODEC’s FPSO/FSO business ƒ About SOFEC ƒ Founded in 1972 ƒ Leading provider of SOFEC™ turrets and mooring systems fo

  8. Slide 8: MODEC Ichi-Ban Revolution

    FY 2006 HIGHLIGHT 5. MODEC ICHI-BAN REVOLUTION Clients Clients Functioned as if two different companies One MODEC Re-structuring of Worldwide Functional Tokyo Houston Organization K. Yamada FPSO/FSO Sales FPSO/FSO Sales & Marketing & Marketing Contracts and Risk Management After Global QHSE Manageme

  9. Slide 9: FY 2006 Highlight: Social Contribution

    FY 2006 HIGHLIGHT 6. SOCIAL CONTRIBUTION † MODEC Donated $50,000 for Relief Efforts of Typhoon Durian ƒ Donation of $25,000 each to Ho Chi Min City and Vung Tau City † Company of the Year Award in Brazil ƒ MODEC SERVICOS DE PETROLEO DO BRASIL LTDA. Received “Company of the Year Award” (7th Re[ha]bil

  10. Slide 10: II. Market Review

    II. MARKET REVIEW MAJOR FPSO/FSO & TLP ORDERS IN 2006 MAJOR PROSPECTIVE PROJECTS IN 2007~2008 P. 10

  11. Slide 11: Major FPSO/FSO & TLP Orders in 2006

    MAJOR FPSO/FSO & TLP ORDERS IN 2006 Nexen Ettrick FPSO (Bluewater) Venture Pilot FPSO (Sevan) BHPB Shenzi TLP (MODEC) Equator Exploration Bilabri FPSO (Bergesen) CNR Olowi FPSO (Fred Olsen) JVPC Rang Dong FSO (MODEC) Murphy Azurite FPSO (Prosafe) ExxonMobil Mondo FPSO (SBM) ExxonMobil Saxi-Batuque F

  12. Slide 12: Major Prospective Projects in 2007~2008

    MAJOR PROSPECTIVE PROJECTS IN 2007~2008 ChevronTexaco FSO (Vietnam) EnCana Deep Panuke MOPU (Canada) Petronas Carigali Ruby FPSO Replacement (Vietnam) Amerada Hess Pony TLP (GOM) Truong Son Song Doc FPSO (Vietnam) Petrobras/Devon Cascade/Chinook FPSO (GOM) ENI Bouri FSO (Libya) ExxonMobil Cepu FSO (

  13. Slide 13: III. Profit & Loss

    III. PROFIT & LOSS SALES ORDERS, SALES AND ORDER BACKLOGS BY SERVICE TYPES ORDINARY INCOME NET INCOME P. 13

  14. Slide 14: Sales

    SALES Sales to affiliates accounted for by Sales † Sales in 2006 equity methods (Mil. JPY) ƒ EPCI 120,000 ƒ KNOC Rong Doi FSO 99,149 ƒ Petrobras Espadarte Sul FPSO ƒ Petrobras PRA-1 FSO 80,000 66,751 71,614 ƒ BHPBP Stybarrow FPSO ƒ JVPC Rang Dong FSO 51,891 ƒ (Petrobras Opportunity Oil FPSO) 40,000

  15. Slide 15: Orders, Sales and Order Backlogs by Service Types

    ORDERS, SALES AND ORDER BACKLOGS BY SERVICE TYPES Orders by Service Types Sales by Service Types (Mil. JPY) Leas e, Charter and O&M EPCI Other (Mil. JPY) Leas e, Charter and O&M EPCI Other 200,000 150,000 166,538 179,353 150,000 99,149 100,000 109,084 126,864 71,614 86,949 66,751 100,000 51,891 83,0

  16. Slide 16: Ordinary Income

    ORDINARY INCOME Ordinary Incom e Ordinary Incom e before deferred profits adjus tm ent Ordinary Incom e (Mil. JPY) 6,000 5,408 (Mil. JPY) 5,881 6,000 5,408 4,664 5,029 5,142 4,664 4,000 3,701 3,190 4,000 3,504 3,701 3,190 2,000 2,000 0 0 2003 2004 2005 2006 2003 2004 2005 2006 (Mil. JPY) 2003 2004 2

  17. Slide 17: Net Income

    NET INCOME Net Incom e Equity in earnings of affiliates (Mil. JPY) II 4,000 (Mil. JPY) Leas e incom e from affiliates 3,213 3,305 1,500 1,132 2,230 2,029 1,000 2,000 763 500 148 128 0 0 2003 2004 2005 2006 2003 2004 2005 2006 Exchange 107.14 104.20 118.07 119.12 Rate (Mil. JPY) 2003 2004 2005 2006 0

  18. Slide 18: IV. Balance Sheet & Cash Flow

    IV. BALANCE SHEET & CASH FLOW ASSETS LIABILITIES & NET ASSETS / SHAREHOLDERS’ EQUITY CASH FLOW P. 18

  19. Slide 19: Assets

    ASSETS (Mil. JPY) As s ets 05-06 Current As s ets Non-Current As s ets 2003 2004 2005 2006 V ariance Cash and time deposits 12,264 14,061 25,061 28,827 3,765 2006 74,982 48,367 123,350 A ccounts receivable - trade 15,326 14,059 16,409 10,641 △ 5,768 2005 48,832 55,866 104,698 Inventories 1,924 165 2

  20. Slide 20: Liabilities & Net Assets / Shareholders' Equity

    LIABILITIES & NET ASSETS / SHAREHOLDERS’ EQUITY (Mil. JPY ) Liabilities & Net As s ets / Shareholders ' Equity 05-06 Liabilities Net As s ets / Shareholders ' Equity 2003 2004 2005 2006 V ariance 2006 81,127 42,222 A ccounts payable - trade 11,329 10,255 18,889 16,265 △ 2,624 123,350 Short-term loan

  21. Slide 21: Cash Flow

    CASH FLOW Cas h Flow from Operating Activities (Mil. JPY ) Cas h Flow from Inves ting Activities Cas h Flow from Financing Activities ■ CF from Ope rating 05-06 2003 2004 2005 2006 Cas h and Cas h Equivalents at Ending of Year Activitie s V ariance Income bef ore income 11,716 taxes and minority 3,9

  22. Slide 22: V. Financial Indicator

    V. FINANCIAL INDICATOR Petrobras Espadarte Sul FPSO First oil achieved on January 9, 2007 P. 22

  23. Slide 23: Financial Indicator

    FINANCIAL INDICATOR (Mil. JPY) 2003 2004 2005 2006 05-06 Variance Operating profit 4,147 3,779 3,895 3,494 △ 401 Depreciation and amortization 1,834 635 1,116 662 △ 454 Amortization of consolidated differences 13 26 26 26 0 Collection of lease receivable (Cantarell FSO, Inc., S.A. de C.V.) 1,321 1,5

  24. Slide 24: VI. Forecast for FY 2007

    VI. FORECAST FOR FY 2007 BHPBP Stybarrow FPSO Naming Ceremony January 23, 2007 P. 24

  25. Slide 25: Forecast for FY 2007

    FORECAST FOR FY 2007 Forecast for FY 2007 Results Sales † (Mil. JPY) 150,000 ƒ Sales: 110,000 million yen ƒ Ordinary Income: 6,400 million yen 99,149 110,000 ƒ Net Income: 4,200 million yen 100,000 66,751 71,614 † Influence of Deferred Profits: approx. 700~800 51,891 million yen ƒ Ordinary Income be

  26. Slide 26: Forecast for FY 2007: Sales

    FORECAST FOR FY 2007: SALES Sales Sales to affiliates accounted for by equity methods (Mil. JPY) Leas e, Charter and O&M EPCI Other † Sales in 2007 150,000 ƒ EPCI 110,000 ƒ Petrobras PRA-1 FSO 99,149 ƒ BHPBP Stybarrow FPSO 100,000 71,614 ƒ JVPC Rang Dong FSO 66,751 ƒ Petrobras Opportunity Oil FPSO 5

  27. Slide 27: VII. Appendix

    VII. APPENDIX MODEC PROJECT LOCATION TIME CHARTER / O&M PROJECTS TIME CHARTER / O&M PERIOD HISTORICAL FLOATING PRODUCTION SYSTEMS INSTALLATIONS FLOATING PRODUCTION SYSTEMS IN OPERATION PROJECTS ON ORDER & PROJECTS BEING PLANNED OR STUDIED P. 27

  28. Slide 28: MODEC Project Location

    MODEC PROJECT LOCATION Petronas Carigali Ruby FPSO (O&M) Under construction / FEED Note) Ruby FPSO was built by Prosafe CLJOC Su Tu Den FPSO (T/C) Decommissioned / Relocated JVPC Rang Dong FSO (T/C) T/C : Own & Operate O&M : Operate BBC : Own KNOC Rong Doi FSO (T/C) Vietsovpetro White Tiger FSO PEAR

  29. Slide 29: Time Charter / O&M Projects

    TIME CHARTER / O&M PROJECTS ƒ MODEC currently owns 9 FPSO/FSOs and operates 10 FPSO/FSOs ƒ MODEC will add 4 more FPSO/FSOs by the end of 2008 leading to 14 FPSO/FSOs operations Under construction T/C: Own & Operate O&M: Operate JVPC Rang Dong FSO (T/C) PEARL Jasmine FPSO (T/C) CLJOC Su Tu Den FPSO (

  30. Slide 30: Time Charter / O&M Period

    TIME CHARTER / O&M PERIOD Time Charter Contract O&M Contract Fixed period Option period Fixed period Option period 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Petrobras Opportunity Oil FPSO - JVPC Rang Dong FSO - BHPBP Stybarrow FPSO - Pet

  31. Slide 31: Historical Floating Production Systems Installations

    HISTORICAL FLOATING PRODUCTION SYSTEMS INSTALLATIONS Number of floating production systems increased by 203% between 1996 and 2006. FPSO TLP Spar Semi 200 3% + 20 40 s ar Ye 10 150 st 15 Pa (Number of Installed Units) 20 100 119 50 0 95 96 98 99 00 01 02 03 04 05 06 77 78 79 80 81 82 83 84 85 86 87

  32. Slide 32: Floating Production Systems in Operation

    FLOATING PRODUCTION SYSTEMS IN OPERATION Projects in Operation as of November 2006 North Sea 18 13 111 9 Canada 2 2 SEMI FPSO FSO TLP SEMI FPSO FSO TLP 13 5 3 32 70 Mediterranean 13 14 China SEMI FPSO FSO TLP 1 GOM India & 4 Middle East SEMI 1 FPSO FSO TLP 28 7 15 World Total SEMI FPSO FSO Spar TLP

  33. Slide 33: Projects on Order & Projects Being Planned or Studied

    PROJECTS ON ORDER & PROJECTS BEING PLANNED OR STUDIED Projects on Order as of November 2006 North Sea 43 4 1 1 GOM 2 3 3 SEMI 1 FPSO FSO TLP Asia 5 3 SEMI FPSO FSO Spar TLP 1 1 8 World Total SEMI FPSO FSO Spar TLP West Africa 6 9 8 5 Brazil SEMI FPSO FSO TLP 4 Pacific 2 1 1 SEMI FPSO FSO TLP SEMI FP

MODEC — FY2006 Earnings Presentation on 6ix