Slide 1: MODEC, Inc. 2015 Financial Results Analysts Presentation
MODEC, Inc. 2015 Financial Results Analysts Presentation February 10, 2016
Slide 2: Highlight, Market Review & Outlook, Financial Results
MODEC, Inc. 2015 Financial Results Market Review Financial Highlight & Outlook Results 2
Slide 3: FY2015: Business Environment
FY2015 : Business Environment Oil Price (WTI) January 2014 USD/bbl 140 $94.62 120 100 80 January 2015 $47.22 60 40 January 2016 20 $31.68 0 Source: EIA website Global Upstream Oil and Gas Investment Billion USD 800 -20% 700 600 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Slide 4: FY2015: Highlight
FY2015 : Highlight New Orders / Revenue / Order backlogs New Orders Order Backlogs Revenue Billion JPY 987.9 New order 188.7 billion JPY 1,000 896.6 Maersk Culzean FSO (EPC contract) 761.6 Revenue 295.5 billion JPY EPC progressed on track 543.6 MV25 (Tullow TEN) 518.4 500 MV27 (Petrobras
Slide 5: FY2015: Highlight
FY2015 : Highlight Operating Ordinary Profit Net Income Dividends per Share Profit Billion JPY Billion JPY Billion JPY Yen 35.00 10 20 10 35 18.3 8.5 30 15.8 25 12.8 5.8 5.4 20 5.0 5.1 4.9 5 10 9.2 5 3.7 15 3.4 3.0 5.0 10 5 0.2 0 0 0 0 Exchange Rate on Closing Dates ($/¥) Proposed annual dividends
Slide 6: FY2015: Highlight
FY2015 : Highlight MV26 Maersk Culzean FSO Charter service start in 2016 Five months early delivery; MODEC’s 10th unit for Secured award for a newbuild Brazil (MODEC’s 4th unit for pre-salt) FSO; entry into North Sea market MV25 Client: Petrobras Client: Maersk Oil (Tullow T.E.N., Ghana) Contr
Slide 7: EPC(I) / Charter / O&M Period
As of February 2016 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 Culzean FSO (EPC) Maersk 2 Stampede TLP (ECM) Hess 3 1 29.4 FPSO Cidade de Campos dos Petrob
Slide 8: Market Review & Outlook
MODEC, Inc. 2015 Financial Results Market Review Financial Highlight & Outlook Results 8
Slide 9: Market Review
Market Review Oil Price (WTI) / Number of Floating Production (Storage) Systems Orders No of 40 160 USD/bbl new awards 35 32 33 33 140 30 30 30 28 120 FSO 26 25 FLNG 25 23 23 100 FSRU 21 20 Spar 20 80 15 16 15 Semi 15 60 TLP 26 10 FPSO 10 20 21 40 15 14 14 14 5 11 11 12 12 11 20 8 9 7 4 0 0 2000 200
Slide 10: Market Review (Brazil)
Market Review (Brazil) Oil Production in Brazil Petrobras - Brazil Offshore Oil Production (December 2015) Million bpd MODEC 3.0 45% 7 FPSOs 1 FSO Oil production in Brazil 1.99 = 2.9% of total world oil Mbpd production (2014) Petrobras non-Petrobras Other platforms 2.0 30% Petrobras onshore Petrobra
Slide 11: Market Outlook (Mid/Long-Term)
Market Outlook (Mid/Long-Term) Energy Demand Oil Production Mtoe Million Million 5,000 Oil bpd bpd 100.4 Coal 100 14 89.5 4,000 Gas USA 12 49.1 3,000 36.7 10 OPEC 8 Tight oil Bioenergy 50 (including Shale Oil) 2,000 non- 6 Nuclear OPEC 52.8 51.3 4 1,000 Other Brazil renewables 2 0 Hydro 0 0 1990 200
Slide 12: Prospective Projects (as of February 2016)
Prospective Projects (as of February 2016) Norway Gulf of Mexico TLP FPSO (Charter) TLP, Semi or FPSO (TBA) Europe North America Africa Asia & Pacific Latin America Ghana FPSO (Charter) Indonesia Angola FPSO (Charter) FPSO (EPCI + O&M) FPSO (EPC + O&M) Malaysia FPSO (TBD) Brazil Sene
Slide 13: FY2016: Outlook
FY2016 : Outlook Revenue Operating Profit Ordinary Profit Net Income Billion JPY Billion JPY Billion JPY Billion JPY 400 378.5 10 20 10 18.3 9.0 8.5 15.8 295.5 15.0 7.0 254.4 12.8 230.0 5.8 5.4 5.0 5.1 4.9 200 186.8 5 10 9.2 5 3.7 3.4 0 0 0 0 Exchange Rate on Closing Dates Oil Price (WTI) ($/¥) Yen
Slide 14: Financial Results
MODEC, Inc. 2015 Financial Results Market Review Financial Highlight & Outlook Results 14
Slide 15: Profit & Loss
Profit & Loss 2014 2015 Variance Million JPY Revenue 378,523 295,596 (82,927) Gross Profit 21,958 20,078 (1,880) Selling, General and Administrative Expenses 13,391 15,003 1,612 Achieved 5 billion JPY of operating profit backed Operating Profit 8,566 5,075 (3,491) up by steady progress in EPC and
Slide 16: Equity in Earnings of Affiliates
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 Billion JPY Million USD 29.7 30 28.6 100 27.
Slide 17: Deferred Profits
Deferred Profits Influence of Deferred/Realized Profits Ordinary Profit (as if consolidating affiliates basis) A A : Consolidated Ordinary Profit A+B+C B : Ordinary Profit (equity method portion) Deferred Realized Balance C : Influence of Deferred/Realized Profits Billion JPY 30 2011 2012 2013 2014
Slide 18: New Orders / Revenue / Order Backlogs
New Orders / Revenue / Order Backlogs New Orders Revenue Order Backlogs Order backlogs for MODEC Group’s share in the “Lease, Charter and O&M services” of the Billion EPCI Progress (as of end of December 2015) affiliates accounted for by JPY 987.9 the equity method 1,000 FPSO FPSO FPSO Prof. John Ev
Slide 19: Balance Sheet
Balance Sheet 2014 2015 Variance Million JPY Cash and Time Deposits 30,632 57,956 27,324 Cash/deposits for FPSO construction Short-term Loans Receivable 41,008 20,239 (20,769) Total Current Assets 259,992 242,120 (17,872) Property and Equipment 16,924 18,485 1,561 Intangible Assets 7,795 7,476 (31
Slide 20: Key Financial Indicators
Key Financial Indicators EBITDA Interest-Bearing Debt EBITDA (after adjustment*) Total interest-bearing debt (after adjustment*) Billion EBITDA Interest Coverage Ratio Billion Total interest-bearing debt/EBITDA JPY X times JPY X times 50 47.1 12.0 300 6.0 43.9 5.1 4.3 40 10.0 222.7 3.8 202.8 31.9 3.