Slide 1: 2014 Half-Year Financial Results Analysts Presentation
MODEC, Inc. 2014 Half-Year Financial Results Analysts Presentation August 8, 2014
Slide 2: 2014 Half-Year Operations Review
2014 Half-Year Operations Review Financial Results & Outlook 2
Slide 3: 2014 Half-Year – Market Environment
2014 Half-Year – Market Environment World Population Energy Demand 10 20,000 Mtoe Billions Non- 5 Less developed regions 10,000 OECD OECD 0 More developed regions 0 Petrobras 2014-2018 BMP 2000 2010 2020 2030 2000 2010 2020 2030 (Business and Management Plan) Source: World Population Prospects: The
Slide 4: 2014 Half-Year – Operations Review
2014 Half-Year – Operations Review New Orders Revenue New Orders stood at 35.6 billion yen Revenue totaled 161.9 billion yen, increased by 51% compared with 2Q Attributable to O&M and change 2013 orders EPCI of MV25 and MV27 progressed Bid submitted for FPSO projects in on track Brazil and
Slide 5: 2014 Half-Year – Operations Review
2014 Half-Year – Operations Review Ordinary Profit Net Income (billion JPY) (billion JPY) 20 6.0 5.13 4.92 15.82 15 4.0 9.30 3.07 10 2.74 6.16 5.86 5.06 2.0 5 1.08 0 0.0 2010 2011 2012 2013 2014 2Q 2010 2011 2012 2013 2014 2Q Ordinary Profit and Net Income stood at Exchange Rate on Closing Dates (
Slide 6: Units on Order
Units on Order FPSO FPSO FPSO FPSO Cidade de Mangaratiba Cidade de Itaguai Tullow T.E.N. Cidade de Caraguatatuba MV24 MV26 MV25 MV27 Client Petrobras Petrobras Tullow Petrobras Contract EPC + Time Charter EPC + Time Charter EPCI + Time Charter EPC + Time Charter (20 yrs) (20 yrs) (10 yrs + ten 1-yea
Slide 7: Time Charter / O&M Projects
Time Charter / O&M Projects As of August 2014 Time Charter (Own & Operate) in operation 12 FPSOs/FSOs Southeast Asia Brazil under construction 4 FPSOs O&M (Operate) Time Charter Time Charter in operation 4 FPSOs Petrobras FPSO FPSO Carioca Song Doc Pride MV19 FPSO Cidade de Caraguatatuba MV27 Petrob
Slide 8: Time Charter / O&M Period
As of August 2014 Time Charter / O&M Period Time Charter (Own & Operate) in operation 12 FPSOs/FSOs under construction 4 FPSOs Time Charter fixed period O&M (Operate) Time Charter option period in operation 4 FPSOs O&M period 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 9: Prospective Projects
Prospective Projects Gulf of Mexico • TLP North America Asia Africa & Pacific South America Ghana China Brazil • FPSO (EPCI + Charter) • TLP • 12 Petrobras FPSOs (EPCI + Charter) • 1 other FPSO (EPCI + Charter) Angola Indonesia • FPSO (EPCI) • FLNG Falkland Islands • FPSO (EPCI + O&M) • FPSO (EPCI +
Slide 10: FPSO Market Trends
FPSO Market Trends FPSO Orders (2010-2014YTD) GOM Europe Brazil Pacific Production (bopd) Africa Asia 26 GOM 250,000 Brazil Includes Petrobras Africa 8 serial FPSOs Europe 200,000 Pacific 16 Asia 14 13 12 Brazil (Petrobras) 3 150,000 4 5 same spec 1 Africa 150,000 bopd 3 2,300 m 4 1 2 5
Slide 11: 2014 Half-Year Financial Results & Outlook
2014 Half-Year Operations Review Financial Results & Outlook 11
Slide 12: Profit & Loss
Profit & Loss Variance 2013 2Q 2014 2Q 2013 2Q 2013 (million JPY) 2014 2Q Revenue 107,268 161,977 54,709 254,401 EPCI projects progressed on track Gross Profit 9,391 9,112 (279) 16,713 Deferred profit was recognized in prior year Gross Profit margin 8.8% 5.6% -3.1% 6.6% Selling, General and Administ
Slide 13: Revenue
Revenue Revenue Project EPCI + Charter Period (billion JPY) EPC(I) Period Time Charter Period 300 254.4 MV27 200 186.9 MV25 162.0 Major projects 146.7 130.0 • MV24 MV26 • MV26 • MV25 100 • MV27 MV24 2011 2012 2013 2014 2015 2016 2017 2018 0 2010 2011 2012 2013 2014 2Q 13
Slide 14: 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 2Q 14.7 20 15 11.9 11.9 15.815.8 10.5 10.4 15 10 10.7 10.1 10 9.3 5 8.6 3.1 6.2 5.9 0.9 0.4
Slide 15: New Orders & Order Backlogs
New Orders & Order Backlogs New Orders Order Backlogs Order Backlogs for Equity Method Portion (Lease, Charter and O&M) (billion (billion (billion JPY) JPY) JPY) 600 1,000 1,000 518.5 896.7 750.7 750 750 400 342.7 551.3 543.7 523.2 277.7 500 500 359.4 350.4 200 173.8 229.9 250 250 186.7 144.8 35.6 0
Slide 16: Balance Sheet
Balance Sheet 2013 2014 2Q Variance (million JPY) Short-term Loans Receivable - 23,241 23,241 Total Assets: Increase in account receivable temporarily due to progress Total Current Assets 120,889 193,329 72,440 of EPCI projects Increase in short-term loans receivable due to increase in Property and
Slide 17: 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 (billion JPY) (x times) (billion JPY) (x times) EBITDA Interest Coverage Ratio 20
Slide 18: 2014 Financial Forecast
2014 Financial Forecast Revenue Ordinary Profit (billion JPY) 300.0 (billion JPY) 300 20 254.4 15.8 186.9 15 13.0 200 146.7 9.3 130.0 10 6.2 100 5.1 5 0 0 2010 2011 2012 2013 2014(F) 2010 2011 2012 2013 2014(F) Net Income Exchange Rate on Closing Dates ($/¥) (billion JPY) (JPY) 8.0 110.00 105.37 6.5