Slide 1: Mid-term Business Plan 2020
Mid-term Business Plan 2020 February 7th, 2018
Slide 2: Contents
Contents Review of Previous Mid-term Business Plan Mid-term Business Plan 2020 (2015-2017) Outlook of Long Term Energy Consumptions Environment Current Market Result Strategy of Mid-term Business Plan 2020 Activity Target for 2020 - Quantitative Goals Mission and Vision APPENDIX 2
Slide 3: Review of Previous Mid-term Business Plan (2015-2017)
Review of Previous Mid-term Business Plan (2015-2017)
Slide 4: Review of Previous Mid-term Business Plan (2015-2017) - Environment
Review of Previous Mid-term Business Plan (2015-2017) - Environment Reduced number of projects due to low oil price and political instability in Brazil Number of WTI Oil price（USD/bbl.） Projects* 140 14 12 120 10 100 8 80 6 60 4 40 2 20 0 0 2011 2012 2013 2014 2015 2016 2017 Previous Mid-term Busine
Slide 5: Review of Previous Mid-term Business Plan (2015-2017) - Result
Review of Previous Mid-term Business Plan (2015-2017) - Result Strong increase of net income despite the revenue drop Revenue (USD MM) Target of Previous Mid-term Business Plan Net Profit (USD MM) 4,000 200 Revenue Net Profit ROE 3,500 3,500 100 10% 3,000 150 2,500 2,000 100 1,500 1,000 50 500 0 0 2
Slide 6: Review of Previous Mid-term Business Plan (2015-2017) - Activity
Review of Previous Mid-term Business Plan (2015-2017) - Activity Action Plans were steadily achieved, and will be evolved into the new Mid-term Business Plan. Enhanced asset management with active resource allocation. Achieved EPCI and O&M service which enable longer and more stable Asset Integrity
Slide 7: Mid-term Business Plan 2020
& MODEC Mid-term Business Plan 2020
Slide 8: Outlook of Long Term Energy Consumption
Outlook of Long Term Energy Consumption Oil will stay as an important source of energy, whereas Gas will rise sharply. Total energy consumption（mtoe/y） 17,865 16,185 14,576 13,684 2014 2020 2030 2040 Oil consumption （mtoe/y） Gas consumption（mtoe/y） Renewable energy consumption（mtoe/y） 4,775 3,456 4,
Slide 9: Current Market
Current Market Business conditions have improved and numbers of prospective projects are coming. Numbers of projects using floating oil and gas production facilities (as of September 2017) Bidding & Final Design Planning World Total 56 Appraisal 135 48 Canada North Sea China 6 2 5 15 6 5 2 1 GOM Med
Slide 10: Strategy of Mid-term Business Plan 2020
Strategy of Mid-term Business Plan 2020 Maximize LIFECYCLE VALUE Development of new business Evolution of Asset Integrity Penetrate into gas market 01 03 Asset Integrity Digitalization GAS R&D 02 04 Digitalization Continuous investment in R&D LIFECYCLE VALUE : The value which MODEC provides with sta
Slide 11: 1. Evolution of Asset Integrity
Strategy of Mid-term Business Plan 2020 1.Evolution of Asset Integrity Maximizing Lifecycle Value Evolution of Asset Integrity O&M FEED EPCI O&M FEED KPI management aiming to Integrated Management System maximize lifecycle value Global IT HR Organization Platform Development Optimization Renewal of
Slide 12: 2. Digitalization
Strategy of Mid-term Business Plan 2020 2. Digitalization Massive amount of operational data is our key asset of competence. We will move forward with a digitalization program to enhance the lifecycle value. Enhanced efficiency leveraging IoT Advanced Analytics Reduced maintenance cost Safe & Steady
Slide 13: 3. Penetration into gas market
Strategy of Mid-term Business Plan 2020 3. Penetration into gas market Expected volume of investment in floating gas related facility ■Considering alliance/collaboration with 3rd parties if necessary. Europe North America & the Caribbean Southeast Asia Middle East South Asia Africa South America Aus
Slide 14: 4. Continuous investment in R&D
Strategy of Mid-term Business Plan 2020 4. Continuous investment in R&D Offshore fleet repair Offshore wind power Seabed mining Research for low cost development Development and materialization of innovative in-situ fleet repair method using CFRP offshore installation Leading a Japanese national pro
Slide 15: Target for 2020 - Maximize Lifecycle Value
Target for 2020 - Maximize LIFECYCLE VALUE Award USD 4,000 MM Revenue （FPSO） 2 vessels/year Award USD 200 MM Net Profit 2020 （Gas） 1 vessel 12% ROE Digitalization 6 vessels in 2018 - expand up to 2020 15
Slide 16: Mission and Vision
Mission and Vision - Commitment to leading the offshore industry MISSION MODEC delivers and safely operates high-quality, innovative floating solutions for the offshore industry. VISION To be the global leader in delivering and operating innovative and reliable floating solutions by cultivating diverse
Slide 17: APPENDIX
4% MODEC APPENDIX
Slide 18: Outlook of Oil Price
Outlook of Oil Price Both scenario 1 and 2 show steady oil price. Scenario1 Scenario2 Energy demand will increase steadily due to the rise of world Energy demand will increase but that will be offset by improved population, growth of living standards and urbanization in energy efficiency in industry
Slide 19: Continue to accumulate experience
Continue to accumulate experience Charter/O&M (as of February 2018) 2004 2014 2022 2020 2018 2030 2006 2008 2024 2028 2012 2016 2026 2010 (1) Petrobras Mero Pilot FPSO Petrobras 22y (2) FPSO Carioca MV30 Petrobras 21y Petrobras More than (3) FPSO Cidade de Campos dos Goytacazes MV29 20y 1 FPSO Prof.
Slide 20: Disclaimer
Disclaimer The information contained in this material is based on a set of assumptions and it is not guaranteed as to its materialization of financial visions or corporate strategies. 20