Slide 1: MODEC, Inc. 2005 Half-Year Results Analysts Presentation
MODEC, INC. 2005 HALF-YEAR RESULTS ANALYSTS PRESENTATION August 19, 2005 P. 1
Slide 2: Contents
CONTENTS I. 2005 HALF-YEAR HIGHLIGHT P. 3 II. PROFIT & LOSS P. 11 III. BALANCE SHEET & CASH FLOW P. 18 IV. FINANCIAL INDICATOR P. 22 P. 2
Slide 3: I. 2005 Half-Year Highlight
I. 2005 HALF-YEAR HIGHLIGHT 1. NEWLY ORDERED PROJECTS 2. CONSTRUCTION WORKS 3. PROSPECTIVE PROJECTS - CURRENT PROSPECTIVE PROJECTS - OTHER TOPICS - PROJECT LOCATION - CHARTER and O&M PERIOD P. 3
Slide 4: Newly Ordered Projects
2005 HALF-YEAR HIGHLIGHT 1. NEWLY ORDERED PROJECTS KNOC Rong Doi FSO (Vietnam) Petrobras Espadarte Sul FPSO (Brazil) Client: KNOC (Korea National Oil Corporation) Client: Petrobras EPCI + Time Charter (New-built) EPCI + Time Charter (Conversion) Charter Period: 7 years+option(max.30 years Charter Pe
Slide 5: Construction Works
2005 HALF-YEAR HIGHLIGHT 2. CONSTRUCTION WORKS Santos Mutineer-Exeter FPSO (Australia) 2005 March : First Oil 2005 April : Charter Start CNR Baobab FPSO (Cote d’Ivoire) 2005 May : Charter Start 2005 August : First Oil PEARL Jasmine FPSO (Thailand) 2005 June : First Oil & Charter Start Amerada Hess O
Slide 6: Prospective Projects
2005 HALF-YEAR HIGHLIGHT 3. PROSPECTIVE PROJECTS Pioneer Resources Olowi FPSO (Gabon) Vietsovpetro Bavi FSO Replacement (Vietnam) Chevron Tombua/Landana FSO (Angola) Unocal Gendalo FPSO (Indonesia) BHPBP Shenzi TLP GOM 9 MODEC Int’l LLC awarded FEED contract MODEC, Inc. MODEC Int’l LLC (Tokyo) (Hous
Slide 7: Current Prospective Projects
CURRENT PROSPECTIVE PROJECTS Vietsovpetro FSO Replacement (Vietnam) 9 EPCI (New-built) Pioneer Resources Olowi FPSO (Gabon) 9 Charter (Conversion) Unocal Gendalo FPSO (Indonesia) 9 EPCI or Charter Chevron Tombua/Landana FSO (Angola) Plan to apply IMC new-built FPSO 9 Charter (New or Conv.) MODEC, In
Slide 8: Other Topics
OTHER TOPICS January Relief efforts for Tsunami victims to Indonesian government (USD 100,000) and Thai government (JPY 5,000,000) March Deputy Prime Minister of Cambodia and Director General of Cambodia National Petroleum Authority visited MODEC Tokyo office Contribution of USD 50,000 to East Timor
Slide 9: Project Location
PROJECT LOCATION CLJOC Su Tu Den FPSO (T/C) Under Construction O&M : Operation only Petronas Carigali Ruby FPSO (O&M) T/C : Time Charter Note) Ruby FPSO: Contractor-Prosafe Vietsovpetro White Tiger FSO PEARL Jasmine FPSO (T/C) JHN Lufeng FSO PTTEP Bongkot FSO Amoco Liuhua FPSO Anadarko Marco Polo TL
Slide 10: Charter and O&M Period
CHARTER and O&M PERIOD Time Charter Fixed Period Option Period O&M Contract Fixed Period Option Period Petrobras Espadarte Sul FPSO Petrobras PRA-1 FSO KNOC Rong Doi FSO Santos Mutineer-Exeter FPSO CNR Baobab FPSO CLJOC Su Tu Den FPSO Shell Bijupira-Salema FPSO Petronas Carigali Ruby FPSO MEDCO/MOEC
Slide 11: II. Profit & Loss
II. PROFIT & LOSS - SALES - SALES by SERVICE TYPES & AREAS - ORDERS by SERVICE TYPES - ORDER BACKLOGS by SERVICE TYPES - ORDINARY INCOME - NET INCOME P. 11
Slide 12: Sales
SALES (Mil. JPY) SALES SALES Progress Ratio by Service Types 80,000 66,751 (Mil. JPY) 60,000 55,000 51,891 Progress 2005/6 2005/12(E) Ratio 40,000 33,057 30,649 EPCI 14,774 42,000 35.2% 21,788 20,000 Lease, Charter 6,106 12,000 50.9% and Operation 0 03/6 03/12 04/6 04/12 05/6 05/12(E) 04-05 (Mil. JP
Slide 13: Sales by Service Types & Areas
SALES by SERVICE TYPES & AREAS Sales by Service types Sales by Areas Asia Africa (Mil. JPY) Lease, Charter and O&M EPCI Other (Mil. JPY) Central & South America North America Oceania 80,000 80,000 66,751 66,751 60,000 51,891 60,000 51,891 40,000 33,057 57,864 40,000 33,057 30,649 30,649 39,422 21,78
Slide 14: Orders by Service Types
ORDERS by SERVICE TYPES Orders by Service types (Mil. JPY) Lease, Charter and O&M (Mil. JPY) Lease, Charter and O&M EPCI Other 30,000 100,000 86,949 75,000 63,461 20,000 50,141 50,000 29,684 27,118 22,935 10,000 25,000 11,203 8,874 5,637 2,902 0 0 03/6 03/12 04/6 04/12 05/6 03/6 03/12 04/6 04/12 05/
Slide 15: Order Backlogs by Service Types
ORDER BACKLOGS by SERVICE TYPES indicates MODEC group’s share in the “Lease, Charter and O&M services” of our affiliates accounted for by the equity method. (Mil. JPY) Equity Method portion (Mil. JPY) Equity Method portion Order Backlogs Lease, Charter and O&M 119,642 200,000 120,000 160,534 92,482
Slide 16: Ordinary Income
ORDINARY INCOME (Mil. JPY) Ordinary Income Influence of Unrealized Profits Elimination 5,000 4,500 (Mil. JPY) 3,701 2004/6 2005/6 3,190 2,614 Eliminated 895 407 2,500 Realized 14 1,175 1,495 920 Influence 881 768 Balance 2,132 1,806 0 03/6 03/12 04/6 04/12 05/6 05/12(E) 04-05 (Mil. JPY) 2003/6 2004/
Slide 17: Net Income
NET INCOME (Mil. JPY) Net Income 3,000 2,500 2,230 Realization of deferred profits from 2,029 2,000 1,500 CNR Baobab FPSO construction works 1,005 814 pushed up the net income ratio 1,000 0 03/6 03/12 04/6 04/12 05/6 05/12(E) 04-05 (Mil. JPY) 2003/6 2004/6 2005/6 Valiance 2004/12 Sales 33,057 30,6
Slide 18: III. Balance Sheet & Cash Flow
III. BALANCE SHEET & CASH FLOW - ASSETS - LIABILITIES & SHAREHOLDERS’ EQUITY - CASH FLOW P. 18
Slide 19: Assets
ASSETS (Mil. JPY) Assets 04/12- Current Assets Non-Current Assets 04/6 04/12 05/6 05/6 Valiance 05/6 37,753 28,057 Current Assets 46,187 42,700 37,753 4,946 Cash and time deposits 9,699 14,061 10,529 3,531 04/12 42,700 23,820 Accounts receivable - trade 16,590 14,059 12,063 1,995 Inventories 0 165 4
Slide 20: Liabilities & Shareholders' Equity
LIABILITIES & SHAREHOLDERS’ EQUITY (Mil. JPY) Liabilities & Shareholders' Equity 04/12- Liabilities Minority Interests Shareholders' Equity 04/6 04/12 05/6 05/6 Valiance 05/6 39,653 24,457 Current Liabilities 39,724 34,909 30,921 3,988 Accounts payable - trade 14,408 10,255 6,447 3,808 04/12 42,842
Slide 21: Cash Flow
CASH FLOW (Mil. JPY) CF from Operating Activities 04/6 05/6 Valiance CF from Operating Activities CF from Investing Activiteis Income before income taxes and 615 2,614 1,998 CF from Financing Activities minority interests Cash and Cash Equivalents at Ending of Year Depreciation and amortization 268
Slide 22: IV. Financial Indicator
IV. FINANCIAL INDICATOR - FINANCIAL INDICATOR P. 22
Slide 23: Financial Indicator
FINANCIAL INDICATOR (Mil. JPY) 03/6 04/6 05/6 Valiance 04/12 Operating profit 2,148 702 2,098 1,395 3,779 Depreciation and amortization 1,316 268 497 229 635 Amortization of consolidated difference - 13 13 - 26 Lease Assets (Cantarell FSO, Inc., S.A. de C.V.) 711 747 966 219 1,594 EBITDA 4,175 1,730