MODEC, Inc. 217 Financial Results Analysts Presentation February 7, 218
Highlight Financial Results Mid-term Business Plan 22 2
FY217 : New Awards Awarded 2 large FPSO(EPCI + Charter) The 13 th and 14 th FPSO/FSO which MODEC will provide in Brazil and It s 6 th and 7 th in the pre-salt* *FPSO in the pre-salt owned by MODEC group FPSO Cidade de Angra dos Reis MV22 FPSO Cidade de São Paulo MV23 FPSO Cidade de Mangaratiba MV24 FPSO Cidade de Itaguaí MV26 FPSO Cidade de Caraguatatuba MV27 FPSO Carioca MV3 Client Petrobras Contract EPCI+Time Charter (21 years) Field Sépia Field(Brazil) Water Depth 2,2m Oil Production 18, bpd, Gas Production 212 mmscfd Storage Capacity 1,4, bbls Petrobras Mero Pilot FPSO Client Petrobras Contract EPCI+Time Charter (22 years) Field Mero Field (Brazil) Water Depth 2,1m Oil Production 18, bpd, Gas Production 424 mmscfd Storage Capacity 1,4, bbls 3
FY217 : Highlights New Orders Revenue 8 7.9 4 378.5 295.5 518.4 254.4 229.9 4 395.7 2 191.1 188.7 92.7 213 214 215 216 217 213 214 215 216 217 New orders reached the highest level of 7.9 billion JPY Revenue 191 billion JPY Awarded 2 charter contracts from Petrobras 4
FY217 : Highlights Operating Profit Ordinary Profit Profit Attributable to Owners of Parent Dividends per Share 2 15 1 8.5 18. 11.4 3 2 15.8 18.3 12.8 29.4 24.3 25 2 15 21. 19.4 Yen 5 4 3 37.5 35. 32.5 3. 5. 5 3.7 5. 1 1 5 4.9 5.4 5.8 2 213 214 215 216 217 213 214 215 216 217 213 214 215 216 217 1 213 214 215 216 217 ROE % Equity 2. 15 18.7 15. 15. 1 Targets of the Mid-term Business Plan 217 (Profit attributable to owners of parent & ROE 1%) were achieved for the second year in a row. 1. 5. 7.9 6.5 5.9 213 214 215 216 217 5 Proposed annual dividends of 5. per share including special dividend of 1. per share in accordance with the solid performance of this year. 5
FY217:EPC(I) Stampede TLP FSO Ailsa FPSO Cidade de Campos dos Goytacazes MV29 FPSO Carioca MV3 Petrobras Mero Pilot FPSO Client Hess Maersk Petrobras Petrobras Petrobras Contract EPCM EPC EPCI + Time Charter (2 yrs) EPCI + Time Charter ( 21 yrs ) EPCI + Time Charter (22yrs) Delivery (Planned) May, 217 218 1H 218 2Q 221 221 Field Stampede Culzean Tartaruga Verde & Tartaruga Mestiça Sépia Mero Location GOM UK Brazil Brazil Brazil Water Depth 1,2m 9 m 765 m 2,2 m 2,1 m Storage/ Production 8, bpd 4 mmscfd 35, bbls 25, bopd inlet 1,6, bbls 15, bopd 176 mmscfd 1,4, bbls 18, bopd 212 mmscfd 1,4, bbls 18, bopd 424 mmscfd Progress Order received in October 217 Order received in December 217 6
EPC(I) / Charter / O&M Period As of February 218 EPC(I) period Time Charter fixed period Time Charter option period O&M period 23 228 226 224 222 22 218 216 214 212 21 28 26 24 1 Culzean FSO (EPC) Maersk 2 Stampede TLP (EPCM) Hess 3 (1) 2.1 Petrobras Mero Pilot FPSO Petrobras 4 (2) 2.1 FPSO Carioca MV3 Petrobras 5 (3) 2.1 FPSO Cidade de Campos dos Goytacazes MV29 Petrobras 1 2.1 FPSO Prof. John Evans Atta Mills Tullow 2 2.1 FPSO Cidade de Caraguatatuba MV27 Petrobras 2y 1y 2y 22y 21y 3 2.1 FPSO Cidade de Itaguai MV26 Petrobras 4 29.4 FPSO Cidade de Mangaratiba MV24 Petrobras 2y 2y 5 34. FPSO Cidade de Sao Paulo MV23 Petrobras 2y 6 42.5 FPSO Cidade de Angra dos Reis MV22 Petrobras 7 5. FPSO Cidade de Santos MV2 Petrobras 15y 12y 7.5y 8 45. FPSO Cidade de Niteroi MV18 Petrobras 9 65. FSO Rang Dong MV17 JVPC 9y 9y 7.5y 1 4.6 FSO Cidade de Macae MV15 Petrobras 2y 11 4.6 FPSO Cidade do Rio de Janeiro MV14 Petrobras 12 42. FSO Rong Doi MV12 KNOC 8y 7y 5y 13 5. FPSO Baobab Ivoirien MV1 CNR 1y 14 6. FPSO MODEC Venture 11 Santos 5y 5y - 4. FPSO Stybarrow Venture MV16 available 7y+ 7y+ 1 FPSO Raroa OMV 15y 2 FPSO Kwame Nkrumah MV21 Tullow 5y 5y 3 FPSO Pyrenees Venture BHPB 15y 4 FPSO Fluminense Shell 17.5y Owned by MODEC group companies (%) Affiliates accounted for by the equity method Consolidated subsidiary 7
FY218 : Outlook Revenue Operating Profit Ordinary Profit Profit Attributable to Owners of Parent 4 378.5 295.5 2 15 18. 4 3 29.4 25 2 21. 19.4 2 229.9 22. 191.1 1 8.5 11.4 1. 2 18.3 24.3 2. 15 14. 12.8 1 5 5. 1 5 5.4 5.8 214 215 216 217 218 214 215 216 217 218 214 215 216 217 218 214 215 216 217 218 Assumed exchange rate for FY218: 11 yen/usd MV29 to start charter in 218 1H FSO Alisa to be delivered in 218 2H FPSO Cidade de Campos dos Goytacazes MV29 FSO Ailsa 8
Highlight Financial Results Mid-term Business Plan 22 9
Profit & Loss 216 217 Variance Million JPY Revenue 229,987 191,182 (38,85) Gross Profit 31,544 24,84 (6,74) Selling, General and Administrative Ecpenses 13,526 13,356 (17) Operating Income 18,18 11,448 (6,57) Other Income (A) 14,736 15,77 1,34 Other Expenses (B) 3,346 2,895 (451) Total Other Income/Expenses (C=A-B) 11,39 12,875 1,485 (Equity in Earnings of Affiliates and Unconsolidated Subsidiaries included in C) 9,618 9,686 68 (Exchange gain/loss and Gain/loss on revaluation of derivatives included in C) (1,41) (1,415) (5) Ordinary Profit 29,49 24,322 (5,87) Extraordinary Profit - 741 741 Extraordinary Loss 1,632 (1,632) Income before Income Taxes and Noncontrolling Interests 27,776 25,64 (2,712) Profit Attributable to Owners of Parent 21,12 19,454 (1,558) Exchange Rate (USD) 116.49 113. ( 3.49) Revenue and gross profit decreased due to a decline in the number of EPCI projects Operating profit decreased by 6.5 billion yen due to decreased gross profit Profit due to liquidation of SPCs 1
New Orders / Revenue / Order Backlogs New Orders Revenue Order Backlogs 1,2 Stampede EPC(I) period FSO Ailsa MV29 Mero Sépia Coral South 1,144.4 Order backlogs for MODEC Group s share in the Lease, Charter and O&M services of the affiliates accounted for by the equity method MV27 MV25 987.9 MV26 MV24 896.6 8 OSX-3 213 214 215 216 217 218 7.9 761.6 648.9 73.8 636.1 518.4 551.2 494.7 569.4 4 395.7 378.5 188.7 254.4 295.5 229.9 191.1 92.7 213 214 215 216 217 213 214 215 216 217 213 214 215 216 217 213 214 215 216 217 11
Operating Income/ Equity in Earnings of Affiliates Operating Profit (as if consolidating affiliates basis) Equity in Earnings of Affiliates 4 A A + B A + B + C A : Consolidated Operating Profit B : Operating Profit (equity method portion) C : Influence of Deferred/Realized Profits 4.3 39.1 Million USD 1 MV27 MV25 35.6 MV26 83 86 3 28.6 27.4 29.7 29.3 MV24 69 24.3 53 56 2 16.6 16.6 18. 5 11.4 1 8.5 3.7 5. 213 214 215 216 217 213 214 215 216 217 12
Ordinary Profit Influence of Deferred/Realized Profits Ordinary Profit (as if consolidating affiliates basis Deferred Realized Balance 213 214 215 216 217 A A + B + C A : Consolidated Ordinary Profit B : Ordinary Profit (equity method portion) C : Influence of Deferred/Realized Profits 2 16.2 18.5 17.4 4 15 31.5 11.9 11.1 3 29.4 1 9. 8.5 24.7 24.3 5 3. 3.3 5.8 2 17.3 15.8 18.3 2.5 21.7 12.8 (5) -3. -2.2 1 (1) -7.6-8.2-7.9 213 214 215 216 217 13
Balance Sheet 216 217 Variance Million JPY Accounts Receivable - trade 95,544 98,188 2,644 Short-term Loans Receivable 55,12 46,282-8,73 Total Current Assets 218,42 198,35-2,7 Property and Equipment 14,161 6,863-7,298 Intangible Assets 7,42 7,446 26 Investments and Other Assets 93,624 18,819 15,195 Total Fixed Assets 115,26 123,129 7,923 Total Assets 333,249 321,165-12,84 Short-tem loans receivable decreased due to collection of loans receivable from SPCs Total current assets decreased mainly due to investment in MV25 and MV27. Transfer to long term lease receivable from fixed asset due to extended lease term of owned FSO Investments and other assets increased due to investment in MV25 and MV27 in addition to the recognition of equity in earnings of affiliates and unconsolidated subsidiaries 216 217 Variance Accounts Payable - trade 96,738 8,335-16,43 Short-term Loans Payable 7,812 14,467 6,655 Total Current Liabilities 142,536 128,581-13,955 Long-term Loans Payable 42,478 31,586-1,892 Total Long-term Liabilities 56,12 44,197-11,95 Total Liabilities 198,639 172,778-25,861 Total Shareholders Equity 118,2 135,468 17,268 Total Accumulated Other Comprehensive Income 4,849 1,32-3,817 Minority Interests in Consolidated Subsidiaries 11,56 11,885 325 Total Net Assets 134,69 148,387 13,778 Total Liabilities, Net Assets 333,249 321,165-12,84 Accounts payable decreased in line with EPC(I) progress Long-term loans payable decreased due to scheduled repayment Foreign currency translation adjustments decreased due to yen appreciation 14
Key Financial Indicators EBITDA Interest-Bearing Debt 6 4 31.9 6.7 2 EBITDA(after adjustment*) EBITDA Instant Coverage Ratio 57.8 47.1 43.9 8.2 7. 7.7 53.3 7.2 X times 12. 1. 8. 6. 4. 3 2 115.3 1 3.6 Total interest-bearing debt(after adjustment*) Total interest-bearing debt/ebitda X times 6.5 222.7 22.8 4.3 166.1 161.6 5. 5.1 2.9 3. 3.5 2. 213 214 215 216 217 213 214 215 216 217 *Adjustment: Adding MODEC group s share in affiliates accounted for by the equity method ROE ROA Equity Ratio 2. % 2. 16. 12. 8. 7.9 6.5 5.9 18.7 15. % 7. 5. 3. 2.7 1.9 1.7 6.1 5.9 % Equity 5. 4. 3. 32.8 27.8 28.7 36.9 42.5 15 1 5 4. 213 214 215 216 217 1. 213 214 215 216 217 2. 213 214 215 216 217 15
Highlight Financial Results Mid-term Business Plan 22 16
MODEC, Inc. Mid-term Business Plan 22 February 7, 218 17
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