modec, inc. 2013 financial results analysts … financial results analysts presentation february 14,...

MODEC, Inc.

2013 Financial Results

Analysts Presentation

February 14, 2014

2

INDEX Operation Review

4 – 6 2013 Operation Overview

7 Major Orders in 2013

8 Construction Projects in 2013

9 Time Charter / O&M Projects

10 Time Charter / O&M Period

11 Prospective Projects

Financial Results & Outlook

13 Profit & Loss

14 Revenue

15 Ordinary Profit

16 Orders & Order Backlogs

17 Balance Sheet

18 Cash Flow

19 Key Financial Figures

20 2014 Financial Forecast

Operations Review

3

2013 Operations Overview

• New Order recorded the highest level Awarded 2 FPSO: Tullow T.E.N. MV25 FPSO

and FPSO Cidade de Caraguatatuba MV27

New order including constriction and operation

service reached the highest level of JPY 518.4

billion (up by 51.3% from the previous year

and higher than JPY 342.6billion recorded in

2012)

4

• Revenue recorded the highest level as well Construction progresses of FPSO Cidade de

Itagual MV26 was better than budgeted.

Revenue including Operation service for FPSO

Cidade de Sao Paulo MV23 and others reached

the highest level of JPY 254.4 billion (up by 36.1%

from the previous year and higher than JPY 204.2

billion recorded in 2009)

0

100

200

300

400

500

600

2009 2010 2011 2012 2013

(Bil. JPY) New Orders

0

50

100

150

200

250

300

2009 2010 2011 2012 2013

(Bil. JPY) Revenue


• Ordinary profit recorded the highest level of

JPY15.8 billion Earnings of affiliates recorded JPY 5.6 billion

JPY 3.8 billion was booked as FX gain as USD/JPY

exchange rate rose to 105.37 in 2013 from 86.56 in

2012.

5

0

2

4

6

8

10

12

14

16

18

2009 2010 2011 2012 2013

(Bil. JPY) Ordinary Profit

0

1

2

3

4

5

6

2009 2010 2011 2012 2013

(Bil. JPY) Net Income

75.00

80.00

85.00

90.00

95.00

100.00

105.00

110.00

2009 2010 2011 2012 2013

（JPY） Exchange Rate（$/¥）

• Net Income stayed at the highest level of

JPY 4.9 billion


• Net worth equity Capital: Increased to 70.8

billion

6

0

10

20

30

40

50

60

2009 2010 2011 2012 2013

(Bil. JPY) Total Interest-Bearing Debt

0

5

10

15

20

25

30

35

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

（JPY） Dividends per share

0

10

20

30

40

50

60

70

80

2009 2010 2011 2012 2013

(Bil. JPY) Equity

• Proposed annual dividend : 30.00 JPY per

share Dividend has been increasing every year for 9

years.

Tullow T.E.N. MV25 FPSO

Client: Tullow Ghana Limited.

Scope of Work: EPCI + Time Charter

(10 years 10 one –year options）

First Oil: Planned 2016 2Q

Field: T.E.N.(Tweneboa/Enyenra/Ntomme) field (Ghana)

Water Depth: 1,500m

Storage Capacity: 1,700,000 bbls

Oil Production 100,000 bopd

FPSO Cidade de Caraguatatuba MV27

Client: Petro Brasileiro S.A.

Scope of Work: EPCI + Time Charter

(20years）

First Oil: Planned 2016 3Q

Location: Carioca field (Brazil)

Water Depth: 2,100m

Storage Capacity: 1,600,000 bbls

Oil Production: 100,000 bopd

7

Major Orders in 2013

8

FPSO Cidade de Mangaratiba MV24

EPC + Time Charter (20 yrs.)

Delivery : Planned 2014 4Q

Field : Cernambi Sul field (Brazil)

- Under construction at BrasFELS shipyard

FPSO Cidade de Itaguai MV26

EPC + Time Charter (20 yrs.) Delivery : Planned 2015 4Q Field : Iracema Norte field (Brazil) - Under construction at COSCO Dalian shipyard


EPCI + Time Charter (10 yrs. + 10 one year Option)

Delivery: Planned 2016 2Q

Field : T.E.N.(Tweneboa/Enyenra/Ntomme) field (Ghana)

- Under construction at Jurong shipyard

COSCO Dalian

(China)

Jurong

(Singapore)

BrasFELS

(Brazil)





FPSO OSX-3

EPC(I) Period

2011 2012 2013 2014 2015 2016


EPCI + Time Charter (20 yrs.)

Delivery: Planned 2016 3Q

Field : Carioca field (Brazil)

Construction Projects in 2013

New

Award

in 2013

New

Award

in 2013

OSX-3 FPSO

EPCI

First Oil: Done

Field: Waikiki Pero Inga fields (Brazil)

9

T/C (Time Charter)

: 4 FPSOs

O&M

Under construction

: 12 FPSOs/FSOs

: 4 FPSOs

: Own & Operate

: Operate (O&M)

(T/C)

Southeast Asia

FSO

Rong Doi MV12

FSO

Rang Dong MV17

FPSO

Song Doc Pride MV19

(T/C)

(T/C)

(T/C)

West Africa

FPSO

Baobab Ivoirien MV10

FPSO

Kwame Nkrumah MV21

Tullow

T.E.N.

FPSO (T/C)

(O&M)

(T/C)

Oceania

FPSO

MODEC Venture 11

FPSO

Stybarrow Venture MV16

FPSO

Raroa

FPSO

Pyrenees Venture

(T/C)

(O&M)

(T/C)

Brazil

FPSO

Cidade do Rio de Janeiro MV14

FPSO

Cidade de Niteroi MV18

FSO

Cidade de Macae MV15

FPSO

Fluminense

FPSO

Cidade de Santos MV20

FPSO

Cidade de Angra dos Reis MV22

Petrobras

Cernambi

South FPSO

FPSO

Cidade de Mangaratiba MV24

FPSO

Cidade de Sao Paulo MV23

Petrobras

Iracema

North FPSO

FPSO

Cidade de Itaguai MV26

(O&M)

(T/C)

(T/C)

(T/C)

(T/C)

(T/C)

(T/C)

(T/C)

(T/C)

(O&M)

Petrobras

Carioca

FPSO

FPSO

Cidade de Caraguatatuba MV27

(T/C)

Time Charter / O&M Projects (As of February 2014)

February 2014

Time Charter

O&M

: 12 FPSO/FSOs

: 4 FPSOs

# Consolidated Subsidiary

# Affiliates accounted for by the Equity Method

10

15y

20y

10y

20y

20y

10y

15y

12y

15y

9y

9y

5y

10y

20y

8y

7y

10y

5y

13y

20y


Tullow T.E.N. FPSO MV25



FPSO Raroa

FPSO Cidade de Sao Paulo MV23

FPSO Kwame Nkrumah MV21

FPSO Cidade de Angra dos Reis MV22

FPSO Cidade de Santos MV20

FPSO Pyrenees Venture

FPSO Cidade de Niteroi MV18

FSO Rang Dong MV17

FPSO Song Doc Pride MV19

FPSO Stybarrow Venture MV16

FSO Cidade de Macae MV15

FPSO Cidade do Rio de Janeiro MV14

FSO Rong Doi MV12

FPSO Baobab Ivoirien MV10

FPSO MODEC Venture 11

FPSO Fluminense

Time Charter fixed period Time Charter option period

O&M period

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

#

#

#

#

-

#

-

#

#

-

#

#

#

#

#

#

#

#

#

-

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Time Charter / O&M Period (As of February 2014)

Africa

South

America

Asia

&

Oceania

Gulf of

Mexico

China • CNOOC South China Sea TLP Vietnam • CSJOC Block 10 & 11.1 FPSO Thailand • PTTEP Bongkot FSO 3 • PTTEP Nang Nuan FPSO Malaysia • Petronas FLNG No.2 • JX Layang FPSO Indonesia • INPEX Masela FLNG • Santos Indonesia AAL FPSO

Israel • Noble Leviathan gas project FPSO

Brunei • Brunei FPSO

Ghana

• ENI OCTP FPSO

Angola

• Total Block 32 KAOMBO FPSO

• BP Block 31 FPSO

• Maersk Chissonga FPSO

• Cobalt Block 21 FPSO

Namibia

• Tullow Kudu FPS

South Africa

• Sunbird Ibhubeshi FPSO

Gulf of Mexico

• Hess Stampede TLP

• Noble Gunflint Semi-Sub

Brazil

• Petrobras Tartaruga Verde e Mestica

FPSO

• Petrobras ES Aguas Profund as Mod I

• Reviatalizacao de Marlim Mod I

• Petrobras Sergipe Aguas Profundas Mod I

• Petrobras Sul de Parque des Baleias

FPSO

• Petrobras Maromba Mod I FPSO

• Petrobras Carcaraa FPSO

• Jupiter

• Anadarko FPSO

• Petrobras Guanambi GTL FPSO

Falkland Islands Premier Sea Lion TLP

Australia

• Woodside Lady Nora FPSO

• Woodside Laverda FPSO/Semi-sub

11

Prospective Projects

Financial Results & Outlook

12

Profit & Loss

13

(Mil. JPY)

2012 2013 Variance

Revenue 186,891 254,401 67,510Construction revenue increased due to higher progress in FPSO

projects.

Gross Profit 13,626 16,713 3,087

Gross Profit margin 7.3% 6.6% -0.7%

Selling, General and Administrative Expenses 10,155 13,009 2,854 Increased mainly due to Yen depreciation

Operating Profit 3,470 3,704 234

Other Income (A) 6,910 12,963 6,053

Other Expense (B) 1,084 847 (237)

Total Other Income/Expenses (C=A-B) 5,826 12,116 6,290

(Equity in Earnings of Affiliates and

Unconsolidated Subsidiaries included in C)2,382 5,622 3,240

Recored Equity in Earnings of Affiliates and realized the unrealized

profits of MTOPS due to the start of charter service for MV23

(Exchange gain/loss and Gain/loss on

revaluation of derivatives included in C)2,203 3,849 1,646

FX gain due to evaluation of assets denominated in foreign

currency.

Ordinary Profit 9,296 15,820 6,524 The highest level.

Extraordinary Profit - 101 -

Extraordinary Loss - 4,261 -

Recorded impairment of fixed assets for Floating wind & Current

Hybrid Power Generation and an allowance for accounts

receivables

Income before Income Taxes and Minority

Interests9,296 11,659 2,363

Net Income 5,130 4,922 (208)

Exchange Rate (USD) ¥86.56 ¥105.37 ¥18.81

Revenue

14

2,217

1,799 1,672

2,159

2,414

0

1,000

2,000

2009 2010 2011 2012 2013

(Mil. USD)

Revenue (USD)





FPSO OSX-3

FPSO Cidade de Sao Paulo MV23

FPSO Cidade de Angra dos Reis MV22

FPSO PSVM

FPSO Kwame Nkrumah MV21

FPSO Cidade de Santos MV20

FPSO Pyrenees Venture

FPSO Cidade de Niteroi MV18

建造工事 EPC(I) 期間

2009 2010 2011 2012 2013 2014

204,225

146,660 129,968

186,891

254,401

0

50,000

100,000

150,000

200,000

250,000

300,000

2009 2010 2011 2012 2013

(Mil. JPY)

Revenue

Ordinary Profit

15

7,454

6,156

5,055

9,296

15,820

7,672

10,079

5,196

10,679

15,823

0

5,000

10,000

15,000

20,000

2009 2010 2011 2012 2013

(Mil. JPY)

Ordinary Profit & Ordinary Profit before Deferred Profits Adjustment

Ordinary Profit

Ordinary Profit before Deferred Profits Adjustment

-1,350

-4,361

-1,043

-2,075

-3,072

1,131 438

902 692

3,069

6,473

10,396 10,536

11,920 11,922

-5,000

0

5,000

10,000

2009 2010 2011 2012 2013

(Mil. JPY)

Influence of Deferred Profits

Deferred Realized Balance

Orders & Order Backlogs

16

489

2,132

3,572 3,959

4,920

0

2,500

5,000

2009 2010 2011 2012 2013

(Mil. USD) Orders (USD)

45,010

173,835

277,710

342,667

518,482

0

100,000

200,000

300,000

400,000

500,000

600,000

2009 2010 2011 2012 2013

(Mil. JPY)

Orders

213,667 229,914

359,375

543,693

896,669

0

200,000

400,000

600,000

800,000

1,000,000

2009 2010 2011 2012 2013

(Mil. JPY)

Order Backlogs

136,330 144,765 186,706

350,399

551,265

0

100,000

200,000

300,000

400,000

500,000

600,000

2009 2010 2011 2012 2013

(Mil. JPY) Order Backlogs for Equity Method Portion

(Lease, Charter and O&M)

Balance Sheet

17

(Mil. JPY)

2012 2013 Variance

Short-term Loans Receivable 3,739 - (3,739) Total Assets:

Total Current Assets 102,003 120,889 18,886

Property and Equipment 12,423 17,602 5,179

Intangible Assets 6,759 7,394 635

Investments and Other Assets 32,917 69,789 36,872

Total Fixed Assets 52,101 94,745 42,644

Total Assets 154,106 215,674 61,568

Short-term Loans Payable 3,401 10,888 7,487 Total Liabilities:

Total Current Liabilities 83,239 115,050 31,811

Long-term Loans Payable 3,592 15,615 12,023

Total Long-term Liabilities 10,475 20,179 9,704

Total Liabilities 93,715 135,230 41,515

Total Shareholders Equity 68,039 71,628 3,589 Total Net Assets:

Total Accumulated Losses from

Valuation and Translation Adjustments(13,933) (817) 13,116

Minority Interests in Consolidated Subsidiaries 6,283 9,633 3,350

Total Net Assets 60,389 80,444 20,055

Total Liabilities, Net Assets 154,104 215,674 61,570

Accounts receivable temporarily increased due to the progress of

awarded projects

Loan receibavle is increased due to investments and loans for the

constructions to SPCs

Accounts payable increased due to construction progress

Cash Flow

18

-37,098

7,502 4,792

22,896

-12,901

21,974

-21,635

21,453

-3,202

-19,551

-277

7,668

-20,662

-5,897

11,374

-40,000

-30,000

-20,000

-10,000

0

10,000

20,000

30,000

40,000

2009 2010 2011 2012 2013(Mil. JPY)

Cash Flow

Cash Flow from Operating Activities

Cash Flow from Investing Activities

Cash Flow from Financing Activities

Cash Flow from Operating Activities

・ Accumulated balance of accounts receivable

/payable increased cash outflow.

Cash Flow from Investing Activities

・Increased cash outflow due to investment to SPC.

Cash Flow from Financing Activities

・Increased loan balance which corresponded to the

loans receivable from SPC

Key Financial Figures

19

(Mil. JPY)

2009 2010 2011 2012 2013

Operating profit 4,169 3,563 293 3,470 3,704

Depreciation and amortization 1,380 958 2,773 2,980 4,223

Amortization of consolidated differences 264 211 257 286 349

Collection of lease receivable (Cantarell FSO, Inc., S.A. de C.V.) - - - -

EBITDA 5,813 4,732 3,323 6,736 8,276

Operating profit (equity method portion) 6,242 6,607 13,336 8,254 12,923

Depreciation and amortization (equity method portion) 5,142 5,611 6,126 6,965 7,907

Collection of lease receivable (equity method portion) 1,350 1,588 5,691 1,793 2,865

EBITDA (after adjustment) 18,547 18,538 28,476 23,748 31,970

Interest income 1,444 1,957 960 1,386 2,381

Interest expense 1,288 486 648 496 696

Interest expense (equity method portion) 2,978 3,324 6,203 4,994 6,442

Net Interest expense (after adjustment) 2,822 1,853 5,891 4,104 4,757

EBITDA Interest Coverage Ratio (x times) 6.6 10.0 4.8 5.8 6.7

2009 2010 2011 2012 2013

Liabilities with interest 56,800 31,377 10,713 6,995 26,504

Liabilities with interest (equity method portion) 69,061 79,677 92,171 139,113 126,087

Cash and time deposits 31,505 12,122 17,320 33,367 21,786

Cash and time deposits (equity method portion) 4,606 7,848 9,300 23,410 15,440

Net liabilities with interest (after adjustment) 89,750 91,084 76,264 89,331 115,365

Net liabilities with interest / EBITDA (x times) 4.8 4.9 2.7 3.8 3.6

2009 2010 2011 2012 2013

ROE (%) 6.4 6.0 6.1 10.1 7.9

ROA (%) 1.6 1.7 2.3 3.7 2.7

Equity Ratio (%) 22.7 36.6 38.1 35.1 32.8

2014 Financial Forecast

20

146,660 129,968

186,891

254,401

300,000

0

100,000

200,000

300,000

2010 2011 2012 2013 2014(F)

(Mil. JPY) Revenue

6,156 5,055

9,296

15,820

13,000

0

5,000

10,000

15,000

20,000

2010 2011 2012 2013 2014(F)

(Mil. JPY)

Ordinary Profit

2,735 3,067

5,130 4,922

8,500

0

5,000

10,000

2010 2011 2012 2013 2014(F)

(Mil. JPY)

Net Income (JPY)

Exchange Rate 81.52 77.74 86.56 105.37 100.00(F)

34 39

59

46

85

0

50

100

2010 2011 2012 2013 2014(F)

(Mil. USD)

Net Income (USD)

modec, inc. 2013 financial results analysts … financial results analysts presentation february 14,...

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