MODEC, Inc.

2020 Financial Results

Analysts Presentation
February 10, 2021

1
Highlight

Financial Results
 FY2020 : Highlights

• Simulated construction cost increase

due to COVID-19 was included in 2020
closing.
• Reduction of charter and operation
revenue was recognized as the result of
oil production stop due to COVID-19.
• Revenue is JPY 309.9 billion
• Net loss is JPY 13.0 billion
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• Annual dividend : JPY 45.00 per share

3
 FY2020 : New Awards

 Awarded 2 FPSOs
 Awarded O&M contract for FPSO
Sangomar

FPSO Sangomar Equinor Bacalhau FPSO

Client Woodside Client Equinor
Contract Purchase Contract Contract Sales and Purchase Agreement
Field Location Sangomar Field (Senegal) Field Location Bacalhau Field (ex Carcara Brazil)
Water Depth 780m Water Depth 2,050m
Oil Production 100,000 bopd Oil Production 220,000 bopd
Gas Production 130 mmscfd Gas Production 530 mmscfd
Storage Capacity 1,300,000 bbls Storage Capacity 2,000,000 bbls

4
FY2020：EPC(I) (as of December 2020)

FPSO FPSO FPSO FPSO FPSO FPSO

Carioca Guanabara MIAMTE Almirante Barroso Anita Garibaldi Sangomar
MV30 MV31 MV34 MV32 MV33

Client Petrobras Petrobras Eni Mexico Petrobras Petrobras Woodside

Contract EPCI + Time EPCI + Time EPCI + Time EPCI + Time EPCI + Time Purchase Contract
Charter Charter Charter Charter Charter + O&M
( 21yrs ) ( 22 yrs ) (15 yrs+5 one- ( 21 yrs ) ( 25 yrs) (10 yrs+10 one-year
year extension extension options)
options)

Delivery
2021 2021 2022 2023 2023 2023
(Planned)

Field Sépia Mero Area 1 Block Búzios Marlim Sangomar

Location Brazil Brazil Mexico Brazil Brazil Senegal

Water Depth 2,200 m 2,100 m 32 m 1,900 m 670 m 780 m

Storage/ 1,400,000 bbls 1,400,000 bbls 700,000 bbls 1,400,000 bbls 1,000,000 bbls 1,300,000 bbls
Production 180,000 bopd 180,000 bopd 90,000 bopd 150,000 bopd 80,000 bopd 100,000 bopd
212 mmscfd 424 mmscfd 75 mmscfd 212 mmscfd 248 mmscfd 130 mmscfd

Progress
5
 (Reference)Infection status of COVID-19

出典: "Dong E, Du H, Gardner L. An interactive web-based dashboard to track COVID-19 in real time. Lancet Inf Dis. 20(5):533-534. doi: 10.1016/S1473-3099(20)30120-1" 6
 As of February 2021
 EPC(I) period
 Time Charter fixed period
EPC(I) / Charter / O&M Period  Time Charter option period
 O&M period

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030
(*)
1 FPSO Sangomar Woodside 10y
2 32.5 FPSO Anita Garibaldi MV33 Petrobras 25y
3 35.0 FPSO Almirante Barroso MV32 Petrobras 21y
4 35.0 FPSO MIAMTE MV34 Eni 15y
5 29.4 FPSO Guanabara MV31 Petrobras 22y
6 29.4 FPSO Carioca MV30 Petrobras 21y
1 29.4 FPSO
MV29
Cidade de Campos dos Goytacazes Petrobras
20y
2 25.0 FPSO Prof. John Evans Atta Mills Tullow 10y
3 29.4 FPSO Cidade de Caraguatatuba MV27 Total 20y
4 29.4 FPSO Cidade de Itaguai MV26 Petrobras 20y
5 29.4 FPSO Cidade de Mangaratiba MV24 Petrobras 20y
6 34.0 FPSO Cidade de Sao Paulo MV23 Petrobras 20y
7 42.5 FPSO Cidade de Angra dos Reis MV22 Petrobras 15y 15y
8 50.0 FPSO Cidade de Santos MV20 Petrobras 12y 12y
9 45.0 FPSO Cidade de Niteroi MV18 Petrobras 9y 6y 9y
10 65.0 FSO Rang Dong MV17 JVPC 9y 7.5y 9y
11 40.6 FSO Cidade de Macae MV15 Petrobras 20y 20y
12 42.0 FSO Rong Doi MV12 KNOC 7y 8y
13 50.0 FPSO Baobab Ivoirien MV10 CNR 10y 5y
- 40.0 FPSO Stybarrow Venture MV16 standby 7y + 7y+
1 FPSO Raroa OMV 15y
2 FPSO Kwame Nkrumah MV21 Tullow 15y
3 FPSO Pyrenees Venture BHPB 15y

4 FPSO Fluminense Shell 18.5y

(*) Owned by MODEC group companies (%)

Affiliates accounted for by the equity method
7
Consolidated subsidiary
 Projects in Planning Pipeline (Appraisal, Planning, and
Bidding/Final Design) as of January 2021
Although some investment decisions are suspended due to the impact of COVID-19, potential demand
is expected to remain consistent at the current oil price level*, and development of new projects is
expected to proceed steadily.
* The U.S. Energy Information Administration (EIA) expects that Brent prices will average USD49/barrel in 2021 (Short-Term Energy Outlook
on Dec 8, 2020)
World Total
Bidding & Final Design 65
Planning 92
Our Main Target Area
Appraisal 45

Northern Europe China Canada

2 2 0
15 1 3
5 3 0

Mediterranean Southeast Asia GOM

3 17 5
3 12 9
3 5 7

Southwest Asia &… Brazil and Other…

5 16
Africa
9 3 15
23 2 10
9
Australia, New Zealand
6
8
1
8
Source: 2021 Jan Outlook Report (EMA)
FY2021 : Outlook

Revenue Profit Attributable to Owners of Parent

Billion JPY
Billion JPY 400.0
400 25 21.8
19.4
332.6 20
309.9
15

10
221.9 5.0
191.1 5
200
0

(5)

(10)

(15) (13.0)
0 (20) (18.2)
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021

• Revenue is expected to hit record a high of JPY 400 billion primarily due to progress of
EPCI projects
• JPY 5 billion of profit attributable to owners of parent is expected owing to increase in
revenue despite the effect of COVID-19 which still remains this year and a large amount of
special repair projects cost for FPSOs/ FSO which have served for long time in Brazil.
9
Highlight

Financial Results

10
 New Orders / Revenue
MV32

New Orders Revenue

EPC(I)period
Sangomar
MV33

Billion JPY Billion JPY MV32

MV33
MV33
800 MV34
800
MV31 MV34
700.9 MV30
FSO Ailsa
635.8
MV29
Stampede
MV27
MV25

2016 2017 2018 2019 2020 2021

400 400

320.7 332.6
309.9

253.6
229.9 221.9
191.1

92.7

0 0
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 11
 Order Backlogs

Order backlogs for MODEC Group’s share in

the “Lease, Charter and O&M services” of the
affiliates accounted for by the equity method

Billion JPY MV32

1,387.0

1,237.1
1,200 1,144.4
1,087.6

817.6
800 755.0

648.9
569.4
534.5
494.7

400

0
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 12
Operating Income

Billion JPY
A A : Consolidated Operating Profit
A+B B : Operating Profit (equity method portion)
A+B+C C : Influence of Deferred/Realized Profits

40.3
39.1 38.4
40
35.6
33.1
29.3
30

20 18.0
14.9 15.4 16.6
11.4
10

0.1
0
(0.4)
(4.8)
(10)

(20)
(21.6)

(30)
2016 2017 2018 2019 2020

13
 Influence of Deferred/Realized Profits

Deferred Realized Balance

Billion JPY

20
17.4

15

11.1
10 9.0 9.3
8.0 7.5
7.0
5.8
5

0.4 0.4
0
-1.0
-1.6
-3.0 -2.7
(5)

-7.9
(10)
2016 2017 2018 2019 2020

14
(Reference)Review of project profit

Concept of project profit review

Profit forecast before

review due to COVID-19

Profit Cost 15
Other Income

Equity in Earnings of Affiliates Net Interest Income

Million USD

Billion JPY
5.1
4.9
100 5

88.6
85.7
82.5

3.6
3.5

2.5
50 3
43.1

21.7

0 0
2016 2017 2018 2019 2020
16
2016 2017 2018 2019 2020
 Ordinary Profits / Profit Attributable to Owners of Parent

Ordinary Profit Profit Attributable to Owners of Parent

Billion JPY Billion JPY

40 40

29.4 28.7
30 30
24.3
21.0 21.8
19.4
20 20

10 10

0.2
0 0

(10) (10)

(12.8) (13.0)
(20) (20) (18.2)
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

17
 Balance Sheet

Billion JPY

400

52.3
350
Cash and deposit
66.1
150.8
300 Account payable
151.3

250 163.3 Account receivable

124.7

200
81.0
Other current liabilities

Other current asset 86.0

150 31.9 37.1
10.8
15.0
4.7 LT loan payable
Investment securities
100 20.0 Other non-current liabilities
72.2 59.4 67.5
Common stock
/Capital surplus
59.4
LT loan receivable
50
37.8 38.0
65.6 Retained earnings etc.
Other non-current asset
35.6
25.7 24.1
0

2019 2020 18
 Key Financial Indicators

EBITDA Interest-Bearing Debt

EBITDA（after adjustment*） Total interest-bearing debt（after
EBITDA Instant Coverage Ratio adjustment*）
Billion JPY X times Billion JPY Total interest-bearing debt/EBITDA X times
57.8 10.7
60 53.3 53.4 11.5
11.0
10.0
200
9.0 166.1 161.6 159.7 183.7 8.5
40 7.5
33.5
8.2 7.0 7.0
7.2 95.6 4.8
100 5.5
3.9 17.2 5.0
20 2.9 3.0
4.0
3.0 1.8
1.6 2.5
0 1.0 0 1.0
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Equity Ratio *Adjustment: Adding MODEC group’s share in affiliates accounted for
by the equity method

Billion JPY
%
Equity
50.0 42.5 44.5 150
36.9
40.0 100
31.8
30.0 25.6 50

20.0 0
2016 2017 2018 2019 2020
19
Thank you