• Global economy moderately grows while the European
financial crisis may continue and affect the growth of theglobal economy.
• In accordance with an energy paradigm shift, thedependency on hydrocarbon resources is increasing.
• Global energy demand is projected to grow further in themid-and-long term. More than 50% of the global energy
supply is still likely to depend on oil and gas.
2

Establish a firm positionin the industry

Grow by securing large size projectorders as a leading company in theindustry

2003

2004 20052006

20072008

2009 201020112012 201320142015 20162017 201820192020

3

Finance our equity portion in thecharter projects by our cash flow

Strengthen the financial capability
by reengineering profit structure

20032004 2005

2006200720082009 201020112012 201320142015 20162017 2018

2019

2020

4

Develop new product lines
in offshore energy/resource fieldaa

Be recognized as a reliable FLNG
contractor

Promote business activity foroffshore gas production systems

Accelerate R&D for future businessin offshore energy/resource field5

Track record of 40
FPSOs/FSOs/TLPs
and cumulative 100 years
of O&M experience

Advanced mooring technology
applicable to complex projects

Financial capability withbackup of Japanese financial
institutions• Growth of FPSO market• Increase of deeper water projects

Secure large size project orders
by utilizing our strong track record,
advanced technology and financial
capability

6

Track record of 40
FPSOs/FSOs/TLPs
and cumulative 100 years
of O&M experience

Advanced mooring technology
applicable to complex projects

Financial capability withbackup of Japanese financial
institutions• Increased number of competitors
as a result of new entry into the market• Intense price competition

Establish a firm position in the industry
with our strong track record

Establish a strong position in Africancountries where offshore development is
actively underway through proactive
business promotion

7

Strong demand for in-houseengineers with experience andhigh capability

Strong control is necessary forvalue chain optimization in thegroup

Large investment is required
for equity injection into SPC
established for charter projects• Growth of FPSO market• Increase of deeper water projects

Enhance the engineering
capability quantitatively
and qualitatively

Streamline the groupmanagement system

Generate sufficient cash tofinance SPC investment byreengineering the profit
structure and increasing
the operating cashflow

8Strong demand for in-houseengineers with experience andhigh capability

Strong control is necessary forvalue chain optimization in thegroup

Large investment is required
for equity injection into SPC
established for charter projects• Increased number of competitors
as a result of new entry into the market• Intense price competition

Business process
reengineering through all
business phases(Proposal, EPCI, O&M, SPC
management) for raising
the competitivenessStrengthen the interface
among all business phases
to generate sufficient profit
even under the intensive
price competition

Accelerate R&D activity todevelop new product lines

9Grow our core business, i.e.
floating production systems
including FPSOs, FSOs and TLPs

Accelerate R&D activity for developing technologies in theprospective business area
• Floating LNG and Gas-to-Liquid• Application of floating production technology
to new offshore energy/resource field10

Secure orders from strong Brazilian market and emerging African
market by utilizing the high quality technologies and services backedup with our strong track record• Secure orders by utilizing our strong track record and thereputation of strong commitment• Establish a strong position in African countries throughproactive business promotion• Reinforce the engineering capability to increase the EPCI
capacity and improve the quality
11

Accelerate the cost reduction effort, enhance the cost competitivenessand maximize the profit• Cost reduction in proposal and procurement stage• Cost reduction in EPCI stage• Establish a reliable vendor network by managing thesupply chain• Business process reengineering through all project
phases (Proposal, EPCI, O&M, SPC management) forprofit maximization
12• Promote business activity for offshore gas production
systems• Accelerate R&D activity for applying the floating production
technology to new offshore energy/resource field• Commercialize FLNG and GTL business• Invest and accelerate R&D activity

13
Image courtesy of VelocysPerformance Image(2014)

Revenue
Operating Profit

250 billion JPY
10 billion JPY

Revenue(Mil. JPY)
300,000

250,000
200,000
150,000
100,000
50,000
0
2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

MODEC aims to secure orders from strong Brazilian market and emerging African market. Revenue recorded bythe percentage of completion method is expected to exceed the past peak by winning large size projects.

14

Operating Profit(Mil. JPY)
10,000

8,000

6,000

4,000

2,000

0
2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Large size project will require larger investment in our SPC. MODEC aims to generate sufficient cash flows fromour continuing operations.

15

The information contained in this material is based on a set ofassumptions and is not guaranteed as to its materialization offinancial visions or corporate strategies.