Mid-term Business Plan

Mid-term Business Plan 2024-2026
“Explore a Sustainable Future with Innovation”

MODEC, Inc. has formulated a Mid-term business plan covering the three-year period through fiscal year 2026.

The Mid-term business plan 2024-2026 is based on the recently renewed Vision, Mission and Core Values, and newly established Materialities, and is formulated by backcasting from the vision for the next 10 years (“Vision 2034”), taking into account the business environment surrounding the company and the accelerating global trend toward decarbonization.

As a company focused on the oceans, we will continue look at the relationship between the oceans and humanity, and we will pioneer a sustainable future with constant innovation and a frontier spirit.

Vision 2034

As a “Global Leading Player in Connecting Ocean and Humanity”, we will contribute to society by ensuring a stable energy supply while reducing the carbon dioxide emissions in our core business of FPSO operations. In addition, we will contribute to the realization of an environmentally friendly society by promoting floating offshore wind power, alternative energies, and digital businesses, leveraging our unique floating and digital solutions. We will also work to expand our human capital and foster a corporate culture that supports these initiatives.

Global Leading Player in Connecting Ocean and Humanity

Mid-term Business Plan 2024-2026

(1)Strategic Objectives

With “Explore a Sustainable Future with Innovation” being the slogan of new Mid-term business plan, we will strive to further strengthen the profitability of our core FPSO business and strategically invest funds to decarbonize our FPSOs and develop new business opportunities, as well as to strengthen our business foundation, including our human capital. We will also focus on sustainability management.

Explore Sustainable Future with Innovation

(2)Financial Targets

Earnings during the new Mid-term business plan period are expected to be strongly supported by stable leasing revenues from the five charter contracts that commenced operation during the previous Mid-term business plan period, as well as revenues during construction from the two large projects for which orders were received last year. In order to further promote cash flow and cost of capital conscious management, we have set financial targets of return on equity, price to earnings ratio, and adjusted EBITDA, in addition to net income, to achieve sustainable growth.

Financial KPIs

Our View of the World: Ocean is Full of Potential

Our company has the following Vision and Mission. The general connection between the “Ocean” and “Humanity” can be classified into “utilizing the ocean” and “solving ocean issues”, and there are a variety of possible ways relating to the oceans. As there are many possibilities, we will continue to explore whatever is practical for us to do, and will strive to visualize an improved future.

Our Vision

Pioneering a world where the ocean and humanity co-exist in harmony

Our Mission

Unlocking the ocean's potential by supplying unique floating solutions for a sustainable future