Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

May 14, 2024

Consolidated Financial Results
for the Three Months Ended March 31, 2024
(IFRS)
Company name: MODEC, INC.
Listing:
Tokyo Stock Exchange
Securities code: 6269
URL:
https://www.modec.com
Representative: Hirohiko Miyata, Representative Director, President
Inquiries:
Daisuke Tachibana, General Manager of Accounting
Telephone:+81-3-5290-1200
Scheduled date to file quarterly securities report:
May 14, 2024
Scheduled date to commence dividend payments:－
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing: None
(US dollar amounts are rounded down to thousands.)

1. Consolidated financial results for the three months ended March 31, 2024 (from January 1, 2024 toMarch 31, 2024)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

RevenueThree months ended

Operating profit

Profit before tax

Profit

US$ thousand%

US$ thousand%

US$ thousand%

US$ thousand%

March 31, 2024

822,866

10.5

76,803271.7

82,117298.0

71,185657.1

March 31, 2023

744,888

12.1

20,665－

20,634

－

9,402

－

Profit attributable toowners of parent
Three months ended

Total comprehensive
incomeBasic earnings
per share

Diluted earnings
per share

US$ thousand%

US$ thousand

%

US$

US$

March 31, 2024

62,535－92,946

－

0.92

0.92

March 31, 2023

3,096

－

(26,482)

－

0.05

0.05

Equity attributable toowners of parent

Ratio of equity
attributable to ownersof parent to total
assets(2) Consolidated financial position
Total assets
As ofTotal equity

US$ thousand

US$ thousand

US$ thousand%

March 31, 2024

3,933,319

1,119,241

1,069,373

27.2

December 31, 2023

3,887,921

1,035,291

992,81725.5

Note: The original condensed consolidated financial statements of MODEC, INC. and its subsidiaries (hereinafter “theCompany”) for the three months ended March 31, 2024 and 2023 and for the year ended December 31, 2023 are presented
in US dollars, which is the Company’s functional currency. Therefore, the consolidated operating results and the consolidated
financial position above are also presented in US dollars.
For convenience purposes the consolidated financial results converted to Japanese yen in expediential manner are presented
on page 4 of this summary information.

2.

Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Year-end

Total

yen

yen

yen

yen

yen

Year ended
December 31, 2023

－

0.00

－

20.00

20.00

Year ending
December 31, 2024

－

10.00

－

30.00

40.00

Year ending
December 31, 2024
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Earnings forecast for 2024 (from January 1, 2024 to December 31, 2024)

Revenue

Full Year

Operating profit(Percentages indicate year-on-year changes.)
Profit attributable
Basic earnings
Profit before tax
to owners ofper share
parent

US$ thousand%

US$ thousand%

US$ thousand%

US$ thousand%US$3,900,000

9.1

200,000

3.7

210,000(2.2)

120,000

24.3

1.76

Note: Revisions to the forecast most recently announced: None
The consolidated earnings forecast of the Company is prepared in US dollars, which is the Company’s functional currency.
For convenience purposes the consolidated earnings forecast converted to Japanese yen in expediential manner ispresented on page 4 of this summary information.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Changes in accounting policies and changes in accounting estimates(I)

Changes in accounting policies required by IFRS: None(ii)

Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None
(3) Number of issued shares (ordinary shares)
(i)

(ii)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2024

68,345,300 shares

As of December 31, 2023

68,345,300 shares

Number of treasury shares at the end of the period
As of March 31, 2024

38,217 shares

As of December 31, 2023

38,217 shares(iii) Average number of shares outstanding during the period
Three months ended March 31, 2024

68,307,083 shares

Three months ended March 31, 2023

56,369,783 shares* Quarterly financial results are exempt from quarterly review conducted by certified public accountants oran audit corporation.
* Proper use of earnings forecasts and other special matters
・Accompanying condensed quarterly consolidated financial statements and selected notes are presented in
US dollars, which is the Company’s functional currency.
・The US dollar amounts in the first page of this summary information is not tagged to XBRL data.
・Earnings forecast and other forward-looking statement included in this material are based on information
currently available to the Company and are based on assumptions deemed reasonable. They are not meant tobe a guarantee of future performance or outcomes. Actual results may differ materially subject to various
factors.

[Reference] Consolidated financial results for the three months ended March 31, 2024 and earnings
forecast for the year ending December 31, 2024 presented in Japanese yen(Yen amounts are rounded down to millions.)

1. Consolidated financial results for the three months ended March 31, 2024 (from January 1, 2024 toMarch 31, 2024)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Revenue

Operating profit

Three months ended

million yen%

March 31, 2024

124,524

March 31, 2023

99,472Three months ended

Profit%million yen%

million yen

%

25.2

11,622 321.2

12,426351.0

10,772

758.0

22.3

2,759

2,755

－

1,255

－

Profit attributable toowners of parent

million yen

Profit before tax－

Total comprehensive
incomeBasic earnings
per share

Diluted earnings
per share

million yen%

million yen

%

yen

yen

March 31, 2024

9,463

－

14,065－138.54138.47

March 31, 2023

413－

(3,536)

－

7.34

7.33

Equity attributable toowners of parent

Ratio of equity
attributable to ownersof parent to total
assets(2) Consolidated financial position
Total assets
As ofTotal equity

million yen

million yen

million yen%

March 31, 2024

595,229

169,374

161,828

27.2

December 31, 2023

551,423

146,835

140,81125.5

Note: The amounts presented above are converted to Japanese yen in expediential manner from the consolidated financial
results on page 1 of this summary information using the following exchange rates:
March 31, 2024 at US$1.00 = 151.33 Japanese yen (TTM rate of Sumitomo Mitsui Banking Corporation as of March 29, 2024)
March 31, 2023 at US$1.00 = 133.54 Japanese yen (TTM rate of Sumitomo Mitsui Banking Corporation as of March 31, 2023)
December 31, 2023 at US$1.00 = 141.83 Japanese yen (TTM rate of Sumitomo Mitsui Banking Corporation as of December
29, 2023)
The percentage indicating year-on-year changes for the consolidated operating results is calculated on Japanese yen basis
presented above.

2.

Earnings forecast for 2024 (from January 1, 2024 to December 31, 2024)(Percentages indicate year-on-year changes.)
Revenue

Full Year

Operating profit

Profit before tax

Profit attributableto owners ofparentBasic earnings
per share

million yen%

million yen%

million yen%

million yen%

yen

553,137

9.1

28,366

3.7

29,784(2.2)

17,01924.3

249.15

Note: The amounts presented above are converted to Japanese yen in expediential manner from the earnings forecast
on page 2 of this summary information at US$1.00 = 141.83 Japanese yen at the TTM rate of Sumitomo Mitsui Banking
Corporation as of December 29, 2023.

○ Contents
1. Qualitative information on quarterly financial results ....................................................................... 2(1) Results of operations ............................................................................................................................... 2(2) Financial position....................................................................................................................................... 2
2. Condensed quarterly consolidated financial statements and selected notes.......................... 3(1) Condensed quarterly consolidated statement of financial position ..................................... 3(2) Condensed quarterly consolidated statement of profit or loss and condensed
quarterly consolidated statement of other comprehensive income .................................... 5(3) Condensed quarterly consolidated statement of change in equity ...................................... 7(4) Condensed quarterly consolidated statement of cash flows ................................................... 9(5) Selected notes to the condensed quarterly consolidated financial statements .............10(Note to ability to continue as a going concern) .....................................................................101

1.

Qualitative information on quarterly financial results(1) Results of operations
In the first quarter of this year, the Japanese economy recovered moderately as economic
and social activities progressed and the employment and income situation improved. On theother hand, while the US economy remained firm, stagnant Chinese economy coupled withconcerns over geopolitical risks such as the heightened tensions in the Middle East made theoutlook of global economy remain uncertain.
Oil price had remained in the range of US$70s a barrel since the end of 2023. However, itrose to the range of US$80s a barrel due to increased supply concerns for Russian crude oil
following Ukraine’s drone attack on a Russian oil refinery, the International Energy Agency’s
upward revision of global oil demand forecasts and heightened tensions surrounding thesituation in the Middle East. While coexisting with the trend toward decarbonization,
maintaining a stable energy supply remains an important issue, and oil companies continue
to pursue projects to develop deepwater oil fields. Demand for the Group's main business
related to floating offshore oil and gas production facilities especially for large-scale ultradeepwater projects, in which the Group has a competitive advantage, has also remained firm.
Under these circumstances, for the three months ended as of March 31, 2024, the totalorders on a consolidated basis resulted in US$233,209 thousand (US$239,641 thousand in
YTD 1Q 2023) due to the variation orders of FPSO construction projects. The consolidated
revenue was US$822,866 thousand (US$744,888 thousand in YTD 1Q 2023) due to progressin the construction of FPSOs.
In terms of profit, the operating profit was US$76,803 thousand (operating profit of
US$20,665 thousand in YTD 1Q 2023) due to the recognition of revenue from the steadyprogress of construction projects and share of profit of investments accounted for using
equity method from the stable charter business.
In addition, the recognition of interest income due to temporary increase in cash and cash
equivalents from advances received for construction projects resulted in an increase infinancial income compared to the same period previous year; therefore, the profit before tax
for the three months ended as of March 31, 2024 was US$82,117 thousand (profit before taxof US$20,634 thousand in YTD 1Q 2023). As a result, the profit attributable to owners ofparent for the three months was US$62,535 thousand (profit attributable to owners of parentof US$3,096 thousand in YTD 1Q 2023).
(2) Financial position
The total assets at the end of first quarter of this year increased by US$45,398 thousand to
US$3,933,319 thousand from the end of previous year mainly due to an increase ininvestments accounted for using equity method.
The total liabilities decreased by US$38,552 thousand to US$2,814,078 thousand from theend of previous year mainly due to a decrease in trade and other payables.
The total equity increased by US$83,950 thousand to US$1,119,241 thousand from the endof previous year mainly due to an increase in retained earnings.

22. Condensed quarterly consolidated financial statements and selected notes(1) Condensed quarterly consolidated statement of financial positionin thousands of US dollars
December 31, 2023

March 31, 2024

AssetsCurrent assets
1,013,912

955,635

Trade and other receivables

592,163

572,127

Contract assets

185,585

151,841

Loan receivables

27,37027,370

Other financial assets

57,80645,830

Other current assets

158,712

154,478

Total current assets

2,035,550

1,907,284

Property, plant and equipment

50,04251,064

Intangible assets

49,48350,424

1,374,188

1,552,102

Loans receivable

348,636

341,035

Other financial assets

13,163

12,720

Deferred tax assets

16,48918,336

Other non-current assets

367

350

Total non-current assets

1,852,371

2,026,034

3,887,921

3,933,319

Cash and cash equivalents

Non-current assets

Investments accounted for using equity method

Total assets

3

in thousands of US dollars
December 31, 2023

March 31, 2024

Liabilities and equity
Liabilities
Current liabilities
1,189,228

989,208

Contract liabilities

590,278

778,966

Borrowings

57,79957,799

Income taxes payable

70,14764,365

Provisions

126,268

126,758

Other financial liabilities

150,826

147,346

Other current liabilities

59,551

56,524

Total current liabilities

2,244,101

2,220,970

Bonds and borrowings

512,954498,872

Defined benefit liability

45,09145,348Provisions

24,28823,171Other financial liabilities

19,39920,006

Other non-current liabilities

6,794

5,707

Total non-current liabilities

608,529

593,1072,852,630

2,814,078

Share capital

190,495

190,495

Capital surplus

187,112

187,183

Retained earnings

522,260

575,648

Treasury shares(1,092)(1,092)Other components of equity

94,042

117,138

992,817

1,069,373

42,47349,867

1,035,291

1,119,241

3,887,921

3,933,319

Trade and other payables

Non-current liabilities

Total liabilities
EquityEquity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity4(2) Condensed quarterly consolidated statement of profit or loss and condensed quarterly consolidated
statement of other comprehensive income
Condensed quarterly consolidated statement of profit or loss
For the three months ended March 31
in thousands of US dollars
2023

2024

Revenue

744,888822,866

Cost of sales(715,939)(742,963)

Gross profit

28,94879,903

Selling, general and administrative expenses(42,488)(47,327)

Share of profit of investments accounted for using
equity method

34,09744,007

Other income

235

234

Other expenses

(127)

(14)

Operating profit

20,66576,803Finance income

11,97317,804

Finance costs(12,004)(12,490)

Profit before tax

20,634

82,117

Income tax expense(11,232)(10,931)

Profit for the period

9,402

71,185

Owners of parent

3,096

62,535

Non-controlling interests

6,305

8,650

Profit for the period

9,402

71,185

Profit attributable toin US dollars
Earnings per share
Basic earnings per share

0.05

0.92

Diluted earnings per share

0.05

0.92

5

Condensed quarterly consolidated statement of other comprehensive income
For the three months ended March 31

in thousands of US dollars
2023
Profit for the period

2024
9,402

71,185

(27)

(80)

(27)

(80)

684

(7,506)(2,058)816

Other comprehensive Income
Remeasurements of defined benefit liability
Total items that will not be reclassified
subsequently to profit or loss
Items that may be reclassified subsequently to
profit or loss
Effective portion of cash flow hedges
Exchange differences on translation of foreign
operations
Share of other comprehensive income ofinvestments accounted for using equity
methodTotal items that may be reclassified subsequently
to profit or loss

(34,484)

28,531(35,857)

21,841

Total other comprehensive income, net of tax(35,884)

21,761

Total comprehensive income for the period(26,482)

92,946(32,874)

85,552

6,391

7,394

(26,482)

92,946

Total comprehensive income attributable to
Owners of parent
Non-controlling interests
Total comprehensive income6(3) Condensed quarterly consolidated statement of changes in equity
For the three months ended March 31, 2023
in thousands of US dollars
Equity attributable to owners of parent
Other components of equity
Retainedearnings

Share capital

Capital surplus

282,292

280,686

131,004(1,092)－

142,790

Profit for the period

－

－

3,096

－

－

－

Other comprehensive income

－

－

－

－

(27)

(33,911)

Total comprehensive income for the period

－

－

3,096

－

(27)

(33,911)

Share-based payment transactions

－

26

－

－

－

－

Transfer from other components ofequity to retained earnings

－

－

(27)

－

27

－

－

26

(27)

－

27

－

282,292

280,713134,073(1,092)－

108,878

At January 1, 2023

Total transactions with owners
At March 31, 2023

Treasury shares

Remeasurements
Effective portion ofof defined benefit
cash flow hedges
liability

Equity attributable to owners of parent
Other components of equity
Exchangedifferences ontranslation offoreign
operations

Total othercomponents ofequityTotal equity
attributable toowners ofparentNon-controllinginterests(24,041)

118,748

811,640

29,481

841,121

－

－

3,096

6,305

9,402

(2,032)(35,971)(35,971)86(35,884)(2,032)(35,971)(32,874)

6,391(26,482)

Share-based payment transactions

－

－

26

－

26

Transfer from other components ofequity to retained earnings

－

27

－

－

－

－

27

26

－

26

(26,073)

82,804

778,791

35,873

814,665

At January 1, 2023
Profit for the period
Other comprehensive income
Total comprehensive income for the period

Total transactions with owners
At March 31, 2023

7

Total equity

For the three months ended March 31, 2024
in thousands of US dollars
Equity attributable to owners of parent
Other components of equity

Retainedearnings

Share capital

Capital surplus

190,495

187,112522,260(1,092)－

123,552

Profit for the period－－

62,535－－－

Other comprehensive income

－

－

－

－

(79)

22,340Total comprehensive income for the period－－

62,535－(79)

22,340

Dividends paid to owners of the parent－－(9,067)－－－

Share-based payment transactions

－

71

－

－

－

－

Transfer from other components ofequity to retained earnings

－

－

(79)

－

79

－

－

71

(9,147)－

79－

190,495

187,183

575,648(1,092)－

145,893

At January 1, 2024

Total transactions with owners
At March 31, 2024

Treasury shares

Remeasurements
Effective portion ofof defined benefit
cash flow hedges
liability

Equity attributable to owners of parent
Other components of equity
Exchangedifferences ontranslation offoreign
operations

Total othercomponents ofequityTotal equity
attributable toowners ofparentNon-controllinginterests(29,510)

94,042992,81742,473

1,035,291

Profit for the period－－

62,5358,650

71,185

Other comprehensive income

755

23,01623,016(1,255)

21,761

Total comprehensive income for the period

755

23,01685,552

7,394

92,946

Dividends paid to owners of the parent－－(9,067)－(9,067)

Share-based payment transactions

－

－

71

－

71

Transfer from other components ofequity to retained earnings

－

79

－

－

－

－

79

(8,996)－(8,996)(28,754)

117,138

1,069,373

49,867

1,119,241

At January 1, 2024

Total transactions with owners
At March 31, 2024

8

Total equity

(4) Condensed quarterly consolidated statement of cash flows
For the three months ended March 31
in thousands of US dollars
2024

2023
Cash flows from operating activities
Profit before tax

20,634

82,117

Depreciation and amortization

10,127

8,919

23

(121)

(1,311)

259(34,097)(44,007)30(5,313)

106,560(5,383)

16,18633,733

Increase (decrease) in provisions
Increase (decrease) in defined benefit liability
Share of profit of investments accounted for using
equity method
Finance income and finance costs
Decrease (increase) in trade and other receivables
Decrease (increase) in contract assets
Decrease (increase) in other current assets

8,222

11,651

Increase (decrease) in trade and other payables(52,690)(195,311)

Increase (decrease) in contract liabilities
Increase (decrease) in other current liabilities(67,353)(11,117)

189,541(1,962)

Other(5,502)(4,684)

Subtotal(31,856)

91,008Interest received

10,471

20,537

Dividends received

17,112

28,902

Interest paid

(2,179)(10,336)

Income taxes paid

(11,074)(23,028)

Net cash provided by (used in) operating activities(17,526)

107,083－

6,842(1,396)(3,549)－(133,331)－

50(1,396)(129,988)

Repayments of long-term borrowings(2,379)(14,449)

Payments of lease liabilities(6,315)(6,136)(0)(8,943)

Cash flows from investing activities
Receipts of long-term loans receivable
Acquisition of property, plant and equipment andintangible assets
Purchase of investments accounted for using equity
methodProceeds from capital reduction of investments
accounted for using equity method
Net cash used in investing activities
Cash flows from financing activities

Dividends paid
Receipt of government grants

114－

Net cash used in financing activities(8,581)(29,530)

Effect of changes in exchange rates on cash and cash
equivalents

1,001(5,842)

Net decrease in cash and cash equivalents(26,503)(58,277)

Cash and cash equivalents at beginning of period

492,625

1,013,912

Cash and cash equivalents at end of period

466,122955,6359

(5) Selected notes to the condensed quarterly consolidated financial statements(Note to ability to continue as a going concern)
There are no material uncertainties that require disclosure.

10