MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEET
June 30, 2016
ASSETS
Millions ofJapanese yen
CURRENT ASSETS:
Cash and time deposits
Accounts receivable - trade
Inventories
Short-term loans receivable
Other current assets
Less-Allowance for bad debts
Total current assets¥38,748
104,369
3,879
28,93921,361(1,029)196,270

PROPERTY AND EQUIPMENT:
Machinery and equipment
Other property and equipment
Total property and equipment

12,161
2,148
14,309INTANGIBLE ASSETS:

6,372

INVESTMENTS AND OTHER ASSETS:
Investment securitiesLong-term loans receivable from unconsolidated subsidiaries and affiliates
Collateralized deposits
Other investments
Less - Allowance for bad debts
Total investments and other assets

46,87825,804
2,293
13,627(1,557)87,046

Total assets¥303,998* The figures are rounded down to the nearest million yen.

LIABILITIES AND NET ASSETS

Millions ofJapanese yen
CURRENT LIABILITIES:
Accounts payable - trade
Current portion of long-term loans payable
Accrued expenses
Income taxes payable
Advances received
Accrued employees’ bonuses
Accrued directors’ bonuses
Provision for product warranty
Other provisions
Other current liabilities
Total current liabilities¥114,197
5,751
9,407
4,281
8,350
44
5,659
6
1,303
148,967

LONG-TERM LIABILITIES:Long-term loans payable
Net defined benefit liabilities
Other long-term liabilities
Total long-term liabilities

43,698244
12,85756,800Total liabilities

205,767

NET ASSETS:SHAREHOLDERS' EQUITY:
Common stock;
Authorized - 102,868,000 shares
Issued - 56,408,000 shares
Capital surplus
Retained earnings
Treasury stock at costTotal shareholders' equity

30,12230,852
41,677(1)
102,650

ACCUMULATED OTHER COMPREHENSIVE INCOME:
Unrealized holding gains/(losses) on securities, net of tax
Unrealized gains/(losses) on hedging derivatives, net of tax
Foreign currency translation adjustments
Retirement liability adjustments for foreign consolidated subsidiaries
Total accumulated other comprehensive income(36)(19,540)
3,488
(155)
(16,244)

NON-CONTROLLING INTERESTS

11,825

Total net assets
Total liabilities and net assets* The figures are rounded down to the nearest million yen.

98,231¥303,998

MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED STATEMENT OF INCOME
For the six months ended June 30, 2016SALESCOST OF SALES
Gross profit (loss)

Millions ofJapanese yen¥104,031
96,273
7,758

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Operating profit (loss)

5,413
2,344

OTHER INCOME (EXPENSES):Interest income and dividend income
Interest expense
Equity in earnings of unconsolidated subsidiaries and affiliates, net
Gain on revaluation of derivatives
Foreign exchange gain (loss), net
Others, net
Total other income (expenses)1,868(709)
3,773
2,977(4,762)
577
3,724

INCOME (LOSS) BEFORE INCOME TAXES

6,069

INCOME TAXES:Current
Deferred

2,206(974)

PROFIT (LOSS)¥4,837

PROFIT (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTSPROFIT (LOSS) ATTRIBUTABLE TO OWNERS of PARENT

432
4,405

* The figures are rounded down to the nearest million yen.

Net income (loss) per share¥78.09

MODEC, INC. and Consolidated Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended June 30, 2016

Millions ofJapanese yen
Profit (Loss)
Other Comprehensive income/(loss):
Unrealized holding gains/(losses) on securities, net of tax
Unrealized gains/(losses) hedging derivatives, net of tax
Foreign currency translation adjustments
Retirement liability adjustments for foreign consolidated subsidiaries
Share of other Comprehensive income/(loss) of unconsolidated subsidiaries and affiliates
accounted for using equity method¥4,837(44)
2,090(7,560)37(15,126)

Total other Comprehensive income/(loss)
Comprehensive income/(loss)(20,602)(¥15,765)

Comprehensive income/(loss) attributable to owners of the parent
Comprehensive income/(loss) attributable to non-controlling interests(¥14,162)(¥1,603)* The figures are rounded down to the nearest million yen.