Note: This document has been translated from a part of 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.

November 2, 2021

Consolidated Financial Results
for the Nine Months Ended September 30, 2021
(Under Japanese GAAP)
Company name:
MODEC, INC.
Listing:
Tokyo Stock Exchange
Securities code:
6269
URL:
http://www.modec.com
Representative:
Takeshi Kanamori, President & CEO
Inquiries:
Yasuhiro Takano, Executive Managing Officer
Telephone:+81-3-5290-1200
Scheduled date to file quarterly securities report:
November 4, 2021
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the nine months ended September 30, 2021 (from January 1, 2021 toSeptember 30, 2021)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen%Millions of yen%

September 30, 2021

323,321-(8,032)-September 30, 2020

230,068

4.9(10,651)-

Note: Comprehensive income

For the nine months ended June 30, 2021:
For the nine months ended June 30, 2020:

Basic earnings
per share
Nine months ended

Profit attributable toowners of parent

Ordinary profit
Millions of yen%

(4,677)-(5,173)-¥10,689 million(¥23,314) million

YenYen(122.67)-

September 30, 2020

(89.53)-(2) Consolidated financial position
Total assets
As ofNet assets

Equity-to-asset ratio

Millions of yen

Millions of yen

September 30, 2021

376,530

99,10925.4

December 31, 2020

357,532

95,015

25.6

Reference:

EquityAs of September 30, 2021:
As of December 31, 2020:¥95,466 million¥91,422 million%%(6,913)-(5,045)

-

[-%]
[-%]

Diluted earnings
per share

September 30, 2021

Millions of yen

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
December 31, 2020
Fiscal year ending
December 31, 2021

-23.75-

15.00

Fiscal year ending
December 31, 2021
(Forecast)Fiscal year-end-Total

Yen

Yen

21.25

45.00

15.00

30.00

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

3.

Earnings forecast for FY2021 (January 1, 2021 – December 31, 2021)
Net sales
Millions of yen

Operating profit%

Millions of yen

Full Year
400,000
29.1
Note: Revisions to the Earnings forecast most recently announced: Yes

Profit attributable toowners of parent

Ordinary profit%

Millions of yen(4,500)%-Millions of yen(6,500)%-* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2021

56,408,000 shares

As of December 31, 2020

56,408,000 shares(ii) Number of treasury shares at the end of the period
As of September 30, 2021

45,100 shares

As of December 31, 2020

54,232 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscalyear)
Nine months ended September 30, 2021

56,358,435 shares

Nine months ended September 30, 2020

56,350,957 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The forecasts given above are based on information available at the time of compilation and are inherently
subject to a variety of risks and uncertainties. Actual results may vary significantly from forecasts due to factors
including, but not limited to, changes in the economic or business environment and exchange rate fluctuations.

MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEET
September 30, 2021
ASSETS
Millions ofJapanese yen
CURRENT ASSETS:
Cash and deposits
Accounts receivable-trade and contract assets
Inventories
Short-term loans receivable
Other current assets
Allowance for doubtful accounts
Total current assets¥60,468
147,310716
7,543
18,342(1,524)
232,856

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

32
3,832
3,864

INTANGIBLE ASSETS:

12,452INVESTMENTS AND OTHER ASSETS:
Investment securities
Long-term loans receivable from affiliatesOther investments
Total investments and other assets

76,76142,976
7,619
127,357

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

¥376,530

LIABILITIES AND NET ASSETS

Millions ofJapanese yen
CURRENT LIABILITIES:
Accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Accrued expenses
Income taxes payable
Contract liabilities
Accrued employees’ bonuses
Accrued directors’ bonuses
Provision for loss on construction contracts
Provision for construction warranties
Provision for repairs
Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:Long-term loans payable
Net defined benefit liabilities
Other long-term liabilities
Total long-term liabilities
Total liabilities¥138,951
4,478
4,068
16,5685,124
51,016
345
22
3,916
9,132
4,148
8,476
246,249

16,899927
13,34531,171
277,420

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

30,122
29,301
43,162(140)
102,445

ACCUMULATED OTHER COMPREHENSIVE INCOME:
Unrealized gains (losses) on hedging derivatives, net of tax
Foreign currency translation adjustment
Retirement liability adjustments for foreign consolidated subsidiaries
Total accumulated other comprehensive income(9,881)
4,201(1,299)(6,979)NON-CONTROLLING INTERESTS

3,643

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

99,109¥376,530

MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED STATEMENT OF INCOME
For the nine months ended September 30, 2021

SALES
COST OF SALES
Gross profit (loss)

Millions ofJapanese yen¥323,321
321,650
1,671

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Operating profit (loss)

9,703(8,032)OTHER INCOME (EXPENSES):Interest income
Equity in earnings of unconsolidated subsidiaries and affiliates, net
Foreign exchange gain (loss), net
Interest expenses
Commission fee
Gain (loss) on revaluation of derivatives
Recovery of extraordinary repair expenses
Others, net
Total other income (expenses)

3,309
587
(627)
(351)
(202)
(10)
1,316
650
4,671

PROFIT (LOSS) BEFORE INCOME TAXES(3,361)

INCOME TAXES:Current
PriorDeferred
PROFIT (LOSS)PROFIT (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTSPROFIT (LOSS) ATTRIBUTABLE TO OWNERS OF PARENT

1,757
(30)
1,561
(6,650)262(¥6,913)* The figures are rounded down to the nearest million yen.

Earnings (loss) per share(¥122.67)

MODEC, INC. and Consolidated Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the nine months ended September 30, 2021

Millions ofJapanese yen
PROFIT(LOSS)OTHER COMPREHENSIVE INCOME:
Unrealized gains (losses) on hedging derivatives, net of tax
Foreign currency translation adjustment
Retirement liability adjustments for foreign consolidated subsidiaries
Share of other comprehensive income (loss) of unconsolidated subsidiaries and affiliates
accounted for using equity method
Total other comprehensive income
COMPREHENSIVE INCOME

17,339¥10,689

Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests¥10,204¥484* The figures are rounded down to the nearest million yen.

(¥6,650)(2,209)5,205(97)
14,441

MODEC, Inc.
2021 3Q Financial Results
Supplementary Presentation
November 2, 2021

1

2021 Third Quarter : Highlight
Revenue

New Order
Billion JPY

Billion JPY

400

400
342.0
323.3

270.6

300
219.3

200

200

178.1

230.0

166.8
146.9

101.4
100
65.5

00
2017
3Q

2018
3Q

2019
3Q

2020
3Q

2021
3Q

2017
3Q

2018
3Q

2019
3Q

2020
3Q

2021
3Q

New order was JPY 270.6 billion.

Revenue increased comparing to the same period last year primarily due to the increase of the numberof FPSO constructions2

2021 Third Quarter : Highlight

Billion JPY

Billion JPY

Billion JPY1520
11.8

10Profit Attribute to Owners ofParent

Ordinary Profit

Operating Profit

9.6

18.3

1518.6

15

512.9

12.7

10

10
50

5(5)

00

(10)

(8.0)

(8.8)

(5)

(2.8)

(5)

(5.1)

(10.6)

2017
3Q

2018
3Q

2019
3Q

2020
3Q

2021
3Q

(5.0)
(6.9)

(10)

(15)

(4.6)

(4.6)
(10)

2017
3Q

2018
3Q

2019
3Q

2020
3Q

2021
3Q

2017
3Q

2018
3Q

2019
3Q

2020
3Q

2021
3Q

Large-size FPSO construction which started from this year contributed to the profit, while overall profitability of FPSO
construction got worse because of decrease in profitability of ongoing projects due to COVID-19.

Several FPSO operated in Brazil shutdown its operation for repair of broken equipment etc. As the result, profitability ofcharter and O&M service also got worse.

Post an impairment loss for FPSO Cidade de Santos MV20

3

FY2021 : Outlook

Operating
ProfitRevenue
Unit: 100 million yen

Ordinary
ProfitProfitAttributable toOwners of Parent

Previous Forecast*(A)4,000-

10050

Revised Forecast (B)

4,000-△45△65--△145△115Variance (B-A)* Announced on February 9, 2021
Ordinary profit and profit attributable to owners of parent have been revised downward primarily due toprolonged shutdown period of several FPSO operated in Brazil, impairment loss for FPSO Cidade deSantos MV20, and decrease in profitability of ongoing FPSO construction due to COVID-19 etc.

4