MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEET
June 30, 2015
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¥28,986
167,257
2,348
36,131
18,134(410)
252,446

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

18,001
3,553
21,555INTANGIBLE ASSETS:

7,484

INVESTMENTS AND OTHER ASSETS:
Investment securities
Long-term loans receivableOther investments
Less - Allowance for bad debts
Total investments and other assets

48,762
27,798
11,098(1,852)85,807

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

¥367,292

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
Advances received
Accrued employees’ bonuses
Accrued directors’ bonuses
Provision for product warranties
Provision for loss on construction contracts
Other provisions
Other current liabilities
Total current liabilities¥157,299
3,490
2,084
9,253
7,394
4,732
64
6,026
149
1,096
3,044
194,582

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

53,702
209
7,089
61,000Total liabilities

255,583

NET ASSETSSHAREHOLDERS' EQUITY:
Common stock;authorized - 102,868,000 shares
outstanding - 56,408,000 shares
Capital surplus
Retained earnings
Less - Treasury stock at cost
Total shareholders' equity

30,12230,85233,198(1)
94,171

ACCUMULATED GAINS (LOSSES) FROM VALUATION
Unrealized gains/(losses) on available-for-sale securities, net of tax
Unrealized gains/(losses) on hedging derivative, net of tax
Foreign currency translation adjustments
Retirement liability adjustments for foreign consolidated subsidiaries, net of tax
Total accumulated gains (losses) from valuation

15(13,838)
18,294(191)
4,279

MINORITY INTERESTS IN CONSOLIDATED SUBSIDIARIES:

13,258

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

111,709¥367,292

MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED STATEMENT OF INCOME
For the six months ended June 30, 2015SALESCOST OF SALES
Gross profit (loss)

Millions ofJapanese yen¥156,773
151,637
5,136

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Operating profit (loss)

7,296(2,159)OTHER INCOME (EXPENSES):Interest income and dividend income
Interest expense
Equity in earnings of affiliates and unconsolidated subsidiaries
Gain on revaluation of derivatives
Foreign exchange gain (loss), netLoss on liquidation of subsidiaries and affiliates
Loss on abandonment of property and equipment
Provision for abandonment of property and equipment
Other, net
Total other income (expenses)

1,773
(523)
3,106
1,771
(1,413)
(114)
(188)
(571)
133
3,974

INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS:

1,814

INCOME TAXES:
Current
Prior
Deferred

4,378
2(2,456)

INCOME (LOSS) BEFORE MINORITY INTERESTS(110)

MINORITY INTERESTS

113

NET INCOME (LOSS)(¥223)* The figures are rounded down to the nearest million yen.

Net income (loss) per share(¥3.96)

MODEC, INC. and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the six months ended June 30, 2015

Millions ofJapanese yen
Income (loss) before minority interests
Other comprehensive income
Unrealized gains/(losses) on available-for-sale securities, net of tax
Unrealized gains/(losses) hedging derivatives, net of tax
Foreign currency transaction adjustments
Retirement liability adjustments for foreign consolidated subsidiaries
Share of other comprehensive income of associates accounted for using equity methodTotal
Comprehensive income14(1,151)
2,131
6
2,110
3,111
¥3,000Comprehensive income attributable to owners of the parent
Comprehensive income attributable to owners of minority interests¥2,591¥409* The figures are rounded down to the nearest million yen.

(¥110)