MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEET
September 30, 2018ASSETS
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¥38,957
99,370801
34,88822,289(1,314)
194,992

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

1,034
1,607
2,642

INTANGIBLE ASSETS:

9,198

INVESTMENTS AND OTHER ASSETS:
Investment securitiesLong-term loans receivable from affiliates
Other investments
Total investments and other assets
Total assets* The figures are rounded down to the nearest million yen.

74,65039,901
9,377
123,929¥330,763

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
Provision for repairs
Other provisions
Other current liabilitiesTotal current liabilities¥92,801
6,204
11,114
6,482
11,281
135
125,69214
5
1,568
135,313

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

25,943351
6,961
33,256

Total liabilities

168,570

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

30,12230,851
84,355(99)
145,230

ACCUMULATED OTHER COMPREHENSIVE INCOME:
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(3,912)
8,953
(332)
4,708

NON-CONTROLLING INTERESTS

12,253

Total net assets
Total liabilities and net assets

162,193¥330,763* The figures are rounded down to the nearest million yen.

MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED STATEMENT OF INCOME
For the nine months ended September 30, 2018

SALES
COST OF SALES
Gross profit (loss)

Millions ofJapanese yen¥166,802
145,895
20,906SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Operating profit (loss)

9,007
11,899OTHER INCOME (EXPENSES):Interest and dividend income
Equity in earnings of unconsolidated subsidiaries and affiliates, net
Interest expense
Foreign exchange gain (loss), net
Others, net
Total other income (expenses)

4,538
4,088
(698)
(992)
(197)
6,739

PROFIT (LOSS) BEFORE INCOME TAXES

18,638

INCOME TAXES:
Current
Prior
Deferred

4,305
13
1,189

PROFIT (LOSS)

13,130PROFIT (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTSPROFIT (LOSS) ATTRIBUTABLE TO OWNERS OF PARENT379¥12,750* The figures are rounded down to the nearest million yen.

Earnings (loss) per share¥226.11

MODEC, INC. and Consolidated Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the nine months ended September 30, 2018

Millions ofJapanese yen
PROFIT
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
Share of other comprehensive income (loss) of unconsolidated subsidiaries and affiliates
accounted for using equity method
Total other comprehensive income (loss)
COMPREHENSIVE INCOME

5,832
3,685
¥16,815

Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests¥16,427¥388* The figures are rounded down to the nearest million yen.

¥13,130
17(342)(1,802)(19)

MODEC, Inc.
2018 3Q Financial Results
Supplementary Presentation
November 6, 2018

2018 Third Quarter : Highlight

Revenue
3Q

Billion JPY
300

Operating Profit

Full year

3Q

Billion JPY
15Full year

258.3
226.5

11.8 12.0 (F)220.0 (F)

200
149.3

166.8

9.6

10146.9

100

4.85
2.8
1.0002014

2015

2016

2017

2018

20142015

2016

2017

2018

EPC of MV 30 and MV31 progressed in track2

2018 Third Quarter : Highlight

Ordinary Profit
3Q

Billion JPY

Profit Attribute to Owners of Parent
3Q

Full year

Full year

Billion JPY

30

20

15.0 (F)22.0 (F)
18.3

12.9

18.6

15109.3

12.7

8.0

10.6

6.6

6.7002014



2015

2016

201720180.0
2014

2015

2016

2017

2018

MV29 for Petrobras has added to the leased units in 20183