MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEETMarch 31, 2017
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¥49,244
93,452
1,169
39,016
21,675(1,924)
202,635

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

10,932
1,922
12,855INTANGIBLE ASSETS:

6,640

INVESTMENTS AND OTHER ASSETS:
Investment securitiesLong-term loans receivable from unconsolidated subsidiaries and affiliated companies
Collateralized deposits
Other investments
Total investments and other assets

55,38628,752
4,226
6,610
94,975

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

¥317,106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
Provision for product warranty
Provision for repairsOther provisions
Other current liabilities
Total current liabilities¥88,366
13,272
14,165
9,887
3,881
93
6,434
41
5
1,664
137,812

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

185,192

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

30,12230,85258,709(1)
119,682

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(17)(9,589)10,846(170)
1,069

NON-CONTROLLING INTERESTS

11,161

Total net assets
Total liabilities and net assets

131,914¥317,106* The figures are rounded down to the nearest million yen.

33,856274
13,24947,379MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED STATEMENT OF INCOME
For the three months ended March 31, 2017

SALES
COST OF SALES
Gross profit

Millions ofJapanese yen¥50,16244,0206,141

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Operating profit

3,814
2,327

OTHER INCOME (EXPENSES):Interest income and dividend income
Equity in earnings of affiliates and unconsolidated subsidiaries
Gain on revaluation of derivatives
Interest expense
Foreign exchange gain (loss), net
Other, net
Total other income (expenses)

1,113
1,405
429(316)(1,083)
4111,959

INCOME (LOSS) BEFORE INCOME TAXES

4,287

INCOME TAXES:Current
PriorDeferred

1,591(0)165

PROFIT (LOSS)¥2,530PROFIT (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTSPROFIT (LOSS) ATTRIBUTABLE TO OWNERS OF PARENT

(9)
2,540

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

Net income (loss) per share¥45.03

MODEC, INC. and Consolidated Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the three months ended March 31, 2017

Millions ofJapanese yen
PROFIT (LOSS)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 of associates accounted for using equity method
Total
COMPREHENSIVE INCOME¥2,530(6)(51)(2,764)7(1,352)(4,168)(¥1,637)

COMPREHENSIVE INCOME ATTRIBUTABLE TO OWNERS OF THE PARENTCOMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS(1,239)(398)

MODEC, Inc.
2017 1Q Financial ResultsSupplementary Presentation

May 1, 2017

2017 First Quarter : Highlight
Revenue
1QBillion JPY
400

1Q Operating Profit

Full year

Billion JPY
2.93378.5

2.3

295.5

300
254.4

2229.91.7
190.0 (F)

200

1.2
184.3

100
56.2

72.7
52.9

0.4

50.1

002013



2014

2015

2016

2017

Revenue totaled 50.1 billion yen

2013



2014

2015

2016

2017

Operating profit was 2.3 billion yen



EPCI: MV29 and other projects progressed ontrack



Mainly attributable to the increase inprofit from EPCIO&M: MV27 started operation in 4Q 2016 andcontributed to the revenue from O&M

1.0 billion yen of profit relating toFPSO construction was deferred2

2017 First Quarter : Highlight
1Q Profit Attributable toOwners of Parent

1Q Ordinary Profit

Billion JPY
10Billion JPY
5Exchange Rate on
Closing Dates ($/¥)

Yen
125.004.1
120.00

3.5

7.2

2.5
5

4.4

4.2

2016 year end
116.49 yen

115.002
1.2

110.002017 1Q
112.19 yen

2.9
2.0
105.00

0-0.2

(1)
2013

2014

2015

2016

2017

2013

2014

2015

100.00201620172013 2014 2015 2016 20171Q

Ordinary profit leveled offProfit attributable to owners of parent decreased due to the increase in income taxes

3FY2017 : Outlook
Revenue

Operating Profit

Billion JPY
400378.5

Billion JPY
20

Ordinary Profit
Billion JPY
40Profit Attributable toOwners of Parent
Billion JPY
25

18.0
21.0
15.0

295.5

15

254.4

18.0
25.0

229.9
200

20

29.4

30

190.0

15
10

20

8.5

18.3
15.8

10
12.8

5.0
50

3.701050

5.8
4.9 5.40

 Full year guidance remains unchanged4