MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEETMarch 31, 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¥45,903
165,447
6,167
27,317
14,538(428)
258,945

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

13,407
3,467
16,874INTANGIBLE ASSETS:

7,590

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

44,22527,0079,330(1,817)78,745

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

¥362,155

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
Provision for product warranties
Provision for loss on construction contracts
Other provisions
Other current liabilities
Total current liabilities¥160,075
2,940
2,271
7,672
4,965
4,297
93
5,920
146
666
3,089
192,138

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

39,419197
25,14964,765

Total liabilities

256,904

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

30,12230,85233,149(1)
94,123

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

6(18,510)
16,907(192)(1,789)MINORITY INTERESTS IN CONSOLIDATED SUBSIDIARIES:

12,917

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

105,251¥362,155

MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED STATEMENT OF INCOME
For the three months ended March 31, 2015SALESCOST OF SALES
Gross profit (loss)

Millions ofJapanese yen¥72,722
68,9003,821

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Operating profit (loss)

3,369
452

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), net
Loss 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)

791
(158)
1,823
2,097
(3,001)
(114)
(144)
(615)
88767

INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS:

1,220

INCOME TAXES:
Current
Prior
Deferred

2,047
3(689)

INCOME (LOSS) BEFORE MINORITY INTERESTS(140)

MINORITY INTERESTS

131

NET INCOME (LOSS)(¥271)* The figures are rounded down to the nearest million yen.

Net income (loss) per share(¥4.81)

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

4(1,593)
1,547
6(3,303)(3,338)(¥3,478)

Comprehensive income attributable to owners of the parent
Comprehensive income attributable to owners of minority interests(¥3,525)¥46* The figures are rounded down to the nearest million yen.

(¥140)

MODEC, INC.
2015 First Quarter Financial Results
Supplementary Presentation

May 8, 2015

2015 First Quarter : HighlightRevenue

 Revenue was 72.7 billion JPY
1Q(billion JPY)
400

Full year
378.5
300.0(F)

300

254.4
186.8

200

129.9
100
29.2

42.0

56.2

84.3

72.70
2011

2012

2013

2014

2015

Exchange Rate on Closing Dates ($/¥)(JPY)
130.002015 1Q
120.15 yen Revenue from EPCI was recognizedon POC basis; constructions wellprogressed including MV26 that will
be completed in 2015
 Revenue from MV24 which started
production from 2014 4Q mainly
contributed to the revenue fromoperation & maintenance services

 2015 1Q exchange rate was 120.15
yen per US dollar

120.00110.00100.00
90.00
80.00
70.00
2011

2012

2013

2014

2015 1Q

2

2015 First Quarter : Highlight
1Q Ordinary Profit

 Ordinary profit was 2 billion yen
 Approx. 2 billion yen of gain onvaluation of derivatives was recognized(billion JPY)
10
7.22
5
2.91

1.65

2.090.0202011

2012

2013

2014

2015

1Q Net Income/Loss

 0.3 billion yen of net loss was
temporarily recognized in 2015 1Q
due to the recognition of foreignexchange loss

(billion JPY)
4.17

5

 Due to weakened Brazilian Real,approx. 2.9 billion yen of foreignexchange loss was recognized on theUS dollar denominated liability owned
by a subsidiary in Brazil which provides
operation and maintenance services

43

2

0.78

1.22

0.84

1(1)

(0.27)
2011

2012

2013

2014

2015

3

2015 Financial Forecast

Exchange Rate on Closing Dates ($/¥)
2011201220132014

2015(F)

77.74

86.56

105.37120.56110.00

Revenue(billion JPY)
400

Operating Profit(billion JPY)
10378.5

8.5

300.0
254.4

200

186.8

5129.9

3.4

3.7

2012

2013

3.0

0.200
2011

2012

2013

2014

2015(F)

2011

Ordinary Profit(billion JPY)
20

2015(F)Net Income(billion JPY)
618.3
15.8

154
9.2

10

2014

9.0

5.0

5.1

4.9

5.4

3.0

3.0

2

500
2011

2012

2013

2014

2015(F)

2011

2012

2013

2014

2015(F)4