Note: This document has been translated from 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.

May 11, 2022

Consolidated Financial Results
for the Three Months Ended March 31, 2022
(IFRS)
Company name:
MODEC, INC.
Listing:
Tokyo Stock Exchange
Securities code:
6269
URL:
http://www.modec.com
Representative:
Takeshi Kanamori, Representative Director, President & CEO
Inquiries:
Yasuhiro Takano, Director, Executive Managing Officer
Telephone:+81-3-5290-1200
Scheduled date to file quarterly securities report:
May 12, 2022
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 three months ended March 31, 2022 (from January 1, 2022 toMarch 31, 2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

RevenueThree months ended

Operating profit

Profit before tax

Profitmillion yen%

million yen%

million yen%

million yen%

March 31, 2022

81,310(34.8)(1,557)-(2,488)-(2,042)-

March 31, 2021

124,665

-

3,469

-

5,589

-

5,293

-

Profit attributable toowners of parent
Three months ended

million yen

Total comprehensive
income%Basic earnings
per share

Diluted earnings
per share

million yen

%

yen

yen

March 31, 2022

(2,039)-8,955(34.3)(36.18)(36.18)March 31, 2021

5,221

-

13,637

-

92.65

92.61

(2) Consolidated financial position
Total assets
As ofMarch 31, 2022

Equity attributable toowners of parent

Total equity

Ratio of equity
attributable to owners ofparent to total assets

million yen

million yen

million yen%

405,955

76,82674,153

18.3

December 31, 2021
393,971
63,802
61,24715.5
Note: The original condensed consolidated financial statements of MODEC, INC. and its subsidiaries (hereinafter “the Company”)
for the three months ended March 31, 2022 and 2021 and for the year ended December 31, 2021 are presented in US dollars
on page 4 of this material. For reference, the amount presented for consolidated operating results and consolidated financial
position are converted into Japanese yen respectively as follows.
March 31, 2022
March 31, 2021
December 31, 2021
2021.

1 US dollar =122.41 Japanese yen at the TTM rate of Sumitomo Mitsui Banking Corporation as of March 31, 2022.
1 US dollar =110.71 Japanese yen at the TTM rate of Sumitomo Mitsui Banking Corporation as of March 31, 2021.
1 US dollar =115.01 Japanese yen at the TTM rate of Sumitomo Mitsui Banking Corporation as of December 30,

The percentage indicating year-on-year changes is calculated on Japanese yen basis presented above.

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

yen

yen

yen

yen

yen

Year ended
December 31, 2021

－

15.00

－

0.00

15.00

Year ended
December 31, 2022

－
－

－

－

－

Year ending
December 31, 2022
(Forecast)Year-end

Total

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

3.

Earnings forecast for FY2022 (January 1, 2022 – December 31, 2022)(Percentages indicate year-on-year changes.)
Revenuemillion yen

Operating profit%

million yen

Profit before tax%

million yen

Profit attributable toowners of parent

Profit%million yen%

million yen

%

Basic
earnings
per shareyen

276,024(38.5)
3,450
2,530
2,530
44.89
Note: Revisions to the forecast most recently announced: None
Note: The original consolidated earnings forecast of the Company is presented in US dollars on page 4 of this material. For reference,
the amount presented for the consolidated earnings forecast for the year ending December 31, 2022 is converted into Japanese
yen at 115.01 yen, which is at the TTM rate of Sumitomo Mitsui Banking Corporation as of December 30, 2021.
Full Year* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Changes in accounting policies and changes in accounting estimates(i) Changes in accounting policies required by IFRS: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None
(3) Number of issued shares (ordinary shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

56,408,000 shares

As of December 31, 2021

56,408,000 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2022

45,100 shares

As of December, 31, 2021

45,100 shares(iii) Average number of shares outstanding during the period
Three months ended March 31, 2022

56,362,900 shares

Three months ended March 31, 2021

56,353,768 shares* Quarterly financial results are exempt from quarterly review conducted by certified public accountants or an
audit corporation.
* Proper use of earnings forecasts and other special matters
・The Company adopted International Financial Reporting Standards (hereinafter “IFRS”) from the year ended
December 31, 2021 for the consolidated financial statements. Therefore, the financial result for the three months
ended March 31, 2021 are also presented in accordance with IFRS.
・Accompanying condensed quarterly consolidated financial statements and selected notes are presented in US
dollars.
・Earnings forecast and other forward-looking statement included in this material are based on information
currently available to the Company and using the assumptions deemed reasonable. Therefore, actual results may
significantly differ due to various factors.

[Reference] Consolidated financial results for the three months ended 2022 and earnings forecast for theyear ended December 2022 presented in functional currency of the Company, US dollar(US dollar amounts are rounded down to thousand unless otherwise noted.)

1. Consolidated financial results for the three months ended March 31, 2022 (from January 1, 2022 toMarch 31, 2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

RevenueThree months ended

Operating profit

US$ thousand%

US$ thousand

March 31, 2022

664,247(41.0)March 31, 2021

1,126,055-

Profit attributable toowners of parent
Three months ended

Profit before tax%

US$ thousand(12,725)-

31,335-

Total comprehensive
incomeProfit%

US$ thousand%(20,328)-(16,688)-

50,490-47,817-

Diluted earnings
per share

Basic earnings
per share

US$ thousand%

US$ thousand

%

US$

US$

March 31, 2022

(16,657)-(73,162)(40.6)(0.30)(0.30)March 31, 2021

47,161-

123,184

-

0.84

0.84

(2) Consolidated financial position
Total assets
As of

2.

Total equity

Equity attributableto owners of parent

Ratio of equity
attributable toowners of parent tototal assets%

US$ thousand

US$ thousand

US$ thousand

March 31, 2022

3,316,359

627,612605,782

18.3

December 31, 2021

3,425,542

554,759

532,541

15.5

Earnings forecast for FY2022 (January 1, 2022 – December 31, 2022)(Percentages indicate year-on-year changes.)
Revenue

Full Year

Operating profit

Profit before tax

Basicearnings per
share

Profit attributable toowners of parent

Profit

US$ thousand%

US$ thousand%

US$ thousand%

US$ thousand%

US$ thousand%US$2,400,000(38.5)--

30,000-22,000-22,000-0.39

○ Contents
1. Qualitative information on quarterly financial results(１) Results of operations ...................................................................................................................... 2(２) Financial position ........................................................................................................................... 3(３) Significant event related to going concern status ......................................................................... 3
2. Condensed quarterly consolidated financial statements and selected notes to the condensed quarterly
consolidated financial statements(１) Condensed quarterly consolidated statement of financial position ................................................ 4(２) Condensed quarterly consolidated statement of profit or loss and condensed quarterly consolidated
statement of other comprehensive income ..................................................................................... 6(３) Condensed quarterly consolidated statement of change in equity ................................................ 8(４) Condensed quarterly consolidated statement of cash flows ......................................................... 10(５) Selected notes to the condensed quarterly consolidated financial statements(Note to ability to continue as a going concern) ............................................................................. 11(Change in accounting policy) ........................................................................................................ 11(Change in accounting estimate) ..................................................................................................... 11(Additional information) ................................................................................................................. 111

1. Qualitative information on quarterly financial results(1) Results of operations
During the first quarter of this year the Japanese economy made continued recovery. While COVID-19 epidemic
influence was still widespread, the recovery of personal consumption was lacking some momentum and the
profitability of certain part of non-manufacturing business sector was fairly low. The recovery of global economy
continues while COVID-19 epidemic gradually subsides. However, the further recovery of global economy isuncertain due to the risk of global geopolitics caused by Russian invasion of Ukraine.
Oil prices rose to US$120 a barrel when US and UK prohibited the import of Russian oil in early March, but toward
the end of March the oil prices were lower at around US$100 a barrel as the US President Biden decided to releaseat the historically largest amount of oil reserve. In this environment, the trend toward decarbonization is unavoidable.
However, from the perspective of maintaining a stable energy supply, oil companies are expected to maintain certain
level of deep-sea oil development projects. The business related to floating offshore oil and gas production facilities,
which is the main business of the Company, is expected to grow steadily in the future in ultra-deep water large-scale
projects, where the Company has strengths.
However, the business environment surrounding the Company is undergoing significant changes, which include thefurther promotion of renewable energy and the evolution of digital technologies among others. The Company will
steadily take into account these changes in the business environment. While securing profits from existing businesses,
it will steadily develop future sources of profits such as floating offshore wind turbines, underwater resource
development and digital solution businesses.
Under these circumstances, for the first quarter of this year, the total orders on a consolidated basis resulted in
US$127,149 thousand (US$473,759 thousand in 1Q 2021) due to the variation orders of FPSO construction projects.
The consolidated revenue was US$664,247 thousand (US$1,126,055 thousand in 1Q 2021) due to progress in theconstruction of FPSOs.
In terms of profit, the operating loss was US$12,725 thousand (operating profit of US$31,335 thousand in 1Q 2021)
due to the low profitability of FPSO construction project caused by COVID-19 pandemic from previous year
continued to affect current period and the increased repair costs of FPSOs operating in Brazil.
In addition, increase in finance costs from foreign currency exchange loss due to the significant appreciation ofBrazil Real against US dollars and the recognition of expected credit loss for the additional loan to the relatedcompany which owns an FPSO resulted in the loss before tax for the current quarter of US$20,328 thousand (income
before tax of US$50,490 thousand in 1Q 2021). As a result, the loss attributable to owners of the parent for the current
quarter was US$16,657 thousand (profit of US$47,161 thousand in 1Q 2021).

2

(2) Financial position
The total assets at the end of first quarter of this year decreased by US$109,183 thousand to US$3,316,359 thousand
from the end of previous year primarily due to decrease in cash and cash equivalents, and trade and other receivables.
The total liabilities decreased by US$182,035 thousand to US$2,688,747 thousand from the end of previous year
primarily due to decrease in trade and other payables.
The total equity increased by US$72,852 thousand to US$627,612 thousand from the end of previous year primarily
due to increase in other components of equity.
(3) Significant event related to going concern status
The Company reported US$363,975 thousand of loss attributable to owners of the parent in previous year. This led
to decrease in retained earnings, which resulted in breach of the financial covenants of bonds and borrowings. The
Company is aware that such event and situation cause a going concern issue. However, the Company addressed thecurrent situation to the lenders to resolve going concern issue and obtained the agreement not to address acceleration
clause with regard to bonds and borrowings in breach of the financial covenants both at the end of previous year andthe first quarter of this year. Therefore, the Company has judged that there is no significant uncertainty exists in the
Company’s status as a going concern.

3

MODEC, INC. and Consolidated Subsidiaries
2. Condensed quarterly consolidated financial statements and selected notes to the condensed quarterly consolidated financial statements(1) CONDENSED QUARTERLY CONSOLIDATED STATEMENT OF FINANCIAL POSITIONASSETSAs of December 31, 2021 and March 31, 2022
(Unit : US$ thousand)As of December 31,
2021

As of March 31,
2022

CURRENT ASSETS:
Cash and cash equivalents
Trade and other receivables
Contract assets
Loans receivable
Other financial assets
Other current assets
Total current assets

810,131379,394
704,730
14,176
14,171138,134
2,060,740

703,030
333,173
674,351－
14,904
161,234
1,886,693

NON-CURRENT ASSETS:
Property, plant and equipment
Intangible assets
Investments accounted for using equity method
Loans receivable
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets

51,36680,845739,046
398,562
13,27854,941
26,7601,364,801

48,90578,070800,793
398,562
14,22363,39425,714
1,429,665

3,425,542

3,316,359

Total assets* The figures are rounded down to the nearest thousand US dollar.

4LIABILITIES AND EQUITYAs of December 31, 2021 and March 31, 2022
(Unit : US$ thousand)

CURRENT LIABILITIES:
Trade and other payables
Contract liabilities
Bonds and borrowings
Income taxes payable
Provisions
Other financial liabilities
Other current liabilities
Total current liabilities
NON-CURRENT LIABILITIES:
Borrowings
Deferred tax liabilities
Defined benefit liability
Provisions
Other financial liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EQUITY:
Share capital
Capital surplus
Retained earnings
Treasury shares
Other components of equity
Equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity* The figures are rounded down to the nearest thousand US dollar.

5

As of December 31,
2021

As of March 31,
2022

1,356,472
405,807426,867
40,564
237,013
94,549103,4832,664,758

1,267,915
368,965
406,690
44,822
234,949
96,981
101,564
2,521,888

55
8
54,69380,597
23,58447,084
206,024－84
54,72467,56022,21022,278
166,858

2,870,782

2,688,747

282,292
280,71185,957(1,291)(115,129)532,541
22,218554,759
3,425,542

282,292
280,765
69,301(1,291)(25,286)
605,782
21,829627,6123,316,359

MODEC, INC. and Consolidated Subsidiaries(2) CONDENSED QUARTERLY CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the three months ended March 31, 2021 and 2022
(Unit : US$ thousand)Three months ended
March 31, 2021

Three months ended
March 31, 2022

1,126,055(1,076,449)
49,605664,247(657,272)
6,975

Selling, general and administrative expenses
Share of profit (loss) of investments accounted for using equity method
Other income
Other expenses
Operating profit (loss)(35,598)
14,6422,692(6)
31,335(44,171)
24,750114(395)(12,725)

Finance income
Finance costs
PROFIT (LOSS) BEFORE TAX

20,906(1,751)50,49016,262(23,865)(20,328)

INCOME TAX EXPENSEPROFIT (LOSS)(2,673)47,817

3,640(16,688)

47,161655
47,817(16,657)(30)(16,688)

Revenue
Cost of sales
Gross profit (loss)

OWNERS OF PARENTNON-CONTROLLING INTERESTSPROFIT (LOSS)* The figures are rounded down to the nearest thousand US dollar.

(Unit : US$)

Earnings (loss) per share
Diluted earnings (loss) per share

$0.84
$0.84

6

($0.30)($0.30)MODEC, INC. and Consolidated Subsidiaries(2) CONDENSED QUARTERLY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the three months ended March 31, 2021 and 2022
(Unit : US$ thousand)Three months
ended
March 31, 2021
PROFIT (LOSS)OTHER COMPREHENSIVE INCOME:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans
Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss
Effective portion of cash flow hedges
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments accounted for using equity method
Total of items that may be reclassified to profit or loss
Total other comprehensive income
COMPREHENSIVE INCOME
Owners of parent
Non-controlling interests* The figures are rounded down to the nearest thousand US dollar.

7

Three months
ended
March 31, 2022

47,817(16,688)

49
49

1
1

(21,522)(2,928)99,76775,31675,366
123,184825(3,276)92,30089,84989,851
73,162

122,803380

73,187(24)

MODEC, INC. and Consolidated Subsidiaries(3) CONDENSED QUARTERLY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the three months ended March 31, 2021
(Unit : US$ thousand)Equity attributable to owners of parent
Other components of equity

Retainedearnings

Total equity Non-controlling
attributable tointerests
owners ofparentTotal equity

Share capital

Capital surplus

282,292

280,742463,852(1,553)0(161,648)(14,745)(176,394)

848,940

18,908867,849

Profit (loss)－－

47,161

－

－

－

－

－

47,161655

47,817

Other comprehensive income

－

－

－

－

49

78,519(2,928)75,64175,641(275)

75,366

Total comprehensive income (loss)－－

47,161－

49

78,519(2,928)75,641

122,803380

123,184

Dividends to owners of parent－－(11,281)

－

－

－

－

－

(11,281)－(11,281)

Dividends to non-controlling interests

－

－

－

－

－

－

－

－

－

(620)

(620)

Share-based payment

－

28

－

－

－

－

－

－

28

－

28

Transfer from other components of equity toretained earnings

－

－

49

－

(49)

－

－

(49)

－

－

－

－

28

(11,231)

－

(49)

－

－

(49)

(11,252)(620)(11,873)282,292

280,770499,783(1,553)

0(83,128)(17,673)(100,802)

960,491

18,668979,160

Balance at January 1, 2021

Total transactions with owners
Balance at March 31, 2021

Treasury shares Remeasurements
Effectiveof defined
portion of cash
benefit plans
flow hedges

Foreigncurrencytranslation
adjustment* The figures are rounded down to the nearest thousand US dollar.

1000

8

Total othercomponents ofequityFor the three months ended March 31, 2022
(Unit : US$ thousand)Equity attributable to owners of parent
Other components of equity

Retainedearnings

Total equity Non-controlling
attributable tointerests
owners ofparentTotal equity

Share capital

Capital surplus

282,292

280,71185,957(1,291)－(90,866)(24,262)(115,129)532,541

22,218554,759

Profit (loss)－－(16,657)

－

－

－

－

－

(16,657)(30)(16,688)

Other comprehensive income

－

－

－

－

1

92,848(3,005)89,844

89,844

6

89,851

Total comprehensive income (loss)－－(16,657)－

1

92,848(3,005)89,84473,187(24)

73,162

Dividends to non-controlling interests

－

－

－

－

－

－

－

－

－

(364)

(364)

Share-based payment

－

53

－

－

－

－

－

－

53

－

53

Transfer from other components of equity toretained earnings

－

－

1

－

(1)

－

－

(1)

－

－

－

－

53

1

－

(1)

－

－

(1)

53

(364)

(310)

282,292

280,765

69,301(1,291)－

1,982(27,268)(25,286)

605,782

21,829627,612

Balance at January 1, 2022

Total transactions with owners
Balance at March 31, 2022

Treasury shares Remeasurements
Effectiveof defined
portion of cash
benefit plans
flow hedges

Foreigncurrencytranslation
adjustment* The figures are rounded down to the nearest thousand US dollar.

1000

9

Total othercomponents ofequityMODEC, INC. and Consolidated Subsidiaries(4) CONDENSED QUARTERLY CONSOLIDATED STATEMENT OF CASH FLOW
For the three months ended March 31, 2021 and 2022
(Unit : US$ thousand)Three months ended
March 31, 2021

Three months ended
March 31, 2022

50,4908,950(6,641)
1,342(19,154)(14,642)(12,763)(222,811)
92,012
107,248
175,522(5,110)154,442(20,328)9,800(18,011)30
7,603(24,750)
40,15030,420(93,037)(47,693)(342)(4,961)(121,120)

8,397
15,424(1,898)(11,602)
164,763

8,944
33,349(3,789)(11,951)(94,568)

CASH FLOW FROM INVESTING ACTIVITIES:Net decrease (increase) in short-term loans receivable
Payments for long-term loans receivable
Purchase of property, plant and equipment, and intangible assets
Proceeds from return of capital from investments accounted for using equity method
Net cash provided by (used in) investing activities(56,065)(13,000)(2,699)－(71,764)

1,204－(2,564)
9,749
8,390

CASH FLOW FROM FINANCING ACTIVITIES:
Repayments of long-term borrowings
Dividends paid
Dividends paid to non-controlling interests
Proceeds from derivatives contracts
Subsidy income
Repayments of lease liabilities
Net cash provided by (used in) financing activities(20,706)(11,147)
(620)
1,691
931
(5,714)(35,565)(20,242)
(3)
(364)
582
－
(5,161)(25,189)

EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT END OF PERIOD(4,756)52,676617,149
669,826

4,265(107,101)
810,131703,030

CASH FLOW FROM OPERATING ACTIVITIES:Profit (loss) before tax
Depreciation and amortization
Increase (decrease) in provisions
Increase (decrease) in retirement benefit liability
Finance income and finance costs
Share of loss (profit) of investments accounted for using equity method
Decrease (increase) in trade and other receivables
Decrease (increase) in contract assets
Increase (decrease) in trade and other payables
Increase (decrease) in contract liabilities
Decrease (increase) in other current assets
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities* The figures are rounded down to the nearest thousand US dollar.

10(5) Selected notes to the condensed quarterly consolidated financial statements(Note to the ability to continue as a going concern)
There were no significant events applicable.
(Change in accounting policy)
The accounting policy of current quarter condensed consolidated financial statements is the same as theprevious year annual consolidated financial statements.
Corporate income tax is calculated using the estimated annual effective tax rate in the current quartercondensed consolidated financial statements.
(Change in accounting estimate)
The significant judgements and estimates made by the Company’s management including the financial impactof the COVID-19 epidemic in preparing these condensed quarterly consolidated financial statements were thesame as the previous year annual consolidated financial statements.
The impact of Russian invasion of Ukraine is considered insignificant to the Company at the end of firstquarter.
(Additional information)
Financial covenants
Borrowings and bonds are subject to the financial covenants, and the detail are as follows.
1. Term loan contract
Loan balance: US$96,000 thousand
Total equity in the consolidated statement of financial position and the net assets of Company’s stand-alonebalance sheet must be equal to or more than 75% of previous year consolidated statement of financial position
and balance sheet, respectively, and equal to or more than 75% of them at the end of December 2014,
respectively.
2. Syndicated loan contract
Loan balance: US$64,000 thousand
Total equity in the consolidated statement of financial position at December 31, 2021 and yearends thereafter
must be equal to or more than 75% of consolidated statement of financial position at December 31, 2020.
3. US dollar bonds
Bond balance: US$225,000 thousand
Total equity must be equal to or more than US$688,514 thousand at the end of each quarter.
The borrowings and bonds listed above were in breach of the financial covenants both at the end of previous
year and first quarter of this year. However, the Company obtained the agreement with the lenders not toaddress acceleration clause in February and April 2022, respectively.

11

MODEC, Inc.
2022 1Q Financial Results
Supplementary Presentation
May 11, 2022

(Note)
From the end of FY2021 consolidated fiscal year, the Company's
consolidated financial results have applied International Financial
Reporting Standards (IFRS) instead of the conventional Japanese
GAAP. In addition, the currency unit has been changed to the US dollar
instead of the conventional Japanese yen.
As a result, the figures for previous years in this document are handled
as below.
・ Before FY2019: Japanese standard (Japanese yen) figures areconverted to US dollars at the midpoint of the market price of telegraphspots for customers at the end of each year.
2018: 1 US dollar = 111.02 yen
2019: 1 US dollar = 109.54 yen
1New Orders / Revenue
New Orders

Revenue

US$M

US$M

8,000

8,000
MV33
MV33
MV34

5,804

4,000

3,899

4,000
3,148

3,036

2,902

2,736

2,284

2,400 (F)

1,998
1Q

664
127
0

0
2018

2019

2020

2021

2022

2018

2019

2020

2021

2022



Orders received are US$127M due to design changes in the FPSO construction project.

Revenues are progressing steadily, although there are lags in the perception of progress
rates in accounting.

2Operating Profit / Profit Attributable to Owners of Parent
Profit Attributable to Owners of Parent

Operating Profit
US$M
300

US$M
300

223

197

MV32

200

200

100

100
22(F)

0

0
1Q

(22)

(100)

(12)
(138)

(200)

1Q

(100)

(16)

(200)

(300)

(166)

(131)

(300)
(317)

(400)
2018

2019

2020

2021

(400)
2022

2018

2019

2020

(363)
2021

2022

(Note) For 2018-2019, Equity in Earnings of Affiliates is added to JGAAP operating profitGross profit decreased in the first quarter due to special maintenance campaign of old
vessels and lags in the perception of progress rates in accounting. As a result, fixed costs
such as SG&A expenses could not be recovered, and a net loss of US$16M was recorded.

Full-year forecast remains unchanged because there is no significant change in the firstquarter results from the initial forecast.

3