MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEETMarch 31, 2020
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¥36,220
166,555
4,624
8,716
16,223(454)
231,885

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

54,591
4,596

INTANGIBLE ASSETS:

9,716

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

65,68937,325
13,181
116,195¥362,394

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 loss on construction contracts
Provision for product warranty
Provision for repairs
Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:Long-term loans payable
Net defined benefit liabilities
Other long-term liabilities
Total long-term liabilities
Total liabilities¥158,347
7,009
14,345
5,141
21,306
221
9,382
7,076
5,933
8,415
237,180

8,524
838
18,51827,880265,060

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

30,122
29,30160,614(188)
119,849

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(24,385)(466)(1,066)(25,917)

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

3,401
97,333¥362,394

MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED STATEMENT OF INCOME
For the three months ended March 31, 2020

SALES
COST OF SALES
Gross profit (loss)
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Operating profit (loss)
OTHER INCOME (EXPENSES):Interest income
Equity in earnings of unconsolidated subsidiaries and affiliates, net
Foreign exchange gain (loss), net
Interest expense
Gain (loss) on revaluation of derivatives
Retirement benefit expenses
Others, net
Total other income (expenses)

Millions ofJapanese yen¥80,566
89,540(8,973)
3,072(12,046)

1,202
1,010
20(184)
(305)
(447)
(37)
1,258

PROFIT (LOSS) BEFORE INCOME TAXES(10,788)

INCOME TAXES:CurrentPriorDeferred
PROFIT (LOSS)PROFIT (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTSPROFIT (LOSS) ATTRIBUTABLE TO OWNERS OF PARENT929(5)(1,496)(10,215)(148)(¥10,066)* The figures are rounded down to the nearest million yen.

Earnings (loss) per share(¥178.66)

MODEC, INC. and Consolidated Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the three months ended March 31, 2020

Millions ofJapanese yen
PROFIT(LOSS)OTHER COMPREHENSIVE INCOME:
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(16,548)(¥26,763)

Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests(¥26,590)(¥173)* The figures are rounded down to the nearest million yen.

(¥10,215)(1,604)(2,903)30(12,071)

MODEC, Inc.
2020 1Q Financial ResultsSupplementary Presentation
May 12, 2020

2020 First Quarter : Highlight
Revenue

New Order
Billion JPY
160

159.1

Billion JPY
10080.57512052.9

58.0
50.1

5080

33.04046.725

29.9
12.0

9.800
2016

2017201820192020

20162017201820192020



New order was JPY 159 billion. New order for Sangomar Field Development project from Woodside
Energy was recognized in this quarter.

Revenue increased comparing to the same period last year mainly due to the increase of the number ofFPSO constructions2

2020 First Quarter : Highlight

Billion JPY

Billion JPY
4.4
55
1.7

2.3

Profit Attribute to Owners ofParent

Ordinary Profit

Operating Profit

Billion JPY
4.2
2.4

5

3.0

3.5

2.5

1.3

1.1

0.2
000-5-5-5-10-10

1.9-10-10.0

-10.3
-12.0
-15

-15
2016

20172018

2019

2020

-15
2016

2017

2018

2019

2020

2016

20172018

20192020



Due to the Covid-19 pandemic, the ongoing construction projects have been delayed and suspended, andprocurements mainly from Europe have also been delayed.

Operating deficit was JPY 12.0 billion which included cost anticipated to increase if this situation continue until
the middle of 2020.
3

The Influence of the COVID-19 Pandemic
Costs incurred in the first quarter due to the COVID-19 pandemic
Billion JPY

100-15



Cost anticipated to increase due to the COVID-19 pandemic and provision for VOR and others are recognizedaround JPY 10.5 billion and 6.0 billion respectively in this first quarter. Excluding the impact of the COVID-19,operating profit in the first quarter could be around JPY 4.5 billion.

In regard to lease, charter and O&M service, they have been conducted under adequate measures toquarantine for crew and revision of the crew rotations.

4FY2020 : Outlook
Previous
Forecast*(A)Revised
Forecast(B)

Variance
B-A

2019 Full-year
FinancialResults

Revenue

4,000

2,800-1,2003,326

Operating Profit

60-200-260- 48

Ordinary Profit

170-90-260

2Profit Attributableto Owners ofParent

120-100-220-182

Unit: 100 million yen* Announced on February 5, 2020


Revenue has been revised downward mainly due to delay of the Final Investment Decision (FID) by oil
and gas companies and delay of EPCI projects amid the Covid-19 crisis and decline of oil price.

Operating profit has been revised to JPY 20 billion operating loss due to the additional cost anticipatedto increase on the premise that this situation continue until the middle of 2020 in addition to the profit
decline because of the downward revision of revenue forecast. Ordinary profit and profit attributable toowners of parent have also been revised downward due to the downward revision of operating profit.
5