MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEET
September 30, 2013ASSETS

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¥27,767
59,7456,345
6,124
9,880(456)109,408

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

15,769995
16,764INTANGIBLE ASSETS:

7,034

INVESTMENTS AND OTHER ASSETS:
Investment securities
Long-term loans receivable
Other investments
Total investments and other assets

22,711
27,765
3,716
54,193

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

¥187,401

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
Provision for product warranties
Other current liabilities
Total current liabilities¥67,926
1,345
7,512
3,042
7,468
2,851
2,113
92,260

LONG-TERM LIABILITIES:Long-term loans payable
Severance and retirement benefits for employees
Other long-term liabilities
Total long-term liabilities

14,731
172
3,536
18,440Total liabilities
NET ASSETSSHAREHOLDERS' EQUITY:
Common stock;authorized - 102,868,000 shares
outstanding - 46,408,000 shares
Capital surplus
Retained earnings
Less-Treasury stock at cost
Total shareholders' equity

110,700

20,185
20,91532,672(1)
73,771

ACCUMULATED GAINS (LOSSES) FROM VALUATION
AND TRANSLATION ADJUSTMENTS:
Unrealized gains/(losses) on available-for-sale securities, net of taxesUnrealized gains/(losses) on hedging derivative, net of tax
Foreign currency translation adjustments
Retirement liability adjustments for foreign consolidated subsidiaries
Total accumulated gains (losses) from valuationand translation adjustments

3(5,527)
(124)
(102)

MINORITY INTERESTS IN CONSOLIDATED SUBSIDIARIES:

8,679

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

(5,751)

76,700¥187,401

MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED STATEMENT OF INCOME
For the nine months ended September 30, 2013

SALES
COST OF SALES
Gross profit (loss)

Millions ofJapanese yen¥166,081
151,751
14,329SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Operating profit (loss)

10,265
4,064

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

1,814(501)
3,988
3,043
100
673
9,118

INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS:

13,182

INCOME TAXES:CurrentPrior
Deferred

3,686(1,013)
2,010

INCOME BEFORE MINORITY INTERESTS

8,499

MINORITY INTERESTS

1,433

NET INCOME¥7,066* The figures are rounded down to the nearest million yen.

Net income per share¥152.27

MODEC, INC. and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the nine months ended September 30, 2013

Millions ofJapanese yen
Income 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
Share of other comprehensive income of associates accounted for using equity method
Retirement liability adjustments for foreign consolidated subsidiaries
Total
Comprehensive income

1839
3,289
5,766
34
9,148
¥17,647

Comprehensive income attributable to owners of the parent
Comprehensive income attributable to owners of minority interests¥15,248¥2,398* The figures are rounded down to the nearest million yen.

¥8,499