This document has been translated from Japanese original for reference purposes only. In the event of any discrepancy between
this translated document and the Japanese originals, the original shall prevail. The Company assumes no responsibility for thistranslation or for direct, indirect or any other forms of damages arising from the translation.

July 31, 2015
MODEC, INC.
Toshiro Miyazaki, President & CEO
Code: TSE 6269
Contact: Yasuhiro Takano, Executive Officer
Corporate Planning & Strategies Dept.
TEL: +81-3-5290-1200

Recording of Expenses at MV11BV and Revision of Financial Forecast
MODEC, INC. revised today the consolidated financial forecast for the half-year ended June 30, 2015, which
was announced on February 10, 2015. The revision is due to repair cost and related expenses recorded at
MODEC Venture 11 B.V. and additional deferred profit resulting from increase in equity participation in twoSPCs.
1. Recording of Repair Cost and Related Expenses at MV11BVIn April 2015, a failure was found on part of internal turret of the FPSO MODEC Venture 11 which is in operationoffshore Australia. The FPSO is owned and operated by MODEC VENTURE 11 B.V., a consolidated subsidiaryof MODEC, INC. The impact of the repair cost and decrease in revenue due to production suspension isestimated to be approx. 2 billion yen at MODEC VENTURE 11 B.V. for the second quarter of 2015. Currently
the repair was completed and the FPSO has resumed production.
2. Revision of the Financial Forecast(1) Half-year Consolidated Financial Forecast (From January 1, 2015 to June 30, 2015)
OperatingOrdinaryNetNet Income

ProfitProfitIncomeper share

million yen

million yen

million yen

million yenyen

Previous Forecast (A)140,000

1,000

3,500

1,000

17.73

Revised Forecast(B)150,000(2,000)

2,600

(200)

(3.55)

Variance (B-A)

10,000(3,000)(900)(1,200)7.1－(25.7)－

161,977

3,168

5,861

1,079

Revenue

Variance (%)
2014 Half-year
financial results

21.50(2) Reason for the Revision
In the first half of 2015, revenue is expected to increase compared to the forecast, due to steady progress ofFPSO construction work. In the meanwhile, equity participation in CERNAMBI NORTE MV26 B.V. andCARIOCA MV27 B.V., affiliates accounted for by the equity method, has increased from 25.0% to 29.4%.
Following this change, approx. 1 billion yen of profit attributable to FPSO construction work will be deferred, bygoing back to the beginning of construction work of both FPSOs. Operating profit, ordinary profit, and net
income are expected to decrease compared to the forecast, due to the impact of this additional deferred profit
as well as the repair cost and related expenses as described in the previous section. CERNAMBI NORTE-1-This document has been translated from Japanese original for reference purposes only. In the event of any discrepancy between
this translated document and the Japanese originals, the original shall prevail. The Company assumes no responsibility for thistranslation or for direct, indirect or any other forms of damages arising from the translation.

MV26 B.V. is expected to start the FPSO charter service in the third quarter of 2015 and the deferred profit will
be realized upon the charter commencement. Due to this fact, full-year financial forecast has not been changed.
The consolidated financial forecast announced today is based on the information available as of July 31, 2015.
There is a possibility that the actual financial results might differ from the forecast due to various factors.

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