MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEET
June 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¥42,707
50,077
5,968
3,076
11,085(470)
112,445

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

16,578841
17,420INTANGIBLE ASSETS:

7,438

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

21,31524,334
3,832
49,482

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

¥186,786

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¥62,163
1,245
6,888
2,971
13,8092,866
1,892
91,837

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

15,273169
3,354
18,797

Total liabilities
NET ASSETSSHAREHOLDERS' EQUITY:
Common stock;authorized - 102,868,000 shares
outstanding - 46,408,000 shares
Capital surplusgRetained earnings
Less-Treasury stock at cost
Total shareholders' equity

110,635

20,185
20,915,32,057(1)
73,156

ACCUMULATED GAINS (LOSSES) FROM VALUATION
AND TRANSLATION ADJUSTMENTS:
Unrealized gains/(losses) on available-for-sale securities, net of taxes
Unrealized 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(5,191)MINORITY INTERESTS IN CONSOLIDATED SUBSIDIARIES:

8,186

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

(8)
(5,692)615(106)76,151¥186,786

MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED STATEMENT OF INCOME
For the six months ended June 30, 2013SALESCOST OF SALES
Gross profit (loss)

Millions ofJapanese yen¥107,268
97,877
9,391

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Operating profit (loss)

6,739
2,651

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

1,207(373)
2,734
2,986
678
7,233

INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS:

9,884

INCOME TAXES:
Current
Prior
Deferred

1,966(1,022)
2,304

INCOME BEFORE MINORITY INTERESTS

6,636

MINORITY INTERESTSNET INCOME

881¥5,755* The figures are rounded down to the nearest million yen.

Net income per share¥124.01

MODEC, INC. and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the six months ended June 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

6(43)
3,859
5,913
30
9,766
¥16,402

Comprehensive income attributable to owners of the parent
Comprehensive income attributable to owners of minority interests¥14,496¥1,905* The figures are rounded down to the nearest million yen.

¥6,636