MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEET
September 30, 2012ASSETS
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¥30,018
41,677
4,807
5,773
9,328
(308)
91,296PROPERTY AND EQUIPMENT:
Vessels and equipment
Other
Total property and equipment

10,07410074
850
10,925INTANGIBLE ASSETS:

6,248

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

11,896
8,567
4,441
24,905

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

¥133,376

LIABILITIES AND NET ASSETS
Millions ofJapanese yen
CURRENT LIABILITIES:
Accounts payable - trade
Short-term
Short term loans payable
Current portion of long-term loans payable
Accrued expenses
Income taxes payable
Advances Received
Provision for product warranties
Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:Long-term loans payableSeverance and retirement benefits for employees
Other long-term liabilities
Total long-term liabilities
Total liabilities
NET ASSETSSHAREHOLDERS' EQUITY:
Common stock;authorized - 102,868,000 shares
outstanding - 46,408,000 shares
Capital surplus
Retainedi d earningsiLess-Treasury stock at cost
Total shareholders' equity¥53,915
1,551
1 551
4,188
5,258
3,731
1,106
2,082
1,373
73,206

3,356
163
4,587
8,106
81 31381,313

20,185
20,91523,771(1)
64,871

ACCUMULATED GAINS (LOSSES) FROM VALUATION
AND TRANSLATION ADJUSTMENTS:
Unrealized losses on available-for-sales securities, net of taxes
Unrealized losses on hedging derivative, net of tax
Foreign currency translation adjustments
Total accumulated gains (losses) from valuationand translation adjustments(18,241)

MINORITY INTERESTS IN CONSOLIDATED SUBSIDIARIES:

5,433

Total net assets
T t l liabilities
Totalli biliti andd nett assetst* The figures are rounded down to the nearest million yen.

(1)
(7,972)(10,267)

52,063¥133,376¥133376

MODEC, INC. and Consolidated SubsidiariesCONSOLIDATED STATEMENT OF INCOME
For the nine months ended September 30, 2012

SALES
COST OF SALES
Gross profit (loss)

Millions ofJapanese yen¥128,251
119,174
9,077

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Operatingpg pprofit ((loss))

6,761
2,315

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)

1,067(365)
1,166(286)
154
1 736
1,736

INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS:

4,052

INCOME TAXES:
Current
PriorDeferred

3,244
109(1,803)

INCOME BEFORE MINORITY INTERESTS

2,502

MINORITY INTERESTSNET INCOME540¥1,962* The figures are rounded down to the nearest million yenyen.

Net income per share¥42.28

MODEC, INC. and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the nine months ended September 30, 2012

Millions ofJapanese yen
Income before minority interests
Other comprehensive income
Unrealized losses on available-for-sales securities, net of taxes
Unrealized losses hedging derivatives, net of tax
Foreign currency transaction adjustments
Share of other comprehensive income of associates accounted for using equity method
Total
Comprehensive income
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to owners of minority interests¥2,50210187(59)(1,590)(1,451)¥1,050¥493¥556