Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

November 9, 2023

Consolidated Financial Results
for the Nine Months Ended September 30, 2023
(IFRS)
Company name: MODEC, INC.
Listing:
Tokyo Stock Exchange
Securities code: 6269
URL:
https://www.modec.com
Representative: Takeshi Kanamori, Representative Director, President
Inquiries:
Yasuhiro Takano, Director, Senior Executive Managing Officer
Telephone:+81-3-5290-1200
Scheduled date to file quarterly securities report:
November 10, 2023
Scheduled date to commence dividend payments:－
Preparation of supplementary material on quarterly financial results: No
Holding of quarterly financial results briefing: No(US dollar amounts are rounded down to thousands.)

1. Consolidated financial results for the nine months ended September 30, 2023 (from January 1,
2023 to September 30, 2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Revenue
Nine months ended

Operating profit

Profit before tax

Profit

US$ thousand%

US$ thousand%

US$ thousand%

US$ thousand%

September 30, 2023

2,485,637

24.8

88,334114.3

94,261204.7

55,747350.4

September 30, 2022

1,991,229(33.2)

41,214－30,939－12,378－

Profit attributable toowners of parent
Nine months ended

Total comprehensive
incomeBasic earnings
per share

Diluted earnings
per share

US$ thousand%

US$ thousand

%

US$

US$

September 30, 2023

35,904

176.1

93,064(61.6)

0.59

0.59

September 30, 2022

13,006－242,264

587.2

0.23

0.23

Equity attributable toowners of parent

Ratio of equity
attributable to ownersof parent to total
assets(2) Consolidated financial position
Total assets
As ofTotal equity

US$ thousand

US$ thousand

US$ thousand%

September 30, 2023

3,593,187

1,041,897

992,832

27.6

December 31, 2022

3,136,213

841,121811,640

25.9

Note: The original condensed consolidated financial statements of MODEC, INC. and its subsidiaries (hereinafter “the Company”)
for the nine months ended September 30, 2023 and 2022 and for the year ended December 31, 2022 are presented in
the Company’s functional currency which is US dollars. Therefore, the consolidated operating results and theconsolidated financial position above are also presented in US dollars.
For convenience purposes the consolidated operating results and the consolidated financial position converted in
expediential manner to Japanese yen are presented on page 4 of this summary information.

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

yen

yen

yen

Year-endyen

yenYear ended
December 31, 2022

－

0.00

－

0.00

0.00

Year ending
December 31, 2023

－

0.00

－

－

－

Year ending
December 31, 2023
(Forecast)

Total

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Earnings forecast for 2023 (from January 1, 2023 to December 31, 2023)

Revenue

Full Year(Percentages indicate year-on-year changes.)
Profit attributable
Basic earnings
Profit before tax
to owners ofper share
parentOperating profit

US$ thousand%

US$ thousand%

US$ thousand%

US$ thousand%US$

3,000,000

9.5

－

－

－

－

45,00020.4

0.80

Note: Revisions to the forecast most recently announced: Yes
For earnings forecast please refer to “The announcement for the revision of earnings release for the year ending
December 31, 2023” released today on November 9, 2023.
The consolidated earnings forecast of the Company is prepared in US dollars which is the Company’s functional currency.
For convenience purposes the consolidated earnings forecast converted in expediential manner to Japanese yen ispresented on page 4 of this summary information.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Changes in accounting policies and changes in accounting estimates(I)

Changes in accounting policies required by IFRS: None(ii)

Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None
(3) Number of issued shares (ordinary shares)
(i)

(ii)

Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

68,345,300 shares

As of December 31, 2022

56,408,000 shares

Number of treasury shares at the end of the period
As of September 30, 2023

38,217 shares

As of December 31, 2022

38,217 shares(iii) Average number of shares outstanding during the period
Nine months ended September 30, 2023

60,436,336 shares

Nine months ended September 30, 2022

56,367,059 shares* Quarterly financial results are exempt from quarterly review conducted by certified public accountants or an
audit corporation.
* Proper use of earnings forecasts and other special matters
・The Company voluntarily adopted International Financial Reporting Standards (IFRS) from the year ended
December 31, 2021 for the consolidated financial statements.
・Accompanying condensed quarterly consolidated financial statements and selected notes are presented infunctional currency of the Company, US dollars.
・The US dollar amounts in the first page of this summary information is not tagged to XBRL data.
・Earnings forecast and other forward-looking statement included in this material are based on information
currently available to the Company and are based on assumptions deemed reasonable. They are not meant
to be a guarantee of future performance or outcomes. Actual results may differ materially subject to various
factors.

[Reference] Consolidated financial results for the nine months ended September 30, 2023 andearnings forecast for the year ending December 31, 2023 presented in Japanese yen(Yen amounts are rounded down to millions.)

1. Consolidated financial results for the nine months ended September 30, 2023 (from January 1, 2023
to September 30, 2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Revenue
Nine months ended

Operating profit

Profit before tax

Profitmillion yen%

million yen%

million yen%

million yen%

September 30, 2023

371,801

28.9

13,213

121.4

14,099

214.7

8,338

365.2

September 30, 2022

288,349(13.7)

5,968

－

4,480

－

1,792

－

Profit attributable toowners of parent
Nine months ended

Total comprehensive
incomeBasic earnings
per share

Diluted earnings
per share

million yen%

million yen

%

yen

Yen

September 30, 2023

5,370

185.1

13,920(60.3)

88.86

88.81

September 30, 2022

1,883

－

35,082

788.9

33.41

33.40

Equity attributable toowners of parent

Ratio of equity
attributable to ownersof parent to total
assets(2) Consolidated financial position
Total assets
As ofTotal equity

million yen

million yen

million yen%

September 30, 2023

537,468

155,847

148,507

27.6

December 31, 2022

416,206

111,625

107,71225.9

Note: The amounts presented above are converted from the consolidated financial results on page 1 of this summary
information in expediential manner to Japanese yen as follows:
September 30, 2023 at US$1.00 = 149.58 Japanese yen at the TTM rate of Sumitomo Mitsui Banking
Corporation as of September 29, 2023
September 30, 2022 at US$1.00 = 144.81 Japanese yen at the TTM rate of Sumitomo Mitsui Banking
Corporation as of September 30, 2022
December 31, 2022 at US$1.00 = 132.71 Japanese yen at the TTM rate of Sumitomo Mitsui Banking Corporation
as of December 30, 2022
The percentages indicating year-on-year changes for the consolidated operating results are calculated onJapanese yen basis presented above.

2.

Earnings forecast for 2023 (from January 1, 2023 to December 31, 2023)

Revenue

Full Year

Operating profit(Percentages indicate year-on-year changes.)
Profit attributable
Basic earnings
Profit before tax
to owners ofper share
parentmillion yen%

million yen%

million yen%

million yen%

yen

448,740

23.4

－

－

－

－

6,731

35.7

119.40Note: The consolidated earnings forecast of the Company is prepared in US dollars which is the Company’s functional
currency. The amounts presented for the forecast released previously which was announced officially on February 14,2023 are converted in expediential manner at US$1.00 = 132.71 Japanese yen at the TTM rate of Sumitomo Mitsui
Banking Corporation as of December 30, 2022. Also, the amounts presented this time for the revised forecast areconverted in expediential manner at US$1.00 = 149.58 Japanese yen at the TTM rate of Sumitomo Mitsui Banking
Corporation as of September 29, 2023.
The percentages indicating year-on-year changes for the consolidated earnings forecast are calculated on Japanese yenbasis.

○ Contents
1. Qualitative information on quarterly financial results ....................................................................... 2(1) Results of operations ............................................................................................................................... 2(2) Financial position....................................................................................................................................... 2
2. Condensed quarterly consolidated financial statements and selected notes.......................... 3(1) Condensed quarterly consolidated statement of financial position ..................................... 3(2) Condensed quarterly consolidated statement of profit or loss and condensed
quarterly consolidated statement of other comprehensive income .................................... 5(3) Condensed quarterly consolidated statement of change in equity ...................................... 9(4) Condensed quarterly consolidated statement of cash flows .................................................11(5) Selected notes to the condensed quarterly consolidated financial statements .............12(Note to ability to continue as a going concern) .....................................................................121

1.

Qualitative information on quarterly financial results(1) Results of operations
In the third quarter of this year, although the Japanese economy faced continued unclear
outlook since energy and raw material prices remained high, due to the normalization of
economic and social activities the personal consumption and corporate profits recovery wereobservable and a moderate recovery trend of economy continued. The global economy was
also generally on a moderate recovery trend.
Oil price rose and remained in the range of US$90s a barrel reflecting a sense of caution
over tight oil supply and demand since Saudi Arabia and Russia decided to voluntarily
cutback oil production to continue supply reduction measures till the end of the year andalso the US crude oil inventory fell to a low level. Coexisting with the decarbonization trend
and maintaining stable energy supply remains an important issue. In that context the oilcompanies are continuing the deep-sea oilfield development projects. In addition, theCompany expects steady demand for the Company's main business of floating, production,
storage and offloading systems for oil and gas productions especially in the ultra-deep water
large-scale projects in which the Company has a competitive advantage.
Under these circumstances, for the nine months ended as of September 30, 2023, the totalorders on a consolidated basis resulted in US$8,053,893 thousand (US$830,885 thousand in
YTD 3Q 2022) due to the new orders of construction projects obtained for ExxonMobil
Guyana’s Uaru project for which the FPSO will be deployed in the Stabroek block field off thecoast of Guyana and Equinor Brasil Energia for which the FPSO will be deployed in the BMC-33 block field off the coast of Brazil. The consolidated revenue was US$2,485,637 thousand(US$1,991,229 thousand in YTD 3Q 2022) due to the progress in the construction of FPSOs.
In terms of profit, the operating profit was US$88,334 thousand (operating profit of
US$41,214 thousand in YTD 3Q 2022). This is due to the revenue recognized from theprogress of construction projects and share of profit of investments accounted for using
equity method even though the improvement costs incurred for the asset integrity of FPSOs
and FSO operating in Brazil had the effect of lowering profit.
In addition, the finance income increased due to the recognition of exchange gain, andtherefore the profit before tax for the nine months ended as of September 30, 2023 was
US$94,261 thousand (profit before tax of US$30,939 thousand in YTD 3Q 2022). As a result,the profit attributable to owners of parent for the nine months was US$35,904 thousand(profit attributable to owners of parent of US$13,006 thousand in YTD 3Q 2022).
(2) Financial position
The total assets at the end of third quarter of this year increased by US$456,973 thousand
to US$3,593,187 thousand from the end of previous year primarily due to increase in cash
and cash equivalents.
The total liabilities increased by US$256,197 thousand to US$2,551,289 thousand from theend of previous year primarily due to increase in bonds and borrowings.
The total equity increased by US$200,775 thousand to US$1,041,897 thousand from the endof previous year primarily due to the issuance of new shares for the purpose of raising funds
for investing and lending. In the second quarter of this year the Company reduced its capital,
which had no effects to the total equity.

22. Condensed quarterly consolidated financial statements and selected notes(1) Condensed quarterly consolidated statement of financial positionin thousands of US dollars
December 31, 2022

September 30, 2023

AssetsCurrent assets
Cash and cash equivalents

492,625

872,490

Trade and other receivables

478,083

543,209

Contract assets

257,328

155,062

Other financial assets

37,28839,499Other current assets

141,820

146,900

Total current assets

1,407,147

1,757,161

Property, plant and equipment

64,31453,739Intangible assets

70,21363,072

1,114,066

1,271,923

Loans receivable

365,032

348,376

Other financial assets

13,603

12,730

Deferred tax assets

65,01655,789Other non-current assets

36,81930,392

Total non-current assets

1,729,066

1,836,025

3,136,213

3,593,187

Non-current assets

Investments accounted for using equity method

Total assets

3

in thousands of US dollars
December 31, 2022

September 30, 2023

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

921,708

943,310Contract liabilities

499,383

557,938

Borrowings

19,084

57,799

Income taxes payable

38,38956,307

Provisions

109,704

114,374

Other financial liabilities

99,219126,990

Other current liabilities

76,954

38,465

Total current liabilities

1,764,443

1,895,184

Bonds and borrowings

374,293527,202

Deferred tax liabilities

1,283

10

Defined benefit liability

43,95946,219Provisions

56,67551,437

Other financial liabilities

37,127

24,671Other non-current liabilities

17,310

6,563

Total non-current liabilities

530,649

656,105

2,295,092

2,551,289

Share capital

282,292

190,495

Capital surplus

280,686

187,041

Retained earnings

131,004

459,981

Treasury shares(1,092)(1,092)Other components of equity

118,748

156,406

811,640

992,832

Non-controlling interests

29,48149,065

Total equity

841,121

1,041,897

3,136,213

3,593,187

Non-current liabilities

Total liabilities
EquityEquity attributable to owners of parent

Total liabilities and equity4(2) Condensed quarterly consolidated statement of profit or loss and condensed quarterly consolidated
statement of other comprehensive income
Condensed quarterly consolidated statement of profit or loss
For the nine months ended September 30
in thousands of US dollars
2022

2023

Revenue

1,991,229

2,485,637

Cost of sales(1,917,566)(2,343,141)

Gross profit

73,663

142,496(112,449)(129,868)

Share of profit of investments accounted for using
equity method

66,90875,674

Other income

13,119285

Other expenses

(26)

(252)

Operating profit

41,21488,334

Finance income

50,10443,332Finance costs(60,379)(37,404)

Profit before tax

30,93994,261

Income tax expense(18,561)(38,514)

Profit for the period

12,37855,747

Owners of parent

13,00635,904Non-controlling interests(628)

19,843

Profit for the period

12,37855,747

Selling, general and administrative expenses

Profit attributable toin US dollars
Earnings per share
Basic earnings per share

0.23

0.59

Diluted earnings per share

0.23

0.59

5

For the three months ended September 30
in thousands of US dollars
2022

2023

Revenue

615,708

896,990

Cost of sales(597,089)(840,377)

Gross profit

18,61956,612

Selling, general and administrative expenses(38,192)(51,581)

Share of profit of investments accounted for using
equity method

18,451

33,987

Other income

3,357

41

Other expenses

(1)

(92)

Operating profit

2,233

38,967

Finance income

12,886

14,511

Finance costs(9,015)(14,098)

Profit before tax

6,104

39,379

Income tax expense(8,939)(20,976)

Profit (loss) for the period(2,835)

18,403(2,136)

12,110Non-controlling interests

(698)

6,293

Profit (loss) for the period(2,835)

18,403

Profit attributable to
Owners of parent

in US dollars
Earnings per share
Basic earnings (loss) per share(0.04)

0.18

Diluted earnings (loss) per share(0.04)

0.18

6

Condensed quarterly consolidated statement of other comprehensive income
For the nine months ended September 30
in thousands of US dollars
2022
Profit for the period

2023
12,37855,747

5

(81)

5

(81)

1,083

(5,202)Other comprehensive Income
Items that will not be reclassified subsequently to
profit or loss
Remeasurements of defined benefit liability
Total items that will not be reclassified
subsequently to profit or loss
Items that may be reclassified subsequently to
profit or loss
Effective portion of cash flow hedges
Exchange differences on translation of foreign
operations
Share of other comprehensive income ofinvestments accounted for using equity
methodTotal items that may be reclassified subsequently
to profit or loss

821

(4,477)

227,976

47,077

229,880

37,398

Total other comprehensive income, net of tax

229,885

37,316

Total comprehensive income for the period

242,264

93,064

243,030

73,480(766)

19,583242,264

93,064

Total comprehensive income attributable to
Owners of parent
Non-controlling interests
Total comprehensive income7For the three months ended September 30
in thousands of US dollars
2022
Profit (loss) for the period2023(2,835)

18,403

1

(27)

1

(27)

2,439

(4,834)

1,543

58

Other comprehensive Income
Items that will not be reclassified subsequently to
profit or loss
Remeasurements of defined benefit liability
Total items that will not be reclassified
subsequently to profit or loss
Items that may be reclassified subsequently to
profit or loss
Effective portion of cash flow hedges
Exchange differences on translation of foreign
operations
Share of other comprehensive income ofinvestments accounted for using equity
methodTotal items that may be reclassified subsequently
to profit or loss

70,50846,97374,49042,197

Total other comprehensive income, net of tax

74,492

42,170Total comprehensive income for the period

71,65760,57372,41854,616

Non-controlling interests

(760)

5,957

Total comprehensive income

71,65760,573

Total comprehensive income attributable to
Owners of parent

8

(3) Condensed quarterly consolidated statement of changes in equity
For the nine months ended September 30, 2022
in thousands of US dollars
Equity attributable to owners of parent
Other components of equity
Retainedearnings

Share capital

Capital surplus

282,292

280,71185,957(1,291)－(90,866)

Profit for the period－－

13,006－－－

Other comprehensive income

－

－

－

－

5

229,242

Total comprehensive income for the period－－

13,006－

5229,242Dividends to non-controlling interests

－

－

－

－

－

－

Share-based payment transactions

－

(51)

－

198

－

－

Transfer from other components ofequity to retained earnings

－

－

5

－

(5)

－

－

(51)

5

198

(5)

－

282,292

280,660

98,969(1,092)－

138,376

At January 1, 2022

Total transactions with owners
At September 30, 2022

Treasury shares

Remeasurements
Effective portion ofof defined benefit
cash flow hedges
liability

Equity attributable to owners of parent
Other components of equity
Exchangedifferences ontranslation offoreign
operations

Total othercomponents ofequityTotal equity
attributable toowners ofparentNon-controllinginterests(24,262)(115,129)532,541

22,218554,759

Profit for the period－－

13,006(628)

12,378Other comprehensive income

777

230,024230,024(138)

229,885

Total comprehensive income for the period

777

230,024

243,030(766)

242,264

Dividends to non-controlling interests

－

－

－

(364)

(364)

Share-based payment transactions

－

－

147

－

147

Transfer from other components ofequity to retained earnings

－

(5)

－

－

－

－

(5)

147

(364)

(217)

(23,485)

114,890775,719

21,087

796,807

At January 1, 2022

Total transactions with owners
At September 30, 2022

9

Total equity

For the nine months ended September 30, 2023
in thousands of US dollars
Equity attributable to owners of parent
Other components of equity

Retainedearnings

Share capital

Capital surplus

282,292

280,686

131,004(1,092)－

142,790

Profit for the period－－

35,904－－－

Other comprehensive income

－

－

－

－

(81)

42,085－－35,904－(81)

42,085Issuance of new shares

53,572

53,976－－－－

Reduction of share capital

At January 1, 2023

Total comprehensive income for the period

Treasury shares

Remeasurements
Effective portion ofof defined benefit
cash flow hedges
liability(145,370)

145,370

－

－

－

－

Transfer from capital surplus to retained
earnings－(293,154)

293,154－－－

Share-based payment transactions

－

161

－

－

－

Transfer from other components ofequity to retained earnings

－

－

(81)

－

81

－

Total transactions with owners(91,797)(93,644)

293,072－

81－

At September 30, 2023

190,495

187,041

459,981(1,092)－

184,876

Equity attributable to owners of parent
Other components of equity
Exchangedifferences ontranslation offoreign
operations

Total othercomponents ofequityTotal equity
attributable toowners ofparentNon-controllinginterests(24,041)

118,748

811,640

29,481

841,121－－35,904

19,84355,747(4,428)37,57637,576(259)

37,316(4,428)37,57673,48019,58393,064Issuance of new shares－－

107,549－

107,549

Reduction of share capital

－

－

－

－

－

Transfer from capital surplus to retained
earnings

－

－

－

－

－

Share-based payment transactions

－

－

161

－

161

Transfer from other components ofequity to retained earnings

－

81

－

－

－

－

81

107,711－

107,711(28,469)

156,406

992,832

49,065

1,041,897

At January 1, 2023
Profit for the period
Other comprehensive income
Total comprehensive income for the period

Total transactions with owners
At September 30, 2023

10

Total equity

(4) Condensed quarterly consolidated statement of cash flows
For the nine months ended September 30
in thousands of US dollars
2023

2022
Cash flows from operating activities
Profit before tax

30,93994,261

Depreciation and amortization

29,35830,388

Increase (decrease) in provisions(98,701)(1,049)

Increase (decrease) in defined benefit liability
Share of profit of investments accounted for using
equity method(1,164)

2,260(66,908)(75,674)

10,275(5,927)

Decrease (increase) in contract assets(161,132)
195,877(63,570)
102,266

Decrease (increase) in other current assets(12,089)(3,432)

Increase (decrease) in trade and other payables(343,646)

19,939

Increase (decrease) in contract liabilities
Increase (decrease) in other current liabilities(3,577)(29,445)

48,866(42,070)

Other(43,014)(7,974)

Subtotal(493,231)

98,28331,391

33,978Finance income and finance costs
Decrease (increase) in trade and other receivables

Interest received
Dividends received

46,22956,112

Interest paid

(11,750)(14,440)

Income taxes paid

(8,512)(14,798)(435,872)

159,135

14,204(22,500)
60,604－－
13,685(5,385)(3,994)－(75,775)

8,464

6,221

9,749

－

65,138(59,862)－

195,554(29,172)(15,737)－(19)(4,635)(17,952)
107,368(10)

Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in short-term loans receivable
Payments for long-term loans receivable
Repayments of long-term loans receivable
Acquisition of property, plant and equipment andintangible assets
Payments for acquisition of investments accounted forusing equity method
Proceeds from liquidation of investments accounted forusing equity method
Proceeds from capital reduction of investments
accounted for using equity method
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issuance of bonds
Repayments of long-term borrowings
Payments of lease liabilities
Proceeds from issuance of new shares
Dividends paid
Dividends paid to non-controlling interests

(364)

－

Receipt of government grants
Proceeds from settlement of derivative contracts
Net decrease (increase) in treasury shares

664
568
198

194
－
－

Net cash provided by (used in) financing activities(43,862)

280,518

Effect of changes in exchange rates on cash and cash
equivalents(11,547)72(426,143)

379,864

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

810,131492,625

Cash and cash equivalents at end of period

383,987

872,49011

(5) Selected notes to the condensed quarterly consolidated financial statements(Note to ability to continue as a going concern)
There are no material uncertainties that require disclosure.

12