Leading the Way
in FPSO Construction and Operations(company code: 6269)

To Our Shareholders:

We are ready to grow into an even greater force
in the floating production systems business.
With increasing significance of offshore energy resources, theuse of FPSO/FSOs and TLPs is growing rapidly. MODEC is apioneer and world leader in this important business and has been
for more than 20 years. As a turnkey contractor, MODEC hasearned a reputation for on-time and within budget deliveries offloating production systems that have achieved a remarkable
track record. MODEC also leases and operates FPSOs and FSOs
all over the world including Brazil, Vietnam, Australia,
Indonesia, Mexico and West Africa. We are proud to play animportant role in offshore developments and to contribute to thestable supply of energy resources.
On July 2, 2003, MODEC, Inc. listed its stocks on the Second
Section of the Tokyo Stock Exchange. On behalf of all
MODEC’s group of companies, I would like to show oursincerest appreciation for the high evaluation from the market.
This IPO enabled MODEC’s group to optimize our businessportfolio and to secure sustainable growth in the coming years.
We will maintain a continuous challenge of capability andtechnology development aimed at increasing the functionality
and reducing the cost of deepwater development systems. I
believe that in doing so, we will be able to increase ourshareholders’ value. With MODEC, Inc. now being publicly
traded on the Tokyo Stock Exchange, the company will growinto an even greater force in the floating production systems
business. We look forward to your continuing support.

Kenji Yamada
President & CEO
MODEC, Inc.
1

MODEC at a Glance <Part. 1>

MODEC is a pioneer and world leader
in FPSO business.
Oil & Gas Industry
From upstream to downstream, the oil industry consists

Exploration
Acquisition of the Concession
Geological Survey

primarily of three phases: Exploration, Production andphase of the oil industry. This phase is relatively stable

MODEC is a specialized
offshore service contractor.

Wild Cat Drilling

Refinery & Sales. MODEC’s business is in the production

Appraisal

Production

because our projects start after our clients have performed
Construction of Production Facility

thorough commercial evaluations of the profitability of eachproject.

MODEC
Business
Area

Production & Storage

Refinery & Sales

Over the past 40 years, the oil recoverable years have moved
between the 30 to 40 years range. Although oil is a limited
resource, the recoverable reserves will keep the 30 to 40

Transport

OnshoreOffshore

Floating
Production
Facilities
Fixed
Platform

Storage & Refinery

FPSO/FSO
TLP
Semi-sub
Spar

Sales

years range in the future with the help of advanced
technologies like FPSO’s/FSO’s and TLP’s.

Production from Offshore Increases

FPSO / FSO Market ShareOil & gas is the main source of energy; it accounts for over
60% of the world’s primary energy. In considering the future

MODEC, INC.
(Tokyo)exploration and development of the world’s hydrocarbon

MODEC International LLC(Houston)reserves, it is obvious that a substantial portion of thesereserves will come increasingly from offshore.
Approximately 30% of oil and gas production comes from

MODEC projects

offshore at present; the percentage of production from

Other Contractor 26%

SBM 20%

Kvaerner 4%

offshore will increase in the future. FPSO technology is theprimary choice for offshore development projects.

PGS 4%FPSO / FSO Market Share(1998-2003)
Number of EPCI projects(71 projects, notincluding oil companies)
Prepared by MODEC

MODEC
17%

KBR 4%
Bergesen 4%
Tanker Pacific 6%

Prosafe 8%
Bluewater 7%

2

MODEC at a Glance <Part. 2>

MODEC’s Competitive Edge

3. On Time Delivery
MODEC has a long, successful history of delivering our
projects on time, every time. Fast track projects that we havecompleted include:- Construction of new-built FSO in 12 months- Conversion of FPSO in 8 months

4. Strong Track Record
Repeat orders from our Clients account for the highreputation for our past performance. A track record ofsuccessful projects and long term business relationships is

1. Technical Capabilities

the proud heritage of MODEC.

FPSOs are site-specific systems. MODEC offers a fit-forpurpose design for each project, observing reservoir

Major Clients and Projects

characteristics, infrastructures and environment. Years ofClientProject (Country)

successful experience in project management and offshore

Shell

Maui-B FPSO (New Zealand)
Bijupira/Salema FPSO (Brazil)

ChevronAnoa FPSO (Indonesia)

operations back up our technical capabilities.

2. Cost & Quality
By selecting qualified shipyards and subcontractors all overEscravos LPG FSO (Nigeria)
Marathon

Tchatamba FSO & MOPU (Gabon)

the world, we have sharpened our cost competitiveness. All
of MODEC’s projects have been delivered within budget and

BHPP

our high quality standard has achieved total Client
satisfaction.

3

Kakap FPSO (Indonesia)

Elang/Kakatua FPSO (Australia/East Timor)
Buffalo FPSO (Australia)

ConocoPhillips Black Lion FPSO (Vietnam)
Exxon

Chad FSO (Cameroon)

PEMEX

Cantarell FSO (Mexico)

Key Words

FPSO/FSOTLPFPSO (Floating Production, Storage and Offloading system) is

The world’s first TLP (Tension Leg

an increasingly attractive alternative to conventional fixed

Platform) was installed in 1984 forplatform field development. It combines full production

Conoco’s Hutton field in the U.K. North

facilities - process equipment, control equipment for remote

Sea. Since then, TLPs have contributed

wellheads, crew accommodations andcrude storage capacity into one unit.

significantly towards deepwater
Fixed Platform

TLP

FPSO

development. Currently, approximately

The FPSO has evolved from being atechnology for marginal fields to one

15 TLPs are in operation in the Gulf of
Mexico, the North Sea and offshore~300m

for larger discoveries. Over the last ten

Indonesia. TLPs can be used as “stand~2,000m

years, FPSOs have become the primaryalone full processing” platforms or

choice for field development in many

simple “well head” platforms withareas of the world. Currently,

processing undertaken at another facility

approximately 90 FPSOs and 70 FSOs

such as an FPSO. In either case the TLP(Floating Storage and Offloading) are

can be provided with drilling and/orin operation worldwide.

workover capability.

Lease, Charter, and O&M service

EPCI
EPCI stands for Engineering, Procurement, Construction andLease contracts of FPSOs often include O&M (operation andInstallation. The work scope for an EPCI contract comprises

maintenance) service, which is to supply production management

project management, engineering, procurement, fabrication,

including offtake operation, manning management, logistics

installation and commissioning of floating production facilities.

arrangement, and other onshore/offshore supports necessary forsafety operations.
Lease
EPCI

Scope of Shipyard

Order
Engineering Procurement Construction Installation Commissioning

Delivery

Major Oil Companies
State Oil Companies

Major Oil Companies
State Oil Companies

Project Management

Hand OverMODEC/MILLC

Own units
Major Oil Companies
State Oil Companies

MODEC SPC

Lease + O&M = Charter Service
Operation & Maintenance
Oil
Companies(Upstream)

Transport

Transport
Process

Storage

Offloading

Oil
Companies(Downstream)
Tanker

WellManagement

Order
Well-drillingReservoir

MODEC SPC

RefinerySales

4MODEC at a Glance <Part. 3>

Profit Structure and Our Vision

Profit Structure (concept)

ProfitWorking together with FMC Technologies, Inc., MODEC
offers full field, turnkey development capability. Our
capabilities extend from FPSO systems through risers andSecond Leaseflowlines into subsea controls, manifolds, wellheads andSecond Leasestartsother customized equipment. From well control tooffloading, we offer a total package of custom solutions.

Charter service
startsLease, O&M, Charter

Toward Deeper Water
EPCI

As production activities move into increasingly deeper water,
Year

1998

2006

the need for cost effective production systems has
intensified. In 2004, MODEC installed a TLP in 1,310m

Profit Structure in Changewater depth on Anadarko’s Marco Polo field in the Gulf of

MODEC’s initial business model in the FPSO business was

Mexico, marking this TLP as being installed in the deepest

to build and sell FPSOs under EPCI contracts. In 1998 wewater in the world. MODEC will also install an FPSO for

undertook a new business model, which is not only to build

CNR’s Baobab field offshore Cote d’Ivoire in a water depth

but also own and operate FPSOs under lease and charterof 970m in 2005, which will be one of the deepest water

contracts. Since then, we have accumulated operations

FPSOs in the world.

experience and the profit ratio of the charter services has
increased steadily. We will attain a well-balanced

Natural Gas Development

combination of charter services and EPCI services to

As an alternative to crude oil, natural gas is expected to be

optimize our business portfolio.

the next major energy source. MODEC completed an LPG
FSO project in 1997 for Chevron’s Escravos field offshore

Our Vision for the Future

Nigeria. We will expand our technical capabilities inFull Field Development

offshore natural gas development including LPG, LNG and- single point responsibility for all facilities from the sea bed
through the floating facility -

5

NGH.

Project Report

CNR Baobab FPSOCNR Baobab
FPSO

engineering, procurement, construction,
installation, commissioning and operations
for the 2,000,000 barrel storage capacity

Contract AwardFPSO including the topsides processing

1st OilJuly 2003
Planned 1Q 2005

equipment and external turret mooring

ClientCNR International S.A.R.L.

system designed to support 11 risers.

Field Location

Baobab Field (Cote d’Ivoire)

MODEC will operate the FPSO for a firm

Mooring Type

External Turretten year period with an additional ten 1-

Project Type

Conversion
970 m (3,148 ft)

year options. The FPSO will be installed in

Water Depth

The Baobab Development Plan calls for the

970 meters water depth, making it one of

Storage Capacity 2,000,000 bbls

provision of a deepwater turret mooredthe deepest water FPSOs in the world. The

Tanker SizeFPSO connected via an external turret

Baobab FPSO is expected to be online in

Oil Production

70,000 bopd

the first quarter of 2005.

Water Injection

100,000 bwpd

manifolds. MODEC is responsible for theGas Production

75 mmscfd

Santos Mutineer/Exeter FPSO

SantosMutineer/Exeter
FPSO

mooring system to a series of subsea

environmental regulatory requirements.

357,000 dwt

MODEC is responsible for the engineering,procurement, construction, installation,

Contract Award

November 2003

commissioning and operation for the

1st OilTargeted 1Q 2005

930,000 barrel storage capacity FPSO

ClientSantos Ltd.

including the topsides processing

Field Location

Mutineer/Exeter Field(Australia)

equipment and inboard turret mooring
system. When a cyclone approaches, theFPSO can easily and temporarily evacuate
The Mutineer-Exeter Development Planfrom the field by its unique disconnectable

calls for the provision of a turret mooredturret system. MODEC will operate the

FPSO. The FPSO will be converted fromFPSO for a minimum of five years withan existing double-hull Suez-max tanker

possible extensions. First oil from the fieldthat meets very strict Australian

is targeted in the first quarter of 2005.

Mooring Type

Disconnectable Internal Turret

Project Type

Conversion

Water Depth

156 m

Storage Capacity 930,000 bbls
Tanker Size

150,000 dwt

Oil Production

100,000 bopd

Water Injection

125,000 bwpd

Gas Production

2-3 mmscfd

6

Financial Highlight

Financial Highlight for the Fiscal Year 2003
POINT

1

Two FPSO Projects awarded increased our order backlogs to¥120.1 billion.
(includes those corresponding to MODEC Group’s share in its unconsolidated subsidiaries and affiliates.)

POINT

2

Sales from EPCI services recorded all-time high.

POINT

Suspended operations of Matrix Langsa FPSO resulted indecreasing our operating and ordinary profits.

3
POINT

4

Net income was our all-time high.

Orders by service types

Sales by service types¥ Million

2001/12
100,000

2002/12

Order backlogs by service types¥ Million

2001/12

2003/12

2002/12¥ Million

2001/12

2003/12

2002/12

2003/1266,751

86,94968,09659,20480,00056,54060,00049,31860,00057,864

120,000

98,48344,73890,00019,95340,000120,104
39,772

Other

36,765indicates the orderbacklogs corresponding to
MODEC Group’s share in
the “Lease, Charter andO&M services” of ouraffiliates accounted for by
the equity method.

60,00020,00027,11820,00030,00011,449

2,313
0

453

*

330

625

0

378

352

44,75043,44827,435

8,176
710

66,433
1,201
37,60728,986

34,593
26,7291,273
52,26437,23640,0000

EPCI services
Lease,
Charter andO&M services

95,279

195

189

118

As MODEC International LLC became a consolidated subsidiary in 2003, in the above graph chart, the yearly figures prior to 2003 were
adjusted as if the subsidiary were consolidated.

7

Review of Operations
The trend for increasing the number of new FPSO projects
continued in 2003 reflecting the positive investments inoffshore oil and gas development by the oil development
companies such as Super Majors.
In this business climate, our Group continued their marketing
activities in areas of South East Asia, Oceania, West Africa
and Brazil, as MODEC strives towards being No.1 in theindustry. As a result, MODEC was awarded two FPSO
charter projects in 2003; CNR Baobab FPSO project (Coted’Ivoire) in July and Santos Mutineer/Exeter FPSO project(Australia) in November. (For details of each project, pleasesee page 6.)
Because of the two new orders, our consolidated orderbacklog balance increased to 86,949 million yen. Ourconsolidated sales also increased to 66,751 million yen due
to the steady progress in construction works and theprovision of lease, charter, and operations services.
However, due to the suspension of Matrix Langsa FPSO
operations since prior year, our consolidated ordinary profits
decreased to 3,190 million yen. Our consolidated net income
increased to 2,029 million yen largely due to the extraordinary
profits from the insurance payments received for the repair
costs in prior years.

EPCI Services
Among the existing projects, PTTEP Bongkot FSO(Thailand) and ConocoPhillips Black Lion FPSO (Vietnam)
were completed and started production in 2003. Shell
Bijupira/Salema FPSO (Brazil), Esso Chad FSO (Cameroon)and El Paso Energy Marco Polo TLP (Gulf of Mexico) havenearly been completed with only a few items remaining
before the final acceptance. Construction of CNR Baobab
FPSO and Santos Mutineer/Exeter FPSO, both to be owned
by our affiliates, began during 2003. As a result, sales fromEPCI services reached a record high of 57,864 million yen.

Lease, Charter and O&M Services
The Lease Contract of Marathon Tchatamba Madiela FSO(Gabon) that began in 1998 expired in January 2003. As for
Matrix Langsa FPSO, the Charter service has beensuspended since October 2002. We continued marketing
activities to resume its operations. On the other charter
projects, we have provided our services as planned. As aresult, our sales from lease, charter and O&M Services
recorded 8,176 million yen.

Other Services
As our after-sales services, we supplied the spare parts andprovided our engineering support to the FPSO/FSOs, that ourgroup constructed and delivered to the oil development
companies. Our fee income for providing management
services for our affiliate companies flowed in steadily. As aresult, sales from other services were 710 million yen.

Outlook for the Fiscal Year 2004
We forecast that the high-level investments in the offshore
oil and gas field development by the Super Majors and StateOil Companies will likely continue into the next fiscal year,
and so will the number of new orders for offshore floating
facilities for oil and gas production.
Under this business climate, MODEC will move forward
marketing our services to provide a total solution to oil & gas
industry and to deal with natural gas and next generationenergies.
For the fiscal year 2004, we forecast sales of 60,000 million
yen on a consolidated basis. On the profit side, we forecast
our ordinary income of 3,200 million yen and our net incomeof 2,200 million yen for the fiscal year 2004 as a result of
improvement in our non-operating profits due to the increasein minority interests.

8

Consolidated Subsidiaries

MODEC World Wide Network

Major Consolidated Subsidiaries
Company

Business

MODEC
share

MODEC International LLC

EPCI service of FPSO/FSO
and TLP in North & SouthAmerica and West Africa

62.5%

CANTARELL FSO, INC.

Owner Operator of PEMEX
Cantarell FSO

60.0%

EARLY PRODUCTIONSYSTEM PTE LTD.

Owner of FSO Madiela andMarathon Tchatamba MOPU

51.0%

ELANG EPS PTE LTD.

Owner Operator of
ConocoPhillips
Elang/Kakatua FPSO

70.0%

LANGSA FPSO PTE LTD.

Owner Operator of Matrix
Langsa FPSO

60.0%

MODEC MANAGEMENTSERVICES PTE LTD.

Operator of Petronas Carigali
Ruby FPSO and
ConocoPhillips Black Lion
FPSO

100%

BUFFALO FPSO PTE LTD.

Owner Operator of Nexen
Buffalo FPSO

50.0%

MODEC FPSO B.V.

Owner Operator of
ConocoPhillips Black Lion
FPSO

50.0%

ConocoPhillips Elang/Kakatua FPSO

Nexen Buffalo FPSOPEMEX Cantarell FSO

9

Consolidated Financial Statements

Our Equity Ratio improved by Public Stock
Offering
Consolidated Balance Sheets(Millions of Japanese yen, Amounts arerounded down to the nearest million.)

Fiscal year 2003

Fiscal year 2002

(as of December 31, 2003) (as of December 31, 2002)

AssetsCurrent Assets
Cash and time deposits
Accounts receivable - trade
Inventories
Short-term loans receivable
Short-term lease receivables
Other
Non-Current Assets
Property and Equipment
Machinery and equipment
Other
Intangible Assets
Other Assets
Investment securities
Long-term lease receivables
Other

42,782
12,264
15,326
1,924
8,945
1,542
2,781
17,480
4,677
4,563
114
994
11,807
2,492
8,256
1,059

26,105
9,766
13,019
91
291
1,493
1,445
20,829
7,103
6,930
173
590
13,135461
11,082
1,592

Total Assets

60,262

46,934

26,222
11,329
8,529
3,314
3,050
16,23013,8972,333
42,453
2,627

19,310
2,975
4,660
5,683
5,992
16,745
14,3052,440
36,055
1,282

4,659
5,175
5,648
337
638
15,182

3,133
2,683
3,819
33
72
9,596

60,262

46,934

Liabilities
Current Liabilities
Accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Other
Long-term Liabilities
Long-term loans payable
Other
Total Liabilities
Minority Interests in Consolidated Subsidiaries
Shareholders’ Equity
Common stock
Capital surplus
Retained earnings
Net unrealized holding gains on securities
Foreign currency translation adjustments
Total Shareholders’ Equity
Total Liabilities and Shareholders’ Equity

Short-term loans increased as aresult of 7,400 million yen loan
advanced from our company for theconstruction work expenditures of
MODEC FPSO B.V. (ConocoPhillips
Black Lion FPSO project).

Accounts payable increased inaccordance with the EPCI work
progress.

The funding for MODEC FPSO B.V.
was made mainly by short-termloans.

*As MODEC International LLC became aconsolidated subsidiary in 2003, in the leftside consolidated financial statements, theyearly figures prior to 2003 were adjusted as if
the subsidiary were consolidated.

10Consolidated Financial Statements

Net Income recorded an all-time high.
Consolidated Statements of Income(Millions of Japanese yen, Amounts arerounded down to the nearest million.)

Fiscal year 2003

Fiscal year 2002

January thru
( December
2003 )

January thru
( December
2002 )

Sales

66,75156,540

Cost of Sales

59,062

48,622Gross Profit

7,689

7,918

3,541

3,054

Operating Profit

4,147

4,863

Other Income

379

432

Interest income and dividend received

192

260

Equity in earnings of affiliates

148

67

Other

38

104

1,336

1,402

Interest expense

652

1,212

Foreign exchange loss, net

226

115

Depreciation of idle assets

366

57

Other

90

17

3,190

3,893

731

320

Recovery of repair costs

369

320

Gain from forgiveness of debt

361

-

3,922

4,214

Current

1,037

2,391

Adjustment to prior years

191

-

197

105

849

237

2,029

1,690

Selling, General and Administrative Expenses

Other Expenses

Ordinary Income
Extraordinary Profits

Income before Income Taxes and Minority Interests

Gross Sales Profits declined
because the majority of the 9,700
million yen sale increase was related
to and for the recovery of additionalcosts incurred for the change orders.

Suspension of Matrix Langsa FPSO
operations incurred a loss of approx.
700 million yen to LANGSA FPSO
PTE LTD. This resulted in the lossof 600 million yen in our operating
profit and 700 million yen in ourordinary income, as compared to the2002 results.

The burden ratio of taxes, such as
corporate income taxes, decreased
on a year over year basis becauseof the dissolution of the prior year
tax payment burden of EARLYPRODUCTION SYSTEM PTE LTD.

Income Taxes

Deferred
Minority Interests
Net Income

11

The 2003 results renewed ourhighest Net Income record.

*

As MODEC International LLC became aconsolidated subsidiary in 2003, in the leftside consolidated financial statements, theyearly figures prior to 2003 were adjusted as if
the subsidiary were consolidated.

Consolidated Financial Statements

Cash Flows from Operating Activities improved.
Consolidated Statements ofEarned Surplus(Millions of Japanese yen, Amounts arerounded down to the nearest million.)

Fiscal year 2003

Fiscal year 2002

January thru
( December
2003 )

January thru
( December
2002 )

Beginning balance

2,683

2,683

Increase in capital surplus

2,492

-

Issuance of new shares

2,492

-

-

-

5,175

2,683

3,822

2,305

Capital Surplus

Decrease in capital surplus
Ending balance
Retained Earnings
Beginning balance
Increase in retained earnings
Net income
Decrease in retained earnings

2,029

1,690

2,029

1,690

202

179

Cash dividends paid

192

179

Bonuses paid to directors

10

-

5,648

3,819

Ending balance

Consolidated Statements of Cash Flows*As MODEC International LLC became aconsolidated subsidiary in 2003, in the leftside consolidated financial statements, theyearly figures prior to 2003 were adjusted as if
the subsidiary were consolidated.

(Millions of Japanese yen, Amounts arerounded down to the nearest million.)

Fiscal year 2003

Fiscal year 2002

January thru
( December
2003 )

January thru
( December
2002 )Cash flows from operating activities

5,452

1,376

Cash flows from investing activities

8,629131

Cash flows from financing activities

7,290

1,274

Effect of exchange rate changes oncash and cash equivalents

84

721

Net increase (decrease) in cash and cash equivalents

4,028

3,240

Increase in cash and cash equivalents due toadditional consolidated subsidiaries

2,914

-

Cash and cash equivalents at beginning of year

6,852

13,007

Cash and cash equivalents at ending of year

13,795

9,766

Cash Flows from operating activities
returned to black by balancing debts
and credits arising from theconstruction works through suchmeans as early recovery of theconstruction funds disbursed.

*

As MODEC International LLC became aconsolidated subsidiary in 2003, in the leftside consolidated financial statements, theyearly figures prior to 2003 were adjusted as if
the subsidiary were consolidated.

12

Non-Consolidated Financial Statements

MODEC plans to maintain stable dividend
payments.
Non-consolidated
Balance Sheets(Millions of Japanese yen, Amounts arerounded down to the nearest million.)

Fiscal year 2003 Fiscal year 2002

( as of31,December) ( as of31,December
)
2003
2002

January thru
January thru
( December
2003 ) ( December 2002 )

31,710
4,663
33
7
4,623

14,139
2,298
22
9
2,266

Total Assets

36,374

16,43817,5805,816
23,396

8,268
106
8,375

4,659
5,175
5,175
2,806
68
2
2,734
337
12,978

3,133
2,683
2,683
2,213
68
3
2,140
33
8,063

36,374

16,438

Total Liabilities and Shareholders’ Equity

Appropriation Statements(Millions of Japanese yen, Amounts arerounded down to the nearest million.)

Fiscal year 2003 Fiscal year 2002

AssetsCurrent Assets
Non-Current Assets
Property and Equipment
Intangible Assets
Other Assets
Liabilities
Current Liabilities
Long-term Liabilities
Total Liabilities
Shareholders’ Equity
Common stock
Capital surplus
Capital reserve
Retained earnings
Earned reserve
Voluntary reserve
Unappropriated retained earnings
Net unrealized holding gains on securities
Total Shareholders’ Equity

Non-consolidated
Statements of Income(Millions of Japanese yen, Amounts arerounded down to the nearest million.)

Sales
Cost of Sales
Gross Profit
Selling, General and
Administrative Expenses
Operating Profit
Other Income
Interest income
Dividend income
Other
Other Expenses
Interest expense
Foreign exchange loss
New share issuance expense
Other
Ordinary Income
Extraordinary Loss
Bad debt expense
Income before Income Taxes
Income Taxes
Income Tax Adjustment
Net Income
Retained earnings at beginning of year

39,47337,016
2,456

20,73018,828
1,902

1,078

813

1,377
583
222
325
35
538
188
263
54
33
1,422
130
130
1,291
464
31
795
1,938

1,088
41
35
4
1
25
17
6
-

1,105
460
59
585
1,555

Unappropriated retained
earnings at end of year

2,734

2,140

2
1,105
-

Fiscal year 2003 Fiscal year 2002
January thru
January thru
( December
2003 ) ( December 2002 )13

Unappropriated retained
earnings at end of year
Transfer from voluntary reserve
Transfer from special reserve for depreciation
Total
To be appropriated as follows:
Cash dividends
Bonuses to directors

2,734

2,140

0
2,735

0
2,141

224
10

192
10

Retained earnings carried forward

2,500

1,938

Our company paid a dividend of 7.5 yen per share forthe fiscal year 2003.

Corporate Data (as of December 31, 2003)

Management (as of March 26, 2004)

Company name:

MODEC, INC.

Kenji Yamada

President & CEO

Founded:June 1, 1987

Shozo Tanaka

Managing Director - FPSO Operations Division

Head office:2-8, Kohinata 4-chome, Bunkyo-ku
Tokyo 112-0006, Japan
TEL: +81-3-5800-6081
FAX: +81-3-5800-6060/6070

Mitsuhiro Mokumoto Managing Director & CFO

Paid-in capital:

4,659.2 million Japanese yen

Number of employees: 86 (non-consolidated, including temporary employees)
724 (consolidated, including temporary employees)
Main banks:

Sumitomo Mitsui Banking Corporation
Mizuho Corporate Bank, Ltd.
Chuo Mitsui Trust and Banking Co., Ltd.
Sumitomo Trust & Banking Co., Ltd.
The Norinchukin Bank
Hyakujushi Bank, Ltd.

Nobuhiro Yaji

Managing Director & COO

Shashank Karve

Director - FPSO & FSO Division
Engineering Manager - MODEC International
LLC
Director & General Manager
Corporate Planning & Strategies /Administration
Director
MODEC International LLC - President & CEO

Shoichi Yabuki

Director

Motokazu Yoshida

Director

Akira Higuchi

Corporate Auditor

Yuji Hoshino

Corporate Auditor

Yasuo Asama

Corporate Auditor

Masaki Kawase
Yasuhiro Iwanami

http:// www.modec.com/

Please visit our new website for up-to-date information
about MODEC Group, including financial results, investor
information, project updates and more.

14

Number of Authorized Shares: • • • • • • 102,868,000

Stock
Information

Number of Issued Shares: • • • • • • • • • • • • • • • • 29,992,000
Number of shareholders: • • • • • • • • • • • • • • • • • • • • • • • • • • 6,622

Shareholders Breakdown
Other Japanesecompanies
114
1.72%

Foreign companies
47
Foreign companies
0.71%
2,120,400
Securities 7.07%
companies8
0.12%

Financial institutions
17
0.26%

(as of December 31, 2003)

Major Shareholders
Number of
Ratio ofshares held shareholding

Company
Mitsui Engineering & Shipbuilding Co., Ltd.

15,700,000

52.34%

Mitsui & Co., Ltd.

Number ofshareholders

Securities
companies
64,0000.22%
Individuals,
others5,366,500
17.89%
Financial
institutions
2,634,100
8.78%

Number ofshares2,466,500

8.22%

Nissho Iwai Corporation

840,000

2.80%

Japan Trustee Services Bank, Ltd. (trust account)

646,900

2.15%

The Master Trust Bank of Japan, Ltd. (trust account)

596,600

1.98%

Nippon Life Insurance Company(separate pension account)504,200

1.68%

The Chase Manhattan Bank NA London
SL Omnibus Account394,900

1.31%

2,500

15,000Morgan Stanley & Company International Ltd.

325,900

1.08%

2,000

12,000

The Bank of New York Europe Ltd., Luxemburg 131800

296,000

0.98%

1,500

9,000

Itochu Corporation

200,000

0.66%

1,000

6,000

Japan Trustee Services Bank, Ltd.
(entrusted by Mitsui Asset Trust and Banking Co., Ltd. /CMTB Equity Investments Co., Ltd. trust account)

500

3,000

200,000

0.66%

Informationfor
Shareholders

Stock Quote
Stock price (yen)
3,000

0

Fiscal year end:

December 31 of each year

General meeting ofshareholders:March of each year

Shareholder registration
date for year-end dividend: December 31 of each year
Shareholder registration
date for interim dividend:

June 30 of each year

Shareholding unit:

100 shares

Administration Dept.
2-8, Kohinata 4-chome, Bunkyo-ku Tokyo 112-0006, Japan
TEL: +81-3-5800-6081

Other Japanesecompanies
19,807,000
66.04%

Individuals, others
6,436
97.19%

03/7

Volume (thousand shares)
18,000

8

9

10

11

12

04/1

2

0

Transfer agent:
Chuo Mitsui Trust and Banking Co., Ltd.
33-1, Shiba 3-chome, Minato-ku, Tokyo 105-8574, Japan
Transfer agent office:Chuo Mitsui Trust and Banking Co., Ltd.
Transfer Agent Dept. (Transfer Agent Administration Center)
8-4, Izumi 2-chome, Suginami-ku, Tokyo 168-0063, Japan
Tel: +81-3-3323-7111
Agents:Chuo Mitsui Trust and Banking Co., Ltd.: Branch offices in Japan
Japan Securities Agents, Ltd.: Head office and branch offices

Printed on100% recycled paper