Modec : 2018 Full-Year Financial Results

MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEET

December 31, 2018

AS S E T S

Millions of
Japanese yen
CURRENT ASSETS:
Cash and time deposits	¥51,215
Accounts receivable-trade	95,065
Inventories	5,405
Short-term loans receivable	43,021
Deferred tax assets	149
Other current assets	17,614
Less allowance for bad debts	(738)
Total current assets	211,734
PROPERTY AND EQUIPMENT:
Buildings and structures	70
Machinery and equipment	998
Other property and equipment	1,475
Total property and equipment	2,543
INTANGIBLE ASSETS:	9,260
INVESTMENTS AND OTHER ASSETS:
Investment securities	71,458
Long-term loans receivable from affiliates	36,947
Deferred tax assets	3,196
Other investments	8,203
Total investments and other assets	119,806
Total assets	¥343,345
* The figures are rounded down to the nearest million yen.

LIABILITIES AND NET ASSETS

Millions of
Japanese yen
CURRENT LIABILITIES:
Accounts payable-trade	¥97,680
Current portion of long-term loans payable	6,142
Lease obligations	12
Accrued expenses	15,507
Income taxes payable	7,219
Advances received	9,981
Accrued employees' bonuses	45
Accrued directors' bonuses	19
Provision for product warranty	5,937
Provision for repairs	5
Other provisions	46
Other current liabilities	1,462
Total current liabilities	144,060
LONG-TERM LIABILITIES:
Long-term loans payable	24,889
Lease obligations	36
Net defined benefit liabilities	347
Deferred tax liabilities	320
Liabilities from application of equity method	2,096
Other long-term provision	397
Other long-term liabilities	6,383
Total long-term liabilities	34,470
Total liabilities	178,531
NET ASSETS:
SHAREHOLDERS' EQUITY:
Common stock;
Authorized - 102,868,000 shares
Issued - 56,408,000 shares	30,122
Capital surplus	30,851
Retained earnings	93,571
Treasury stock, at cost	(99)
Total shareholders' equity	154,446
ACCUMULATED OTHER COMPREHENSIVE INCOME:
Unrealized gains (losses) on hedging derivatives, net of tax	(6,864)
Foreign currency translation adjustments	5,740
Retirement liability adjustments for foreign consolidated subsidiaries	(656)
Total accumulated other comprehensive income	(1,781)
NON-CONTROLLING INTERESTS	12,148
Total net assets	164,814
Total liabilities and net assets	¥343,345
* The figures are rounded down to the nearest million yen.

MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED STATEMENT OF INCOME

For the year ended December 31, 2018

Millions of
Japanese yen
SALES	¥221,909
COST OF SALES	195,351
Gross profit (loss)	26,557
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	11,628
Operating profit (loss)	14,928
OTHER INCOME (EXPENSES):
Interest and dividend income	6,107
Equity in earnings of unconsolidated subsidiaries and affiliates, net	9,841
Interest expense	(926)
Foreign exchange gain (loss), net	(1,038)
Others, net	(132)
Total other income (expenses)	13,850
PROFIT (LOSS) BEFORE INCOME TAXES	28,779
INCOME TAXES:
Current	5,032
Prior	33
Deferred	1,164
PROFIT (LOSS)	22,549
PROFIT (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	658
PROFIT (LOSS) ATTRIBUTABLE TO OWNERS OF PARENT	¥21,891
* The figures are rounded down to the nearest million yen.
Earnings (loss) per share	¥388.23

MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended December 31, 2018

Millions of
Japanese yen
PROFIT	¥22,549
OTHER COMPREHENSIVE INCOME:
Unrealized holding gains (losses) on securities, net of tax	17
Unrealized gains (losses) on hedging derivatives, net of tax	(240)
Foreign currency translation adjustments	(3,719)
Retirement liability adjustments for foreign consolidated subsidiaries	(453)
Share of other comprehensive income (loss) of unconsolidated subsidiaries and affiliates
accounted for using equity method	1,202
Total other comprehensive income (loss)	(3,192)
COMPREHENSIVE INCOME	¥19,357
Comprehensive income attributable to owners of parent	¥19,077
Comprehensive income attributable to non-controlling interests	¥279
* The figures are rounded down to the nearest million yen.

MODEC, INC. and Consolidated Subsidiaries

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

For the year ended December 31, 2018

Millions of Japanese yen

Common stock	Capital surplus	Retained earnings	Treasury stock, at cost	Unrealized losses on securities, net of tax	Unrealized losses on hedging derivatives, net of tax	Foreign currency translation adjustments	Retirement liability adjustments for foreign consolidated subsidiaries	Non-controlling interests	Total net assets
Balance at January 1, 2018	¥30,122	¥30,852	¥74,495	(¥2)	(¥17)	(¥9,109)	¥10,472	(¥312)	¥11,885	¥148,387
Cash dividends paid	(2,890)	(2,890)
Purchases of treasury stock	(97)	(97)
Profit (loss) attributable to owners of parent	21,891	21,891
Purchase of shares of consolidated subsidiaries	(1)	(1)
Change of scope of consolidation	75	75
Net changes of items in accumulated gains (losses) from revaluation and translation adjustments	17	2,244	(4,731)	(343)	262	(2,550)
Balance at December 31, 2018	¥30,122	¥30,851	¥93,571	(¥99)	－	(¥6,864)	¥5,740	(¥656)	¥12,148	¥164,814

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