MODEC : 2021 First Quarter Financial Results

Note: This document has been translated from a part of 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.

May 7, 2021

Consolidated Financial Results

for the Three Months Ended March 31, 2021

(Under Japanese GAAP)

Company name:	MODEC, INC.
Listing:	Tokyo Stock Exchange
Securities code:	6269
URL:	http://www.modec.com
Representative:	Takeshi Kanamori, President & CEO
Inquiries:	Yasuhiro Takano, Executive Managing Officer
Telephone:	[phone]

Scheduled date to file quarterly securities report:	May 10, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended March 31, 2021 (from January 1, 2021 to March 31, 2021)

(1) Consolidated operating results (cumulative)			(Percentages indicate year-on-year changes.)
	Net sales		Operating profit		Ordinary profit	Profit attributable to
			owners of parent
Three months ended	Millions of yen		%	Millions of yen		%		Millions of yen	%	Millions of yen		%
March 31, 2021	119,855		-	1,665		-		5,168	-	3,875		-
March 31, 2020	80,566		38.7	(12,046)		-		(10,340)	-	(10,066)		-
Note: Comprehensive income For the three months ended March 31, 2021:	¥21,138 million	[-%]
	For the three months ended March 31, 2020:	(¥26,763) million	[-%]
	Basic earnings		Diluted earnings
	per share		per share
Three months ended			Yen			Yen
March 31, 2021	68.77			-
March 31, 2020	(178.66)			-
(2) Consolidated financial position
	Total assets		Net assets			Equity-to-asset ratio
As of	Millions of yen	Millions of yen			%
March 31, 2021	374,467	110,376			28.6
December 31, 2020	357,532			95,015			25.6
Reference: Equity
As of March 31, 2021:	¥107,045 million
As of December 31, 2020:		¥91,422 million

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end	Third quarter-end		Fiscal year-end	Total
	Yen	Yen	Yen		Yen	Yen
Fiscal year ended	-	23.75			21.25	45.00
December 31, 2020
Fiscal year ending	-
December 31, 2021
Fiscal year ending		15.00			15.00	30.00
December 31, 2021
(Forecast)

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

3. Earnings forecast for FY2021 (January 1, 2021 - December 31, 2021)

	Net sales		Operating profit			Ordinary profit			Profit attributable to
						owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen	%
Full Year	400,000	29.1	-	-		10,000	-		5,000	-

Note: Revisions to the Earnings forecast most recently announced: None

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares)

As of March 31, 2021	56,408,000 shares
As of December 31, 2020	56,408,000 shares

(ii) Number of treasury shares at the end of the period

As of March 31,	2021	54,232 shares
As of December	31, 2020	54,232 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended March 31, 2021	56,353,768 shares
Three months ended March 31, 2020	56,347,591 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  The forecasts given above are based on information available at the time of compilation and are inherently subject to a variety of risks and uncertainties. Actual results may vary significantly from forecasts due to factors including, but not limited to, changes in the economic or business environment and exchange rate fluctuations.

MODEC, INC. and Consolidated Subsidiaries
CONSOLIDATED BALANCE SHEET
March 31, 2021
A S S E T S
	Millions of
CURRENT ASSETS:	Japanese yen
¥76,751
Cash and deposits
Accounts receivable-trade and contract assets	130,083
Inventories	797
Short-term loans receivable	5,043
Other current assets	19,391
Allowance for doubtful accounts	(1,238)
Total current assets	230,829
PROPERTY AND EQUIPMENT:	36
Machinery and equipment
Other property and equipment	4,393
Total property and equipment	4,430
INTANGIBLE ASSETS:	10,552
INVESTMENTS AND OTHER ASSETS:	77,384
Investment securities
Long-term loans receivable from affiliates	42,090
Other investments	9,180
Total investments and other assets	128,655
Total assets	¥374,467

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

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES:

Accounts payable-trade

Short-term loans payable

Current portion of long-term loans payable

Accrued expenses

Income taxes payable

Contract liabilities

Accrued employees' bonuses

Provision for loss on construction contracts

Provision for construction warranties

Provision for repairs

Other current liabilities

Total current liabilities

LONG-TERM LIABILITIES:

Long-term loans payable

Net defined benefit liabilities

Other long-term liabilities

Total long-term liabilities

Total liabilities

NET ASSETS:

SHAREHOLDERS' EQUITY:

Common stock;

Authorized - 102,868,000 shares

Issued - 56,408,000 shares

Capital surplus

Retained earnings

Treasury stock, at cost

Total shareholders' equity

ACCUMULATED OTHER COMPREHENSIVE INCOME: Unrealized gains (losses) on hedging derivatives, net of tax Foreign currency translation adjustment

Retirement liability adjustments for foreign consolidated subsidiaries Total accumulated other comprehensive income

NON-CONTROLLING INTERESTS

Total net assets

Total liabilities and net assets

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

Millions of

Japanese yen

¥132,110 3,210 6,013 15,312 5,028 59,342

275

5,427

8,075

3,985

8,586

247,368

2,650

884

13,187

16,721

264,090

30,122

29,301

54,796

(169)

114,051

(7,211)

1,500

(1,295)

(7,006)

3,331

110,376 ¥374,467