MODEC : 2022 Third Quarter Financial Results

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.

Consolidated Financial Results

November 9, 2022

for the Nine Months Ended September 30, 2022

(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, Executive Managing Officer
Telephone:	[phone]	November 10, 2022
Scheduled date to file quarterly securities report:
Scheduled date to commence dividend payments:	－

Preparation of supplementary material on quarterly financial results: Yes"3Q 2022 Results Presentation"

Holding of quarterly financial results briefing: None

(Yen amounts are rounded down to millions.)

1. Consolidated financial results for the nine months ended September 30, 2022 (from January 1, 2022 to September 30, 2022)

(1) Consolidatedoperating results					(Percentages indicate year-on-year changes.)
		Revenue		Operating profit		Profit before tax		Profit
	Nine months ended	million yen	%		million yen	%		million yen	%		million yen		%
	September 30, 2022	288,349	(13.7)		5,968	-		4,480	-		1,792		-
	September 30, 2021	333,958	-		(6,007)	-		(1,187)	-		(2,768)		-
		Profit attributable to		Total comprehensive		Basic earnings		Diluted earnings
		owners of parent		income			per share		per share
	Nine months ended	million yen	%		million yen	%			yen				yen
	September 30, 2022	1,883	-		35,082	788.9			33.41				33.40
	September 30, 2021	(2,992)	-		3,946	-			(53.10)				(53.10)
(2) Consolidated financial position
								Equity attributable to		Ratio of equity
		Total assets		Total equity			attributable to owners
				owners of parent		of parent to total
											assets
	As of	million yen		million yen		million yen				%
	September 30, 2022		456,884			115,385			112,332				24.6
	December 31, 2021		393,971			63,802			61,247				15.5

Note: The original condensed consolidated financial statements of MODEC, INC. and its subsidiaries (hereinafter "the Company") for the nine months ended September 30, 2022 and 2021 and for the year ended December 31, 2021 are presented in US dollars on page 4 of this material. The amount presented for consolidated operating results and consolidated financial position are converted to Japanese yen, respectively, as follows:

September 30, 2022 1 US dollar =144.81 Japanese yen at the TTM rate of Sumitomo Mitsui Banking Corporation as of September 30, 2022. September 30, 2021 1 US dollar =111.95 Japanese yen at the TTM rate of Sumitomo Mitsui Banking Corporation as of September 30, 2021. December 31, 2021 1 US dollar =115.01 Japanese yen at the TTM rate of Sumitomo Mitsui Banking Corporation as of December 30, 2021.

The percentage indicating year-on-year changes is calculated on Japanese yen basis presented above.

2. Cash dividends

				Annual dividends per share
		First quarter-end		Second quarter-end	Third quarter-end	Year-end	Total
		yen		yen	yen	yen	yen
Year ended		－	15.00		－	0.00		15.00
December 31, 2021
Year ending		－	0.00
December 31, 2022
Year ending							0.00		0.00
December 31, 2022						－
(Forecast)

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

3. Earnings forecast for 2022 (from January 1, 2022 to December 31, 2022)

(Percentages indicate year-on-year changes.)

	Revenue	Operating profit	Profit before tax	Profit		Profit attributable	Basic earnings
		to owners of
			per share
									parent
	million yen	%	million yen	%	million yen	%	million yen	%	million yen	%	yen
Full	276,024	(38.5)	-	-	3,450	-	2,530	-	2,530	-	44.89
Year

Note 1: Revisions to the forecast most recently announced: None

Note 2: The original consolidated earnings forecast of the Company is presented in US dollars on page 4 of this material. The amount presented for the earnings forecast for 2022 is converted to Japanese yen at 115.01 yen at the TTM rate of Sumitomo Mitsui Banking Corporation as of December 30, 2021.

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Changes in accounting policies and changes in accounting estimates

1. Changes in accounting policies required by IFRS: None

1. 1. Changes in accounting policies due to other reasons: None
   2. Changes in accounting estimates: None
2. Number of issued shares (ordinary shares)
3. 1. Total number of issued shares at the end of the period (including treasury shares)

As of September 30, 2022	56,408,000 shares
As of December 31, 2021	56,408,000 shares

1. Number of treasury shares at the end of the period

	As of September 30, 2022		38,196 shares
	As of December 31, 2021		45,100 shares
(iii) Average number of shares outstanding during the period
	Nine months ended September 30, 2022		56,367,059 shares
	Nine months ended September 30, 2021		56,358,435 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 adopted International Financial Reporting Standards (hereinafter "IFRS") from the year ended December 31, 2021 for the consolidated financial statements. Therefore, the financial results for the nine months ended September 30, 2021 are presented in accordance with IFRS.

・Accompanying condensed quarterly consolidated financial statements and selected notes are presented in functional currency of the Company, US dollars.

・While 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 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 2022 and earnings forecast for the year ending December 2022 presented in functional currency of the Company, US dollars

(US dollar amounts are rounded down to thousands.)

1. Consolidated financial results for the nine months ended September 30, 2022 (from January 1, 2022 to September 30, 2022)

1. Consolidated operating results

(Percentages indicate year-on-year changes.)

		Revenue			Operating profit		Profit before tax			Profit
	Nine months ended	US$ thousand		%	US$ thousand		%		US$ thousand		%		US$ thousand		%
	September 30, 2022	1,991,229		(33.2)	41,214		－		30,939		-		12,378		-
	September 30, 2021	2,983,102		-	(53,666)		-		(10,604)		-		(24,731)		-
		Profit attributable to	Total comprehensive		Basic earnings		Diluted earnings
		owners of parent	income			per share				per share
	Nine months ended	US$ thousand		%	US$ thousand		%					US$					US$
	September 30, 2022	13,006			－	242,264		587.2					0.23					0.23
	September 30, 2021	(26,732)		-	35,254		-					(0.47)					(0.47)
(2) Consolidated financial position
							Equity attributable	Ratio of equity
							attributable to
		Total assets		Total equity			to owners of
				owners of parent
									parent
										to total assets
	As of	US$ thousand		US$ thousand		US$ thousand					%
	September 30, 2022	3,155,060			796,807				775,719			24.6
	December 31, 2021	3,425,542			554,759				532,541			15.5

2. Earnings forecast for 2022 (from January 1, 2022 to December 31, 2022)

(Percentages indicate year-on-year changes.)

										Profit attributable to	Basic
	Revenue		Operating profit	Profit before tax	Profit		earnings per
			owners of parent
											share
	US$ thousand		%	US$ thousand	%	US$ thousand	%	US$ thousand	%	US$ thousand		%	US$
Full Year	2,400,000		(38.5)	-	-	30,000	-	22,000	-	22,000		-	0.39

○ 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)..........................................................................	12

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