MODEC : 2023 First 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.

May 11, 2023

Consolidated Financial Results

for the Three Months Ended March 31, 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:	[phone]
Scheduled date to file quarterly securities report:	May 12, 2023
Scheduled date to commence dividend payments:	－

Preparation of supplementary material on quarterly financial results: None

Holding of quarterly financial results briefing: None

(Yen amounts are rounded down to millions.)

1. Consolidated financial results for the three months ended March 31, 2023 (from January 1, 2023 to March 31, 2023)

(1) Consolidated operating results				(Percentages indicate year-on-year changes.)
	Revenue		Operating profit	Profit before tax	Profit
Three months ended	million yen	%	million yen	%	million yen	%	million yen	%
March 31, 2023	99,472	22.3	2,759	－	2,755	－	1,255	－
March 31, 2022	81,310	(34.8)	(1,557)	－	(2,488)	－	(2,042)	－
	Profit attributable to	Total comprehensive	Basic earnings	Diluted earnings
	owners of parent	income		per share	per share
Three months ended	million yen	%	million yen	%		yen		yen
March 31, 2023	413	－	(3,536)	－		7.34		7.33
March 31, 2022	(2,039)	－	8,955	(34.3)		(36.18)		(36.18)
(2) Consolidated financial position
							Ratio of equity
	Total assets		Total equity	Equity attributable to	attributable to owners
		owners of parent	of parent to total
							assets
As of	million yen	million yen	million yen		%
March 31, 2023	401,163	108,790		103,999		25.9
December 31, 2022	416,206	111,625		107,712		25.9

Note: The original condensed consolidated financial statements of MODEC, INC. and its subsidiaries (hereinafter "the Company") for the three months ended March 31, 2023 and 2022 and for the year ended December 31, 2022 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:

March 31, 2023 1 US dollar =133.54 Japanese yen at the TTM rate of Sumitomo Mitsui Banking Corporation as of March 31, 2023 March 31, 2022 1 US dollar =122.41 Japanese yen at the TTM rate of Sumitomo Mitsui Banking Corporation as of March 31, 2022 December 31, 2022 1 US dollar =132.71 Japanese yen at the TTM rate of Sumitomo Mitsui Banking Corporation as of December 30, 2022

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	－	0.00	－	0.00	0.00
December 31, 2022
Year ending	－
December 31, 2023
Year ending
December 31, 2023		－	－	－	－
(Forecast)

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)

						(Percentages indicate year-on-year changes.)
							Profit attributable	Basic earnings
	Revenue		Operating profit	Profit before tax	to owners of
		per share
							parent
	million yen	%	million yen	%	million yen	%	million yen	%	yen
Full Year	398,130	9.5	7,962	(20.4)	9,289	27.7	5,971	20.4	105.94
Note: Revisions to the forecast most recently announced: None

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 2023 is converted to Japanese yen at 132.71 yen at the TTM rate of Sumitomo Mitsui Banking Corporation as of December 30, 2022.

* 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 March 31, 2023	56,408,000 shares
As of December 31, 2022	56,408,000 shares

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

As of March 31, 2023	38,217 shares
As of December 31, 2022	38,217 shares
(iii) Average number of shares outstanding during the period
Three months ended March 31, 2023	56,369,783 shares
Three months ended March 31, 2022	56,362,900 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 in functional currency of the Company, US dollars.

・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 three months ended March 31, 2023 and earnings forecast for the year ending December 31, 2023 presented in functional currency of the Company, US dollars

(US dollar amounts are rounded down to thousands.)

1. Consolidated financial results for the three months ended March 31, 2023 (from January 1, 2023 to March 31, 2023)

(1) Consolidated operating results

					(Percentages indicate year-on-year changes.)
	Revenue		Operating profit	Profit before tax	Profit
Three months ended	US$ thousand	%	US$ thousand	%	US$ thousand	%	US$ thousand	%
March 31, 2023	744,888	12.1	20,665	－	20,634	－	9,402	－
March 31, 2022	664,247	(41.0)	(12,725)	－	(20,328)	－	(16,688)	－
	Profit attributable to	Total comprehensive	Basic earnings	Diluted earnings
	owners of parent	income		per share	per share
Three months ended	US$ thousand	%	US$ thousand	%		US$		US$
March 31, 2023	3,096	－	(26,482)	－		0.05		0.05
March 31, 2022	(16,657)	－	73,162	(34.3)		(0.30)		(0.30)
(2) Consolidated financial position
							Ratio of equity
	Total assets	Total equity	Equity attributable to	attributable to owners
	owners of parent	of parent to total
							assets
As of	US$ thousand	US$ thousand	US$ thousand		%
March 31, 2023	3,004,069		814,665		778,791		25.9
December 31, 2022	3,136,213		841,121		811,640		25.9

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

						(Percentages indicate year-on-year changes.)
							Profit attributable	Basic earnings
	Revenue		Operating profit	Profit before tax	to owners of
		per share
							parent
	US$ thousand	%	US$ thousand	%	US$ thousand	%	US$ thousand	%	US$
Full Year	3,000,000	9.5	60,000	(20.4)	70,000	27.7	45,000	20.4	0.80

○ 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	7
(4)	Condensed quarterly consolidated statement of cash flows	9
(5) Selected notes to the condensed quarterly consolidated financial statements	10
	(Note to ability to continue as a going concern)	10
	(Additional information)	10
	(Important subsequent event)	10

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