MODEC : 2025 Annual Securities Report

About this update from Modec, Inc.

Annual Securities Report Years ended December 31, 2025 and 2024 This is an English translation of the Annual Securities Report, the Japanese version of which is filed via the Electronic Disclosure for Investors' Network ("EDINET") system as set forth in Article 27-30-2 of the Act. It contains a table of contents and pagination that are not included in the electronic filing. This report does not include the attachments and the non-Consolidated Financial Statements and related other information that accompany the Annual Securities Report submitted via the above method; however, the Independent Auditor's Report for the Consolidated Financial Statements has been appended at the end of this report. MODEC, Inc. Table of Contents Page 40th term Annual Securities Report 【Cover page】 1 Company information 2 Section 1 Overview of company 2 Summary of key financial data 2 Company history 5 Business operations 7 Status of affiliates 12 Employees 15 Section 2 Overview of business 16 Management policies, business environment and issues to be addressed 16 Approach and initiatives regarding sustainability 18 Business risks 25 Management analysis of the financial position, operating results and cash flows 27 Material contracts 31 Research and development activities 33 Section 3 Status of facilities 35 Overview of capital expenditures 35 Status of major facilities 35 Planned additions, retirements of facilities 35 Section 4 Status of reporting company 36 Status of shares 36 Status of acquisition of treasury stock 40 Dividend policy 41 Corporate governance status 41 Section 5 Financial information 66 Consolidated financial statements 67 Independent Auditor's Report Cover page Document title Annual Securities Report Clause of stipulation Article 24, Paragraph 1 of the Financial Instruments and Exchange Act Place of filing Director-General of the Kanto Local Finance Bureau Filing date March 26, 2026 Fiscal year 40th term (from January 1, 2025 to December 31, 2025) Company name MODEC, Inc. Title and name of representative President & CEO Hirohiko Miyata Address of registered head office 2-3-10 Nihonbashi, Chuo-ku, Tokyo Telephone number +81-3-5290-1200 Name of contact person General Manager, Accounting Daisuke Tachibana Nearest place of contact 2-3-10 Nihonbashi, Chuo-ku, Tokyo Telephone number +81-3-5290-1200 Name of contact person General Manager, Accounting Daisuke Tachibana Place for public inspection Tokyo Stock Exchange, Inc. (2-1, Nihonbashi Kabutocho, Chuo-ku, Tokyo) 【Company information】 Section 1 【Overview of company】 1 【Summary of key financial data】 Consolidated key financial data Period International Financial Reporting Standards 36th 37th 38th 39th 40th Year End December 2021 December 2022 December 2023 December 2024 December 2025 Revenue (US$ thousand) 3,899,748 2,739,762 3,574,924 4,186,461 4,581,232 Profit (loss) before tax (US$ thousand) (344,300) 54,835 214,668 307,975 508,317 Profit (loss) attributable to owners (US$ thousand) of parent (363,975) 37,377 96,536 220,404 360,677 Total comprehensive income (loss) (US$ thousand) attributable to owners of parent (297,650) 278,925 73,394 228,282 322,628 Total equity attributable to owners (US$ thousand) of parent 532,541 811,640 992,817 1,180,435 1,452,809 Total assets (US$ thousand) 3,425,542 3,136,213 3,887,921 4,496,651 4,762,572 Equity attributable to owners of parent per (US$) share 9.45 14.40 14.53 17.28 21.26 Basic earnings (loss) (US$) per share (6.46) 0.66 1.55 3.23 5.28 Diluted earnings (loss) (US$) per share (6.46) 0.66 1.55 3.23 5.28 Ratio of equity attributable to owners ( %) of parent to total assets 15.5 25.9 25.5 26.3 30.5 Return on equity attributable to owners (%) of parent (52.7) 5.6 10.7 20.3 27.4 Price-to-earnings ratio (times) (PER) (1.9) 15.5 10.5 6.5 14.4 Cash flows from (US$ thousand) operating activities 152,239 (208,895) 485,886 560,890 244,035 Cash flows from (US$ thousand) investing activities (220,544) (56,846) (210,542) (122,581) 5,535 Cash flows from (US$ thousand) financing activities 265,965 (49,013) 241,146 (186,267) (194,243) Cash and cash equivalents at end of (US$ thousand) year 810,131 492,625 1,013,912 1,253,276 1,326,950 Number of employees (In addition to above: (employees) average number of temporary employees) 5,173 (687) 5,225 (678) 5,792 (506) 5,962 (437) 6,460 (538) Notes: 1 Starting from the 36th period, consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). 2 The number of employees represents the number of persons actively employed. Consolidated key financial data presented in Japanese yen Period International Financial Reporting Standards 36th 37th 38th 39th 40th Year End December 2021 December 2022 December 2023 December 2024 December 2025 Revenue (million yen) 448,510 363,593 507,031 662,088 717,100 Profit (loss) before tax (million yen) (39,597) 7,277 30,446 48,706 79,566 Profit (loss) attributable (million yen) to owners of parent (41,860) 4,960 13,691 34,857 56,456 Total comprehensive income (loss) (million yen) attributable to owners of parent (34,232) 37,016 10,409 36,102 50,501 Total equity attributable (million yen) to owners of parent 61,247 107,712 140,811 186,685 227,408 Total assets (million yen) 393,971 416,206 551,423 711,145 745,485 Equity attributable to owners of parent per (yen) share 1,086.67 1,910.82 2,061.45 2,733.04 3,327.57 Basic earnings (loss) per (yen) share (742.75) 88.00 219.35 510.30 826.25 Diluted earnings (loss) (yen) per share (742.75) 87.96 219.21 510.02 826.25 Cash flows from (million yen) operating activities 17,509 (27,722) 68,913 88,704 38,198 Cash flows from (million yen) investing activities (25,364) (7,544) (29,861) (19,386) 866 Cash flows from (million yen) financing activities 30,588 (6,504) 34,201 (29,458) (30,404) Cash and cash equivalents at end of (million yen) year 93,173 65,376 143,803 198,205 207,707 Note: The amounts presented above are converted to Japanese yen in expediential manner from (1) Consolidated key financial data on page 1 using the following exchange rates: December 2021 at US$1.00 = 115.01 Japanese yen (TTM rate of Sumitomo Mitsui Banking Corporation as of December 30, 2021) December 2022 at US$1.00 = 132.71 Japanese yen (TTM rate of Sumitomo Mitsui Banking Corporation as of December 30, 2022) December 2023 at US$1.00 = 141.83 Japanese yen (TTM rate of Sumitomo Mitsui Banking Corporation as of December 29, 2023) December 2024 at US$1.00 = 158.15 Japanese yen (TTM rate of Sumitomo Mitsui Banking Corporation as of December 30, 2024) December 2025 at US$1.00 = 156.53 Japanese yen (TTM rate of Sumitomo Mitsui Banking Corporation as of December 30, 2025)

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