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)