Consolidated Financial Statements
andNon-Consolidated Financial Statements
OYO Corporation
and Consolidated Subsidiaries
Year ended December 31, 2022with Independent Auditor’s ReportIndependent Auditor’s Report

The Board of Directors
OYO Corporation

OpinionWe have audited the accompanying consolidated financial statements of OYO Corporation (theCompany) and its consolidated subsidiaries (the Group), which comprise the consolidatedbalance sheet as at December 31, 2022, and the consolidated statements of income,comprehensive income, changes in net assets, and cash flows for the year then ended, and notes
to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at December 31, 2022, and its
consolidated financial performance and its consolidated cash flows for the year then ended inaccordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Consolidated Financial Statements section of our report. We are independent of
the Group in accordance with the ethical requirements that are relevant to our audit of theconsolidated financial statements in Japan, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significancein our audit of the consolidated financial statements of the current period. These matters wereaddressed in the context of the audit of the consolidated financial statements as a whole, and informing the auditor’s opinion thereon, and we do not provide a separate opinion on thesematters.
Revenue recognized over time as performance obligations are satisfied for Geo-engineering
Services in OYO Corporation
Description of Key Audit Matter

Auditor’s Response

As described in Significant accounting policies tothe consolidated financial statements in the notes
to the consolidated financial statements, 4.
Accounting policies, (5) Accounting for significant
revenues and expenses, the Company and its
consolidated subsidiaries apply a method ofrecognizing revenue over time as performanceobligations are satisfied for Geo-engineering
Services. The cost-based input method is primarily

We mainly performed the following audit
procedures in considering the adequacy of
estimates of the total cost of Geo-engineering
Services using the method of recognizing
revenue over time as performance obligations
are satisfied for Geo-engineering Services
in OYO Corporation.
(1)

Evaluation of internal controls

We evaluated the Company’s following

used as the method for estimating progress towards internal controls related to estimates of thetotal cost of Geo-engineering Services.
satisfaction of a performance obligation.
In addition, as described in Significant accounting
estimates in the notes to the consolidated financial
statements, among the Geo-engineering Services
contracts in which progress towards thesatisfaction of performance obligations under suchcontracts can be reasonably estimated, OYO
Corporation’s Net sales related to Geo-engineering
Services
Contracts
whereinperformanceobligations were not completely satisfied as of theend of the current fiscal year were 20,228 million
yen, accounting for 34% of Net sales of 59,011
million yen for the current fiscal year.

・Control to ensure reliability of profit plansby requiring that profit plans (plan to manage
profits of each contract) upon which
estimates of the total cost of Geo-engineering
Services are based are prepared by personnel
in charge with specialized knowledge, andthat necessary approvals have been obtained
for the profit plansobligations are satisfied, revenue from Geoengineering Services contracts for which progress
towards the satisfaction of performanceobligations under such contracts can be reasonably
estimated is measured based on the progress
towards the satisfaction of the performanceobligation, and such progress is determined basedon the ratio of actual costs incurred to the estimatedtotal costs of Geo-engineering Services up to theend of the fiscal year.

・System for revising estimates of the total
cost of Geo-engineering Services in a timely
manner in accordance with factors such as thestatus of implementation of the Geoengineering Services and actual costs
incurred, or changes in specifications as
instructed by customers

・System to confirm that each of theelements of the total cost of Geo-engineering
Services is accumulated and calculated indetail based on objective prices such as third
Among revenue recognized using the method of party quotations and internally approved
recognizing revenue over time as performance standard unit prices

・System through which the personnel incharge of profit management, who areresponsible for the reliability of costs, canmonitor both the management of profit andloss on Geo-engineering Services andprogress towards completion in a timely andappropriate manner

Geo-engineering Services are highly individual innature and carried out in accordance with
fundamental specifications and work details
instructed by customers. Estimates of the total costof Geo-engineering Services require judgment
Evaluation of the adequacy ofbased on specialized knowledge of and experience (2)estimatesof the total cost of Geo-engineeringin Geo-engineering Services, and involve
Services
uncertainty.
Further, the content of Geo-engineering Services
Contracts may potentially be modified based onagreement with the customer throughout the work
period and there may be changes in work-hour
estimates and fluctuations in components such as
subcontract costs due to certain facts coming tolight after the start of implementation, thus making
timely and appropriate revisions of the total cost of
Geo-engineering Services highly complex.

Based on the above, we determined theestimates of the total cost of Geo-engineering
Services in calculating Net sales and progress
towards the satisfaction of performanceobligations are of most significance for the
fiscal year ended December 31, 2022 and,accordingly, that this is a key audit matter.

We identified Geo-engineering Services
involving a relatively high degree of
uncertainty over estimates of the total cost of
Geo-engineering Services in light of factors
such as Net sales of Geo-engineering
Services and the status of implementation,and performed the following procedures.
・We agreed estimates of the total cost of
Geo-engineering Services to the profit plan
upon which the estimates are based, andconsidered whether the total cost of Geoengineering Services was calculated byaccumulating each of the elements of the total
cost and whether the profit plan includes
unclear reconciling items.

・We considered whether the impact ofchanges to the content of the Geo-engineering
Services were reflected in estimates of thetotal cost of Geo-engineering Services in atimely manner by inspecting profit plans anddocuments that could confirm whether there
were changes to the content of the Geoengineering Services and making inquiries of
relevant personnel as necessary.
・We evaluated the process for estimating
the total cost of Geo-engineering Services bycomparing advance estimates of the total costof Geo-engineering Services with the actual
amounts or revised estimates.
Other Information
Other information comprises the information included in disclosure documents that contains
audited consolidated financial statements, but does not include the consolidated financial
statements and our auditor’s report thereon.
We have concluded that other information does not exist. Accordingly, we have not performed
any work related to other information.
Responsibilities of Management, the Corporate Auditor and the Board of Corporate
Auditors for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with accounting principles generally accepted in Japan, andfor such internal control as management determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the consolidated financial statements, management is responsible for assessing theGroup’s ability to continue as a going concern and disclosing, as required by accounting
principles generally accepted in Japan, matters related to going concern.
The Corporate Auditor and the Board of Corporate Auditors are responsible for overseeing theGroup’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and toissue an auditor’s report that includes our opinion. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we
exercise professional judgment and maintain professional skepticism throughout the audit. We
also:

・ Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures responsive tothose risks, and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion.
・ Consider internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances for our risk assessments, while the purpose of the audit of
the consolidated financial statements is not expressing an opinion on the effectiveness of theGroup’s internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
・ Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Group to cease tocontinue as a going concern.
・ Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentationin accordance with accounting principles generally accepted in Japan.
・ Obtain sufficient appropriate audit evidence regarding the financial information of theentities or business activities within the Group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance ofthe group audit. We remain solely responsible for our audit opinion.
We communicate with the Corporate Auditor and the Board of Corporate Auditors regarding,among other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our audit.
We also provide the Corporate Auditor and the Board of Corporate Auditors with a statementthat we have complied with the ethical requirements regarding independence that are relevant toour audit of the consolidated financial statements in Japan, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, andwhere applicable, related safeguards.
From the matters communicated with the Corporate Auditor and the Board of Corporate
Auditors, we determine those matters that were of most significance in the audit of theconsolidated financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a mattershould not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act ofJapan.

Ernst & Young ShinNihon LLC
Tokyo, Japan
June 30, 2023

/s/ Kyoji Ito
Designated Engagement Partner
Certified Public Accountant/s/ Makie Suzuki
Designated Engagement Partner
Certified Public Accountant(Notes) 1. The original copy of the above Independent Auditor’s Report is in the custody of theCompany—the submitter of this Securities Report.
2. The XBRL data is not included in the scope of Audit.

Independent Auditor’s Report

The Board of Directors
OYO Corporation

OpinionWe have audited the accompanying non-consolidated financial statements of OYO Corporation,
which comprise the non-consolidated balance sheet as at December 31, 2022, and the nonconsolidated statements of income and changes in net assets for the year then ended, and notes
to the non-consolidated financial statements.
In our opinion, the accompanying non-consolidated financial statements present fairly, in allmaterial respects, the non-consolidated financial position of OYO Corporation as at December
31, 2022, and its non-consolidated financial performance for the year then ended in accordancewith accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Non-consolidated Financial Statements section of our report. We are
independent of the entity in accordance with the ethical requirements that are relevant to our
audit of the non-consolidated financial statements in Japan, and we have fulfilled our otherethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significancein our audit of the non-consolidated financial statements of the current period. These matterswere addressed in the context of the audit of the non-consolidated financial statements as awhole, and in forming the auditor’s opinion thereon, and we do not provide a separate opinion
on these matters.
Revenue recognized over time as performance obligations are satisfied for Geo-engineering
Services
Description is omitted because it is the same as the description of key audit matter stated in theauditor’s report of the consolidated financial statements.
Other Information
Other information comprises the information included in disclosure documents that contains
audited non-consolidated financial statements, but does not include the non-consolidated
financial statements and our auditor’s report thereon.
We have concluded that other information does not exist. Accordingly, we have not performed
any work related to other information.

Responsibilities of Management, the Corporate Auditor and the Board of Corporate
Auditors for the Non-consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these non-consolidated
financial statements in accordance with accounting principles generally accepted in Japan, andfor such internal control as management determines is necessary to enable the preparation of
non-consolidated financial statements that are free from material misstatement, whether due tofraud or error.
In preparing the non-consolidated financial statements, management is responsible for assessing
the entity’s ability to continue as a going concern and disclosing, as required by accounting
principles generally accepted in Japan, matters related to going concern.
The Corporate Auditor and the Board of Corporate Auditors are responsible for overseeing theentity’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Non-consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the non-consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and toissue an auditor’s report that includes our opinion. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these nonconsolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we
exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
・ Identify and assess the risks of material misstatement of the non-consolidated financial
statements, whether due to fraud or error, design and perform audit procedures responsive tothose risks, and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion.
・ Consider internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances for our risk assessments, while the purpose of the audit of
the non-consolidated financial statements is not expressing an opinion on the effectivenessof the entity’s internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
・ Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the entity’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the nonconsolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the entity to cease tocontinue as a going concern.
・ Evaluate the overall presentation, structure and content of the non-consolidated financial
statements, including the disclosures, and whether the non-consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentationin accordance with accounting principles generally accepted in Japan.

We communicate with the Corporate Auditor and the Board of Corporate Auditors regarding,among other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our audit.
We also provide the Corporate Auditor and the Board of Corporate Auditors with a statementthat we have complied with the ethical requirements regarding independence that are relevant toour audit of the non-consolidated financial statements in Japan, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with the Corporate Auditor and the Board of Corporate
Auditors, we determine those matters that were of most significance in the audit of the nonconsolidated financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a mattershould not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the entity which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act ofJapan.

Ernst & Young ShinNihon LLC
Tokyo, Japan
June 30, 2023

/s/ Kyoji Ito
Designated Engagement Partner
Certified Public Accountant/s/ Makie Suzuki
Designated Engagement Partner
Certified Public Accountant(Notes) 1. The original copy of the above Independent Auditor’s Report is in the custody of theCompany—the submitter of this Securities Report.
2. The XBRL data is not included in the scope of Audit.