corporate report 2020 · corporate report 2020 issue jan.1-dec. 31, 2019 about the brochure title...

CORPORATE R E P O R T

2020 ISSUE Jan.1-Dec. 31, 2019

About the brochure title This brochure not only includes the operating results and initiatives through fiscal 2019 ended December 2019 but also describes the initiatives for fiscal 2020 and thereafter. Because of this, and due to being published in 2020, it is titled “Corporate Report 2020 Issue.” 2020.06

Inquiries

Phone: +81-3-5577-4501URL: https://www.oyo.co.jp/E-mail: [email protected]

Corporate Planning Headquarters, OYO Corporation7 Kanda-Mitoshiro-cho, Chiyoda-ku, Tokyo 101-8486, Japan

Securities code: 9755


2020 ISSUE Jan.1-Dec. 31, 2019


Inquiries




59OYO C o r p o r a t e R ep o r t 2 0 2 0

Contents Corporate Report 2020 ISSUE

Chapter 1 To Realize a Sustainable SocietyFind the Best Answer to the Future of People and the Earth. …………………………… 01Laying the Foundation 1 Infrastructure Maintenance, Management, and Renovation……… 02Creating Security 2 Natural Disaster Prevention and Mitigation …………………………………… 04Protecting the Environment 3 Environment ………………………………………………………………… 06Conserving Resources 4 Natural Resources and Energy ……………………………………………… 08

Chapter 2 Value Creation by OYOMessage from the President / Corporate Philosophy ………………………………………… 10Corporate History ………………………………………………………………………………………………… 12OYO at Present ……………………………………………………………………………………………………… 14Value Creation Process 1 Big Picture ………………………………………………………………… 16Value Creation Process 2 Business Model ………………………………………………………… 18

Chapter 3 OYO Growth StrategyMessage from Management (Interview) …………………………………………………………… 20Medium- to Long-term Business Plan ………………………………………………………………… 26

Chapter 4 Strategy by SegmentFour Business Segments ……………………………………………………………………………………… 28 Segment Infrastructure Maintenance, Management, and Renovation …… 30 Segment Natural Disaster Prevention and Mitigation ……………………………… 32 Segment Environment ………………………………………………………………………………… 34 Segment Natural Resources and Energy …………………………………………………… 36

III

Chapter 5 ESG AwarenessOverview of ESG-related Endeavors ……………………………………………… 38Business Management in Pursuit of Sustainable Development Goals to Improve Corporate Value …… 40Corporate Governance …………………………………………………………………… 42Directors …………………………………………………………………………………………… 46Risk Management …………………………………………………………………………… 48Compliance ……………………………………………………………………………………… 49Work-Life Balance …………………………………………………………………………… 50Securing and Fostering Human Resources …………………………………… 51Response to Environmental Issues ………………………………………………… 52Social Contributions ………………………………………………………………………… 53

Chapter 6 Corporate DataMain Financial Data (Consolidated) ……………………………………………… 54Business Bases ………………………………………………………………………………… 56Group Companies …………………………………………………………………………… 57Qualified Persons / Certifications Acquired …………………………………… 58Overview of the Company and Its Shares ……………………………………… 59

Reporting coverage

Period

Organization

Fiscal year ended 2019 (fiscal 2019)(January 1, 2019 to December 31, 2019)* Certain information is for the periods other than the above.

OYO Corporation and its group of companies

*Note on forward-looking statements

Forward-looking statements presented in this report, including projected figures and measures for the future, are calculated on the basis of judgments and assumptions presently deemed reasonable by the Company based on currently available information. As such, actual operating results may differ significantly from the described forward-looking statements due to various material factors including economic conditions of major markets in and outside Japan and currency fluctuations.

Cover image

OYO Group’s social mission is to support the safety and

security of society and everyday life through a variety of

earth science technologies. The image on the cover is of a

satellite quietly watching over the earth from outer space,

which we chose to symbolize our corporate philosophy

and vision. Furthermore, the infinity mark on the left page

of the spread symbolizes the infinite growth potential of

the Group's business through our active exchange with

other industries and tireless pursuit toward building a

sustainable society.

Find the Best Answer to the Future of People and the Earth.To Realize a Sustainable Society

I

II

IV

Corporate DataChapter 6Overview of the Company and Its Shares (as of December 31, 2019)

2019/12

Overview of Shares

Number of authorized shares �� 120,000,000

Number of shares issued �� 27,582,573

(of which, treasury stock counts 1,119,159 shares)

Number of shareholders �� 7,996

Breakdown of Shareholders

* Treasury stock does not include the 3,494 units owned by Trust & Custody Services Bank, Ltd. (Trust Account E).

Individuals and others

30.83% 85,048 units

Financial institutions 22.94% 63,287 units

Other domestic corporations

21.12% 58,240 units

Foreign corporations, etc.

18.57% 51,232 units

Financial instruments business operators

2.47% 6,825 units

Treasury stock 4.06% 11,191 units

Overview of the Company

Name OYO Corporation

Address 7 Kanda-Mitoshiro-cho, Chiyoda-ku, Tokyo 101-8486 JAPAN

Phone +81-3-5577-4501

Established May 2, 1957

Paid-in capital

16,174.6 million yen

Listing 1st section of the Tokyo Stock Exchange

Number of employees

2,235 (consolidated) / 1,126 (non-consolidated)

Line of business

All technical work, from ground survey to design and construction supervision, involved in the construction of roads, city planning and civil engineering struc-tures and buildings

Technical work including survey, analysis, prediction, diagnosis, evaluation and countermeasure development for risk of natural disasters such as landslides, earthquakes and wind and flood damage

Technical work including survey, analysis, prediction, diagnosis, evaluation and countermeasure development for environmental conservation and risk

Collection, processing and sale of earth information on the ground, environ-ment, disasters, etc.

Development, manufacturing, sale, leasing and rental of various measurement devices, security devices, software and systems






III



Reporting coverage

Period

Organization





Cover image












I

II

IV


Under-road cavity exploration services Social infrastructure maintenance/longevity services

BIM/CIM initiatives 3D ground modeling software Transportation environment improvement/management services

For details, please see Chapter 4. Strategy by Segment: Infrastructure Maintenance, Management and Renovation on pp. 30-31.

Laying the Foundation

In August 2018, a viaduct collapsed in Genoa, Italy, killing many people. Accidents due to

deteriorating social infrastructure are on the rise in countries including Japan, such as the

December 2012 collapse of the Sasago Tunnel ceiling in Yamanashi Prefecture. At the same

time, rapid economic growth and urbanization, mainly in emerging countries, is increasing

demand for infrastructure construction and renovation by the year.

In light of this, our Group leverages its market-leading 3D ground information technology,

years of Japanese infrastructure inspection expertise and ability to develop sensing equipment,

one of the Group’s strengths, to respond to the strong global demand for infrastructure and

maintenance and help achieve the Sustainable Development Goals （SDGs） by building safe and

secure cities.

Major Services

Buried-pipe exploration radar system“UtilityScan”

02 OYO C o r p o r a t e R ep o r t 2 0 2 0

1 Infrastructure Maintenance, Management, and Renovation

Under-road cavity exploration services Social infrastructure maintenance/longevity services

BIM/CIM initiatives 3D ground modeling software Transportation environment improvement/management services

For details, please see Chapter 4. Strategy by Segment: Infrastructure Maintenance, Management and Renovation on pp. 30-31.

Laying the Foundation

In August 2018, a viaduct collapsed in Genoa, Italy, killing many people. Accidents due to

deteriorating social infrastructure are on the rise in countries including Japan, such as the

December 2012 collapse of the Sasago Tunnel ceiling in Yamanashi Prefecture. At the same

time, rapid economic growth and urbanization, mainly in emerging countries, is increasing

demand for infrastructure construction and renovation by the year.

In light of this, our Group leverages its market-leading 3D ground information technology,

years of Japanese infrastructure inspection expertise and ability to develop sensing equipment,

one of the Group’s strengths, to respond to the strong global demand for infrastructure and

maintenance and help achieve the Sustainable Development Goals （SDGs） by building safe and

secure cities.

Major Services

Buried-pipe exploration radar system“UtilityScan”


To Realize a Sustainable SocietyChapter 1

Creating Security

Global warming and climate change are causing natural disasters such as heavy rains, droughts

and forest fires to increase around the world. Japan, in addition to having frequent earthquakes,

is vulnerable to repeated crustal movement which, combined with the recent increase in the

frequency and severity of typhoons and heavy rains, produces large-scale landslides and river

flooding almost every year. Therefore, our Group deploys its cutting-edge damage prediction,

research and monitoring technology cultivated in Japan, a place of many natural disasters, and

experience in disaster prevention and mitigation projects in over 30 countries to help reduce

natural disaster damage around the world. By leveraging and actively sharing our ground and

earthquake expertise with the world, we aim to build a leading model in the field of disaster

prevention and mitigation for the SDGs.

Major Services

Tsunami height / inundation area prediction services

Disaster response information support system for local governments

Landslide / slope collapse countermeasure services

For details, please see Chapter 4. Strategy by Segment: Natural Disaster Prevention and Mitigation on pp. 32-33.

Volcano monitoring system BCP solution, “ServiBers”

Major earthquake readiness: seismic motion calculation and damage prediction services


2 Natural Disaster Prevention and Mitigation

Creating Security

Global warming and climate change are causing natural disasters such as heavy rains, droughts

and forest fires to increase around the world. Japan, in addition to having frequent earthquakes,

is vulnerable to repeated crustal movement which, combined with the recent increase in the

frequency and severity of typhoons and heavy rains, produces large-scale landslides and river

flooding almost every year. Therefore, our Group deploys its cutting-edge damage prediction,

research and monitoring technology cultivated in Japan, a place of many natural disasters, and

experience in disaster prevention and mitigation projects in over 30 countries to help reduce

natural disaster damage around the world. By leveraging and actively sharing our ground and

earthquake expertise with the world, we aim to build a leading model in the field of disaster

prevention and mitigation for the SDGs.

Major Services

Tsunami height / inundation area prediction services

Disaster response information support system for local governments

Landslide / slope collapse countermeasure services

For details, please see Chapter 4. Strategy by Segment: Natural Disaster Prevention and Mitigation on pp. 32-33.

Volcano monitoring system BCP solution, “ServiBers”

Major earthquake readiness: seismic motion calculation and damage prediction services



Protecting the Environment

Economic growth-driven improvement in living environments is rapidly increasing environmental

awareness not only in developed countries but also in emerging countries. Furthermore, the

expansion of global ESG investment has made it more important than ever for companies

to engage in environmental stewardship. On the other hand, explosive population growth is

accelerating industrialization, farmland expansion, deforestation, groundwater depletion, natural

disaster increase, waste disposal site shortage and greenhouse gas emissions, significantly and

negatively impacting ecosystems on a global scale. In light of this, our Group strives to build

a sustainable society, achieving harmony between people and nature, through its unique

technologies and services such as research on the environmental impact of production activities,

development of cutting-edge resource recycling technology and tree health diagnosis and tree

maintenance services.

Major Services

Disaster waste disposal plan /rapid treatment support services

One-stop service for soil pollution countermeasures

Green infrastructure inspection /maintenance services

Fukushima reconstruction support services

One-stop service for asbestos analysis/removal

Environmental stewardship support service

For details, please see Chapter 4. Strategy by Segment: Environment on pp. 34-35.


3 Environment

Protecting the Environment

Economic growth-driven improvement in living environments is rapidly increasing environmental

awareness not only in developed countries but also in emerging countries. Furthermore, the

expansion of global ESG investment has made it more important than ever for companies

to engage in environmental stewardship. On the other hand, explosive population growth is

accelerating industrialization, farmland expansion, deforestation, groundwater depletion, natural

disaster increase, waste disposal site shortage and greenhouse gas emissions, significantly and

negatively impacting ecosystems on a global scale. In light of this, our Group strives to build

a sustainable society, achieving harmony between people and nature, through its unique

technologies and services such as research on the environmental impact of production activities,

development of cutting-edge resource recycling technology and tree health diagnosis and tree

maintenance services.

Major Services

Disaster waste disposal plan /rapid treatment support services

One-stop service for soil pollution countermeasures

Green infrastructure inspection /maintenance services

Fukushima reconstruction support services

One-stop service for asbestos analysis/removal

Environmental stewardship support service

For details, please see Chapter 4. Strategy by Segment: Environment on pp. 34-35.



Geothermal power business support services

Methane hydrate development research

Ground-source heat implementation support services

Conserving Resources

As the world experiences rapid economic growth and explosive population growth, especially

in emerging countries, it also faces shortages like energy and water for industry and farming

intensifying by the year. At the same time, concerns about global warming and environmental

destruction are increasingly bringing the conventional energies of fossil fuels such as crude oil

and coal as well as nuclear power under fire, and global expectations for alternative energy

sources such as solar, wind, geothermal heat and other renewable energies are on the rise.

By developing low-cost resource exploration technology and providing development support

services for renewable energies such as wind power for which the market is rapidly growing as

solutions to global resource and energy shortages, our Group contributes to global economic

development and sustainable resource and energy development.

Major Services

Offshore wind power generation support services

4D offshore oil reservoir exploration services

Advanced geological survey services for steady energy supply

For details, please see Chapter 4. Strategy by Segment: Natural Resources and Energy on pp. 36-37.


4 Natural Resources and Energy

Geothermal power business support services

Methane hydrate development research

Ground-source heat implementation support services

Conserving Resources

As the world experiences rapid economic growth and explosive population growth, especially

in emerging countries, it also faces shortages like energy and water for industry and farming

intensifying by the year. At the same time, concerns about global warming and environmental

destruction are increasingly bringing the conventional energies of fossil fuels such as crude oil

and coal as well as nuclear power under fire, and global expectations for alternative energy

sources such as solar, wind, geothermal heat and other renewable energies are on the rise.

By developing low-cost resource exploration technology and providing development support

services for renewable energies such as wind power for which the market is rapidly growing as

solutions to global resource and energy shortages, our Group contributes to global economic

development and sustainable resource and energy development.

Major Services


4D offshore oil reservoir exploration services

Advanced geological survey services for steady energy supply

For details, please see Chapter 4. Strategy by Segment: Natural Resources and Energy on pp. 36-37.



Masaru Narita

Masaru Narita

President

President

ManagementPhilosophy

Engineer a Harmony between Human Society andthe Natural Environment, Sustain Safety and Security of Society from an Engineering Approach and Achieve Social Contributions through Development of the Company’s Business

Contribute to Local Communities as a Comprehensive Consultant of Geo-ScienceCreate New Markets with Unique and Innovative Technologies

ManagementVision

Founded as a geological survey company with the slogan of “Creating Geological Engineering,”

OYO has since expanded its business beyond geology into diverse fields including infrastructure

maintenance and management, natural disaster prevention and mitigation, environment and

natural resources and energy. Now, our Group possesses a wide range of knowledge and

expertise across the earth sciences: geology, geophysics, soil mechanics, civil engineering,

hydraulics, environmental engineering, ecology and more, marking a transformation from mere

survey and consulting company to solutions provider on social issues.

Right now, the world faces more challenges than ever before: aging infrastructure,

increasing natural disasters, environmental destruction and resource depletion, to name but a

few. I also feel that the expectations placed on the Group's businesses, which tackle these

challenges head-on, increase by the year. These businesses are strongly public in nature and

involved directly in solving social issues. However, up until now, the Group has struggled to

adequately convey this value to society, often resulting in low public recognition.

Going forward, we will exceed the expectations of the market to help build social

sustainability by expanding our businesses, as well as proactively convey our value and business

initiatives to society, thereby enhancing our shareholder value.

Cre ating Value


Message from the President

Corporate Philosophy

Masaru Narita

Masaru Narita

President

President

ManagementPhilosophy

Engineer a Harmony between Human Society andthe Natural Environment, Sustain Safety and Security of Society from an Engineering Approach and Achieve Social Contributions through Development of the Company’s Business

Contribute to Local Communities as a Comprehensive Consultant of Geo-ScienceCreate New Markets with Unique and Innovative Technologies

ManagementVision

Founded as a geological survey company with the slogan of “Creating Geological Engineering,”

OYO has since expanded its business beyond geology into diverse fields including infrastructure

maintenance and management, natural disaster prevention and mitigation, environment and

natural resources and energy. Now, our Group possesses a wide range of knowledge and

expertise across the earth sciences: geology, geophysics, soil mechanics, civil engineering,

hydraulics, environmental engineering, ecology and more, marking a transformation from mere

survey and consulting company to solutions provider on social issues.

Right now, the world faces more challenges than ever before: aging infrastructure,

increasing natural disasters, environmental destruction and resource depletion, to name but a

few. I also feel that the expectations placed on the Group's businesses, which tackle these

challenges head-on, increase by the year. These businesses are strongly public in nature and

involved directly in solving social issues. However, up until now, the Group has struggled to

adequately convey this value to society, often resulting in low public recognition.

Going forward, we will exceed the expectations of the market to help build social

sustainability by expanding our businesses, as well as proactively convey our value and business

initiatives to society, thereby enhancing our shareholder value.

Cre ating Value


Value Creation by OYOChapter 2

19541957

1958

1963

1964

1971

Established Fukada Geological Institute (predecessor of OYO)Established OYO Geological Survey Office under the slogan of “Creating Geological Engineering”Started applying geophysical exploration methods in the resources field to civil engineeringConstruction of Urawa Laboratory completed as the “base of creation”Dispatched the Company’s first disaster research team upon occurrence of Niigata EarthquakeDispatched research team upon occurrence of San Fernando Earthquake – the Company’s first such team sent abroad

Held the first in-house technological workshopHeld the first geological investigation instruments exhibition (present OYO Fair)

Started investigation of damages caused by bank collapse of Nagaragawa River as well as by wind and flood

Introduced OYO 2000, the Company’s first long-term vision

Established the Chemical and Environment Laboratory to “explore the domains between civil engineering and chemistry”

Started overseas businesses on a full scale

Changed the corporate name to “OYO Corporation”

19721974

1976

19791979

19801985

1970 1998

2000 20051990 1995 2010 20151980 198519701965 19751960

50

40

30

20

10

01957

2010

2011 The Great East Japan Earthquake 2018 Heavy Rain Event of July 2018 (Photo: Aflo)

2019 Typhoon No.15 (Faxai) (Photo: Aflo)

1994 Worked on measures for industrial waste at Teshima Island,Kagawa Prefecture (Photo: The Yomiuri Shimbun/Aflo)

2006 Microzoning in Istanbul

2016 Kumamoto Earthquake2007 Construction Management Work1995 The Great Hanshin Earthquake

1954( )Operation

started

1957(Inception)

Launched information service business2010

Launched instruments business1957

Launched disaster prevention business1964

Initial phase of environmental business1973

Launched energy-related business1975

1992 Initial phase of infrastructure maintenance and management business

Record high in net sales

Net sales surpassed 10 billion yen

Net Sales (consolidated)Net Sales (non-consolidated)

(billion yen)

1964 Niigata Earthquake1958 Investigated geological reconnaissance of Chuo Expressway

1959 Investigated ground subsidence in Niigata1957 Developed seismic survey equipmentusing vacuum tubes

1965 Conducted investigationfor Honshu-Shikoku Bridge

1982 Conducted soil investigationfor Kansai International Airport

1972 Developed Elastmeter 200,a high-pressure borehole lateral load tester

1986 Designed and managed constructionof Oyama Dairi Tunnel

Established “Core Laboratory,” a comprehensive testing and research center for rocks, soil and water (one of the largest facilities in the private sector)

Listed on the 1st section of Tokyo Stock Exchange

Worked upon the Great Hanshin Earthquake (mobilized 4,000 people in total)

Established OYO Biological Engineering Laboratory with an aim to fuse civil engineering and ecological science

Adopted the Executive Officer System

Renewed Management Philosophy and Management Vision

Prepared the OYO Compliance Manual

Established OYO2020, the long-term management vision of the OYO Group

Established OYO Hop 10, the medium-term management plan

Worked upon the Great East Japan Earthquake

Established OYO Step 14, the medium-term management plan

Prepared the Guiding Principle for CSR

Started endeavors for work-life balance

Established medium-term management plan “OYO Jump 18”

Changed business segments

1992

19951995

1998

200020042006

2009

2010201120142014201620182018

Period from inauguration toestablishment of business foundation Period of growth Period of transformation Period of

regrowth


Corporate History

19541957

1958

1963

1964

1971

Established Fukada Geological Institute (predecessor of OYO)Established OYO Geological Survey Office under the slogan of “Creating Geological Engineering”Started applying geophysical exploration methods in the resources field to civil engineeringConstruction of Urawa Laboratory completed as the “base of creation”Dispatched the Company’s first disaster research team upon occurrence of Niigata EarthquakeDispatched research team upon occurrence of San Fernando Earthquake – the Company’s first such team sent abroad

Held the first in-house technological workshopHeld the first geological investigation instruments exhibition (present OYO Fair)

Started investigation of damages caused by bank collapse of Nagaragawa River as well as by wind and flood

Introduced OYO 2000, the Company’s first long-term vision

Established the Chemical and Environment Laboratory to “explore the domains between civil engineering and chemistry”

Started overseas businesses on a full scale

Changed the corporate name to “OYO Corporation”

19721974

1976

19791979

19801985

1970 1998

2000 20051990 1995 2010 20151980 198519701965 19751960

50

40

30

20

10

01957

2010

2011 The Great East Japan Earthquake 2018 Heavy Rain Event of July 2018 (Photo: Aflo)

2019 Typhoon No.15 (Faxai) (Photo: Aflo)

1994 Worked on measures for industrial waste at Teshima Island,Kagawa Prefecture (Photo: The Yomiuri Shimbun/Aflo)

2006 Microzoning in Istanbul

2016 Kumamoto Earthquake2007 Construction Management Work1995 The Great Hanshin Earthquake

1954( )Operation

started

1957(Inception)

Launched information service business2010

Launched instruments business1957

Launched disaster prevention business1964

Initial phase of environmental business1973

Launched energy-related business1975

1992 Initial phase of infrastructure maintenance and management business

Record high in net sales

Net sales surpassed 10 billion yen

Net Sales (consolidated)Net Sales (non-consolidated)

(billion yen)

1964 Niigata Earthquake1958 Investigated geological reconnaissance of Chuo Expressway

1959 Investigated ground subsidence in Niigata1957 Developed seismic survey equipmentusing vacuum tubes

1965 Conducted investigationfor Honshu-Shikoku Bridge

1982 Conducted soil investigationfor Kansai International Airport

1972 Developed Elastmeter 200,a high-pressure borehole lateral load tester

1986 Designed and managed constructionof Oyama Dairi Tunnel

Established “Core Laboratory,” a comprehensive testing and research center for rocks, soil and water (one of the largest facilities in the private sector)

Listed on the 1st section of Tokyo Stock Exchange

Worked upon the Great Hanshin Earthquake (mobilized 4,000 people in total)

Established OYO Biological Engineering Laboratory with an aim to fuse civil engineering and ecological science

Adopted the Executive Officer System

Renewed Management Philosophy and Management Vision

Prepared the OYO Compliance Manual

Established OYO2020, the long-term management vision of the OYO Group

Established OYO Hop 10, the medium-term management plan

Worked upon the Great East Japan Earthquake

Established OYO Step 14, the medium-term management plan

Prepared the Guiding Principle for CSR

Started endeavors for work-life balance

Established medium-term management plan “OYO Jump 18”

Changed business segments

1992

19951995

1998

200020042006

2009

2010201120142014201620182018

Period from inauguration toestablishment of business foundation Period of growth Period of transformation Period of

regrowth



Ratio of orders receivedby customer segment

53.1%Government

agenciesGovernment

agencies

46.9%Privatesector

6,770

Number of ordersreceived annually

1,796DomesticDomestic

439OverseasOverseas

53.8billion yen

2015 2016 2017

49.2 51.345.9

2015 2016 2017

2.1

1.5

0.8

2015 2016 2017

2.3

1.3

0.7

2015 2016 2017

1.92.0

1.6

2015 2016 2017

32.1

54.9

137.6*

*Including 10-yen commemorative dividends from the Company’s 60th anniversary since inception

Number of doctors

Number of engineers

2018

45.2

2019

53.8

2018

1.4

2018

0.8

2019

2.1

2018

1.6

2019

1.6

28 28

38*

28 30

2018

91.1

3.31.93.1

4.4

2019

2.5

2019

36.0

Ground data OYO owns

4.8

2015 2016 2017

19.6

9.6

7.9

8.7

49.2 51.345.9 45.2

2018

19.2

8.5

9.2

8.2

53.8

2019

22.9

8.9

11.7

10.2

Net Sales (billion yen) By Segment (billion yen)

Operating Income (billion yen) / Operating Income Ratio (%)

R&D Expenditure (billion yen) Dividends Payout Ratio (%) / Cash Dividends per Share (yen)

2.5billion yen /4.8% 2.1billion yen

1.6billion yen 36.0% /30yen

Natural Disaster Prevention and Mitigation

Natural Resources and Energy

Infrastructure Maintenance, Management, and Renovation

Environment

Con-solidated

Number of countries wherebusiness is conducted

countries130

Number of patents

*as of December 31, 2019

Number of employees

*Actual results of fiscal 2019

New graduates hired ascareer employees:

33.3%

Ratio of newly hiredfemale employees

Non-con-

solidated

340,000 locations

For over

Total depth investigated: 7,650km

93

Net Income Attributable to Owners of Parent (billion yen)

63

691

Con-solidated

Con-solidated

Con-solidated

15

18


Number of group companies

Con-solidated

DomesticDomestic

OverseasOverseas

Non-con-

solidated

Non-con-

solidated

Non-con-

solidated


OYO at Present: Consolidated Financial Highlights and Non-Financial Information

Ratio of orders receivedby customer segment

53.1%Government

agenciesGovernment

agencies

46.9%Privatesector

6,770

Number of ordersreceived annually

1,796DomesticDomestic

439OverseasOverseas

53.8billion yen

2015 2016 2017

49.2 51.345.9

2015 2016 2017

2.1

1.5

0.8

2015 2016 2017

2.3

1.3

0.7

2015 2016 2017

1.92.0

1.6

2015 2016 2017

32.1

54.9

137.6*

*Including 10-yen commemorative dividends from the Company’s 60th anniversary since inception

Number of doctors

Number of engineers

2018

45.2

2019

53.8

2018

1.4

2018

0.8

2019

2.1

2018

1.6

2019

1.6

28 28

38*

28 30

2018

91.1

3.31.93.1

4.4

2019

2.5

2019

36.0

Ground data OYO owns

4.8

2015 2016 2017

19.6

9.6

7.9

8.7

49.2 51.345.9 45.2

2018

19.2

8.5

9.2

8.2

53.8

2019

22.9

8.9

11.7

10.2

Net Sales (billion yen) By Segment (billion yen)

Operating Income (billion yen) / Operating Income Ratio (%)

R&D Expenditure (billion yen) Dividends Payout Ratio (%) / Cash Dividends per Share (yen)

2.5billion yen /4.8% 2.1billion yen

1.6billion yen 36.0% /30yen




Environment

Con-solidated

Number of countries wherebusiness is conducted

countries130

Number of patents


Number of employees

*Actual results of fiscal 2019

New graduates hired ascareer employees:

33.3%

Ratio of newly hiredfemale employees

Non-con-

solidated

340,000 locations

For over

Total depth investigated: 7,650km

93

Net Income Attributable to Owners of Parent (billion yen)

63

691

Con-solidated

Con-solidated

Con-solidated

15

18


Number of group companies

Con-solidated

DomesticDomestic

OverseasOverseas

Non-con-

solidated

Non-con-

solidated

Non-con-

solidated



Nowadays, we are witnessing changes occurring at unprec-

edented speed. Explosive progress in information and

communication technologies has spurred economic and

social globalization and caused the industrial structure to

change significantly. Not only the economy but also our

values and lifestyles are being transformed by a variety of

technological innovations called the fourth industrial

revolution. On the other hand, development of the world

economy and population growth have caused such nega-

tive impacts as depletion of natural resources and threats

Aging social infrastructures

Diversifying energy sources

Threat to biodiversity

DNA

Diversity

Comprehensivecapabilities

Financialstanding

Adventurous spirit to continue pioneering the domains of natural science

Ample availability of specialists in each field who can tackle diversified issues

KnowledgeAbundance of knowledge in “geoscience” accumulated for 60 years through work in the field

Synergistic effects exerted by departments involved in the fields of services, sensors and ICT

Sound financial standing that allows the Company to conduct necessary continuous investment

Social Issues Surrounding OYO

Strengths of the OYO Group

Implementation of Growth Strategy

Achieving Ideals

to biodiversity on a global scale, and climate change in

association with global warming has provoked various

natural disasters around the world. As such, new values

and problems are created every day and become entangled

with increasing complexity. Given the situation, the OYO

Group endeavors to support and provide safety and securi-

ty, which are unchanged values of mankind, through its

proprietary technologies in an effort to contribute to

building a sustainable society.

Four business segments categorized in accordancewith the market and strategy

Pursuit of long-term management vision

Contribute to safety and security of society as a

global group of comprehensive and specialized

companies involved in geoscience

Increased importance of governance

Changes in technologies andvalues caused by the fourth

industrial revolution

More frequent occurrence ofnatural disasters with

increasing severity

A global group of comprehensive and

specialized companies involvedin geoscience

Shift to a business model for value creation



Environment


Contribute tosociety through

developmentof the Company’s

business

Engineerharmonybetween

human societyand the natural

environment

Sustainsafety and

security froman engineering

approach


Value Creation Process 1 Big Picture

Nowadays, we are witnessing changes occurring at unprec-

edented speed. Explosive progress in information and

communication technologies has spurred economic and

social globalization and caused the industrial structure to

change significantly. Not only the economy but also our

values and lifestyles are being transformed by a variety of

technological innovations called the fourth industrial

revolution. On the other hand, development of the world

economy and population growth have caused such nega-

tive impacts as depletion of natural resources and threats

Aging social infrastructures

Diversifying energy sources

Threat to biodiversity

DNA

Diversity

Comprehensivecapabilities

Financialstanding

Adventurous spirit to continue pioneering the domains of natural science

Ample availability of specialists in each field who can tackle diversified issues

KnowledgeAbundance of knowledge in “geoscience” accumulated for 60 years through work in the field

Synergistic effects exerted by departments involved in the fields of services, sensors and ICT

Sound financial standing that allows the Company to conduct necessary continuous investment

Social Issues Surrounding OYO

Strengths of the OYO Group

Implementation of Growth Strategy

Achieving Ideals

to biodiversity on a global scale, and climate change in

association with global warming has provoked various

natural disasters around the world. As such, new values

and problems are created every day and become entangled

with increasing complexity. Given the situation, the OYO

Group endeavors to support and provide safety and securi-

ty, which are unchanged values of mankind, through its

proprietary technologies in an effort to contribute to

building a sustainable society.

Four business segments categorized in accordancewith the market and strategy

Pursuit of long-term management vision

Contribute to safety and security of society as a

global group of comprehensive and specialized

companies involved in geoscience

Increased importance of governance

Changes in technologies andvalues caused by the fourth

industrial revolution

More frequent occurrence ofnatural disasters with

increasing severity

A global group of comprehensive and

specialized companies involvedin geoscience

Shift to a business model for value creation



Environment


Contribute tosociety through

developmentof the Company’s

business

Engineerharmonybetween

human societyand the natural

environment

Sustainsafety and

security froman engineering

approach



Segment

Segment

Segment

Environment

Source of Competitiveness

Four business domains Value provided and social background

Segment

Fusing cutting-edge knowledge, technologies and

sensing related to geoscience to create safety and security

in society across four business domains

Ever since starting operations under the slogan, “Creat-

ing Geological Engineering,” OYO Corporation has

expanded beyond the field of geological surveying into

the fields of social infrastructure construction and main-

tenance, natural disaster prevention and mitigation, the

environment, and natural resources and energy, and it

has formed a group of specialized companies. These four

areas related to geoscience are also directly connected to

the safety and security of some of the world’s issues that

need to be solved on a global scale. OYO Group has the

strength of generating comprehensive solutions as it can

seek out optimal solutions to composite issues through

the fusion of its unique sensing technologies, enabling

mutual cooperation in these four areas.

I

II

III

IV



Support for national and local government in preparing disaster prevention plans and predicting damages from earthquake, tsunami, fire and other disastersInvestigations, loss estimations and consultations on countermeasures regarding natural disaster riskDevelopment, installation, and renewal of monitoring systems

Investigation on aging infrastructures,building infrastructure maintenance and management systemsInvestigation, design and measuring services for establishing disaster-resilient infrastructureDevelopment and sale of non-destructive test equipment, etc.

Population problems Infrastructure deterioration and renovation demand

Climate changeIncreasing intensity and frequency of natural disasters

Various environmental issuesIncreasing concern with biodiversityESG investment

Increasing demand for resourcesExpansion of renewable energy

Natural environment, centering on preservation of biodiversityLiving environment, covering soil and groundwater contamination and wasteOne-stop service for asbestos analysis and removal

High-level geological consultation on the location of power plants, etc.Research and development on methane hydrate, support for the commercialization of renewable energyDevelopment of systems for natural resource exploration, four-dimensional subsea investigation service, etc.


Support maintenance and management

(enhancement and replacement)

of social infrastructure and various facilities

Support societal resilience against natural disasters

Support environmentalpreservation (load reduction)

Support development, preservation, and

effective use of natural resources and energy

Developed original sensors, own manufacturing division

Geological database compiled since the founding of OYO Corporation

Included expert corporations involved in various fields of geoscience into the Group

Accumulated investigations, research, and knowledge of large-scale natural disasters

Original research facilities for ground and ecology


Value Creation Process 2 Business Model

Segment

Segment

Segment

Environment

Source of Competitiveness

Four business domains Value provided and social background

Segment

Fusing cutting-edge knowledge, technologies and

sensing related to geoscience to create safety and security

in society across four business domains

Ever since starting operations under the slogan, “Creat-

ing Geological Engineering,” OYO Corporation has

expanded beyond the field of geological surveying into

the fields of social infrastructure construction and main-

tenance, natural disaster prevention and mitigation, the

environment, and natural resources and energy, and it

has formed a group of specialized companies. These four

areas related to geoscience are also directly connected to

the safety and security of some of the world’s issues that

need to be solved on a global scale. OYO Group has the

strength of generating comprehensive solutions as it can

seek out optimal solutions to composite issues through

the fusion of its unique sensing technologies, enabling

mutual cooperation in these four areas.

I

II

III

IV



Support for national and local government in preparing disaster prevention plans and predicting damages from earthquake, tsunami, fire and other disastersInvestigations, loss estimations and consultations on countermeasures regarding natural disaster riskDevelopment, installation, and renewal of monitoring systems

Investigation on aging infrastructures,building infrastructure maintenance and management systemsInvestigation, design and measuring services for establishing disaster-resilient infrastructureDevelopment and sale of non-destructive test equipment, etc.

Population problems Infrastructure deterioration and renovation demand

Climate changeIncreasing intensity and frequency of natural disasters

Various environmental issuesIncreasing concern with biodiversityESG investment

Increasing demand for resourcesExpansion of renewable energy

Natural environment, centering on preservation of biodiversityLiving environment, covering soil and groundwater contamination and wasteOne-stop service for asbestos analysis and removal

High-level geological consultation on the location of power plants, etc.Research and development on methane hydrate, support for the commercialization of renewable energyDevelopment of systems for natural resource exploration, four-dimensional subsea investigation service, etc.


Support maintenance and management

(enhancement and replacement)

of social infrastructure and various facilities

Support societal resilience against natural disasters

Support environmentalpreservation (load reduction)

Support development, preservation, and

effective use of natural resources and energy

Developed original sensors, own manufacturing division

Geological database compiled since the founding of OYO Corporation

Included expert corporations involved in various fields of geoscience into the Group

Accumulated investigations, research, and knowledge of large-scale natural disasters

Original research facilities for ground and ecology



Achieving sustainable growth by promoting businesses that address social issues


Message from Management (Interview)

President

Masaru Narita

Achieving sustainable growth by promoting businesses that address social issues

Consolidated financial results for fiscal 2019 saw significant growth in sales and income, with sales

increasing 19.1% and operating income increasing 74.3% year on year. Operating income in partic-

ular rose at least 70% for the second consecutive year, demonstrating rapid improvement and

strengthening of the Group’s profit structure.

On a non-consolidated basis, the complete transition from Branch System to Division System

changed both the organization and our awareness, establishing a trend toward higher sales and

income. Domestic group companies, which have a proven track record of creating sellable products

by clarifying their markets and products, maintained their solid performance growth from last year.

Overseas group companies, which until last year struggled to clarify their target markets and prod-

ucts, gradually started to make sellable products this year, emerging from the red into profitability.

The business environment also serves as a tailwind. Against the backdrop of intensifying,

spreading disasters and aging infrastructure, public investment based on the national resilience

budget is becoming more assertive and demand and inquiries for our Group’s technologies and

services are surging. The shift to Division System has established a sales structure that properly re-

sponds to these rising social needs, which I feel is leading steadily to great results.

Underpinning the Group’s steady progress in creating sellable products is, within the initiatives of our

long-term (10-year) management plan “OYO 2020,” our selection of four business domains on

which to focus in building a sustainable society, which has made it easier to clarify our markets and

products. Starting fiscal 2018, we made these four focus domains the Group’s new business seg-

ments: “Infrastructure Maintenance, Management, and Renovation,” “Natural Disaster Prevention

and Mitigation,” “Environment,” and “Natural Resources and Energy,” and are organizing the op-

timal operational structure for each.

As a result of these efforts, “Infrastructure Maintenance, Management, and Renovation,”

“Natural Disaster Prevention and Mitigation,” and “Environment” increased sales and income while

“Natural Resources and Energy” increased sales and reduced operating loss, each showing steady

progress.

I believe the business environment has changed significantly since 2018. In recent years, many ex-

perts have issued warnings repeatedly using various data and examples that prove global warming

Q1


OYO Growth StrategyChapter 3

2019 was the second year of the medium-term management plan “OYO Jump 18.” What results did you see?

Significant increase in sales and income, strengthening the Group's profit structure

Steady results in four business domains selected based on market needs

Q2 How do you evaluate the progress of the medium-term management plan “OYO Jump 18”?

Steady efforts in the four business domains will lead to future growth

and environmental destruction. In fact, weather disasters that appear to be caused by global warm-

ing are becoming more frequent in Japan and around the world. Amid this, in addition to new

frameworks created at various international conferences such as COP21, nearly every country has

pursued the UN’s 17 SDGs through public-private sector cooperation.

Having selected our four business domains in this environment from the perspective of contrib-

uting to building a sustainable society, I think that steadily accumulating initiatives in these domains

is imperative and will lead to growth. 2018 and 2019 convinced me of this.

Numerous of our achievements prove this conviction.

First, we have broken out of a public works-dependent business model (as shown in the

“Change in Public/Private Sales” graph). This is one of the achievements of aggressively expanding

into the private market with the aim of eliminating excessive dependence on public works.

Second, we create attractive products that enable collaboration and partnership with other in-

dustries. For example, the disaster response information support system for local governments,

which started in September 2019, is based on our proprietary disaster prevention IoT sensor-based

monitoring information and, in collaboration with Toyota and KDDI, provides the best necessary

information to local governments during disasters. In addition, as one of our efforts to commercial-

ize our original 3D ground information technology, we have signed a memorandum of understand-

ing with Hitachi and are jointly developing an underground facility information service.

Third, we pioneer new markets by creating technologies and services that solve social issues.

We believe that our business is highly social in nature and that solving social issues helps expand our

business, but our past, public works-dependent, passive sales structure failed to develop or propose

new, social issue-based services. Transitioning to the Division System shifted our awareness to the

market, pushing us to develop products and services that solve social issues. Examples include devel-

oping new seabed survey technology geared toward the surging demand for offshore wind power

generation and creating a one-stop

service for analyzing and removing as-

bestos as the number of old buildings

increases. We have also developed a

unique technology based on our expe-

rience with disaster waste disposal af-

ter the Great East Japan Earthquake, a

disaster waste disposal service that

successfully created a new market

right as large-scale disasters are be-

coming more frequent.

2013 = 100

Private sector Public sector

80

90

100

110

120

2019201820172016201520142013

109

85


Change in Public/Private Sales (simple total of non-consolidated + domestic group companies)


Becoming a Group that pioneers markets by creating social issue-oriented sellable products

Establishing the OYO brand is a major theme in our growth strategy, and I am convinced that

properly creating sellable products and steadily achieving results in our four social issue solutions-ori-

ented business segments will organically lead to cementing this brand. In fact, we are receiving

more and more inquiries from private companies who say things like “For earthquakes, it’s got to be

OYO” or “OYO’s technology and experience is indispensable for natural disaster prevention and

mitigation.”

We believe that maximizing organizational strength through the Division System is key to accel-

erating creation of such sellable products. Geographical barriers were prevalent in the Branch System,

so to replace that with the walled-off Division System would be pointless. Therefore, in January

2020, we have established the Business Domain Coordination Headquarters. This Business Domain

Coordination Headquarters coordinates between the company divisions and other Group compa-

nies, maximizing synergy by supervising strategies and measures.

As the fourth industrial revolution progresses with increased implementation of IoT, AI, 5G and

other technologies, we are making various industry-leading efforts aimed at becoming the interna-

tional de facto standard for 3D ground information technology. First, we have been developing a

business foundation for our technology and know-

how, for example compiling a database of ground

information, collecting monitoring information

from various sensors and opening a 3D exploration

verification center. Upon this foundation, we are

developing and selling 3D geological analysis soft-

ware as well as actively participating in the Building

Information Modeling (BIM) international stan-

dardization organization, “building SMART Inter-

national.” Here, we receive full support from

BRGM, the French geological survey, with whom

we co-established a French subsidiary (equity

method affiliate), a joint venture between Japan

and France, so to speak.

The world is now recognizing the importance

and necessity of this 3D ground information tech-

nology and has begun full-fledged efforts to realize

and introduce it, resulting in our technology receiv-

ing a great deal of attention. We expect a diverse

market utilizing this technology, a major new fron-

Q3



What initiatives and plans do you have for your four basic strategies?

Achieving synergy for growth with the Business Domain Coordination Headquarters in the growth strategy

Aiming to be the de facto standard for 3D ground information technology in the technology strategy

tier, to launch in the near future.

Furthermore, this 3D ground technology is already being implemented on a commercial basis in

the resource field, for example as a 4D seabed oil reservoir exploration service (a service that adds

3D time-lapse monitoring, greatly reducing resource exploration costs), one early fruit of our focus

on sellable product-making. As we strive to become the de facto standard, we will at the same time

actively promote this type of concrete, sellable product commercialization.

Clarifying sellable products also helped us turn our overseas business, long in the red, profitable in

2019. Our domestic divisions have begun efforts to take sellable products created and cultivated in

Japan to overseas markets. Specifically, we are moving toward selling products and services related

to infrastructure maintenance, natural disaster prevention and mitigation and the environment in

Azerbaijan, Taiwan, Uzbekistan, the Philippines and elsewhere.

In January 2020, we set up the International Business Development Department in the Business

Promotion Headquarters, intending to further accelerate these divisions’ overseas product expansion

strategies.

We are promoting efforts to strengthen corporate governance throughout the Group. In terms of

structure, in addition to increasing the number of outside directors and establishing the Nomination

and Remuneration Advisory Committee (voluntary), from January 2020 we incorporated divisions

Market growth New business

potential

Stimulation of risk communication

Risk reduction (e.g. construction

accidents)

Productivityimprovement

BIM/CIM expansion

BIM international standardization flow

(bSI)

Dramatic change in construction process

Reduction of long working hours

Inflow of labor

The spread of 3D ground information technology will reduce the risk of accidents and rework, improving the construction industry’s

productivity. Furthermore, the spread of BIM/CIM has the potential to alter the traditional construction process dramatically. 3D ground

information technology’s impact is to make the construction market attractive, promote market growth and lead to new businesses.

3D ground information technology



Impact of 3D Ground Information Technology

Taking sellable products, which we created in Japan, overseas in earnest in the global strategy

Focusing on creating a welcoming workplace that prioritizes rewarding, fulfilling work in the governance strategy

managing domestic and overseas Group companies into the Corporate Planning Headquarters to

further improve Group governance.

Regarding human resources in particular, the most important business resource, we are endeav-

oring, from the viewpoint of improving employee quality of life, to make our workplaces welcoming

with ICT and other tools to increase operational efficiency and reduce working hours, sophisticated

HR and childcare support systems and more. In addition, by promoting ESG management, we aim

to create a rewarding workplace where each employee can take pride in contributing to solving

social issues through their SDG-conscious efforts.

2020 is the final year of the fourth (last) medium-term management plan “OYO Jump 18” within

our long-term management plan “OYO 2020,” established 10 years ago. Unfortunately, our consol-

idated performance forecast for fiscal 2020 falls short of the final year targets set forth in “OYO

Jump 18,” both in terms of sales and operating income. However, with regard to our qualitative goal

of breaking away from what worked in the past to create a new model for growth, we are beginning

to produce solid results. Although some of the progress planned in “OYO Jump 18” has been de-

layed, we expect the reaping of rewards to accelerate from here on out and so will continue to

pursue and approach our goals.

At the beginning of 2020, we es-

tablished a project committee for the

new medium-term management plan

starting in 2021. By adding young

employees who are candidates for ex-

ecutive positions in the future, we

hope to shape an aspirational vision

through lively discussion that lines up

with feelings in the workplace.

At the moment, the extent of the

impact the novel coronavirus infection

will have on our business is unclear,

but we will adapt our measures as

necessary.

As always, we invite all stakehold-

ers in the OYO Group to expect much

of us, and ask for your continued sup-

port.



Q4Accelerating the reaping of rewards while continuing to pursue goals

Finally, what are your prospects for the future?

20202019201820172016201520142013201220112010

Conduct M&As to accelerate the business expansion strategy,and launch solution systems into overseas markets

OYO 2020Long-Term Management Vision of the OYO Group

Overview ofLong-Term

Business Plan

What it Aims to Be (long-term management vision)

– Step away from shrinking businesses built upon a style of past successful experience, and aim to expand businesses with a shift in style –

A global group of comprehensive and specialized companies involved in geoscience

Roadmap for Realizing the Vision

Period for attempting to implement various measures

Period for implementing trial results

Period for invigorating businesses

Search for businesses to be transformed from those built upon

past successful experience

OYO Hop104-year medium-term business plan

Replace shrinkingbusinesses built upon

past successful experiencewith transformed businesses

OYO Step144-year medium-term business plan

Expand businesses with the transformed style

OYO Jump18

3-year medium-term business plan

Implement endeavors to achieve OYO 2020, the long-term management vision,

based on the road map prepared in 2009

OYO 2020 is the Company’s long-term management vision

prepared in January 2009. It clearly details the vision which the

OYO Group should seek to realize toward 2020 by stepping away

from our successful experience in the past, as well as the basic

policy for realizing this vision. In order to contribute to realizing a

sustainable society for Japan and the world, we aim to become a

comprehensive and specialized group that provides solutions full

of ideas in various fields involved in geoscience.

The activity period under OYO 2020 is divided into four

phases: Plan: Approach, Trial: Hop, Develop: Step and Evolve: Jump.

Under OYO Hop 10, the Company is set to explore and attempt

to implement businesses replacing those built on the successful

experience of the OYO Group in the past. With OYO Step 14 that

follows, conventional businesses, or businesses built upon successful

experience, are to be replaced with businesses that have the

potential to grow. OYO Jump 18, the final medium-term business

plan, is designed to grow the businesses replacing conventional

ones.

Overview ofMedium-TermBusiness Plan

OYO Jump182018-2020

Basic Policy

Aim to achieve continuous growth by expanding from the results of the previous medium-term business plan

OYO Step 14 and providing solution services to solve social issues

Basic Strategy

1 Growth strategy

Establish the OYO brand in the business fields expanded under OYO Step 14Promote business expansion in the domains covered by OYO Step 14, broken down into the following four segments:(Classification of segments changed in fiscal 2018)

InfrastructureMaintenance,Management,

andRenovation

NaturalResources

andEnergy

NaturalDisaster

Preventionand

Mitigation

Environ-ment

2 Technology strategy

Create new value and cultivate the market by establishing three-dimensional ground information technology

3 Global strategy

4 Governance

Reinforce corporate governance, including enhancement of QOL of employees


Medium- to Long-term Business Plan

20202019201820172016201520142013201220112010

Conduct M&As to accelerate the business expansion strategy,and launch solution systems into overseas markets

OYO 2020Long-Term Management Vision of the OYO Group

Overview ofLong-Term

Business Plan

What it Aims to Be (long-term management vision)

– Step away from shrinking businesses built upon a style of past successful experience, and aim to expand businesses with a shift in style –

A global group of comprehensive and specialized companies involved in geoscience

Roadmap for Realizing the Vision

Period for attempting to implement various measures

Period for implementing trial results

Period for invigorating businesses

Search for businesses to be transformed from those built upon

past successful experience

OYO Hop104-year medium-term business plan

Replace shrinkingbusinesses built upon

past successful experiencewith transformed businesses

OYO Step144-year medium-term business plan

Expand businesses with the transformed style

OYO Jump18

3-year medium-term business plan

Implement endeavors to achieve OYO 2020, the long-term management vision,

based on the road map prepared in 2009

OYO 2020 is the Company’s long-term management vision

prepared in January 2009. It clearly details the vision which the

OYO Group should seek to realize toward 2020 by stepping away

from our successful experience in the past, as well as the basic

policy for realizing this vision. In order to contribute to realizing a

sustainable society for Japan and the world, we aim to become a

comprehensive and specialized group that provides solutions full

of ideas in various fields involved in geoscience.

The activity period under OYO 2020 is divided into four

phases: Plan: Approach, Trial: Hop, Develop: Step and Evolve: Jump.

Under OYO Hop 10, the Company is set to explore and attempt

to implement businesses replacing those built on the successful

experience of the OYO Group in the past. With OYO Step 14 that

follows, conventional businesses, or businesses built upon successful

experience, are to be replaced with businesses that have the

potential to grow. OYO Jump 18, the final medium-term business

plan, is designed to grow the businesses replacing conventional

ones.

Overview ofMedium-TermBusiness Plan

OYO Jump182018-2020

Basic Policy

Aim to achieve continuous growth by expanding from the results of the previous medium-term business plan

OYO Step 14 and providing solution services to solve social issues

Basic Strategy

1 Growth strategy

Establish the OYO brand in the business fields expanded under OYO Step 14Promote business expansion in the domains covered by OYO Step 14, broken down into the following four segments:(Classification of segments changed in fiscal 2018)

InfrastructureMaintenance,Management,

andRenovation

NaturalResources

andEnergy

NaturalDisaster

Preventionand

Mitigation

Environ-ment

2 Technology strategy

Create new value and cultivate the market by establishing three-dimensional ground information technology

3 Global strategy

4 Governance

Reinforce corporate governance, including enhancement of QOL of employees



Kinemetrics

For more details, refer to pages P32-33

Global Environment Business Division

NS Environment Corporation

Sales Composition Ratio

10.2 billion yen

19.1%

8.9 billion yen

16.6%

11.7 billion yen

21.8%

Aim to be a company whose social values are easily understood by society, by differentiating our segments in line with the business market

Under our previous medium-term business plan OYO Step 14, OYO Corporation determined

business fields to pursue, considering the issues that the world must address in order to construct

a sustainable society. Based on this, from 2018, which is the first year of the current medi-

um-term business plan OYO Jump 18, we are conducting our business in four segments: Infra-

structure Maintenance, Management, and Renovation, Natural Disaster Prevention and Mitiga-

tion, Environment, and Natural Resources and Energy.

By increasing the presence of our groups in each market, we will clearly define OYO

Group’s values and roles within society, and aim to enhance our corporate value.

Social Issuesto Tackle

Role of theOYO Group

Construct a sustainable society

Engineer a harmony between the Earth and human society

New segments based on the business domains

Overseas group companiesDomestic group companiesDivisions

ISegment IISegment IIISegment IVSegment

Infrastructure Maintenance,Management, and Renovation

Provide solution services to support maintenance and management (enhancement and replacement) of social infrastructure and various facilities

GSSI、OYOPacific、Fong Consult

Infrastructure Development Business DivisionInfrastructure Maintenance Business Division

Tohoku Boring Co., Ltd, KCS Co. LtdKOEI Consultant Co., Ltd

OYO Geo-Monitoring Service Corporation, etc.


Natural DisasterPrevention and Mitigation

Provide solution services to support society in becoming more resilient to natural disasters

Water and Disaster Engineering Business DivisionEarthquake Risk Management Division

OYO Seismic Instrumentation CorporationOYO RMS Corporation

OYO International Corporation

Environment

Provide solutions to support environmental preservation (load reduction)


Natural Resourcesand Energy

Provide solution services to support development, preservation, and effective use of natural resources and energy


Energy Business Division

GeometricsNCS SubSea

Robertson Geologging

Clarify values and roles within society and enhance corporate value

Net Sales forFiscal 2019

53.8 billion yen

Infrastructure Maintenance,Management, and RenovationNatural Resources and Energy

Natural DisasterPrevention and

MitigationEnvironment

22.9 billion yen

42.5%


Four Business Segments

Kinemetrics




Sales Composition Ratio

10.2 billion yen

19.1%

8.9 billion yen

16.6%

11.7 billion yen

21.8%

Aim to be a company whose social values are easily understood by society, by differentiating our segments in line with the business market

Under our previous medium-term business plan OYO Step 14, OYO Corporation determined

business fields to pursue, considering the issues that the world must address in order to construct

a sustainable society. Based on this, from 2018, which is the first year of the current medi-

um-term business plan OYO Jump 18, we are conducting our business in four segments: Infra-

structure Maintenance, Management, and Renovation, Natural Disaster Prevention and Mitiga-

tion, Environment, and Natural Resources and Energy.

By increasing the presence of our groups in each market, we will clearly define OYO

Group’s values and roles within society, and aim to enhance our corporate value.

Social Issuesto Tackle

Role of theOYO Group

Construct a sustainable society

Engineer a harmony between the Earth and human society

New segments based on the business domains

Overseas group companiesDomestic group companiesDivisions

ISegment IISegment IIISegment IVSegment

Infrastructure Maintenance,Management, and Renovation

Provide solution services to support maintenance and management (enhancement and replacement) of social infrastructure and various facilities

GSSI、OYOPacific、Fong Consult

Infrastructure Development Business DivisionInfrastructure Maintenance Business Division

Tohoku Boring Co., Ltd, KCS Co. LtdKOEI Consultant Co., Ltd

OYO Geo-Monitoring Service Corporation, etc.


Natural DisasterPrevention and Mitigation

Provide solution services to support society in becoming more resilient to natural disasters

Water and Disaster Engineering Business DivisionEarthquake Risk Management Division

OYO Seismic Instrumentation CorporationOYO RMS Corporation


Environment

Provide solutions to support environmental preservation (load reduction)


Natural Resourcesand Energy

Provide solution services to support development, preservation, and effective use of natural resources and energy



GeometricsNCS SubSea

Robertson Geologging

Clarify values and roles within society and enhance corporate value

Net Sales forFiscal 2019

53.8 billion yen

Infrastructure Maintenance,Management, and RenovationNatural Resources and Energy

Natural DisasterPrevention and

MitigationEnvironment

22.9 billion yen

42.5%


Strategy by SegmentChapter 4

Cases of Endeavors in the Infrastructure Maintenance, Management, and Renovation Segment

Segment

I

2016 2017 2018

19.620.2 19.2

899

Net Sales

Number of Employees

2019

22.9

Building an underground facility information service with Hitachi

While use of underground space is becoming increasingly common in redevelopment of urban areas, various types of pipes buried

under roads such as water, gas, sewage, electrical and communication lines are a major obstacle to construction. Hitachi and OYO have

signed a memorandum of

understanding to collaborate

on a service that combines our

technologies and expertise in

platforms to obtain, manage

and provide to customers

information on underground

facilities in an integrated

fashion. Following trials, we

plan to launch the service in

metropolitan areas in 2020

and progressively expand from

there.

Developing and selling the OCTAS© Modeler

A 3D ground model construction / management system that supports the spread of BIM/CIM

In response to the growth of the international Building Information Modeling

(BIM) market and efforts to improve the productivity of society as a whole

using ICT, more businesses in Japan’s construction industry are utilizing

BIM/CIM*. OYO, therefore, in addition to the high-performance products

we have provided so far, has developed new 3D geological model software

that is accessible to more than just geology experts and targets high-demand

urban areas. Both reasonably priced and substantial in support, we believe

that its penetration will expand and establish the scope of the BIM/CIM

market.

An abbreviation of Building Information Modeling / Construction Information Modeling, this innovation improves the efficiency and sophistication of construction production systems by sharing and developing 3D models at each stage of the construction process, from survey and design to construction and maintenance.

Developing an AI-based infrastructure inspection system

According to the Ministry of Land, Infrastructure,

Transport and Tourism, there are about 11,000 road

tunnels nationwide and in 2033, 42% of them will be

over 50 years old. However, the financial difficulties

of local governments and lack of human resources

makes maintenance a challenge. In light of this, we

have developed a system that uses AI to determine

automatically the concrete soundness of tunnels and

other infrastructure in order to improve inspection

productivity, ensure sufficient personnel and maintain

technology quality.Hammering testAutomatic test screen

• Stratified geological structure and supporting layers of the plain

• Voxel model of soil classifications and ground strength

A plain with a relatively simple geological structure

3D geology / ground modeling

OCTAS©Modeler

Customers

Social infrastructuremaintenance platform

(Hitachi)AI analysis / identification

Underground facility information platform

ElectricpotentialResistivityVibration

StrengthCom-positionGeology

Geological boundaryBuried pipe Abandoned pipeCavity / other buried object

Geological boundaryOther buried objectBuried pipeCavity

AttributesSizePositionLinkage

LinkagePosition correction, three-dimensionalization

Dataprovision

Undergroundradar

exploration

Ground informationICT platform

(OYO)

Radar images

(fiscal year)

(billion yen)

(people)

2,235Entire OYO Group

(as of December 31, 2019)

Major Services

• Investigation on aging infrastructures, building infrastructure maintenance and management systems

• Investigation, design and measuring services for establishing disaster-resilient infrastructure

• Development and sale of non-destructive test equipment, etc.

Major Customers

• Wide-ranging infrastructure managers (National government agencies, local governments, private-sector companies)

and others


Leveraging Group synergy to expand

business inside and outside Japan

Both in Japan and abroad, demands for countermeasures against infrastructure

aging and for replacement of them are expanding. By 2030, the infrastructure

maintenance market is expected to reach 5 trillion yen in Japan and 200 trillion

yen globally.

Under these circumstances, our segment is performing well domestically

due in part to a large-scale allocation from the national resilience budget.

Overseas, while GSSI’s performance, strong until last year, has stagnated

somewhat due to factors like the U.S.-China economic friction, two Singaporean

subsidiaries newly added to the group are enjoying strong demand and they

are steadily expanding business through Group synergy such as robust technical

exchange with individual divisions.

In the future, we will develop new services that utilize our unique

technologies, such as 3D underground facility mapping and ICT-based structure

inspection, in order to capture more demand in the infrastructure maintenance

market. Furthermore, in view of the rapid expansion of BIM/CIM in Japan

and overseas, we are deploying our proprietary 3D geophysical exploration

technology and 3D geological analysis systems extensively to secure our

advantage in the infrastructure maintenance market.

Hiroyuki Tamura

Executive Officer and Head of Infrastructure Development Business Division

OYO Corporation

Constructionmachinery

manufacturers

Real estatecompanies

Roadoccupiers

Contractors

Designers

*


Cases of Endeavors in the Infrastructure Maintenance, Management, and Renovation Segment

Segment

I

2016 2017 2018

19.620.2 19.2

899

Net Sales

Number of Employees

2019

22.9

Building an underground facility information service with Hitachi

While use of underground space is becoming increasingly common in redevelopment of urban areas, various types of pipes buried

under roads such as water, gas, sewage, electrical and communication lines are a major obstacle to construction. Hitachi and OYO have

signed a memorandum of

understanding to collaborate

on a service that combines our

technologies and expertise in

platforms to obtain, manage

and provide to customers

information on underground

facilities in an integrated

fashion. Following trials, we

plan to launch the service in

metropolitan areas in 2020

and progressively expand from

there.

Developing and selling the OCTAS© Modeler

A 3D ground model construction / management system that supports the spread of BIM/CIM

In response to the growth of the international Building Information Modeling

(BIM) market and efforts to improve the productivity of society as a whole

using ICT, more businesses in Japan’s construction industry are utilizing

BIM/CIM*. OYO, therefore, in addition to the high-performance products

we have provided so far, has developed new 3D geological model software

that is accessible to more than just geology experts and targets high-demand

urban areas. Both reasonably priced and substantial in support, we believe

that its penetration will expand and establish the scope of the BIM/CIM

market.

An abbreviation of Building Information Modeling / Construction Information Modeling, this innovation improves the efficiency and sophistication of construction production systems by sharing and developing 3D models at each stage of the construction process, from survey and design to construction and maintenance.

Developing an AI-based infrastructure inspection system

According to the Ministry of Land, Infrastructure,

Transport and Tourism, there are about 11,000 road

tunnels nationwide and in 2033, 42% of them will be

over 50 years old. However, the financial difficulties

of local governments and lack of human resources

makes maintenance a challenge. In light of this, we

have developed a system that uses AI to determine

automatically the concrete soundness of tunnels and

other infrastructure in order to improve inspection

productivity, ensure sufficient personnel and maintain

technology quality.Hammering testAutomatic test screen

• Stratified geological structure and supporting layers of the plain

• Voxel model of soil classifications and ground strength

A plain with a relatively simple geological structure

3D geology / ground modeling

OCTAS©Modeler

Customers

Social infrastructuremaintenance platform

(Hitachi)AI analysis / identification

Underground facility information platform

ElectricpotentialResistivityVibration

StrengthCom-positionGeology

Geological boundaryBuried pipe Abandoned pipeCavity / other buried object

Geological boundaryOther buried objectBuried pipeCavity

AttributesSizePositionLinkage

LinkagePosition correction, three-dimensionalization

Dataprovision

Undergroundradar

exploration

Ground informationICT platform

(OYO)

Radar images

(fiscal year)

(billion yen)

(people)



Major Services

• Investigation on aging infrastructures, building infrastructure maintenance and management systems

• Investigation, design and measuring services for establishing disaster-resilient infrastructure

• Development and sale of non-destructive test equipment, etc.

Major Customers

• Wide-ranging infrastructure managers (National government agencies, local governments, private-sector companies)

and others


Leveraging Group synergy to expand

business inside and outside Japan

Both in Japan and abroad, demands for countermeasures against infrastructure

aging and for replacement of them are expanding. By 2030, the infrastructure

maintenance market is expected to reach 5 trillion yen in Japan and 200 trillion

yen globally.

Under these circumstances, our segment is performing well domestically

due in part to a large-scale allocation from the national resilience budget.

Overseas, while GSSI’s performance, strong until last year, has stagnated

somewhat due to factors like the U.S.-China economic friction, two Singaporean

subsidiaries newly added to the group are enjoying strong demand and they

are steadily expanding business through Group synergy such as robust technical

exchange with individual divisions.

In the future, we will develop new services that utilize our unique

technologies, such as 3D underground facility mapping and ICT-based structure

inspection, in order to capture more demand in the infrastructure maintenance

market. Furthermore, in view of the rapid expansion of BIM/CIM in Japan

and overseas, we are deploying our proprietary 3D geophysical exploration

technology and 3D geological analysis systems extensively to secure our

advantage in the infrastructure maintenance market.

Hiroyuki Tamura

Executive Officer and Head of Infrastructure Development Business Division

OYO Corporation

Constructionmachinery

manufacturers

Real estatecompanies

Roadoccupiers

Contractors

Designers

*



An image from the systemThe system displays regional information required by

local governments during a disaster on a map in an integrated fashion

In the face of worsening natural disasters, we are working with Toyota and KDDI to develop and launch a disaster response information

support system for local governments that supports them in building highly efficient disaster prevention systems including timely

evacuation decisions, traffic restrictions

and appropriate distribution of relief

supplies. This system monitors a region’s

at-risk areas with disaster prevention IoT

sensors and captures movement such

as resident evacuation status and traffic

patterns in near real-time, enabling rapid

understanding of the situation from before

heavy rains or a typhoon occur until after

recovery.

BCP solution “ServiBers”

We have developed and provided “ServiBers,” a service that

uses ICT to develop traditional analog disaster response,

a cause of information convolution and confusion, into

speedy, accurate emergency response. This application is

a groundbreaking service that automates the process of

collecting, aggregating and reporting damage by connecting

affected areas with the disaster response headquarters

using ICT, supporting decisions on what actions should be

taken in each phase, from first response to restoration and

reconstruction and even business continuity management

(BCM).

In 2019, Typhoons No.15 (Faxai) and No.19 (Hagibis) caused large-scale storm

and flood damage in Japan, while overseas, there were unusual heat waves,

droughts, floods and large forest fires.

Against this backdrop, the Group's Natural Disaster Prevention and

Mitigation Segment continued to increase sales and income from last year.

In Japan in particular, we were able to improve our business performance

significantly with orders for national resilience projects and much recovery

support work after the typhoons.

Going forward, we will grow this business by marketing new risk

information services for the increasing and intensifying natural disasters, such

as the new disaster response information support service for local governments

we began selling in September 2019 in collaboration with Toyota and KDDI,

and BCP solutions for private companies.

Overseas, we are working with local universities and government agencies

to develop a monitoring system for large forest fires, a global issue, so the scope

of the Group’s Natural Disaster Prevention and Mitigation Segment business is

gradually widening.

The SDGs suggest that solving social issues leads to our business growth. In

this segment, we will contribute to solving global issues by expanding our natural

disaster prevention and mitigation business,

enhancing our brand at the same time.

2016 2017 2018

332

7.99.29.7

2019

11.7

Landslide/slope collapse countermeasure servicesIn order to prevent disasters due to slope collapse, it is

important to identify the mechanism leading to the collapse,

implement preventive work and understand the hidden

risks of the region beforehand. Our wide range of solutions

includes geological surveys and countermeasure design for

at-risk slopes, development of landslide monitoring sensors,

design / inspection / soundness surveys of erosion prevention

facilities and development of landslide evacuation support

systems to ensure everyone gets out in time in the event of

a disaster.

From immediately after an earthquake occurs, the actions that the company (disaster response headquarters) should take are displayed on the monitor (screen) of the PC or other device in line with the amount of time elapsed. The person in charge responds promptly to the actions displayed, checking them off as they are completed.

An image of display just after a disaster3D model of landslide prevention work

Natural Disaster Preventionand MitigationII

Segment

Major Customers

• National and local governments throughout Japan• National research institutions (National Research Institute for Earth Science and

Disaster Resilience, U.S. Geological Survey etc.) • Private enterprises (manufacturers, real estate companies, financial institutions, etc.)

and others

Major Services

• Support for national and local government in preparing disaster prevention plans and predicting damages from earthquake, tsunami, fire and other disasters

• Investigations, loss estimations and consultations on countermeasures regarding natural disaster risk

• Development, installation, and renewal of monitoring systems

Preventing and mitigating disaster by strengthening

development and provision of new technologies and services

Tadashi Yoshioka

Senior Executive Officer and Head ofWater and Disaster Engineering Business Division

OYO Corporation

Net Sales

(billion yen)

(fiscal year)

Number of Employees

(people)



Cases of Endeavors in the Natural Disaster Prevention and Mitigation Segment

Disaster response information service for local governments in collaboration with Toyota and KDDI


Green infrastructure services that support the creation of disaster-resistant forests and trees

Due to climate change, recent years have seen increased

wind damage from typhoons and explosive low-pressure

systems. Typhoon No.15 (Faxai) and Typhoon No.19 (Hagibis)

in 2019 knocked down many trees along roads and railroads.

Many cedar trees fell in mountain forests. One of the reasons

for roadside trees falling was hollowing by wood-rotting

fungi, while the reason so many cedar trees fell is believed to

be widespread trunk rot disease due to the decline of forestry.

Therefore, we are deploying services to grow

wind-resilient trees such as roadside tree health diagnosis,

disaster-resistant forest cultivation and a government support

system for forest management.

With concerns about the environmental destruction caused by global

warming and industrialization raising environmental awareness worldwide,

ESG investment is growing in Japan, and accordingly, our segment’s market

opportunities are expanding.

In 2019, the segment’s performance was driven by our environmental

revitalization support service that accelerated Japan’s Fukushima

reconstruction-related projects, while results for disaster waste disposal work

after the widespread flood and storm damage of Typhoon No.15 (Faxai) and

Typhoon No.19 (Hagibis) and asbestos removal services responding to building

upgrade needs remained strong.

Furthermore, social demands for environmental management and

biodiversity conservation are increasing the need for ecosystem and forest

conservation services every year. In particular, developments such as the new

biodiversity framework scheduled to be adopted at the 15th Conference of the

Parties to the Convention on Biological Diversity (CBD) (COP15) in October 2020

and consideration of ecosystem-based measures against climate change and for

disaster prevention and mitigation in Japan are likely to spur on this market.

The Group also possesses a variety of green infrastructure offerings related

to disaster-resistant city development, such as roadside tree health diagnostic

services and disaster-resistant forest development

technology. We will continue to take on the array

of global challenges, aiming not only to conserve

and restore biodiversity but create new value

through wise usage.

2016 2017 2018

626

9.69.7

8.5

2019

8.9

Cases of Endeavors in the Environment Segment

We are developing and providing a waste disposal plan support

system under the premise of the occurrence of large-scale

disasters. Based on information of ground models, topography,

and buildings that have been stored in a database, we predict

buildings that might be fully or partially destroyed and estimate

the quantity of waste. We then immediately calculate the

optimal plan for transportation of materials to temporary waste

sites. Through this service, we contribute to establishing a crisis

management system that aims for the shortest possible recovery.

Forestry management system, “Forest Cloud”Tree diagnosis service using handheld radar

Disaster-resistant forest development service

Segment

III Environment

Developing solutions to

global environmental issues

Major Customers

• Ministry of the Environment (waste and resource recycling)• Ministry of Land, Infrastructure, Transport and Tourism• Local governments throughout Japan• Private-sector companies (real estate-related companies, trading companies

and manufacturers, etc.)and others

Major Services

and others

• Natural environment, centering on preservation of biodiversity• Living environment, covering soil and groundwater contamination and waste• One-stop service for asbestos analysis and removal

Net Sales

(billion yen)

(fiscal year)

Number of Employees

(people)



Shinichi Iwashita

Executive officer and Head ofGlobal Environment Business Division

OYO Corporation

Disaster waste disposal plan / rapid treatment support servicesDisaster waste disposal plan support system


2016 2017 2018

As Japan’s nuclear power market shrinks, the renewable energy market,

especially the offshore wind power generation market, is surging. With

continued development of new offshore survey technology and investment

in new equipment from last year, we were able to improve the results of our

offshore wind power generation-related services significantly and expand our

market share in this field.

At the same time, in the field of nuclear energy, the issue of disposing

nuclear waste to be able to decommission reactors is drawing attention as a new

market opportunity. At present, 24 reactors are slated or being considered for

decommissioning, and the number of reactors operational for 40 or more years

is expected to increase in the future. According to a calculation by the Ministry of

Economy, Trade and Industry, the size of the market for decommissioning reactors

is 3 trillion yen, so we will continue to pay close attention.

Overseas, the slump in resource prices since 2014 has increased demand for

cost-cutting technologies. Of these, our Group's 4D seabed exploration service

(an oil reservoir monitoring service that adds a time axis to high-resolution 3D

exploration) has gained the appreciation of major oil companies, boosting this

segment’s results. Although the outlook for the resource market is uncertain due

to China’s economic slowdown and U.S.-China trade friction, we will strive to

improve the performance of our overseas Group

companies by introducing new products and

services that cut costs and raise efficiency.

283

8.7

10.9

8.2

10.2

2019

Masahiro Oshima

Executive Officer and Head ofEnergy Business Division

OYO Corporation

Cases of Endeavors in the Natural Resources and Energy Segment

With the rapid expansion of the offshore wind power

generation market in Japan, OYO Corporation has

newly made capital investments into marine scaffolding

for exploration where demand has increased. In

addition, we have developed a new seabed examination

technology that helps earthquake-resistant design

conform to the Building Standards Act. In addition

to examining the geology of the seabed, OYO Group

offers various technological one-stop services from

business evaluations to environmental services for

supporting the smooth business operations of its clients.

4D seabed exploration services

We have developed a new 4D exploration technology

that monitors changes in the stratum structure over

time visualized in high-resolution 3D. Our 4D seabed

exploration service, which uses this technology to explore

seabed oil reservoirs, is attracting a great deal of attention

as a new solution for reducing oil mining risk. While the

market of this service has been

limited to Northern Europe and

the U.S. until now, we anticipate a

market expansion to Southeast Asia

and Africa.

Radioactive waste / decommissioning business support services

Nuclear power plants older than 40 years

are increasing and many are expected to be

decommissioned. The decommissioning market

alone is said to be worth 3 trillion yen. Even after

decommissioning is decided and the plant is

shut down, the operator must safely manage the

radioactive materials so they do not leak outside

the facility. In light of this, our Group will work to

solve the challenges associated with this problem

using our advanced geological expertise, 3D

ground information technology and earthquake

resilience technology.

Natural Resources and EnergySegment

IVMajor Customers

• Power companies• Oil companies• Natural resource developers

• Construction companies• Government agencies and national

research institutionsand others

Major Services

and others

• High-level geological consultation on the location of power plants, etc.• Research and development on methane hydrate, support for the

commercialization of renewable energy • Development of systems for natural resource exploration, three-dimensional

subsea investigation service, etc.

Strengthening solutions corresponding

to new energy policies

Net Sales

(billion yen)

(fiscal year)

Number of Employees

(people)




New seabed examination technologyutilizing seismometers

Steel oar utilized for seabed examinations


OYO Group’s management philosophy is “Engineer a Harmony between Human Society and

the Natural Environment, Sustain Safety and Security of Society from an Engineering

Approach and Achieve Social Contributions through Development of the Company’s

Business.” Based on this philosophy, we have established the OYO Group Corporate Code of

Conduct to move toward achieving a sustainable society. Addressing issues of “Environ-

ment,” “Society” and “Governance” connects directly to the Group's business activities.

We will continue to engage in ESG management proactively based on our new code of

conduct, leading to the sustainable development of society and growth of the Group.

We prepare for the unknown challenges of the future byembracing science, advancing safe, sustainable, andenvironmentally conscious technologieswhile maintaining the utmost integrity.

OYO Group Corporate Code of Conduct, “Pride”

Pursuing sustainable corporate growth


Code of Conduct 1

1) Rethink the possibilities• Anything is possible when we work together and persevere.

2) Cultivate new markets and new ideas• Pursue new markets, new technologies, and new methodologies.• Contribute to sustainable development goals (SDGs) with business ini-

tiatives that aim to solve social problems.• Cultivate markets in which our technologies can provide continuing

value to society.

3) Develop novel technologies• Develop novel technologies. Respect diversity and originality. Discover

value in cultivating and sharing new ideas.• Be open to any and all feedback, from all sources, including the market

and customers.

4) Forge innovations that transcend boundaries• Create value by collaborating, exchanging ideas, and engaging in

co-creation.

Code of Conduct 2

1) Look to the future, not the past• In an ever-changing business environment, we must learn to move be-

yond the past and look to the future. Our past achievements do not guarantee our future success. Relying on the past can impede our fu-ture. Always look for better ways of doing things, be open to new ideas, and evaluate the past with a critical mindset.

• Every failure presents a learning opportunity - analyzing root causes of failures and building upon setbacks will pave the way for future success-es.

2) Be committed to growing as a company• We are committed to growing as a company by continuing to invest in

technological innovations, investing in our people, and keeping abreast of market expectations.

3) Actively utilize outside resources• We aim to maintain a broad perspective and actively utilize all available

resources to grow and create the best solutions and services for the customers and regions that we serve.

• Keep abreast of market needs, elevate and communicate innovations, and aim to solve large-scale societal problems with innovative and sus-tainable solutions.

4) Adapt to change• We welcome and embrace change and adapt accordingly in order to

stay strong, survive and thrive. • We are interested in innovations from all fields in addition to our own

and we welcome the opportunity to interact with and learn from ev-eryone in order to evolve and adapt as necessary.

Building beyond past successes(EVOLUTION)2Making possible the impossible

(CHALLENGE)1

OYO Group Corporate Code of Conduct

Overview of ESG-related Endeavors

OYO Group’s management philosophy is “Engineer a Harmony between Human Society and

the Natural Environment, Sustain Safety and Security of Society from an Engineering

Approach and Achieve Social Contributions through Development of the Company’s

Business.” Based on this philosophy, we have established the OYO Group Corporate Code of

Conduct to move toward achieving a sustainable society. Addressing issues of “Environ-

ment,” “Society” and “Governance” connects directly to the Group's business activities.

We will continue to engage in ESG management proactively based on our new code of

conduct, leading to the sustainable development of society and growth of the Group.

We prepare for the unknown challenges of the future byembracing science, advancing safe, sustainable, andenvironmentally conscious technologieswhile maintaining the utmost integrity.

OYO Group Corporate Code of Conduct, “Pride”

Pursuing sustainable corporate growth


ESG AwarenessChapter 5

Code of Conduct 4

1) Respect human rights• We respect and value the rights of individuals of all origins and diverse

backgrounds. We value and applaud diversity and celebrate our differ-ences. We pledge to never discriminate against anyone on the basis of race, gender, age, nationality, religion, disability or any other protected class.

• We pledge to create a workplace in which all individuals, of all back-grounds and ideologies can support and nurture one another and thrive together.

2) Incorporate diverse values and ideas• Actively seek diverse opinions and challenge existing methods and

solutions in search of better ones. Incorporate diverse values and ideas into all aspects of our work so that we can continually evolve in order to meet the challenge of a changing world.

3) Create a pleasant workplace• Prioritize health and human safety above all else and work to prevent

accidents and injuries in the workplace and at the job site.• Work to create a pleasant workplace in which every employee respects

one another, and everyone is fully cognizant of respecting and adher-ing to all applicable laws and regulations.

• Support work-life synergy by optimizing work hours and encouraging strong physical and mental health for all employees.

• We prohibit any and all forms of harassment in the workplace including harassment of any individual or group based on national origin, race, color, religion, age, gender, sex, sexual orientation, pregnancy, ap-pearance, disability, sexual identity, marital status or any other protect-ed status.

4) Establish a rewarding workplace• Increase employee motivation and create a workplace that inspires a

sense of achievement. Develop appropriate evaluation methodologies and ensure commensurate pay.

Code of Conduct 3

1) Always keep stakeholders in mind• Engage in our work with fervor and integrity, be mindful of all stakehold-

ers including customers, shareholders, trading partners, and the societies which we serve.

• Strive to enhance the quality of results and always improve operations to exceed customer expectations.

2) Observe all laws and regulations• Act in accordance with laws, regulations, social norms, and all company

rules to earn and keep the trust of all stakeholders.• Act with fairness and integrity, maintain the highest ethics in our work

and contribute to the creation of sustainable solutions.

3) Engage in thorough risk assessment and risk management• Regularly evaluate and assess risks to the Company, establish preventa-

tive measures, and verify the status of those efforts. Diligently protect and manage all Company intellectual property and information as well as that of our customers and trading partners.

• In the event of emergencies such as large-scale natural disasters, mobi-lize all available resources including the entire Company to support busi-ness continuity and also regional recovery and reconstruction.

4) Avoid any and all illegal activities and associations with any and all groups or individuals who seek to profit from illegal activities including violence, force and fraud (“anti-social forces”)

• We will have no dealings whatsoever with any groups or individuals that seek to profit from illegal activities such as violence, force and fraud. Such groups include criminals, organized crime groups (e.g. Boryokudan/Yaku-za, mafia, gangs), and any and all other groups or individuals that have the potential for violence and/or illegal social unrest (“anti-social forces”).

• We will work with and coordinate as necessary with any and all requisite agencies, including law enforcement authorities and legal counsel, to protect our Company and employees from anti-social forces and their potential harm and damages.

• We will never engage in backroom deals or open ourselves to undue demands or influences by anti-social forces.

• We will always ensure the safety and wellbeing of any employees who come under threat of anti-social forces.

Respecting diverse values and contributing to society(DIVERSITY)

4Sincere regard for stakeholders(INTEGRITY)3

Becoming a company whose value is easily understood by society through business management that finds its origins in social issues

Target corporate image of OYO Group 1


Become a company whose value is easily understood by society

Becoming a company that is easy to work for Sustainable Development Goals (SDGs) represent

the 17 goals that should be addressed by a variety

of stakeholders. The 2030 Agenda for Sustainable

Development, a plan of action for people, the planet

and prosperity through 2030, was adopted by the

United Nations Sustainable Development Summit

held in September 2015, with the participation of the

heads of state of over 150 UN member countries.

Business segment and Relevance with SDGs (Corresponding goals)

IISegment IIISegment IVSegment

Natural DisasterPrevention

and MitigationEnvironment

NaturalResourcesand Energy

InfrastructureMaintenance, Management,

and Renovation

SocialContribution

Activities

Support to natural disaster prevention for developing

countries, support to comprehensive learning in local communities, development of

workplace environment friendly to women, thorough

implementation of compliance, support to disaster prevention

by local communities, etc.

Establishment, maintenance and management,

replacement and other activities for social

infrastructure

Disasters by earthquake, volcano, storm, flood, soil, fire

and other causes

Purification of soil contamination, conservation of living environment, waste processing, conservation of natural environment, etc.

Mining exploration, oil development, renewable energy development, and

establishment and replacement of power generation facilities

ISegment

Businessmanagement that

finds its originsin social issues

Pursue SDGs in each business

Business development

Promote business management with an emphasis on ESG

The basics of business management


Business Management in Pursuit of Sustainable Development Goals to Improve Corporate Value

Becoming a company whose value is easily understood by society through business management that finds its origins in social issues



Become a company whose value is easily understood by society

Becoming a company that is easy to work for Sustainable Development Goals (SDGs) represent

the 17 goals that should be addressed by a variety

of stakeholders. The 2030 Agenda for Sustainable

Development, a plan of action for people, the planet

and prosperity through 2030, was adopted by the

United Nations Sustainable Development Summit

held in September 2015, with the participation of the

heads of state of over 150 UN member countries.

Business segment and Relevance with SDGs (Corresponding goals)

IISegment IIISegment IVSegment

Natural DisasterPrevention

and MitigationEnvironment

NaturalResourcesand Energy

InfrastructureMaintenance, Management,

and Renovation

SocialContribution

Activities

Support to natural disaster prevention for developing

countries, support to comprehensive learning in local communities, development of

workplace environment friendly to women, thorough

implementation of compliance, support to disaster prevention

by local communities, etc.

Establishment, maintenance and management,

replacement and other activities for social

infrastructure

Disasters by earthquake, volcano, storm, flood, soil, fire

and other causes

Purification of soil contamination, conservation of living environment, waste processing, conservation of natural environment, etc.

Mining exploration, oil development, renewable energy development, and

establishment and replacement of power generation facilities

ISegment

Businessmanagement that

finds its originsin social issues

Pursue SDGs in each business

Business development

Promote business management with an emphasis on ESG

The basics of business management




Activities and Initiatives

In order to maintain and enhance management efficiency, OYO Corporation has established the Board of Directors comprised of

six directors who are well-versed in OYO Corporation’s businesses and three outside directors who are independent and pose no

danger of generating conflicts of interest with general shareholders. In addition, one full-time corporate auditor and two outside

corporate auditors, who are independent officers, attend meetings of the Board of Directors. Ordinary meetings of the Board of

Directors are held at least once every three months, while extraordinary meetings of the Board of Directors are held when necessary,

and in addition to supervising the execution of duties by directors, the board makes decisions on important matters concerning

OYO Corporation’s management policies, etc. In fiscal 2019, a total of 13 meetings were held. Public meetings with outside direc-

tors are held as separate voluntary meetings, and we endeavor to maximize the abundant experience of outside directors for OYO

Corporation’s management. Receiving supervision and advice about management from an external objective perspective is an im-

portant opportunity for governance, so we added one independent outside director starting in fiscal 2018. As of March 27, 2020,

there are nine directors (three of which are independent outside directors).

Board of Directors

OYO Corporation has implemented a system of the Board of Executive Officers with the aim to specialize functions, accel-

erate decision-making, and enhance supervision and supervisory functions. The Board of Executive Officers is comprised of

six directors (all of whom serve concurrently as executive officers) and eighteen executive officers (as of March 27, 2020).

With regard to execution of operations, meetings of the Board of Executive Officers are held at least once a month as a rule,

separate from meetings of the Board of Directors, to discuss overall management issues and to deliberate the execution of

material operations following the policies decided by the Board of Directors.

Board of Executive Officers

The Board of Corporate Auditors is comprised of three corporate auditors, two of whom are independent outside corporate

auditors (as of March 27, 2020). The Board of Corporate Auditors holds regular meetings once a month as a rule. Corporate

auditors also attend all meetings of the Board of Directors as a rule, and its system is such that the corporate auditors

monitor the management and the execution of duties by directors for adequacy and appropriateness.

Board of Corporate Auditors

Pursuant to the Companies Act in Japan, OYO Corporation has established a board of corporate auditors

and adopted an executive officer system. The Company works to enhance management transparency,

clarify responsibilities and quicken decision-making by separating and securing decision-making and

supervisory functions on management by the Board of Directors, monitoring of management by the

Board of Corporate Auditors, and execution of duties by executive officers, respectively.

Basic Concept

Fiscal 2018 (62nd fiscal year) Fiscal 2019 (63rd fiscal year) Fiscal 2020 (64th fiscal year)

Directors (term of office: one year) 8 (including 3 outside directors) 8 (including 3 outside directors) 9 (including 3 outside directors)

Corporate auditors (term of office: 4 years) 4 (including 2 outside corporate auditors) 3 (including 2 outside corporate auditors) 3 (including 2 outside corporate auditors)

OYO Corporation endeavors to enhance its corporate governance, positioning it as an important theme of management in order to

achieve continuous growth and enhance corporate value over the medium to long term as it aims to become a “company that is

trusted by society and contributes to constructing a sustainable society with security and safety” while maintaining an appropriate

relationship with stakeholders including shareholders, investors, customers, employees, business partners and local communities.

* All of the outside officers were designated as independent officers.

Corporate Governance


Internal Control System

OYO Corporation passed a resolution for a basic policy on internal control at a meeting of the Board of Directors held on May 12,

2006, and is working to reinforce the risk management structure, ensure thorough compliance-based management, and reinforce

the OYO Group business management structure based on said policy. In addition, at the February 13, 2020, meeting of the Board

of Directors, OYO Corporation passed a resolution for revision of the basic policy on internal control.

Status of Preparation of Internal Control System

OYO Corporation conducts risk management in each division by extracting and analyzing risks, as well as studying and periodically

reviewing countermeasures, and its management status is deliberated at regular management meetings. In addition, the OYO

Corporate Code of Conduct has been established to be observed by all employees and officers of the OYO Group, and a Compli-

ance Manual has been prepared to ensure fully informed compliance-based management (see p. 49 for details).

Status of Preparation of Risk Management System

The Compliance Office conducts audits in accordance with an internal audit program to verify/assess that activities related to

business operations and accounting operations are conducted legally and rationally and to improve the situation. The Compliance

Office and corporate auditors regularly exchange information and opinions on audit plans and audit results, and mutually coordi-

nate as the Compliance Office is present for some of the audit reports undertaken by accountants for the corporate auditors. Fur-

thermore, the full-time corporate auditors conduct audits of operations of each department of the head office, divisions and re-

gional offices as needed.

Status of Internal Audits and Auditing by Corporate Auditors

Corporate Governance Structure

Board of Corporate Auditors / Corporate Auditors

Board of Executive Officers / Executive officers

Representativedirectors

The Nominationand

RemunerationAdvisory

Committee

Board of Directors / Directors

General Meeting of Shareholders

Compliance Office

Gro

up

com

pan

ies

Independent auditor

Appointment / Dismissal

Propose agenda /Report

Consultation

Appointment /Dismissal




Coordinate

Audit

Report ReportInstruct /Supervise

ReportInstruct /Supervise

Report

ReportAudit

Audit

Headquarters, offices, divisions

Report

Instruct

Internalaudit

Audit

Internal audit

Inquiry

As a separate initiative, we have created space for voluntary meetings such as “Management Strategy Meetings,” where manage-

ment issues are freely discussed, and “Division Briefing Sessions,” which are meant to help deepen OYO Corporation’s business

with outside directors. We are endeavoring to establish a corporate governance structure that supports the decision-making func-

tions and the supervisory functions of the Board of Directors.

Separate Voluntary Meetings



Officer Remuneration

Remuneration for directors and corporate auditors is determined within the total amount of remuneration previously resolved at

the General Meeting of Shareholders.

Directors

Remuneration for directors is decided by the Board of Directors following deliberation by the Nomination and Remuneration Advi-

sory Committee, a discretionary advisory body to the Board of Directors. The committee consists of one representative director and

three outside directors and is chaired by the president. In addition to these committee members, two outside corporate auditors

participate as observers. The committee is to meet at least once a year, which for fiscal 2019 happened on November 14, 2019.

Directors are responsible for improving business performance each business year and increasing corporate value over the long

term. Therefore, their remuneration consists of a fixed, basic remuneration based on their role, a short-term performance-based

bonus and medium- to long-term performance-based stock remuneration. Although the ratio of fixed remuneration and perfor-

mance-based remuneration is not clearly stipulated, factors such as the achievement level of the medium-term management plan

targets and the employee salary level are taken into account in the decision.

Remuneration of outside directors consists only of basic remuneration due to their role and independence.

Corporate Auditors

Corporate auditor remuneration is based on fixed remuneration, since corporate auditors are responsible for auditing the execution

of duties, and is decided by the Board of Corporate Auditors.

Independence of Outside Directors

At the 63rd Annual General Meeting of Shareholders held on March 27, 2020, OYO Corporation selected three outside directors.

Including two current outside corporate auditors, there are five outside officers. The standards of independence used when select-

ing outside officers are declared in our basic policy on corporate governance available on our Japanese website (https://www.oyo.

co.jp/). Moreover, the five outside officers of OYO Corporation have been notified to the Tokyo Stock Exchange as independent

officers defined by the Tokyo Stock Exchange.

OYO Corporation believes that the joint participation in management between directors who are well-versed in OYO Corpo-

ration’s business and three independent outside directors who have held important posts in government and other companies is

effective in increasing the adequacy and efficiency of management without causing conflicts of interest with general shareholders.

Moreover, in addition to these outside directors, OYO Corporation has further enhanced its auditing structure by having two out-

side corporate auditors (independent officers) who also have experience and knowledge in financial institutions or as attorneys

audit its management in terms of compliance with laws and ordinances from an objective and neutral point of view.

*Information on our officer remuneration can also be found in our 63rd Term Annual Securities Report.

Basicremuneration

Bonuses

Stock remuneration

The basic remuneration is determined by establishing a remuneration gap depending on the director's role, the

possession of representative rights and concurrent executive officer duties.

Bonuses are meant to reflect short-term performance, so they are determined based on a ranking calculated

from the achievement level of performance indicators such as consolidated operating income, consolidated

operating income margin, consolidated ordinary income, consolidated ordinary income margin and net income

attributable to owners of the parent.

OYO Corporation has introduced a Board Benefit Trust (BBT) as a stock remuneration scheme for directors ex-

cluding outside directors.

In this performance-based stock remuneration scheme, OYO's shares are acquired through a trust using

money contributed by OYO, and these shares are paid through the trust to the directors according to their

level of performance achievement, etc. Furthermore, as a rule, the Company’s directors will receive stock under

the scheme upon resigning the office of director. This scheme aims to achieve sustainable company growth by

clarifying the link between director remuneration and company performance and stock value, as directors share

the risk of stock price fluctuation with the shareholders. In this scheme, stock-based remuneration for a single

year is calculated by multiplying the basic points of each executive director position by a performance coeffi-

cient based on budget achievement rate.

Corporate Governance


Reason for Selection of Outside Directors

Name Reason for selection

Kaoru Nakamura

Mr. Kaoru Nakamura has held leadership positions mainly at the Ministry of Economy, Trade and Industry and has a proven track record as a corporate auditor and president of other companies on top of being chairman of a foundation. In addition, he also has knowledge in fields such as resources and energy. OYO Corporation deems his past experience in public administration and his external perspective from business management to be effective in further strengthening OYO Corporation’s management structure and contributing to the enhancement of the Company’s corporate governance. (Period served as Outside Director, OYO Corporation: five years as of March 27, 2020)

Significant concurrent positions

Outside Director, Supervisory Committee Member, UMC Electronics Co., Ltd.

MichihikoOta

Mr. Michihiko Ota has held leadership positions at Marubeni Corporation and has a proven track record as an outside director and an outside corporate auditor of other companies. OYO Corporation deems his external perspective based on his knowledge of the domestic and overseas business of a trading company and his experience in business management to be effective in further strengthening OYO Corporation’s management structure and contributing to the enhancement of OYO Corporation’s corporate governance. (Period served as Outside Director, OYO Corporation: two years as of March 27, 2020)


Outside Director, XEBIO HOLDINGS CO., LTD. Outside Corporate Auditor, SAISON AUTOMOBILE AND FIRE INSURANCE COMPANY LTD Outside Director, UNITIKA Ltd.

Shoji Osaki

Mr. Shoji Osaki has held leadership positions at Sapporo Breweries Limited and has a proven track record as a director and a corporate auditor of group companies of Sapporo Holdings Limited. OYO Corporation deems his past experience in an industry different from construction-related, our industry, and his external perspective to be effective in strengthening OYO Corporation’s management structure, ensuring diversity and contributing to the enhancement of the Company’s corporate governance. (Period served as Outside Director, OYO Corporation: one year as of March 27, 2020)


He holds no significant concurrent positions

Reason for Selection of Outside Corporate Auditors

Name Reason for selection

Jun Naito

Mr. Jun Naito has legal expertise and a wealth of experience as an attorney as well as experience as a corporate auditor of other companies. OYO Corporation deems that he will conduct audits accurately with his experience in legal practice and knowledge developed through audit of other companies, which will contribute to the enhancement of OYO Corporation’s corporate governance. (Period served as Outside Corporate Auditor, OYO Corporation: five years as of March 27, 2020)


Outside Corporate Auditor, YAMATANE CORPORATION Senior Counsel, Nagashima Ohno & Tsunematsu

Tadashi Sakai

Mr. Tadashi Sakai has management experience as well as operational management experience in planning and administration departments, etc., at banks and securities companies. He also has a proven track record as an outside corporate auditor of other companies. OYO Corporation deems that he will conduct audits accurately with his extensive experience at financial institutions and knowledge developed through audit of other companies, which will contribute to the enhancement of OYO Corporation’s corporate governance. (Period served as Outside Corporate Auditor, OYO Corporation: two years as of March 27, 2020)


Statutory Corporate Auditor, TANAKA HOLDINGS Co., Ltd.



Directors (as of March 27, 2020)

Born in November 1959

April 1983 Joined Fuji Bank, Limited (present Mizuho Bank, Ltd.)April 2009 Head of Americas Credit Division, Mizuho Corporate Bank, Ltd.

(present Mizuho Bank, Ltd.)April 2011 Head of Internal Audit Division, Mizuho Corporate Bank, Ltd.August 2013 Joined the CompanyAugust 2014 Executive OfficerApril 2015 Senior Executive OfficerApril 2015 Acting Head of Administration HeadquartersMarch 2016 Director of the Company (Current position)April 2016 Head of Administration Headquarters (Current position)April 2017 Senior Executive OfficerMarch 2020 Representative Director, Deputy President (Current position)

April 1979 Joined the CompanyMarch 2004 DirectorApril 2005 Senior Managing Executive OfficerSeptember 2005 Head of New Business Planning OfficeMarch 2007 Deputy PresidentMarch 2009 President (Current position)

Representative Director, Deputy President

Yuichi Hirashima

Representative Director, President

Masaru Narita

Born in November 1953

Director & Senior Executive Officer

Jun Shigenobu

Born in August 1958

April 1983 Joined the CompanyApril 2005 Executive OfficerApril 2005 Head of Shikoku Regional OfficeApril 2010 Head of Logistics HeadquartersApril 2012 Deputy Head of Eastern Japan Business HeadquartersApril 2014 Senior Executive Officer (Current position)March 2016 Director (Current position)March 2017 Director, NS Environment Corporation (Current position)January 2020 Head of Business Domain Coordination Headquarters (Current position)


Kenji Sato

April 1983 Joined the CompanyApril 2007 Executive OfficerApril 2014 Head of Tokyo Regional OfficeApril 2015 Senior Executive Officer (Current position)April 2015 Head of Business Promotion Headquarters (Current position)March 2016 November 2016 Outside Director, SANYO TECHNO MARINE INC.(Current position)November 2016 Outside Director, SANYO TECHNO MARINE INC. (Current position)June 2017 Outside Director, Engineering and Risk Services Corporation (Current position)March 2020 Director, OYO International Corporation (Current position)

Born in August 1958


Hirofumi Amano

April 1990 Joined Tamano Consultants Co., Ltd.September 2003 Joined KCS Co., Ltd.August 2005 Director, KCS Co., Ltd.October 2005 President, KCS Co., Ltd.March 2017 Director of the Company (Current position)April 2017 Senior Executive Officer (Current position)April 2017 Head of IT Innovation Planning Office (Current position)March 2019 Director, OYO Seismic Instrumentation Corporation (Current position)March 2020 Director, KCS Co., Ltd. (Current position)

Born in January 1966


Wataru Nakagawa

April 1984 Joined the CompanyApril 2011 Executive OfficerApril 2011 Head of Kansai Regional Office

April 2015 Senior Executive Officer (Current position)April 2015 Head of Tokyo Regional OfficeApril 2018 Head of Maintenance Business DivisionJanuary 2019 Head of Corporate Planning Headquarters (Current position)March 2019 Director, Fong Consult Pte. Ltd. (Current position)March 2019 Director, FC Inspection Pte. Ltd. (Current position)

Born in August 1959


Kaoru Nakamura

Director*1

Born in June 1948

April 1972 Joined the Ministry of International Trade and Industry (present Ministry ofEconomy, Trade and Industry)

June 1990 Head of Information Services Industry Division, Machinery and InformationIndustry Bureau, the Ministry of International Trade and Industry

July 1999 Cabinet Councilor, Cabinet Office for Internal Affair of the Cabinet SecretariatJuly 2002 Director General of Industrial Science and Technology Policy and Environment

Bureau, the Ministry of Economy, Trade and IndustryOctober 2005 Executive Advisor and Statutory Corporate Auditor, IBM Japan, Ltd.July 2010 President, Japan Electronic Computer Co., Ltd. (present JECC Corporation)March 2015 Outside Director of the Company (Current position)June 2016 Chairman (Representative Director), New Energy FoundationJune 2017 Outside Auditor, UMC ELECTRONICS CO., LTD.March 2020 Outside Director, Supervisory Committee Member, UMC Electronics Co., Ltd. (Current position)

Michihiko Ota

Director*1

Born in December 1952

April 1975 Joined Marubeni CorporationJune 2009 Managing Executive Officer, Marubeni CorporationApril 2010 Senior Managing Executive Officer, Marubeni CorporationApril 2012 Senior Executive Vice President, Marubeni CorporationApril 2013 Senior Executive Vice President, Regional CEO for ASEAN, Regional CEO for East Asia,

Regional CEO for Southwest Asia, Marubeni CorporationManaging Director, Marubeni ASEAN Pte. Ltd

June 2014 Senior Executive Vice President, Marubeni CorporationApril 2015 Vice Chairman, Marubeni CorporationJune 2016 Outside Director, XEBIO HOLDINGS CO., LTD. (Current position)June 2017 Outside Corporate Auditor, SAISON AUTOMOBILE&FIRE INSURANCE CO., LTD (Current position)Mar. 2018 Outside Director of the Company (Current position)June 2019 Outside Director, UNITIKA Ltd. (Current position)

Shoji Osaki

Director*1

Born in August 1955

April 1979 Joined SAPPORO BREWERIES LIMITED

March 2005 Director of Wine and Liquor Division and SAPPORO BREWERIES LIMITED; Director, SAPPORO WINES LIMITED

March 2006 President and Representative Director, YEBISU WINEMART CO., LTD. (concurrent)

October 2007 Director of Chu-Shikoku District Headquarters, SAPPORO BREWERIES LIMITED

March 2010 Executive Officer and Director of Tokai Hokuriku District Headquarters, SAPPORO BREWERIES LIMITED

March 2012 Statutory Corporate Auditor, SAPPORO BEVERAGE CO., LTD. and Corporate Auditor, SAPPORO BREWERIES LIMITED and Corporate Auditor, SAPPORO GROUP MANAGEMENT CO., LTD. and Corporate Auditor, SAP-PORO INTERNATIONAL INC.

March 2013 Statutory Corporate Auditor, POKKA SAPPORO FOOD & BEVERAGE LTD

March 2015 Statutory Corporate Auditor, SAPPORO HOLDINGS LIMITEDMarch 2019 Outside Corporate Director of the Company (Current position)

Shinichi Kagawa

Statutory Corporate Auditor

Born in June 1957

April 1980 Joined the CompanyApril 1998 Deputy Head of Finance Department, Administration HeadquartersSeptember 2002 Transferred to NS Environment Corporation, Head of Administration HeadquartersDecember 2004 Corporate Auditor, NS Environmental Science Consultant CorporationFebruary 2007 Head of Administration Department, Management Headquarters and Head of Administration

Center of the CompanyApril 2011 Head of Accounting Department and Administration Department, Administration HeadquartersFebruary 2013 Corporate Auditor, Tianjin Smart Sensor Technology Co., Ltd.March 2015 Director, KCS Co., Ltd.April 2016 Executive Officer of the CompanyApril 2016 Head of Compliance OfficeMarch 2018 Statutory Corporate Auditor (Current position)

Jun Naito

Corporate Auditor*2

April 1982 Registered as Attorney

April 1982 Joined Nagashima & Ohno

January 2000 Partner of Nagashima Ohno & Tsunematsu

June 2007 Outside Corporate Auditor, INNOTECH CORPORATION (Current position)

January 2013 Attorney at Nagashima, Ohno & Tsunematsu (Current position)

March 2015 Outside Corporate Auditor of the Company (Current position)

June 2016 Outside Corporate Auditor, YAMATANE CORPORATION (Current position)

January 2020 Senior Counsel, Nagashima Ohno & Tsunematsu (Current position)

Born in January 1956

Tadashi Sakai

Corporate Auditor*2

April 1979 Joined Fuji Bank, Limited (present Mizuho Bank, Ltd.)March 2006 Executive Officer of Mizuho Securities Co., Ltd. and President, Mizuho Bank (Switzerland) LtdMay 2008 Managing Director, Mizuho Private Wealth Management Co., Ltd.April 2013 Non-executive Director, Mizuho Private Wealth Management Co., Ltd.June 2013 Audit & Supervisory Board Member, TANAKA HOLDINGS Co., Ltd. (Current position)June 2015 Outside Corporate Auditor, DC Co., Ltd.March 2018 Outside Corporate Auditor of the Company (Current position)

Born in August 1956

*1 Outside Director as stipulated in Article 2-15 of the Companies Act *2 Outside Company Auditor as stipulated in Article 2-16 of the Companies Act



Risk Management

When disasters occur, the Company conducts initial investigations for recovery of and support to the

damaged areas, based on the requests from administrative bodies, etc. To securely perform this mission,

the Company has prepared measures and organizations to analyze various risks and avoid possible

problems in advance and established its own risk management system for prompt recovery in the case

such disasters should occur.

In preparation for occurrence of large-scale disasters, the Company is working to reinforce its system to provide emergency support

to its bases in damaged areas, ability to collect information and back-up functions when risks emerge. Pursuant to its business

continuity plan (BCP), the Company will set up a disaster countermeasure headquarters and take action under the guidance of

persons in charge of risk management to understand the situation of the damaged areas and provide support to its bases in affect-

ed areas. An earthquake emergency alarm system has been installed in its major business offices. As for such risks as legal viola-

tions, the Company has reinforced its administration system by thoroughly conducting educational training on compliance through-

out the entire OYO Group, led by the Compliance Office, and continuously monitoring the situation.

Reinforcement of the System

Information management is one of the most important managerial issues for the Company, which conducts information services

as a business domain and often handles information with confidentiality due to the business nature of geological investigation

services. The OYO Group has established its basic guidelines for information security and information security policy and works to

reinforce management of information including establishment of the latest IT infrastructure. In addition, e-learning and simulated

training against targeted e-mail attacks are conducted repeatedly for directors and all employees, in an effort to heighten their

awareness of information security.

Endeavors on Information Security

We have obtained “Business Continuity and Social Contribution” certification of organizations contributing

to national resilience (Resilience Certification) based on the “Guideline for the Certification of Organizations

Contributing to National Resilience” published by National Resilience Promotion Office of the Cabinet Sec-

retariat.

Aimed at promoting wide-ranging resilience across society by promoting proactive endeavors for

business continuity (BC) at companies, schools, hospitals and other various organizations, the Resilience

Certification certifies operators proactively working on BC as an “organization contributing to national resil-

ience.” While OYO Corporation was granted Resilience Certification in December 2016, in November 2018,

our business continuity was reevaluated, and we were also certified as “adept” upon being newly examined on social contribution

(a system of evaluating and certifying societal contribution activates after large-scale natural disasters, etc.). Ever since the 1964

Niigata Earthquake, we have dispatched our own disaster research teams for major natural disasters both within Japan and over-

seas, and have shared the knowledge we have obtained online, etc. Moreover, we have also published an annual “Recommenda-

tions for Natural Disaster Prevention and Mitigation” and conducted public awareness campaigns related to disaster prevention and

mitigation as well as built a system. These efforts were evaluated as contribution to society.

Certified as an Organization Contributing to National Resilience (Resilience Certification)

Business Continuity Plan (BCP)

When large-scale natural disasters occur, the OYO Group will promptly establish a system to secure continuation of its business and

conduct support and recovery activities for the damaged areas, recognizing this as its social mission. Depending on the disaster scale,

the OYO Group will set up local a disaster countermeasure headquarters and/or a disaster countermeasure headquarters at the head

office to address the situation. Outside of times of disaster, meanwhile, the OYO Group conducts internal training based on its BCP.

Basic policy

Place the utmost priority on securing safety of the employees and their families as well as related persons of cooper-ating companies, etc.

Promptly recover its business operation system and make company-wide efforts to work for the safety and recovery of damaged areas in response to the requests from central and local governments.

Prepare an emergency business continuity manual and conduct training for putting it into practice, while continuous-ly improving its content.


Thoroughly implementing compliance is indispensable for a company to grow continuously and en-

hance its corporate value in the medium to long term. Accordingly, the OYO Group has created a Com-

pliance Manual and delivered it to all group companies, requesting them to maintain ethical values and

good sense appropriate for a group member. By doing so, the OYO Group works to secure thorough

implementation of compliance.

At OYO Corporation, the Compliance Office, which covers compliance and reports directly to the president, works to secure thor-

ough implementation of compliance in coordination with the Board of Corporate Auditors. The Company created the Compliance

Manual in 2006 and revised it in 2015 to make it applicable to all companies within the Group. The manual is delivered to all di-

rectors and employees and education is conducted repeatedly through e-learning, lectures and other measures. With these initia-

tives, the Company endeavors to have the importance of compliance thoroughly understood by every one of its members.

Reinforcement of the Compliance System

Compliance manual Poster of the OYO Group Help Line

Misconduct by companies has frequently occurred in recent years. Part of the cause is said to be a failure of corporate orga-

nizations and culture in responding to changes in the social environment that are becoming increasingly significant. The

OYO Group’s Corporate Planning Headquarters, specifically its Skills Development Department, promotes thorough abid-

ance by new internal measures and rules that match the times and securely removes compliance-related risks as well as

promotes work style and mindset reforms in a way better suited for new business developments in accordance with the shift

of the Company’s business model.

Reinforcement of Education and Training

The Company has issued an Anti-Monopoly Act

Compliance Manual and conducts thorough educa-

tion and training.

The Group has adopted a whistleblowing system. In

addition to an internal whistleblowing contact, we

also have an outside whistleblowing contact (attorney)

and a harassment consultation contact. Periodical re-

ports are made to the Corporate Auditors as to the

operational status of the system and the matters in-

formed or consulted by whistleblowers.

Endeavors on Education of Compliance Whistleblowing System

Compliance ESG AwarenessChapter 5


GSSI https://www.geophysical.com/

U.S. Subsidiary GSSI Selected as the Best Company to Work for in New Hampshire

Our U.S. subsidiary, GSSI, was selected as number one in Business NH

Magazine’s “Best Companies to Work for in New Hampshire.” GSSI puts

great importance on creating an environment that makes it easy for em-

ployees to keep working, organizing itself and its facilities to enable each

employee to devote themselves to their work and achieve optimal team-

work. It is also undertaking the initiatives on the right. “We strive to create

a space that inspires our people to do their best work,” said President

Christopher Hawekotte. “We are focused on building an environment that

fosters open communication, collaboration, trust, accountability and...hav-

ing fun.

In doing so, we see our team members deeply engaged in what we

are trying to accomplish and staying with us longer than national averag-

es.”

Improving work environments, employees’ QOL

Improved productivity, shortened working hours

Quality assurance and efficient original services design provided nationwide with the Division System

Changeover from a region-based model to business-based model and introduction of streamlining tools such as ICT

Introduction of telecommuting system, setting up satellite offices, minimize personnel transfers

with relocation

Emphasis on work-life balance Developing flexible work styles that ensure family and personal time

Improvement of office convenience Providing open space for meetings at any time

Long-term investment in employees Supporting certification and seminar attendance (including university and graduate school courses)

Promotion of events and activities Facilitating employee interaction through sports and seasonal events

Example Initiatives

For a company to continuously exist and grow, it must prepare an environment in which its employees

can work willingly and with peace of mind. The Company is endeavoring to improve its working envi-

ronment, considering “work-style reforms” as integral to improving productivity, reforming operations

and enhancing performance.

Promotion of Work-Style Reform Linked to the Introduction of the Division System

With the implementation of the Division System, OYO Corporation

is promoting its unique work-style reform.

Although the quality and efficiency of our services were dif-

ferent in each region under the Branch System, with the Division

System, the same level of quality and efficiency of our products and

services can be provided countrywide. With this, we anticipate

shortened working hours and increased productivity. As for work-

ing conditions, by changing from the Branch System to the Division

System, personnel transfers with relocations have been decreased,

and the burden on employees and their families have been mitigat-

ed. With the introduction of ICT, streamlining tools, telecommuting

system, and satellite offices, we hope to further improve working

environments and productivity.

Work-Life Balance


We recognize that sustainable growth of the company and its corporate value over the medium to long

term are the result of the resources and contributions of our stakeholders, which include our employ-

ees. Furthermore, globalizing markets and diversifying needs make securing and training personnel

with a variety of abilities, regardless of nationality or gender, essential to the Group’s sustainable de-

velopment. For this reason, we are advancing initiatives to empower women and programs that support

flexible work styles and skill development.

Empowering Women

In addition to being certified as an “Eruboshi” company in the certification system

of the Ministry of Health, Labour and Welfare under the Act on Promotion of

Women’s Participation and Advancement in the Workplace (Women’s Active Par-

ticipation Act in Japan), we have also acquired “Platinum Kurumin,” rewarded in

recognition of the company’s efforts to support employees’ child-rearing, based on

the Act on Advancement of Measures to Support Raising Next-Generation Chil-

dren. Furthermore, to maintain an employment environment in which employees can thrive in both work and child-rearing

and to become a company that contributes to the community in developing the next generation, we have systematically

promoted initiatives such as planned acquisition of annual paid leave and encouragement of paternity leave. Over the past

three years, about half of the male employees who had a child took childcare leave.

Eruboshi, Platinum Kurumin and Paternity Leave

Since our main business is geological survey and consulting in the civil engineering and construction industry, we are strong-

ly associated with construction sites and do not have many female applicants or hires. However, in response to changes in

the business environment and expansion of our domains, we have actively hired women for over 10 years and strive to

create a women-friendly workplace, among various other initiatives to empower women.

As a result, our ratio of female employees to the

total has risen to about 11%. Currently, female applicants

make up about 30% of total new graduate applicants,

our ratio of job offers to women in the past three years is

27.8%, roughly the same as offers to men (28.9%), and

we will remain an equal-opportunity employer. OYO Cor-

poration will continue to implement measures to empow-

er women.

FY Pass rate (male)

Pass rate (female)

Ratio of female examinees

2018 grads 27.0% 22.0% 33.6%

2019 grads 26.3% 26.9% 26.8%

2020 grads 33.5% 34.4% 26.1%

3-yr avg. 28.9% 27.8% 28.9%

Male-Female Ratio in Employment Record

The Company has an education and training system for new entrants as well

as for all employees and officers by career course. Moreover, it proactively

works to foster human resources that should play a major role in growing the

Company for the future, as it supports employees obtaining qualifications in

accordance with their career paths, offers programs for employees to study

abroad or study at universities in Japan to acquire doctoral degrees, and ex-

change personnel with external research institutions or other private sector

companies, among other endeavors.Delft University of Technology (TU Delft Geoscience department)

Career Development

*Pass rate: Percentage of job offers to total applicants

Securing and Fostering Human Resources ESG AwarenessChapter 5


We are witnessing various environmental issues arising on a global scale, including expansion of energy

consumption in accordance with an increase in world population, an increase in CO2 emissions, climate

change, depletion of natural resources and destruction of ecosystems. The OYO Group works to con-

tribute to realizing a sustainable society through the environmental load reduction services it offers to

customers, as well as through environmentally-friendly business management.

Addressing Biodiversity (reduction of impact on ecosystems associated with economic and development activities / rehabilitation of natural environment)

With the proliferation of non-native species, the habitats of endemic species have rap-

idly shrunk and it is feared that this could impact environmental change in water and

the fisheries industry. Non-native species often have strong fecundity, and eradicating

them comes at a high cost. OYO Corporation collects the water of rivers and lakes, and

extracts the DNA of organisms living in the water to rapidly investigate the number and

species of organisms living in the area through environmental DNA analysis. Through

this, we are researching new management methods for water environments together

with the National Research and Development Agency Public Works Research Institute.

Environmental DNA Analysis

The majority of Uzbekistan’s territory is flatland turned

to desert, and in order to prevent further desertification

and environmental pollution through irrigation, the re-

generation of forests without irrigation is required. OYO

Corporation conducts joint research on the ground with

Uzbekistan’s Tashkent State Agrarian University in order

to establish new greening technology through the nurs-

ing block method.

Researching Greening Technology for Arid Land

* Nursing block: A silviculture method that guides the tap-roots of seedlings deep below the ground, enabling efficient absorption of moisture while simultaneously helping the seedlings take strong root in the ground. It is antici-pated as a method to prevent landslides and as a greening technology for deserts.

Collecting water at a lake

Environmental Risk Countermeasures that Protect the Security and Safety of Citizens

The land of Japan has a wide distribution of strata containing heavy metals (such as arsenic and lead). Because of this, naturally

derived heavy metals flowing out at excavation works in large-scale construction projects, etc. may possibly impact the environ-

ment. The Company has long focused attention on this issue and provides one-stop solutions, including geological assessment and

analysis and disposal of excavated soil.

Countermeasures against Naturally Derived Heavy Metals

Carbon management services that support energy conservation and reduction of CO2

Amidst the trend of global ESG investment, anticipation

for environmental management that supports sustain-

able corporate growth is increasing. OYO Group pro-

vides various services that support the environmental

management of businesses, such as the whole effluent

toxicity (WET) method that utilizes biological response,

and carbon management services given rising disclosure

needs related to information on climate change.

Environmental Management Support Service

The WET test is generally used in Western countries

Response to Environmental Issues


We, as a corporate group specialized in geoscience, shall act to resolve the problems our customers face and thereby contribute to

the sustainable development of our society by following the Management Philosophy and Code of Conduct of OYO Corporation.

Moreover, under appropriate decision-making as an organization, we shall abide by laws and regulations of the countries and re-

gions where we conduct business activities, respect the spirit of the laws and regulations as well as human rights, cultures, customs

and history and earnestly conduct business activities bearing ethical value and good sense and with consideration paid to the

global environment. In doing so, we shall continue to be a company valued by society. We shall conduct business management that

takes all stakeholders into consideration through internal and external communications in a transparent and fair manner.

Recent Major Activities

Local Communities and Global Society

Supporting GeoHazards International (GHI)

GeoHazards International (GHI) is a nonprofit organization that helps the world’s most

vulnerable communities prepare for earthquakes, tsunamis, landslides, heavy rain, and

strong winds with the aim of freeing people from preventable death and suffering

from natural disasters. OYO Corporation has supported the activities and mission of

GHI since the establishment of the organization in 1991. GHI has conducted disaster

risk education, earthquake-resistance safety improvements of school buildings, and program support to raise disaster response

measures of regional governments in over 20 countries.

Working towards earthquake-resistant buildings

in developing nations

Myanmar is an earthquake-prone country like Japan,

suffering much damage to life and property, and yet

many buildings are not sufficiently earthquake-resis-

tant. In response, with the support of the Ministry of

Land, Infrastructure, Transport and Tourism’s Housing

Bureau, our Group (OYO International Corporation)

held seminars and earthquake resistance diagnosis

sessions for local engineers to promote this diagnosis and retrofitting of existing

buildings in Myanmar.

Certified as a supporting party for the

“Project for one million people to protect from flooding”

We were certified as a supporting party for the “Project for one million people to pro-

tect from flooding,” which the Ministry of Land, Infrastructure, Transport and Tourism’s

Kanto Regional Development Bureau promoted. As a supporting party for this project,

every year we will publish a booklet on “Recommendations for Natural Disaster Preven-

tion and Mitigation ” and post it for free on our website to be used for education and

to prevent and mitigate disasters in the region..

Certification ceremony

February 10, 2020Students from Arakawa Ward 3rd Junior High School

(Field trip to an office)

During the talk

Seminar participants

Accepting visits by students to the Company

The Company accepts visits by junior high school and high school students at any time.

Visits to companies are a part of career education programs for students where they

visit companies through school excursions and other occasions to learn about business

activities, the significance of working, the role of working and other matters. The

Company has cooperated with this program since 2013. Through such occasions, the

Company lets students learn the mechanism of natural disasters, pleasure of geology,

and the importance of disaster prevention activities in an effort to enhance the social

consciousness of disaster prevention. [7 core subjects for ISO26000] Community involvement and development (Education and culture)

Social Contributions ESG AwarenessChapter 5


Main Financial Data (Consolidated)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Fiscal year

Sales 35,260 35,878 36,718 40,704 47,033 48,634 49,230 51,323 45,957 45,232 53,883

Operating income (loss) (507) 435 1,396 2,465 3,679 4,211 2,188 1,579 855 1,481 2,581

Net income attributable to owners of parent (1,820) 385 1,076 5,756 2,595 3,550 2,361 1,381 747 804 2,176

Free cash flows (2,057) 89 (744) 4,676 1,354 2,414 6,093 (5,386) 3,487 1,475 1,891

Capital investment 824 663 500 666 750 2,000 1,607 1,079 1,224 1,124 1,278

Depreciation 905 915 875 892 931 1,018 1,322 1,306 1,236 1,107 1,159

R&D expenditure 1,061 964 945 1,070 1,295 1,498 1,910 2,022 1,654 1,675 1,612

Fiscal year ends

Total assets 60,283 57,591 59,060 65,485 75,003 80,367 83,617 85,509 84,731 80,704 83,559

Shareholders’ equity 55,125 55,041 55,779 61,220 63,190 66,088 67,668 68,286 68,196 66,881 68,157

Interest-bearing debt 553 401 318 830 1,440 2,385 2,866 2,984 2,772 2,657 3,341

Headcount 2,056 2,027 1,969 1,962 1,989 2,012 2,028 2,039 2,042 2,058 2,235

Per share data

Net income per share (yen) (66.13) 13.94 39.76 212.55 95.85 131.12 87.20 51.02 27.62 30.73 83.35

Net assets per share (yen) 1,802.09 1,791.61 1,796.47 2,008.03 2,219.12 2,410.80 2,529.27 2,530.79 2,531.39 2,522.95 2,595.07

Cash dividends per share (yen) (interim dividends per share)12.50(6.25)

12.50(6.25)

12.50(6.25)

15.00(6.25)

21.00(9.00)

26.00(12.00)

28.00(14.00)

28.00(14.00)

38.00(24.00)

28.00(14.00)

30.00(14.00)

Major indicators

Operating margin (%) (1.4) 1.2 3.8 6.1 7.8 8.7 4.4 3.1 1.9 3.3 4.8

Net income ratio (%) (5.2) 1.1 2.9 14.1 5.5 7.3 4.8 2.7 1.6 1.8 4.0

ROE (%) (3.6) 0.8 2.2 11.2 4.5 5.7 3.5 2.0 1.1 1.2 3.3

ROA (%) (3.0) 0.7 1.8 9.2 3.7 4.6 2.9 1.6 0.9 1.0 2.7

D/E ratio (times) 0.01 0.01 0.01 0.01 0.02 0.04 0.04 0.04 0.04 0.04 0.05

Dividends payout ratio (%) − 89.7 31.4 7.1 21.9 19.8 32.1 54.9 137.6 91.1 36.0


Corporate DataChapter 6

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Fiscal year

Sales 35,260 35,878 36,718 40,704 47,033 48,634 49,230 51,323 45,957 45,232 53,883

Operating income (loss) (507) 435 1,396 2,465 3,679 4,211 2,188 1,579 855 1,481 2,581

Net income attributable to owners of parent (1,820) 385 1,076 5,756 2,595 3,550 2,361 1,381 747 804 2,176

Free cash flows (2,057) 89 (744) 4,676 1,354 2,414 6,093 (5,386) 3,487 1,475 1,891

Capital investment 824 663 500 666 750 2,000 1,607 1,079 1,224 1,124 1,278

Depreciation 905 915 875 892 931 1,018 1,322 1,306 1,236 1,107 1,159

R&D expenditure 1,061 964 945 1,070 1,295 1,498 1,910 2,022 1,654 1,675 1,612

Fiscal year ends

Total assets 60,283 57,591 59,060 65,485 75,003 80,367 83,617 85,509 84,731 80,704 83,559

Shareholders’ equity 55,125 55,041 55,779 61,220 63,190 66,088 67,668 68,286 68,196 66,881 68,157

Interest-bearing debt 553 401 318 830 1,440 2,385 2,866 2,984 2,772 2,657 3,341

Headcount 2,056 2,027 1,969 1,962 1,989 2,012 2,028 2,039 2,042 2,058 2,235

Per share data

Net income per share (yen) (66.13) 13.94 39.76 212.55 95.85 131.12 87.20 51.02 27.62 30.73 83.35

Net assets per share (yen) 1,802.09 1,791.61 1,796.47 2,008.03 2,219.12 2,410.80 2,529.27 2,530.79 2,531.39 2,522.95 2,595.07

Cash dividends per share (yen) (interim dividends per share)12.50(6.25)

12.50(6.25)

12.50(6.25)

15.00(6.25)

21.00(9.00)

26.00(12.00)

28.00(14.00)

28.00(14.00)

38.00(24.00)

28.00(14.00)

30.00(14.00)

Major indicators

Operating margin (%) (1.4) 1.2 3.8 6.1 7.8 8.7 4.4 3.1 1.9 3.3 4.8

Net income ratio (%) (5.2) 1.1 2.9 14.1 5.5 7.3 4.8 2.7 1.6 1.8 4.0

ROE (%) (3.6) 0.8 2.2 11.2 4.5 5.7 3.5 2.0 1.1 1.2 3.3

ROA (%) (3.0) 0.7 1.8 9.2 3.7 4.6 2.9 1.6 0.9 1.0 2.7

D/E ratio (times) 0.01 0.01 0.01 0.01 0.02 0.04 0.04 0.04 0.04 0.04 0.05

Dividends payout ratio (%) − 89.7 31.4 7.1 21.9 19.8 32.1 54.9 137.6 91.1 36.0

(Million yen)


Tohoku office

Hokkaido Office

Tohoku Boring Co., Ltd

Nankyu Geo Technics Corporation

Chubu Office

Kansai Office

Shikoku Office

Kyushu Office

Head Office

Headquarters, research laboratories, divisions

Sales offices

Group companies

Offices

OYO Bionomical Engineering Institute

Ocean Engineering Corporation

Instruments & Solutions Division

Hokushinetsu Office




FC Inspection Pte. Ltd.

Fong Consult Pte. Ltd.

Robertson Geologging LTD.

IRIS Instruments SAS

NCS Subsea, Inc.

OYO Corporation U.S.A

Kinemetrics, Inc.

Geometrics, Inc.

OYO Corporation, Pacific

Geophysical Survey Systems, Inc.



OYO Resources Management Co., Ltd.

OYO Geo Technical Service Inc.

OYO RMS Corporation

Engineering & Risk Services Corporation

KCS Co. Ltd

KOEI Consultant Co., Ltd

OYO Seismic Instrumentation Corporation

OYO Geo-Monitoring Service CorporationInfrastructure Development Business DivisionInfrastructure Maintenance Business Division

Water and Disaster Engineering Business DivisionTokyo Office

Geo Design Center

Earthquake RiskManagement Division

Research and Development CenterCore Laboratory Experiment Center

IT Business Division



Head Office

Business Bases (as of January 1, 2020)


Corporate DataChapter 6

Tohoku office

Hokkaido Office

Tohoku Boring Co., Ltd

Nankyu Geo Technics Corporation

Chubu Office

Kansai Office

Shikoku Office

Kyushu Office

Head Office

Headquarters, research laboratories, divisions

Sales offices

Group companies

Offices

OYO Bionomical Engineering Institute

Ocean Engineering Corporation

Instruments & Solutions Division

Hokushinetsu Office




FC Inspection Pte. Ltd.

Fong Consult Pte. Ltd.

Robertson Geologging LTD.

IRIS Instruments SAS

NCS Subsea, Inc.

OYO Corporation U.S.A

Kinemetrics, Inc.

Geometrics, Inc.

OYO Corporation, Pacific

Geophysical Survey Systems, Inc.



OYO Resources Management Co., Ltd.

OYO Geo Technical Service Inc.

OYO RMS Corporation

Engineering & Risk Services Corporation

KCS Co. Ltd

KOEI Consultant Co., Ltd

OYO Seismic Instrumentation Corporation

OYO Geo-Monitoring Service CorporationInfrastructure Development Business DivisionInfrastructure Maintenance Business Division

Water and Disaster Engineering Business DivisionTokyo Office

Geo Design Center

Earthquake RiskManagement Division

Research and Development CenterCore Laboratory Experiment Center

IT Business Division



Head Office

Tohoku Boring Co., LtdSendai-shi, Miyagi, Japan/+81-22-288-0321

Ocean Engineering CorporationTsukuba-shi, Ibaraki, Japan/+81-29-897-3151

KOEI Consultant Co., LtdBunkyo-ku, Tokyo, Japan/+81-3-5319-3377

Nankyu Geo Technics CorporationKagoshima-shi, Kagoshima, Japan/+81-99-837-3330

OYO Geo Technical Service Inc.Toshima-ku, Tokyo, Japan/+81-3-5949-3410

KCS Co. LtdBunkyo-ku, Tokyo, Japan/+81-3-6240-0581

OYO Resources Management Co., Ltd.Bunkyo-ku, Tokyo, Japan/+81-3-6240-0411

OYO Geo-Monitoring Service CorporationKawaguchi-shi, Saitama, Japan/+81-48-285-2133

Engineering & Risk Services CorporationMinato-ku, Tokyo, Japan/+81-3-5786-0090

Geophysical Survey Systems, Inc.Geophysical Survey Systems, Inc. New Hampshire, U.S.A.

OYO Corporation, PacificOYO Corporation, Pacific Guam, U.S.A.

Fong Consult Pte. Ltd.Singapore

FC Inspection Pte. Ltd.Singapore

Infrastructure Maintenance, Management, and Renovation Natural Disaster Prevention and Mitigation

OYO International CorporationBunkyo-ku, Tokyo, Japan/+81-3-5840-5155

OYO RMS CorporationMinato-ku, Tokyo, Japan/+81-3-6434-9801

OYO Seismic Instrumentation CorporationSaitama-shi, Saitama, Japan/+81-48-866-1228

Kinemetrics, Inc.Kinemetrics, Inc. California, U.S.A.

Environment

NS Environment CorporationMinato-ku, Tokyo, Japan/+81-3-3432-5451

Geometrics, Inc.Geometrics, Inc. California, U.S.A.

Robertson Geologging LTD.Robertson Geologging LTD. U.K.

NCS SubSea, Inc.NCS SubSea, Inc. Texas, U.S.A.

IRIS Instruments SASIRIS Instruments S.A. France


*Other than the above, OYO Corporation U.S.A. (California, U.S.A.) serves as company to supervise the overseas group companies.

Group Companies (as of December 31, 2019)


Qualified Persons / Certifications Acquired (as of December 31, 2019)

Doctors (Engineering/ Science/ Arts & Sciences) 63

Professional engineer 691

Qualified Persons by Major Qualification (group-wide)

Manager in charge of pollution control 125

Execution management engineer on civil engineering 198

APEC engineer 6

Qualified architect (1st class) 5

Information technology engineer 31

Professional engineer (civil engineering) 300

Professional engineer (environmental engineering) 4

Professional engineer (environment) 44

Professional engineer (applied science) 197

Professional engineer (comprehensive management) 123

Certified environmental measurer 97

Soil pollution investigation manager 54

Major Qualifications Held by Engineers and Number of Qualified Persons (group-wide)

Business Registration (OYO Corporation)

Consulting Engineer (No. 01-175, registered with the Ministry of Land, Infrastructure, Transport and Tourism)

Geological Surveyor (No. 29-12, registered with the Ministry of Land, Infrastructure, Transport and Tourism)

Measurement Certification Business (registered)

Certified Survey Firm (No. (14)-1334, registered with the Ministry of Land, Infrastructure, Transport and Tourism)

Special Construction Contractor ((TOKU-29) No. 2181, licensed by Ministry of Land, Infrastructure, Transport and Tourism)

1st-class Registered Architect Office (No. (2) 10113, registered with the government office of Saitama Prefecture)

Designated Investigation Firm pursuant to the Soil Contamination Countermeasures Act (registered with the Ministry of the Environment, No. (Kan) 2003-8-1025)

Management System Certification (OYO Corporation)

Quality Management System(ISO9001 : 2015) Applicable office: all offices/ JQA-2772

Environmental Management System(ISO14001 : 2015) Applicable office: all offices/ JQA-EM6855

Information Security Management System(ISO/IEC 27001 : 2013) Applicable office: all offices/ JQA-IM1238

Certification/Authentication Certification (OYO Corporation)

Obtained certification of organizations contributing to national resilience (Resilience Certification)December 2016/November 2018 (Business Continuity and Social Contribution)

Certified as a second-level “Eruboshi” mark based on the Women’s Active Participation ActSeptember 2016

Certified as a “general business entity compliant with standards” pursuant to the Act on Advancement of Measures to Support Raising Next-Generation Children(Obtained the Kurumin mark and Platinum Kurumin mark for special recognition) January 2018







III



Reporting coverage

Period

Organization





Cover image












I

II

IV

Corporate DataChapter 6Overview of the Company and Its Shares (as of December 31, 2019)

2019/12

Overview of Shares

Number of authorized shares �� 120,000,000

Number of shares issued �� 27,582,573

(of which, treasury stock counts 1,119,159 shares)

Number of shareholders �� 7,996

Breakdown of Shareholders

* Treasury stock does not include the 3,494 units owned by Trust & Custody Services Bank, Ltd. (Trust Account E).

Individuals and others

30.83% 85,048 units

Financial institutions 22.94% 63,287 units

Other domestic corporations

21.12% 58,240 units

Foreign corporations, etc.

18.57% 51,232 units

Financial instruments business operators

2.47% 6,825 units

Treasury stock 4.06% 11,191 units

Overview of the Company

Name OYO Corporation

Address 7 Kanda-Mitoshiro-cho, Chiyoda-ku, Tokyo 101-8486 JAPAN

Phone +81-3-5577-4501

Established May 2, 1957

Paid-in capital

16,174.6 million yen

Listing 1st section of the Tokyo Stock Exchange

Number of employees

2,235 (consolidated) / 1,126 (non-consolidated)

Line of business

All technical work, from ground survey to design and construction supervision, involved in the construction of roads, city planning and civil engineering struc-tures and buildings

Technical work including survey, analysis, prediction, diagnosis, evaluation and countermeasure development for risk of natural disasters such as landslides, earthquakes and wind and flood damage

Technical work including survey, analysis, prediction, diagnosis, evaluation and countermeasure development for environmental conservation and risk

Collection, processing and sale of earth information on the ground, environ-ment, disasters, etc.

Development, manufacturing, sale, leasing and rental of various measurement devices, security devices, software and systems


2020 ISSUE Jan.1-Dec. 31, 2019


Inquiries





2020 ISSUE Jan.1-Dec. 31, 2019


Inquiries




corporate report 2020 · corporate report 2020 issue jan.1-dec. 31, 2019 about the brochure title...

Documents