Avant : Corrections of Disclosure Material for the Fiscal Year ended June 2023

August 25,2023

To whom it may concern

Company Name: Avant Group Corporation

Name of Representative: Tetsuji Morikawa, President and Group CEO

(Code: 3836, TSE Prime Market)

Inquiries: Naoyoshi Kasuga, Director and Group CFO

(TEL: [phone])

(Corrections and corrections of numerical data): Partial Corrections and Numerical Data (XBRL) in the "Consolidated Summary Report under Japanese GAAP for the Fiscal Year ended June 30, 2023 " and "Financial Results Briefing for the Fiscal Year ended June 2023"

Avant Group Corporation (the "Company") is re-submitting the corrected XBRL data for the disclosure document published on 4 August 2023 (JST), as the following corrections have been made.

No corrections have been made to the Summary Information (XBRL).

1. Reason for corrections

Following the publication of the "Consolidated Summary Report under Japanese GAAP for the Fiscal Year ended June 30, 2023 " and "Financial Results Briefing for the Fiscal Year ended June 2023"announced on August 4, 2023", it was found that there were some errors in the contents, and corrections have been made.

2. Details of corrections Corrections are underlined.

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Consolidated Summary Report under Japanese GAAP for the Fiscal Year ended June 30, 2023 Page 4

(i) Orders Received
【Before corrections】
	(i) Orders Received
				(millions of yen, rounded down to the nearest unit)
		Fiscal Year ended	Fiscal Year ended June	Year on Year Change
		June 30, 2022	30, 2023	Amount
		Orders	Outstandi	Orders	Orders	Outstandin	Orders
		ng
		Received	Received	Received	g Orders	Received
		Orders
	Group Governance	10,155	3,132	10,301	3,400	145	267
	Businesses
	Digital Transformation	6,902	1,131	9,060	1,810	2,158	679
	Business
	Outsourcing Business	3,751	2,164	4,039	2,448	288	283
	Elimination of inter-segment	(797)	(357)	(688)	(300)	108	57
	transactions
	Total	20,012	6,070	22,713	7,359	2,700	1,288
【After corrections】
	(i) Orders Received
				(millions of yen, rounded down to the nearest unit)
		Fiscal Year ended	Fiscal Year ended June	Year on Year Change
		June 30, 2022	30, 2023	Amount
		Orders	Outstandi	Orders	Orders	Outstandin	Orders
		ng
		Received	Received	Received	g Orders	Received
		Orders
	Group Governance	10,155	3,132	9,839	2,938	(316)	(193)
	Businesses
	Digital Transformation	6,902	1,131	9,208	1,957	2,305	826
	Business
	Outsourcing Business	3,751	2,164	4,016	2,425	264	260
	Elimination of inter-segment	(797)	(357)	(688)	(300)	108	57
	transactions
	Total	20,012	6,070	22,375	7,021	2,362	950

Consolidated Summary Report under Japanese GAAP for the Fiscal Year ended June 30, 2023 Page 6

1. Discussion on Financial Position for the Fiscal Year under Review 【Before corrections】
   a 110million yen increase in accounts payable

【After corrections】

a 120million yen increase in accounts payable

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Consolidated Summary Report under Japanese GAAP for the Fiscal Year ended June 30, 2023 Page 9

3. Consolidated Financial Statements and Notes

(1) Consolidated Balance Sheets 【Before corrections】

			(Thousands of yen)
		As of June 30, 2022	As of June 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	662,316	634,758
Lease liabilities	12,428	12,257
Accounts payable - other, and accrued expenses	392,568	503,111
Income taxes payable	586,626	354,192
Contract liabilities	2,355,344	2,796,086
Asset retirement obligations	15,606	－
Provision for bonuses	1,050,315	1,038,329
Provision for bonuses for directors (and other	170,813	172,380
officers)
Provision for loss on orders received	17,743	61,594
Provision for compensation for damage	－	9,596
Other	556,718	539,812
Total current liabilities	5,820,483	6,122,119
Non-current liabilities
Lease liabilities	18,324	6,039
Asset retirement obligations	180,576	210,900
Deferred tax liabilities	－	38,016
Total non-current liabilities	198,900	254,956
Total liabilities	6,019,383	6,377,076
Net assets
Shareholders' equity
Share capital	329,128	345,113
Capital surplus	265,928	281,913
Retained earnings	9,872,031	11,477,458
Treasury shares	(608)	(608)
Total shareholders' equity	10,466,479	12,103,876
Accumulated other comprehensive income
Valuation difference on available-for-sale	103,126	183,925
securities
Deferred gains or losses on hedges	236	302
Foreign currency translation adjustment	27,820	40,411
Total accumulated other comprehensive
131,183	224,639
income
Total net assets	10,597,663	12,328,516
Total liabilities and net assets	16,617,046	18,705,593

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【After corrections】

			(Thousands of yen)
		As of June 30, 2022	As of June 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	662,316	634,758
Lease liabilities	12,428	12,257
Accounts payable - other, and accrued expenses	392,568	512,708
Income taxes payable	586,626	354,192
Contract liabilities	2,355,344	2,796,086
Asset retirement obligations	15,606	－
Provision for bonuses	1,050,315	1,038,329
Provision for bonuses for directors (and other	170,813	172,380
officers)
Provision for loss on orders received	17,743	61,594
Other	556,718	539,812
Total current liabilities	5,820,483	6,122,119
Non-current liabilities
Lease liabilities	18,324	6,039
Asset retirement obligations	180,576	210,900
Deferred tax liabilities	－	38,016
Total non-current liabilities	198,900	254,956
Total liabilities	6,019,383	6,377,076
Net assets
Shareholders' equity
Share capital	329,128	345,113
Capital surplus	265,928	281,913
Retained earnings	9,872,031	11,477,458
Treasury shares	(608)	(608)
Total shareholders' equity	10,466,479	12,103,876
Accumulated other comprehensive income
Valuation difference on available-for-sale	103,126	183,925
securities
Deferred gains or losses on hedges	236	302
Foreign currency translation adjustment	27,820	40,411
Total accumulated other comprehensive
131,183	224,639
income
Total net assets	10,597,663	12,328,516
Total liabilities and net assets	16,617,046	18,705,593

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Consolidated Summary Report under Japanese GAAP for the Fiscal Year ended June 30, 2023 Page 11 3. Consolidated Financial Statements and Notes

1. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Consolidated Statements of Income

【Before corrections】

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		June 30, 2022	June 30, 2023
		(From July 1, 2021	(From July 1, 2022
		to June 30, 2022)	to June 30, 2023)
Net sales	18,703,387	21,424,584
Cost of sales	9,782,137	12,028,711
Gross profit	8,921,250	9,395,873
Selling, general and administrative expenses
Remuneration for directors (and other officers)	356,348	396,002
Employees' salaries and bonuses	1,527,471	1,598,420
Provision for bonuses	1,047,472	1,047,155
Provision for bonuses for directors (and other	170,813	173,579
officers)
Legal welfare expenses	224,193	246,204
Outsourcing expenses	55,071	76,652
Rent expenses on land and buildings	239,805	231,184
Utilities expenses	81,375	84,138
Commission expenses	615,796	746,590
Depreciation	263,488	269,179
Research and development expenses	382,473	375,674
Other	709,749	861,698
Total selling, general and administrative expenses	5,674,060	6,106,482
Operating profit	3,247,189	3,289,390
Non-operating income
Interest income	240	96
Dividend income	6,563	10,192
Gain on investments in investment partnerships	9,043	7,386
Subsidy income	2,127	531
Other	1,102	4,559
Total non-operating income	19,077	22,766
Non-operating expenses
Provision for loss on compensation for damage	－	9,596
Interest expenses	742	485
Share of loss of entities accounted for using equity	269,244	－
method
Loss on investments in investment partnerships	－	11,975
Commission expenses	5,682	5,791
Foreign exchange losses	695	4,426
Share issuance costs	281	228
Compensation for damage	－	13,377
Other	647	289
Total non-operating expenses	277,294	46,172
Ordinary profit	2,988,973	3,265,983
Extraordinary losses
Impairment losses	－	186,613
Total extraordinary losses	－	186,613
Profit before income taxes	2,988,973	3,079,370
Income taxes - current	1,186,181	1,009,937
Income taxes - deferred	(242,241)	(25,087)
Total income taxes	943,939	984,850
Profit	2,045,033	2,094,520
Profit attributable to non-controlling interests	－	－

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