Proto : Consolidated Financial Results for the Nine Months Ended December 31, 2021

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Nine Months Ended December 31, 2021

[Japanese GAAP]

January 31, 2022

Company name: PROTO CORPORATION
Stock exchange listing: Tokyo,Nagoya
Code number: 4298
URL: https://www.proto-g.co.jp/
Representative: Kenji Kamiya	President
Contact: Takehito Suzuki	Executive officer

Phone: [phone]

Scheduled date of filing quarterly securities report: February 14, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 01, 2021 to December 31, 2021)

(1) Consolidated Operating Results				(% indicates changes from the previous corresponding period.)
		Net sales			Operating profit			Ordinary profit			Profit attributable to
								owners of parent
Nine months ended		Million yen		%		Million yen		%		Million yen		%		Million yen	%
December 31, 2021		42,692		2.3		5,141	4.4		5,294		8.7			5,049	56.4
December 31, 2020		41,717		-		4,926		-		4,872		-			3,228	-
(Note) Comprehensive income:	Nine months ended December 31, 2021:	¥		5,256 million	[	38.1%]
		Nine months ended December 31, 2020:	¥		3,805 million	[		-%]
		Basic earnings	Diluted earnings per
		per share				share
Nine months ended				Yen					Yen
December 31, 2021				125.69					-
December 31, 2020				80.39					-

(Note) The Company has adopted the "accounting standard regarding revenue recognition" (Corporate Accounting Standards No. 29, March 31, 2020), etc. from the beginning of the current first quarter consolidated accounting period. The figures for the third quarter of the fiscal year ended March 31, 2021 are after the retroactive application of the said accounting standard. As a result, the rate of increase or decrease in the third quarter of the fiscal year ended March 31, 2021 compared to the same period of the previous fiscal year is not stated.

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio
As of	Million yen		Million yen	%
December 31, 2021	54,355		40,034	73.6
March 31, 2021	49,388		35,934	72.7
(Reference) Equity: As of	December 31, 2021:	¥	39,999 million
As of	March 31, 2021:	¥	35,901 million

2. Dividends

				Annual dividends
	1st	2nd	3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
	Yen		Yen	Yen		Yen	Yen
Fiscal year ended March 31, 2021	-		12.50	-		12.50	25.00
Fiscal year ending March 31, 2022	-		17.50	-
Fiscal year ending March 31, 2022						17.50	35.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	60,000		(0.2)	6,100	2.7	6,080	(0.6)	5,615	15.7	139.74
(Note) Revision to the financial results forecast announced most recently:	No

Since the company will apply the "accounting standards regarding revenue recognition"(Corporate Accounting Standards No.29, March 31, 2020), etc. from the beginning of the term ending March 2022, so the earnings forecast indicates the figures based on the new standards.

* Notes:
(1)	Changes in significant subsidiaries during the nine months ended December 31, 2021
	(changes in specified subsidiaries resulting in changes in scope of consolidation):	Yes
	New	1	(Company name: PROTO Ventures 2 Investment Limited Partnership	)
	Exclusion:	1	(Company name: PROTO MEDICAL CARE		)
(2)	Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

December 31, 2021:	41,925,300	shares
March 31, 2021:	41,925,300	shares
2) Total number of treasury shares at the end of the period:
December 31, 2021:	1,729,997	shares
March 31, 2021:	1,766,217	shares

3) Average number of shares during the period:
Nine months ended December 31, 2021:	40,177,177	shares
Nine months ended December 31, 2020:	40,159,366	shares

• This quarterly report is not subject to quarterly review procedures by certified public accountants or an auditing firm.
• Explanation for appropriate use of forecasts and other notes

The forward-looking statements such as operational forecasts contained in this statements summary are based on the information currently available to the Company and certain assumptions which are regarded as legitimate. Actual results may differ significantly from these forecasts due to various factors.

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Million yen)
			As of March 31,2021	As of December 31,2021
Assets
	Current assets
		Cash and deposits	21,705	24,939
		Notes and accounts receivable - trade	5,010	5,197
		Inventories	3,703	4,312
		Other	1,211	2,382
		Allowance for doubtful accounts	(6)	(6)
		Total current assets	31,623	36,825
	Non-current assets
		Property, plant and equipment
		Buildings and structures, net	5,756	5,490
		Land	4,570	4,694
		Other, net	692	629
		Total property, plant and equipment	11,019	10,814
		Intangible assets
		Goodwill	1,124	635
		Other	1,094	1,275
		Total intangible assets	2,218	1,911
		Investments and other assets
		Investments and other assets	4,543	4,877
		Allowance for doubtful accounts	(17)	(73)
		Total investments and other assets	4,525	4,804
		Total non-current assets	17,764	17,530
	Total assets	49,388	54,355

				(Million yen)
			As of March 31,2021	As of December 31,2021
Liabilities
	Current liabilities
		Notes and accounts payable - trade	2,219	2,741
		Short-term borrowings	2,400	2,850
		Current portion of long-term borrowings	295	255
		Accrued expenses	2,608	2,574
		Income taxes payable	1,253	1,235
		Provision for bonuses	158	136
		Provision for merchandise warranties	25	19
		Contract liabilities	32	34
		Other	3,132	3,280
		Total current liabilities	12,126	13,127
	Non-current liabilities
		Long-term borrowings	385	274
		Provision for retirement benefits for directors (and	225	233
		other officers)
		Retirement benefit liability	8	93
		Asset retirement obligations	300	274
		Other	407	317
		Total non-current liabilities	1,327	1,193
	Total liabilities	13,453	14,321
Net assets
	Shareholders' equity
		Share capital	1,849	1,849
		Capital surplus	2,036	2,058
		Retained earnings	32,447	36,291
		Treasury shares	(1,306)	(1,279)
		Total shareholders' equity	35,026	38,920
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	543	1,074
		securities
		Foreign currency translation adjustment	330	4
		Total accumulated other comprehensive income	874	1,078
	Non-controlling interests	33	35
	Total net assets	35,934	40,034
Total liabilities and net assets	49,388	54,355