プロトコーポレーション（4298） – Consolidated Financial Results for the Nine Months Ended December 31, 2021 [Japanese GAAP]

Note:ThisdocumentisatranslationofapartoftheoriginalJapaneseversionandprovidedforreferencepurposesonly.IntheeventofanydiscrepancybetweentheJapaneseoriginalandthisEnglishtranslation,theJapaneseoriginalshallprevail.Consolidated Financial Resultsfor the Nine Months Ended December 31, 2021[Japanese GAAP]January 31, 2022Company name: PROTO CORPORATIONStock exchange listing: Tokyo,NagoyaCode number: 4298URL: https://www.proto-g.co.jp/Representative: Kenji KamiyaContact: Takehito SuzukiPhone: +81-52-934-2000Scheduled date of filing quarterly securities report: February 14, 2022Scheduled date of commencing dividend payments: -Availability of supplementary briefing material on quarterly financial results: YesSchedule of quarterly financial results briefing session: YesPresidentExecutive officer1. 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.)(Amounts of less than one million yen are rounded down)Net salesOperating profitOrdinary profitNine months endedDecember 31, 2021December 31, 2020(Note) Comprehensive income:%2.3-Million yen42,69241,717Nine months ended December 31, 2021:Nine months ended December 31, 2020:Million yen5,1414,926%4.4-¥¥Basic earningsper shareDiluted earnings pershareMillion yen5,2944,872%8.7-Profit attributable toowners of parentMillion yen5,0493,228%56.4-5,256 million3,805 million[[38.1%]-%]Nine months endedDecember 31, 2021December 31, 2020(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 quarterof the fiscal year ended March 31, 2021 are after the retroactive application of the said accounting standard. As a result, the rate ofincrease or decrease in the third quarter of the fiscal year ended March 31, 2021 compared to the same period of the previous fiscalyear is not stated.Yen125.6980.39Yen–(2) Consolidated Financial PositionTotal assetsNet assetsCapital adequacy ratioAs ofDecember 31, 2021March 31, 2021(Reference) Equity: As of December 31, 2021:Million yen54,35549,388As of March 31, 2021:Million yen40,03435,934¥¥39,999 million35,901 million%73.672.7　2. DividendsFiscal year ended March 31, 2021Fiscal year ending March 31, 2022Fiscal year ending March 31, 2022(Forecast)Annual dividends1stquarter-end2ndquarter-end3rdquarter-endYear-endTotalYen–Yen12.5017.50Yen–Yen12.50Yen25.0017.5035.00(Note) Revision to the forecast for dividends announced most recently:No3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 31, 2022)Net salesOperating profitMillion yen60,000%Full year2.7(Note) Revision to the financial results forecast announced most recently: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 thenew standards.Million yen6,080Million yen6,100Yen139.74%15.7%(0.6)%(0.2)No(% indicates changes from the previous corresponding period.)Basic earningsper shareOrdinary profitProfit attributable toowners of parentMillion yen5,615* 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):NewExclusion:(Company name: PROTO Ventures 2 Investment Limited Partnership(Company name: PROTO MEDICAL CAREYes11))(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement1) Changes in accounting policies due to the revision of accounting standards: Yes2) Changes in accounting policies other than 1) above: No3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)1) Total number of issued shares at the end of the period (including treasury shares):December 31, 2021:March 31, 2021:41,925,300 shares41,925,300 shares2) Total number of treasury shares at the end of the period:December 31, 2021:March 31, 2021:1,729,997 shares1,766,217 shares3) Average number of shares during the period:Nine months ended December 31, 2021:Nine months ended December 31, 2020:40,177,177 shares40,159,366 shares　***** TTTTThhhhhiiiiisssss qqqqquuuuuaaaaarrrrrttttteeeeerrrrrlllllyyyyy rrrrreeeeepppppooooorrrrrttttt iiiiisssss nnnnnooooottttt sssssuuuuubbbbbjjjjjeeeeecccccttttt tttttooooo qqqqquuuuuaaaaarrrrrttttteeeeerrrrrlllllyyyyy rrrrreeeeevvvvviiiiieeeeewwwww ppppprrrrroooooccccceeeeeddddduuuuurrrrreeeeesssss bbbbbyyyyy ccccceeeeerrrrrtttttiiiiifffffiiiiieeeeeddddd pppppuuuuubbbbbllllliiiiiccccc aaaaaccccccccccooooouuuuunnnnntttttaaaaannnnntttttsssss ooooorrrrr aaaaannnnn aaaaauuuuudddddiiiiitttttiiiiinnnnnggggg fffffiiiiirrrrrmmmmm…..***** EEEEExxxxxppppplllllaaaaannnnnaaaaatttttiiiiiooooonnnnn fffffooooorrrrr aaaaapppppppppprrrrroooooppppprrrrriiiiiaaaaattttteeeee uuuuussssseeeee ooooofffff fffffooooorrrrreeeeecccccaaaaassssstttttsssss aaaaannnnnddddd ooooottttthhhhheeeeerrrrr nnnnnooooottttteeeeesssssThe forward-looking statements such as operational forecasts contained in this statements summary are based on the informationcurrently available to the Company and certain assumptions which are regarded as legitimate. Actual results may differ significantlyfrom these forecasts due to various factors.　Quarterly Consolidated Financial StatementsQuarterly Consolidated Balance SheetsAssetsCurrent assetsCash and depositsNotes and accounts receivable – tradeInventoriesOtherAllowance for doubtful accountsTotal current assetsNon-current assetsProperty, plant and equipmentBuildings and structures, netTotal property, plant and equipmentLandOther, netIntangible assetsGoodwillOtherTotal intangible assetsInvestments and other assetsInvestments and other assetsAllowance for doubtful accountsTotal investments and other assetsTotal non-current assetsTotal assetsAs of March 31,2021As of December 31,2021(Million yen)21,7055,0103,7031,211(6)31,6235,7564,57069211,0191,1241,0942,2184,543(17)4,52517,76449,38824,9395,1974,3122,382(6)36,8255,4904,69462910,8146351,2751,9114,877(73)4,80417,53054,355　LiabilitiesCurrent liabilitiesNotes and accounts payable – tradeShort-term borrowingsCurrent portion of long-term borrowingsProvision for merchandise warrantiesAccrued expensesIncome taxes payableProvision for bonusesContract liabilitiesOtherTotal current liabilitiesNon-current liabilitiesLong-term borrowingsProvision for retirement benefits for directors (andother officers)Retirement benefit liabilityAsset retirement obligationsOtherTotal non-current liabilitiesTotal liabilitiesNet assetsShareholders’ equityShare capitalCapital surplusRetained earningsTreasury sharesTotal shareholders’ equityAccumulated other comprehensive incomeValuation difference on available-for-salesecuritiesForeign currency translation adjustmentTotal accumulated other comprehensive incomeNon-controlling interestsTotal net assetsTotal liabilities and net assetsAs of March 31,2021As of December 31,2021(Million yen)2,2192,4002952,6081,25315825323,13212,12638522583004071,32713,4531,8492,03632,447(1,306)35,0265433308743335,93449,3882,7412,8502552,5741,23513619343,28013,127274233932743171,19314,3211,8492,05836,291(1,279)38,9201,07441,0783540,03454,355　Quarterly Consolidated Statements of Income and Comprehensive IncomeQuarterly Consolidated Statements of Income (For the nine months)For the nine monthsended December 31,2020For the nine monthsended December 31,2021(Million yen)Net salesCost of salesGross profitReversal of provision for sales returnsProvision for sales returnsGross profit – netSelling, general and administrative expensesOperating profitNon-operating incomeInterest and dividend incomeForeign exchange gainsShare of profit of entities accounted for using equitymethodOtherLoss on investments in investment partnershipsTotal non-operating incomeNon-operating expensesInterest expensesLoss on valuation of derivativesOtherTotal non-operating expensesOrdinary profitExtraordinary incomeGain on sale of non-current assetsGain on sale of shares of subsidiaries and associatesLoss on sale and retirement of non-current assetsOtherTotal extraordinary incomeExtraordinary lossesSettlement packageTotal extraordinary lossesProfit before income taxesIncome taxes – currentIncome taxes – deferredTotal income taxesProfitProfit attributable to non-controlling interestsProfit attributable to owners of parent41,71723,19918,51710018,52813,6014,926569-70146919159101994,8720-330344,8711,679(36)1,6433,22803,22842,69224,10318,589–18,58913,4475,141230503627272073171195,294182,1464782,6425-57,9312,1677122,8795,05115,049　Quarterly Consolidated Statements of Comprehensive Income (For the nine months)For the nine monthsended December 31,2020For the nine monthsended December 31,2021(Million yen)ProfitOther comprehensive incomeValuation difference on available-for-sale securitiesForeign currency translation adjustmentTotal other comprehensive incomeComprehensive incomeComprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests3,22857605763,8053,80325,051530(326)2045,2565,2524