Financial Results for the Three Months Ended June 2020

(April 1,2020 to June 30,2020)

PROTO CORPORATION (4298) July 31, 2020

(Investor Meeting August 5, 2020)

INDEX

1.Overview of Q1/FY March 2021

2.FY March 2021:Consolidated Earnings Forecast 3.Our company's activities

4.Appendix

2

Overview of Q1/FY March 2021

Overview of Q1/FY March 2021

Operating income rose,

as the platform performed well.

Sales

Gross Profit

EBITDA Operating income

OP Margin Net income

13,518million yen

5,962million yen

1,829million yen

1,502million yen

11.1％

1,017million yen

YoY (8％)

YoY +0％

YoY +4％

YoY +4％

YoY +1.2pt

YoY (2％)

4

Overview of Q1/FY March 2021

Consolidated sales declined, due to the sluggish sales of goods.

Sales

14,698million yen

13,518million yen

13,219 11,935

Q1/March 2020

Q1/March 2021

Auto

Life

Real Estate

Other

YoY

(8)

Down 1,179 million yen

5

Overview of Q1/FY March 2021

Especially, the sales of goods (export of used cars) dropped.

Sales Breakdown

(Million yen)

13,518

6

Overview of Q1/FY March 2021

Operating income rose, as the platform performed well.

Operating income

1,448million yen

1,502million yen

1,793 1,786

YoY

+4

Up 54 million yen

Q1/March 2020

Q1/March 2021

Auto

Life

Real Estate

Other

Management

7

Overview of Q1/FY March 2021

Operating income increased due to lower SG&A expenses.

In particular, SG&A expenses decreased in the Lifestyle-related and Management divisions.

Operating income from Automobile-related was flat YoY.

Operating Income Breakdown

(Million yen)

1,502

8

Overview of Q1/FY March 2021

As for the performance of each company, PROTO CORPORATION

contributed to the rise in profit.

Operating Income Breakdown

Gross Profit Breakdown

+11

SG&A Breakdown

PROTO CORPORATION

＋164

PROTO CORPORATION

PROTO-RIOS

+5

PROTO-RIOS

AUTOWAY

(80)

AUTOWAY

TIRE WORLD KAN BEST

(42)

TIRE WORLD KAN BEST

GOONET EXCHANGE

(2)

GOONET EXCHANGE

Amortization of Goodwill

(Million yen)

+42

Operating Income Breakdown

+54

(19)

PROTO CORPORATION

＋145

(24)

PROTO-RIOS

(19)

(17)

AUTOWAY

(98)

＋3

TIRE WORLD KAN BEST

(39)

＋1

GOONET EXCHANGE

(1)

+0

Amortization of Goodwill

0

1,502

9

Regarding the impact of COVID-19 on the domestic automotive market

Sales volume of new cars in Japan

(thousand)

2019

2020

YoY(9％)

YoY(29％)

YoY(45％)

YoY(23％)

1,000

750

641

408

479

379

396

450

500

581

250

360

430

270

347

0

218

Jan

Feb

Mar

Apr

May

Jun

No. of registered used cars in Japan

(thousand)

2019

2020

YoY(2％)

1,250

YoY(6％)

YoY(20％)

YoY+5％

890

1,000

586

579

750

491

873

547

547

500

484

551

547

573

250

438

0

Jan

Feb

Mar

Apr

May

Jun

10

Regarding the impact of COVID-19 on the domestic automotive market

Sales volume of tires of four-wheeled vehicles for replacement in Japan

(thousand)

2019

2020

YoY(10％)

YoY(18％)

YoY(27％)

YoY(12％)

10,000

7,126

4,660

5,691

4,363

4,827

3,588

5,000

6,420

4,593

4,643

4,226

3,187

3,167

0

Jan

Feb

Mar

Apr

May

Jun

No. of deregistered vehicles for export in Japan

2019

2020

(thousand)

YoY+24％

YoY(16％)

YoY(32％)

YoY+12％

400

200

171

158

119

108

97

87

169

134

89

99

108

109

0

Jan

Feb

Mar

Apr

May

Jun

11

Impact of COVID-19 on our performance, and our measures

The export of used cars was affected, but the automobile-

related information business performed well.

Sub-segment

Major products

Q1

Situation in Q1

Measures from Q2

evaluation

Ad-related

MOTORGATE (Goo-net)

Good

Healthy, and the sales of options

Sales promotion of

were favorable.

MOTORGATE AI

Ad-related

Goo-net Pit

Excellent

Healthy, and FC rights of leading

Promotion of "smart booking"

companies obtained

Ad-related

Ad agency (online ads) and fliers

Average

The demand for ads for reeling in

Marketing continued, expecting

customers dropped.

the recovery of demand

New cars

Sales activities targeting new

Sales activities targeting new

Information and services

Average

customers resumed in June

(DataLine SalesGuide, etc.)

customers were stagnant.

2020

Recoil from the good

Information and services

Software for maintenance shops

Average

performance in the previous term.

Sales activities targeting new

（PROTO-RIOS）

Sales activities targeting new

customers resumed in July 2020

customers were stagnant.

Sale of goods

Sale of tires and wheels

Average

EC was healthy, while real shops

Sales promotion mainly for EC

struggled.

Sale of goods

Export of used cars

Bad

Ports of destination countries

To enhance debt collection and

closed

reduce costs

12

Ad-related (used car field)

No. of affiliated companies of Goo-net (MOTOR GATE)

20,000

YoY(3.5％)

（Unit:Companies）

15,000

14,070

14,621

14,871

14,761

14,128

14,629

14,601

14,011

13,629

10,000

5,000

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY201903

FY202003

FY202103

13

Ad-related (used car field)

No. of affiliated dealers of Goo-net (MOTOR GATE)

30,000

25,000

20,000

15,000

10,000

5,000

0

YoY +1.9％

(Unit: Dealers)

19,690 20,530 20,827 20,763 20,606 21,148 21,451 20,992 21,000

Continued to advertise mainly at large and medium- sized used car dealers, although new contract acquisition was sluggish.

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY201903

FY202003

FY202103

14

Ad-related (used car field)

No. of dealers that have installed MOTOR GATE Calendar (including the booking of online business talks)

15,000

YoY+46.7％

(Unit: Dealers)

10,330

10,000

8,702

8,714

8,621

6,575

7,043

6,434

5,608

4,866

5,000

0

Amid the COVID-19 pandemic, the non-contact business talk tool "booking of online business talks" and "Goo-net Live (online business talks)" are increasingly used.

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY201903

FY202003

FY202103

15

Ad-related (maintenance field)

No. of fee-paying shops listed in Goo-net Pit (pay-per-use contracts started in Q1 of 2020)

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

（Unit:Shops）

Pay-per-use

contracts mainly

for leading FC

1,009

YoY+6.7％

(Flat-rate fee)

2,942

3,164

3,236

3,310

3,397

3,388

3,444

3,480

3,626

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY201903

FY202003

FY202103

16

Information and services (new car field)

No. of dealers that have adopted DataLine SalesGuide

10,000

(Unit: Dealers)

8,000

YoY +3.2％

6,000

5,244

5,422

5,462

5,512

5,588

5,697

5,635

5,115

4,993

The number of new

contracts is stagnant.

4,000

Dropped due to the cost

reduction by some new car

dealers.

2,000

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY201903

FY202003

FY202103

17

Information and services (new car field)

We will strive to grow the new car domain, by increasing the number of

dealers that have adopted our products and increasing average spending per customer.

March 2020 (Results)

AI Chatbot

216

DataLine Finder

209

(Former DataLine CRM)

DataLine AI Assessment

462

DLSG car replacement

1,174

proposal

DataLine SalesGuide

5,697

0

4,000

8,000

12,000

16,000

Number of Installed Dealers

June 2020 (Results)

AI Chatbot

274

14,670

DataLine Finder

240

14,670

DataLine AI Assessment

565

14,670

DLSG car replacement

1,130

proposal

5,635

14,670

DataLine SalesGuide

14,670

0

4,000

8,000

12,000

16,000

Number of Installed Dealers Target Market Scale

18

FY March 2021:

Consolidated Earnings Forecast

FY March 2021:Consolidated Earnings Forecast

Operating income is estimated to rise,

thanks to the growth of the platform business.

Y/y growth rate of

Y/y growth rate of

consolidated sales

consolidated operating income

+1%

+2%

Up 872 million yen

Up 88 million yen

20

FY March 2021:Consolidated Earnings Forecast

Consolidated Statements of

FY March 2020

FY March 2021

YoY

Income

[unit: million yen]

Results(a)

Sales ratio

Forecast(b)

Sales ratio

(b)-(a)

%

Net Sales

59,127

100.0%

60,000

100.0%

872

+1.5%

Gross Profit

24,406

41.3%

25,615

42.7%

1,208

+4.9%

EBITDA

6,455

10.9%

6,613

11.0％

157

+2.4%

Operating Income

5,136

8.7%

5,225

8.7%

88

+1.7%

Ordinary Income

5,354

9.1%

5,289

8.8%

▲65

▲1.2%

Net Income

4,991

8.4%

3,481

5.8%

▲1,510

▲30.3%

Net Income per Share(Yen)

124.33

-

86.68

-

▲37.65

▲30.3%

[unit: million yen]

FY March 2020

FY March 2021

YoY

Results(a)

Sales ratio

Forecast(b)

Sales ratio

(b)-(a)

%

SG&A Expenses

19,270

32.6%

20,390

34.0%

1,119

+5.8%

Employment Cost

7,721

13.1%

8,327

13.9%

605

+7.8%

Advertising Cost

4,602

7.8%

4,710

7.9%

108

+2.4%

Other Expenses

6,945

11.7%

7,351

12.2%

405

+5.8%

Preconditions

Assuming that a nationwide state of emergency will not be declared in Japan, consumer spending is expected to recover gently in the fields of used cars, new cars, maintenance, and tires.

The export of used cars is estimated to be continuously affected by COVID-19, through the closure of ports in destination countries, etc.

Supplementary info

As for net income, there is no longer gain from sale of fixed assets due to the relocation of the headquarters in Tokyo, which amounted to about 1.8 billion yen in the previous term (whose effect on net income is about 1.2 billion yen)

21

FY March 2021:Consolidated Earnings Forecast by Segment

Net Sales

FY March 2020

FY March 2021

YoY

[unit: million yen]

Results(a)

Sales ratio

Forecast(b)

Sales ratio

(b)-(a)

%

Automobile-related

52,870

89.4%

53,359

88.9%

489

+0.9%

Ad-related

21,485

36.3%

22,553

37.6%

1,067

+5.0%

Information and services

5,557

9.4%

5,332

8.9%

(224)

(4.0%)

Sales of goods

25,827

43.7%

25,474

42.5%

(353)

(1.4%)

Lifestyle-related

4,168

7.0%

4,176

7.0%

8

+0.2%

Real Estate

160

0.3%

145

0.2%

(15)

(9.5%)

Other Business

1,928

3.3%

2,318

3.9%

389

+20.2%

Total

59,127

100.0%

60,000

100.0%

872

+1.5%

Operating Income

FY March 2020

FY March 2021

YoY

[unit: million yen]

Results(a)

Profit

Forecast(b)

Profit

(b)-(a)

%

margin

margin

Automobile-related

6,582

12.5%

6,861

12.9%

278

+4.2%

Lifestyle-related

169

4.1%

199

4.8%

30

+17.9%

Real Estate

135

84.2%

65

45.3%

(69)

(51.4%)

Other Business

58

3.1%

147

6.4%

88

+150.8%

Management Division

(1,809)

-

(2,049)

-

(239)

-

Total

5,136

8.7%

5,225

8.7%

88

+1.7%

Supplementary info

As for "Ad-related," MOTORGATE and Goo-net Pit are expected to grow.

As for "Information and services," the new car domain is expected to grow, but there will be a recoil from sale of software for maintenance shops of PROTO- RIOS (In the previous term, there was rush demand due to the discontinuation of support for Windows 7).

As for "Sale of goods," the sales from export of used cars are estimated to decline due to COVID-19.

22

Regarding profit sharing with shareholders

Estimated dividends are "unchanged" (from those announced on May 14, 2020)

Policy for profit sharing with shareholders

We will make efforts to return profits to shareholders while comprehensively considering continuous, stable dividends, the enrichment of internal reserve for the future growth, etc. We will use the internal reserve effectively by investing in existing and new businesses, for further fortifying the management foundation and expanding the business scale.

Cash Dividends per Share

[unit: yen]

FY March 2019

FY March 2020

FY March 2021

FY March 2022

Results

Results

Forecast

Forecast

13.75 yen

2nd Quarter

12.5 yen

(Including commemorative

12.5 yen

TBD

dividend: 1.25 yen）

13.75 yen

Year-End

12.5 yen

(Including commemorative

12.5 yen

TBD

dividend: 1.25 yen)

27.5 yen

Annual

25 yen

(Including commemorative

25 yen

TBD

dividend: 2.5 yen）

Note: For Cash Dividends per Share, the effects of the 2-for-1 stock split with the effective date being July 1, 2019 was taken into account.

23

Our company's activities

Medium- to Long-Term Growth Strategy

We will invest our management resources in the medium- and long-term growth markets

and aim for sustainable improvement of our corporate value.

Goo-net Pit

Goo-net

25

Medium-term3-Year Business Plan (Business Indicators) The medium-term 3-YearBusiness Plan "unchanged."

We aim to achieve an ROE of 12% or more in the 3-yearmedium-term plan.

■ Concerning important business indicators

Along with the growth of gross profit and operating income,

we have positioned ROE and EPS as important business indicators.

■ Business indicators

FY March 2016

FY March 2019

FY March 2022

Results

Results

Forecast

ROE

(1.5%)

11.7%

Over 12.0%

EPS (Net income per share)

(9.64) yen

78.75 yen

100.00 yen

Gross profit

21.2 billion yen

23.8 billion yen

CAGR 6.4％

Operating income

4.07 billion yen

4.56 billion yen

CAGR 9.4%

Note: We have changed key management indicators from net sales to gross profit on the assumption that the "Accounting Standard for Revenue Recognition" will be applied in the future.

Note: For EPS, the effects of the 2-for-1 stock split with the effective date being July 1, 2019 was taken into account.

26

Major activities in the first quarter of the term ending March 2021

Apr. 2020: Released MOTORGATE's function of "booking of online business talks" (used cars).

May 2020: Released AI chatbot's function of "booking of online business talks" (new cars).

Jun. 2020: Released the online business talk tool "Goo-net Live" (used cars).

Jul. 2020: Released "MOTORGATE AI," an AI-based analysis tool for increasing contract rates (used cars).

Jul. 2020: Incorporated AI chatbots into "Smart booking" of Goo-net Pit (maintenance).

27

Used car field: Booking of online business talks, Goo-net Live

Non-contactbusiness talk tool released (Promotion of DX in the automobile industry)

Booking of Online business talks

Goo-net Live

Released on Apr. 28, 2020

Online business talks

Goo-net Live

or

Released on Jun. 19, 2020

Zoom, etc.

28

Used car field: MOTORGATE AI

Released AI-based products (Promotion of DX in the automobile field)

To learn the access data to images in Goo-net, and automatically produce the descriptions of car models and number of recommend images, etc. to increase access

Released on Jul. 2, 2020

29

Maintenance field: Incorporated AI chatbots into "smart booking"

To increase the users of "smart booking" of Goo-net Pit by improving UX and UI

Goo-net Pit

Released on Jul. 15, 2020

What can we do for you?

Installation/replacement (Bring a part)

Car inspection/checkup

Repair of scratches and dents

Replacement of oil

Other (consultation with a maintenance shop)

Free-form input

Booked

For supporting marketing in the automobile maintenance field amid the COVID-19 pandemic, we will offer charge-free services for affiliated shops of Goo- net Pit until Sep. 2020 (unit price: 1,500 per customer introduced)

30

Appendix

Vision "Corporate Goal"

Gaining "customer satisfaction (useful information and services)," "employee pride (company and work)," and "shareholder trust (future and achievements)" by creating a new society through change and innovation

Customer satisfaction

Beneficial information and services

CHANGING

Pride of employees

COMPANY

Trust from shareholders

-A company that continues

to change for the future-

Company and work

Future and results

32

Corporate Profile

Corporate Name

PROTO CORPORATION

Founded

October 1, 1977

Established

June 1, 1979

Common Stock

1,849 million yen (As of March 31, 2020)

Shares Outstanding

41,925,300 shares (As of March 31, 2020)

Head Offices

23-14, Aoi 1-chome,Naka-ku, Nagoya 460-0006, Japan

6-18-1Nishi-Shinjuku,Shinjuku-ku, Tokyo 160-0023, Japan

Branch Offices

Sapporo, Sendai, Takasaki, Nagano, Hamamatsu, Nagoya, Kanazawa, Osaka, Hiroshima, Matsuyama, Fukuoka, Kumamoto

(53 Sales Outlets Nationwide)

Fiscal Year-end

March 31

Number of Employees

Consolidated: 1,456 (As of March 31, 2020)

Parent: 577 (As of March 31, 2020)

Stock Exchange Listing

Tokyo Stock Exchange, First Section and Nagoya Stock Exchange, First Section

Subsidiary

1.

AUTOWAY Co., Ltd. (Full subsidiary since April 2013)

10. PROTO SOLUTION Co., Ltd. (Full subsidiary, established in April 2007 )

11. OKINAWA CALL STAFF SERVICE Co., LTD (Full subsidiary since October 2017)

2.

TIRE WORLD KAN BEST CO., LTD. (Full subsidiary since April 2015)

3.

GOONET EXCHANGE (Former Kings Auto) (Full subsidiary since April 2012)

12. PROTO Ventures (Full subsidiary, established in April 2019)

4.

PROTO-RIOS INC. (Full subsidiary since October 2002)

13. Associe Co., Ltd (Full subsidiary since October 2019)

5.

CAR CREDO Co., Ltd. (Full subsidiary, established in February 2012)

14. CAR CREDO (Thailand) Co., Ltd. (Shareholder ratio 49% ,established in

6.

CAR BRICKS Co., Ltd. (Shareholder ratio 66% ,established in May 2017)

December 2018)

7.

PROTO MEDICAL CARE (Full subsidiary since October 2009)

15. PROTO MALAYSIA Sdn. Bhd. (Full subsidiary since September 2011) * The

8.

MARUFUJI (Full subsidiary since January 2016)

company is currently under liquidation.

9.

SILVER HEART (Full subsidiary since January 2016)

(As of July 31, 2020)

33

Major Shareholders

Financial Data (Consolidated)

Major Shareholders

Shares outstanding (million, March 2020) DPS (¥, FY March 2021, Forecast)

EPS (¥, FY March 2021, Forecast)

BPS (¥, FY March 2020)

ROE (%, FY March 2020, Net income basis) ROA (%, FY March 2020, Ordinary income basis) Equity ratio (%, March 2020)

Potential share dilution (million) Foreign ownership (%, March 2020)

(Thousands)

41.9

01)

Mugen Corporation

13,614

(32.47%)

25.0

02)

The Master Trust Bank of Japan, Ltd. (Trust Account )

2,823

(06.73%)

86.68

03)

JPLLC CLIENT SAFEKEEPING ACCOUNT

2,670

(06.36%)

794.38

04) PROTO CORPORATION

0,1,763 (04.20%)

16.7

05) JP MORGAN CHASE BANK 385632

0,1,137 (02.71%)

12.1

06)

BNY GCM CLIENT ACCOUNT JPRD AC ISG (FE-AC)

0,1,094 (02.61%)

71.3

07)

CLEARSTREAM BANKING S.A.

0,1,024 (02.44%)

-

08)

Japan Trustee Services Bank, Ltd. (Trust Account )

0,930 (02.21%)

28.96

09)

Hiroichi Yokoyama

0,887 (02.11%)

10)

Yoshihiro Yokoyama

0,730

(01.74%)

※ For BPS, the effects of the 2-for-1 stock split with the effective date being July 1, 2019 was taken into account.

(As of March 31, 2020)

34

Q1/FY March 2021: Operating Results

Q1/FY March 2020

Q1/FY March 2021

YoY

[unit: million yen]

Results(a)

Sales ratio

Results(b)

Sales ratio

(b)-(a)

%

Net Sales

14,698

100.0%

13,518

100.0%

(1,179)

(8.0%)

Gross Profit

5,951

40.5%

5,962

44.1%

11

+0.2%

EBITDA

1,760

12.0%

1,829

13.5％

69

+4.0%

Operating Income

1,448

9.9%

1,502

11.1%

54

+3.7%

Ordinary Income

1,436

9.8%

1,554

11.5%

117

+8.2%

Net Income

1,035

7.0%

1,017

7.5%

(18)

(1.8%)

Net Income per Share(Yen)

25.82

-

25.34

-

(0.48)

(1.8%)

Q1/FY March 2020

Q1/FY March 2021

YoY

[unit: million yen]

Results(a)

Sales ratio

Results(b)

Sales ratio

(b)-(a)

%

SG&A Expenses

4,502

30.6%

4,459

33.0%

(42)

(0.9%)

Employment Cost

1,917

13.0%

1,902

14.1%

(15)

(0.8%)

Advertising Cost

945

6.4%

964

7.1%

18

+2.0%

Other Expenses

1,638

11.1%

1,593

11.8%

(45)

(2.8%)

35

Q1/FY March 2021: Operating Results by Segment

Net Sales

Q1/FY March 2020

Q1/FY March 2021

YoY

[unit: million yen]

Results(a)

Sales ratio

Results(b)

Sales ratio

(b)-(a)

%

Automobile-related

13,219

89.9%

11,935

88.3%

(1,284)

(9.7％)

Ad-related

5,161

35.1%

5,163

38.2%

2

+0.1％

Information and services

1,259

8.6%

1,253

9.3%

(6)

(0.5％)

Sales of goods

6,798

46.3%

5,518

40.8%

(1,280)

(18.8％)

Lifestyle-related

1,044

7.1%

981

7.3%

(63)

(6.1％)

Real Estate

46

0.3%

37

0.3%

(8)

(18.6％)

Other Business

388

2.6%

564

4.2%

176

+45.4％

Total

14,698

100.0%

13,518

100.0%

(1,179)

(8.0％)

Operating Income

Q1/FY March 2020

Q1/FY March 2021

YoY

[unit: million yen]

Results(a)

Profit Margin

Results(b)

Profit Margin

(b)-(a)

%

Automobile-related

1,793

13.6%

1,786

15.0%

(7)

(0.4%)

Lifestyle-related

51

4.9%

81

8.3%

30

+58.4%

Real Estate

47

102.3%

33

88.3%

(14)

(29.7%)

Other Business

14

3.7%

22

3.9%

7

+54.9%

Management Division

(457)

-

(420)

-

37

-

Total

1,448

9.9%

1,502

11.1%

54

+3.7%

36

Q1/FY March 2021: Consolidated Balance Sheet

[unit: million yen]

As of March 31, 2020

As of June 30, 2020

increase and decrease

Results(a)

Ratio

Results(b)

Ratio

(b)-(a)

%

Current Assets

28,231

63.1%

28,163

63.2%

(68)

99.8%

Non-Current Assets

16,494

36.9%

16,372

36.8%

(121)

99.3%

Current Liabilities

11,268

25.2%

10,658

23.9%

(610)

94.6%

Non-Current Liabilities

1,524

3.4%

1,356

3.0%

(167)

89.0%

Net Assets

31,932

71.4%

32,520

73.0%

588

101.8%

Total Assets

44,726

100.0%

44,535

100.0%

(190)

99.6%

[unit: million yen]

As of March 31, 2020

As of June 30, 2020

increase and decrease

Results(a)

Ratio

Results(b)

Ratio

(b)-(a)

%

Cash and cash equivalents

18,057

40.4%

17,519

39.3%

(537)

97.0%

Interest-bearing debt

3,757

8.4%

3,628

8.1%

(129)

96.6%

Net cash

14,299

32.0%

13,891

31.2%

(408)

97.1%

37

Q1/FY March 2021: Consolidated Statements of Cash Flows

Q1/FY March 2020

Q1/FY March 2021

YoY

[unit: million yen]

Results(a)

Results(b)

(b)-(a)

Cash Flows from Operating Activities

1,180

251

(929)

Cash Flows from Investing Activities

(1,154)

(112)

1,042

Cash Flows from Financing Activities

(979)

(673)

306

Cash and Cash Equivalents at End of Term

14,402

16,799

2,397

Q1/FY March 2020

Q1/FY March 2021

YoY

[unit: million yen]

Results(a)

Results(b)

(b)-(a)

Investment Amount

435

105

(330)

(Tangible/intangible fixed assets*)

Depreciation

204

219

14

(Tangible/intangible fixed assets)

Amortization of Goodwill

107

107

0

38

Operating Results 10-year Summary

[unit: million yen]

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

March

March

March

March

March

March

March

March

March

March

Net Sales

28,779

30,582

38,287

54,761

48,602

54,297

56,717

62,111

62,251

59,127

Operating Income

6,111

5,846

4,209

4,735

4,233

4,071

2,795

3,674

4,565

5,136

Net Income

3,197

3,275

2,290

2,627

2,381

(390)

1,506

519

3,159

4,991

EBITDA*1

6,856

6,540

5,161

6,483

6,039

6,149

4,547

5,396

5,920

6,455

Adjusted Net Income*2

3,620

3,680

2,836

3,555

3,308

641

2,145

1,151

3,596

5,420

Depreciation

322

288

404

819

879

1,046

1,113

1,089

916

890

Amortization of

422

405

546

928

926

1,032

638

632

437

429

Goodwill

*1 EBITDA was calculated with the equation: operating income + depreciation + amortization of goodwill

*2 Adjusted Net Income was calculated with the equation: net income + amortization of goodwill

39

Operating Results 10-year Summary by Segment

Sales

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

[unit: million yen]

March

March

March

March

March

March

March

March

March

March

Automobile-related

25,566

26,704

33,687

50,138

44,056

49,486

51,025

56,100

56,167

52,870

Ad-related

20,558

20,579

21,163

21,412

21,593

21,006

21,231

21,618

21,278

21,485

Information and services

3,083

3,312

3,749

4,464

4,546

5,087

4,893

5,053

5,041

5,557

Sales of goods

1,923

2,813

8,774

24,262

17,915

23,392

24,899

29,429

29,847

25,827

Lifestyle-related

2,616

3,470

3,837

3,541

3,393

3,466

4,236

4,370

4,335

4,168

Real Estate

181

166

163

167

164

162

187

213

195

160

Other Business

415

240

597

913

988

1,182

1,268

1,426

1,553

1,928

Total

28,779

30,582

38,287

54,761

48,602

54,297

56,717

62,111

62,251

59,127

Operating Income

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

[unit: million yen]

March

March

March

March

March

March

March

March

March

March

Automobile-related

7,281

7,272

5,916

6,217

5,624

5,277

3,939

4,933

5,758

6,582

Lifestyle-related

301

228

131

248

338

307

478

370

249

169

Real Estate

104

83

85

69

96

109

147

170

193

135

Other Business

(91)

(149)

(323)

(140)

(94)

(66)

(136)

(71)

57

58

Management Division

(1,484)

(1,589)

(1,599)

(1,659)

(1,732)

(1,554)

(1,633)

(1,728)

(1,693)

(1,809)

Total

6,111

5,846

4,209

4,735

4,233

4,071

2,795

3,674

4,565

5,136

40

Segment details

Major products in each segment

Automobile-related(Main Product)

Ad-related

Used cars

Data registration fee for Goo-net, etc. (charge for using MOTOR GATE, etc.)

Maintenance

Data registration fee for Goo-net Pit

Goo-net GooBike Goo-net Pit

Ad-related

The monthly charge for MOTOR GATE (such as Goo-net) is dominant.

The sales from ad agency business, fliers, information magazines, etc. are included.

Information and services

New cars

DataLine SalesGuide, etc.

Maintenance

Sales of software for maintenance and sheet-metal processing (PROTO-RIOS)

Sale of goods

EC: Tires and Wheels (AUTOWAY, TIRE WORLD KAN BEST)

Export of used cars (GOONET EXCHANGE)

EC: Sale of goods (PROTO CORPORATION)

Lifestyle-related Sales of ads, rental welfare goods (PROTO MEDICAL CARE)

Real Estate Income from the rental of real estate (PROTO CORPORATION)

Other Business BPO business, Software Development (PROTO SOLUTION) Agricultural business (PROTO CORPORATION) Investment (PROTO Ventures)

Information and services

The monthly charge for the cloud service "DataLine" for new car dealers and the sales of software for maintenance and sheet-metal processing are dominant. The sales from vehicle appraisal are included.

Sale of goods

Sales are mainly from the e-commerce sales of tires and wheels and exporting used cars.

Sales are mainly from advertisement income related to nursing and welfare and rental sales of welfare equipment.

Sales are mostly from rent income of the non-operational floors of our own building.

Sales are mostly from the BPO business.

41

Used car field: Business models of Goo-net and MOTORGATE

Users

・Browsing of contents

Detailed info on used cars

Info on used car dealers

Reviews of vehicles

Reviews of used car dealers

・Inquiries to used car dealers Inventory check, requests for quotes, appointments, booking of a test drive, booking of online business talks, online business talk "Goo-netLive"

・Charging system: free

Platform

Goo-net

https://www.goo-net.com/

・Used car search (smartphones, apps,

PCs, and information magazines) ・Detailed info on used cars

(including Inspection info)

・Detailed info on used car dealers

・Automobile-related info platform

(management system for used car dealers)

・Management of sales, customers, and inventory BtoB EC, ledger management function, etc.

Subsidiary for inspection

・Used car inspection service

（about 620,000 vehicles per year, FY 3/2020)

・Charging system: charge per vehicle

Clients

（Used car dealers）

・Used car info registration

(inventory registration)

・To deal with users' inquiries

・Charging system: Ad posting fee (MOTOR GATE charges)

*Fixed monthly charge (linked with the number of vehicles in stock) Charges for options of MOTORGATE

42

Used

MOTORGATE

New-car domain

Users

business

Database

development Access to

• DB of used cars

websites

• DB of used car dealers

• DB of prices of used cars •Browsing of contents

  • DB of users

Goo-net

Clients' actions

Users' actions

•To deal with

•Inquiries to used

Clients

inquiries

car dealers

（Used car dealers）

43

(as of July 27,2020)

Used car field: Our strengths (disclosure of information on the status of used cars)

To develop an environment where users can purchase used cars without worry.

With vehicle condition

Goo-inspected

information

マッチング

Cars

Goo-net

180,923

No. of used

Certified Pre-

cars listed

Owned Cars

461,061

No evaluation report on

vehicle status

Note: For reference: No. of cars whose status info has been disclosed by competing media: 41,214

In-house production of the automobile inspection function

Outline and illustration of Goo-inspection (example)

44

New-car field: Business models of DataLine Series

Users

・Comparison of costs for new

cars

・Simulation of changing cars ・Simplified estimation of future prices

Charging system: free

・Appraisal and evaluation of cars owned

Charging system: free

・Inquiries to new car dealers

Charging system: free

Platform

・Function to compare costs at the time of

business talks for new cars

・Function for simulation of changing cars ・Function to estimate future prices

・Function to give a proposal for changing cars

DataLine AI appraisal ・Appraisal function

AI Chatbot

・Business talk booking function (online) ・Online simple appraisal function

・Online price estimation function, etc.

Clients (new car dealers)

・Registration of customer info ・Registration of info on users' vehicles

Charging system: Monthly charge (fixed)

・Registration of customer info ・Registration of info on users' vehicles

Charging system: Monthly charge (fixed)

・To deal with inquiries from users

Charging system: Monthly charge (fixed)

45

Future Outlook

The IR information in this document includes a future outlook.

Such information other than the past events may be influenced by the risk and uncertainty due to the competition, market, and systems in the field of our company's business. As a result, the outlook based on the assumption and estimation with available information may be different from actual results and performance in the future. We would appreciate your understanding.

For Inquiries

PROTO CORPORATION

IR staff: Takabayashi and Noyori, Corporate Strategy and Planning

Tel: +81-52-934-1519

Mail: 4298ir@proto-g.co.jp

46

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Proto Corporation published this content on 31 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2020 01:35:10 UTC