Proto : Notice Regarding Differences between Financial Results and Forecasts for the Year Ended 31 March 2021

(TRANSLATION FOR REFERENCE ONLY) May 13, 2021

To Our Shareholders

Corporate Name: PROTO CORPORATION

Representative: Kenji Kamiya, President

Securities Code: 4298 (TSE and NSE 1st Section)

Contact: Takehito Suzuki, Executive Officer

Tel: [phone]

Notice Regarding Differences between Financial Results and Forecasts

for the Year Ended 31 March 2021

PROTO CORPORATION ("the Company") hereby announces that actual financial results for the Year Ended 31 March 2021, differed in some respects from the forecast announced on January 29, 2021. This difference is described below.

1. Differences between Actual and Forecast of Consolidated Financial Results for the Year Ended 31 March 2021 (April 1, 2020 - March 31, 2021)

		Operating	Ordinary	Net income		Net Income
	Net Sales	attributable to
	Income	Income		per Share
		owners of parent
Previous Forecast (A)	Million yen	Million yen	Million yen	Million yen		Yen
(announced on January 29, 2021)	59,210	5,720	5,660	3,700	92.13
Actual results (B)	60,097	5,941	6,118	4,853	120.86
Difference (B)－(A)	887	221	458	1,153
Percentage of Change (%)	1.5	3.9	8.1	31.2
(Reference)
Results for the year	59,127	5,136	5,354	4,991	124.33
Ended March 31, 2020

The Company carried out a 2-for-1 split of common shares on July 1, 2019. Net income per share was calculated under the assumption that said share split had been conducted at the beginning of the previous consolidated accounting year.

2. Reason for the revision

Consolidated net sales, operating income and ordinary income for the year ended 31 March 2021 have been slightly higher than previously forecast.

The reasons for the increase in net income attributable to owners of parent compared with the previous forecast are set out in the "Notice Concerning the Recognition of Deferred Tax Assets" disclosed on 31 March 2021.

As liquidation of the Company's subsidiary PROTO MALAYSIA Sdn. Bhd, is expected to be completed by June 2021, the Company recorded as deferred tax assets for the future deductible temporary differences (loss on valuation of stocks of subsidiaries and affiliates recorded in previous years) that have become schedulable. As a result, the total income taxes decreased and exceeded the previously announced forecast.