The following is an English translation of the transcript of the results briefing of DigitalMedia Professionals, Inc. for the fiscal year ended March 31, 2024 on May 14, 2024. In
the event of any discrepancy between this document and the Japanese original, the lattershall prevail.

[Speakers]
Tatsuo Yamamoto, Chairman, President and CEO, Digital Media Professionals, Inc.
Tsuyoshi Osawa, Senior Managing Director, Corporate Planning Department General
Manager, Digital Media Professionals, Inc.

1

Osawa: Thank you for joining us today for the results briefing of Digital Media
Professionals, Inc. for the fiscal year ended March 31, 2024.
Here is today's agenda. I will explain the financial results for the fiscal year ended March
31, 2024, followed by the business forecast for the fiscal year ending March 31, 2025,
and then Yamamoto will explain our priority measures for the fiscal year ending March
31, 2025.

Osawa: Before explaining our financial results for the fiscal year ended March 31, 2024,
I would like to begin with a brief overview of our company and its strengths. Since ourfounding in July 2002 as a university-launched start-up, we have conducted businesswith graphics technology at the core and have achieved significant results, including the2adoption of our GPU IP in Nintendo's game consoles and the introduction of 2D/3D
integrated graphics LSI for the amusement market, which has become a primary sourceof revenue.
In recent years, we have advanced into the field of AI/Deep Learning with a high affinity for
GPU and contributed to solving serious customer and social problems by leveraging our
integrated development system and our ability to provide products and services fromalgorithm/software to hardware and from the edge to the cloud.

Osawa: Let me start with the highlights of the fiscal year ended March 31, 2024. Net
sales increased 30 percent year on year, reaching a new record high.
Ordinary income increased 11.5 times, and all other income items increased significantly,
reaching the highest level since the IPO.
Sales in the amusement field grew substantially due to the brisk pachislot market,
including 6.5 models and smart pachislot machines. In addition, the robotics field saw
increased sales of Cambrian vision systems and the GPU-related business went robustin the high-margin IP core license business.

3

Osawa: Here is a P/L summary. Net sales increased significantly by 693 million yen year
on year to 3,016 million yen, with a sales growth rate of 29.9%, mainly due to sales
expansion in the amusement field and the product business.
All income items increased significantly. Operating income was 328 million yen, up 301
million yen year on year. Ordinary income was 330 million yen, up 301 million yen year
on year, and net income attributable to owners of the parent was 331 million yen, up 308
million yen year on year.
After carefully examining the recoverability of deferred tax assets, we decided to record
deferred tax assets for the portion that is recoverable and recorded 41 million yen as
income taxes-deferred. In addition, tax benefits such as tax credit for promoting wage
increases reduced tax expenses.

4

Osawa: Here are sales by business and field.
In the IP core license business, net sales were 170 million yen, down 35 percent year on
year. Although GPU-related revenues for digital devices remained robust, royalty income
from the OTA (Over the Air) project last fiscal year in the safety field, i.e., wirelessinstallation of our software on dashcams with communication function installed in enduser vehicles, fell off.
In the product business, net sales were 2,758 million yen, up 41% year on year, mainly
due to a significant increase in sales of the RS1 graphics semiconductor for mass
production and an increase in sales of Cambrian vision systems.
In the professional service business, sales of contract development services in the safety,
robotics, and GPU fields were recorded, and net sales were 87 million yen, down 17%.
Despite the overall decline in sales, new PoC projects were won for the broader safety
field, drones, and the semiconductor manufacturing equipment area, which are expected
to be a foundation for future growth.

In the safety field, net sales were 71 million yen, down 58% year on year. Although weoffered professional services for dashcams and the broader safety area in addition tostable recurring revenues, sales from products and the before-mentioned OTA project
fell off.
In the robotics field, sales of products such as Cambrian vision systems were recorded
and net sales were 168 million yen, down 9% year on year
In the amusement field, net sales were 2,642 million yen, up 45% year on year due tostrong mass production shipments of "RS1".
5

In other field, net sales were 134 million yen, down 7 percent year on year. Despite robust
revenues from GPU-related licenses and maintenance/support, revenue from a largescale GPU IP license project recorded in the fourth quarter of last fiscal year fell off.

Osawa: Here is a B/S summary. Total assets at the end of March 2024 totaled 3,919
million yen, up 77 million yen from the end of the previous fiscal year. This was mainly
due to a decrease in accounts receivable and contract assets of 587 million yen andincreases in cash and deposits of 167 million yen and investment securities of 475 million
yen.
Liabilities amounted to 461 million yen, down 256 million yen from the end of the previous
fiscal year. This was mainly due to a decrease in accounts payable of 356 million yen.
Net assets amounted to 3,457 million yen, up 333 million yen from the end of the previous
fiscal year. This was mainly due to an increase in retained earnings of 331 million yen,resulting from the recording of net income attributable to owners of the parent.
The equity ratio was as high as 88.2 percent, and we have sufficient funds for working
capital and investments for our R&D structure enhancement and business growth.

6

Osawa: Finally, I would like to explain our full-year consolidated business forecast forthe current fiscal year, ending March 31, 2025. We are forecasting net sales of 3.2 billion
yen, up 6% year on year, and operating income and ordinary income of 290 million yen.
Net income attributable to owners of the parent of 290 million yen does not reflect at thispoint an increase in deferred tax assets or a decrease in tax expenses by applying
various tax benefits.
Under our Purpose of "Making the Image Intelligent," we will create and offer products
and services that contribute to the "realization of a safe and secure society" and"solutions to social issues," while striving for stable growth in image processing
semiconductors.

7Let me explain by field. First, in the amusement field, we expect stable growth of "RS1."
In the safety/robotics field, we will offer unique solutions by combining our edge/cloud AI
image recognition software platform, “ZIA SAFE”, SLAM/autonomous self-driving
software platform, “ZIA SLAM/ZIA MOVE”, and Cambrian vision systems, as well as
providing individual products. In addition, we will create and offer new businesses thatsolve social issues by integrating our proprietary technologies, business expertise,customer base, and ecosystems cultivated in this field. Yamamoto will explain this indetail later.
In other field, we will acquire new GPU/AI IP business in addition to our stable businessbase such as GPU IP running royalties.

8

Yamamoto: I would like to explain our challenges and priority measures for this fiscal
year.
Since last year, we have been promoting our business with “Making the Image Intelligent”
as our purpose.
Taking the example of generative AI, which has rapidly entered our lives in recent years,
the current generative AI “GPT-4” can be used by inputting images in addition to text,
and has evolved to the point where it can understand the meaning of images and thenprovide answers in the form of text and images.
What is taking place there is exactly “image intelligence”. “Image intelligence” will
become very important as a means of understanding and outputting images andcommunication between humans and AI in various ways.
We will provide innovative products and services that bring value to our stakeholders by
fully utilizing the 3D graphics field we have been working on since our establishment, as
well as multimodal AI, image processing, and visual computing, to solve various
problems in the real world.

9

Yamamoto: Let me talk about the amusement field. Very strong sales of RS1-equipped
smart pachislot machines and high utilization rates are boosting the overall pachislot
machine market.
The advantage of the "RS1" is that it is the industry's only integrated chip that offers very
high-quality 2D and 3D graphics, and in addition to 2D, interactive real-time 3D gamefeatures have been greatly improved. It also supports 4K display output, enabling thedevelopment of powerful large-screen displays. The chip is also equipped with
networking and other functions, making it possible to create new long-term investment
value in preparation for future industry deregulation.
In terms of industry trends, the pachislot machine market is doing very well. In particular,
smart pachislot machines equipped with "RS1" have achieved high utilization rates. The
industry has been replacing pachinko with smart pachinko and pachislot with smart
pachislot machines for a few years.
In particular, smart pachislot machines are replacing pachislot machines, and as ofDecember 2023, approximately 80% of pachislot machines had been replaced by smart
pachislot machines, compared to approximately 13% of smart pachinko machines. The
high utilization rates and proven 50 to 80-week operating periods are major factors
driving the demand for smart pachislot machines in parlors.
“RS1” is mainly used in these smart pachislot machines. In the pachislot market, two of
our major customers, Sega Sammy and Universal Entertainment, have a very highmarket share; according to a survey by Pachinko Village, these two companies have a
combined market share of 41 percent.

10The spread of the common chassis of ZEEG, a joint venture between these twocompanies, among other customers is another factor boosting sales of "RS1".

Yamamoto: Looking at the amusement machine market, the number of sales units has
increased again, with a major bottom in 2020. In particular, the pachislot market hascontinued to expand after 2021, providing a tailwind for “RS1”.

Yamamoto: Let me talk about the robotics field. We offer "Cambrian vision systems" forthe picking industry. Picking is said to account for about half of all processes in the
manufacturing or logistics industry that suffer from labor shortages, and the demand forpicking systems is booming.
11

Our “Cambrian vision system” is the answer to this demand and its sales increased asmuch as 2.7 times in fiscal 2023 compared to fiscal 2022. In addition to almost all major
automobile manufacturers in Japan, our customers such as electronics manufacturers,
parts manufacturers, and those in the food, pharmaceutical, and cosmetics industries
are now using at least one unit.
Under these circumstances, our challenge this year is to increase the number of units
and customers, and to introduce in-line systems at each customer, that is to accelerate
the introduction of the systems into customers’ production lines.
Some distributors who used to deal with vision systems from other manufacturers are
now purchasing the Cambrian vision system and starting sales promotions.

Yamamoto: Let me explain the features of the "Cambrian vision system". Picking is
divided into several areas depending on the object. Customers make their selection
based on the type of recognizable objects to be picked and the price. For solid metal andsolid plastic, Cambrian and other domestic and Chinese companies have entered themarket.
However, when it comes to other types of objects, such as small parts less than 1 mm indiameter, glossy or transparent parts, Cambrian's system is widely recognized as the
only one capable of handling and picking these parts.
This gives Cambrian an overwhelming advantage in this area.

12

Yamamoto: Let me introduce a use case of KAO that built KAO Dynamic Cell Production
System. This is a next-generation flexible system for high-mix low-volume production.
https://www.youtube.com/watch?v=pYOgH94E6FY&t=5s
In this system, there is a process of picking transparent bottles using “Cambrian visionsystems”.

Yamamoto: Let me explain our main product, “ZIA MOVE”. “ZIA MOVE Integrated Robot
Development Platform” is a low-cost, high-accuracy, camera-based (VSLAM)
development platform for autonomous robots.
It is an integrated development platform that covers the robot's self-positioning, routing,and even driving. For example, it can create a map and avoid obstacles while driving. It
13can also determine and visualize areas with few feature points and control multiple robots
simultaneously.
In fiscal 2023, we licensed “ZIA MOVE” to five new customers. These customers include
a major automobile manufacturer, a manufacturing equipment manufacturer, a cleaning
robot manufacturer, and an AMR manufacturer.
For example, a major electronics manufacturer with hundreds of LiDAR-based robots intheir lines evaluated that low-cost camera-based “ZIA MOVE" can replace LiDAR.
This is expected to result in very significant cost savings. There is a possibility that "ZIA
MOVE" will go into mass production within a few years, and we will increase the numberof licenses we offer for such mass production.

Yamamoto: We are now engaged in the video inspection business as a solution using"Visual SLAM" or "ZIA MOVE", autonomous driving control technology, and "ZIA SAFE",
AI analysis technology. We have begun to verify the business with customers such as
major data center operators, telecommunications infrastructure management companies,
general building contractors, and semiconductor in-process system companies.
We aim to offer high-value-added video analysis services by integrating ZIA MOVE" andZIA SAFE" in a recurring model.

14

Yamamoto: Let me explain our approach to generative AI. As you know, US-based
OpenAI announced "GPT-4o" yesterday, which enables extremely high-speed
conversation and voice interaction with AI.
As such, OpenAI, major IT vendors, and NEC in Japan, are building Large Language
Models (LLM). As I mentioned earlier, AI can use language models to understand text or
speech, and the latest "GPT-4" can also understand images.
It can reason about inputs in language and images, and output responses in language
or images. The technology used is called VLM, Vision Language Model. It analyzes
images and incorporates LLM that understands the language.
We are offering a safe driving assistance system called "ZIA SAFE". By combining thiswith generative AI, we aim to provide even more advanced functions.
For example, when an image of a woman driving a car while using a smartphone is input
into a system based on generative AI, the generative AI recognizes the car, the driver,
the smartphone, and the steering wheel. From this, the system determines that the driveris driving dangerously by looking at the smartphone and provides a response that
includes insight into the increased risk of accidents and how to prevent them.
By utilizing this kind of generative AI, it will be possible to identify situations that havebeen extremely difficult to identify using existing deep learning technology.

15

Yamamoto: Today, generative AI requires a lot of resources. For example, it requires
huge amounts of memory (e.g., 80 gigabytes) and powerful, expensive GPUs to perform
very heavy inference processing. Then there are the problems of high-power
consumption and slow response time.
As a column in the Nihon Keizai Shimbun put it, "Generative AI needs a glass of coolingwater to answer a single question, and each time it draws a single image, it consumes
enough power to charge a smartphone.”
We aim to make such extremely sophisticated generative AI lightweight enough to run inedge environments. We are exploring LLM/VLMs that are small in memory and power
but can run at high speed.

16

Yamamoto: Here are our priority measures. We will accelerate our business under the
Purpose of "Making the Image Intelligent".
First, we are promoting “ZIA MOVE” and “ZIA SAFE” platform business.
As for “Cambrian vision system,” we are accelerating the introduction of the systems into
customers’ production lines.
We are also creating new businesses such as the video inspection business by
integrating robotics and safety technology.
We are developing new products for the factory automation inspection market. I cannot
go into details, but we are developing a new inspection system using AI based on very
advanced recognition technology with the aim of commercializing it.
We are also exploring the development of next-generation AI processor IPs and AI
semiconductors based on them.
Finally, we will work on safety applications and lightweighting of generative AI.

[Q&A session]
Q1: Currently, sales information is disclosed by segment, but do you have a plan todisclose gross profit and the like?
A1: Although we adopt a single segment, we disclose sales information by business andfield for the reference of investors and shareholders. We do not plan to disclose grossprofit and operating income at this point, as one aspect of this is to let our competitorsand customers know our business/profit structure. However, we will consider doing so inthe medium term as our business grows. (Osawa)
17

Q2: Do you have a plan to announce monthly shipment figures for "RS1" and "Cambrianvision system" in the product business?
A2: We are aware that some companies provide various KPIs monthly. At this point, weare not considering disclosing monthly shipment or sales figures for specific products,
but we appreciate your comment and would like to consider it in the medium term.
(Osawa)Q3: Tell us about the “Cambrian vision system.” You announced its trial operation in the“Kao Dynamic Cell Production System” on January 15, 2024. Will you release IR news
when it is put into full operation?
Also, on March 21, 2024, you announced in a press release that Cambrian, in which yourcompany has an equity stake, is testing and deploying vision systems for leading
manufacturers in the industry such as Toyota, Suzuki, and Kao, but will you make anannouncement about Toyota and Suzuki adopting the system as well as Kao? I would
like to know if you will announce the adoption of the system for Toyota and Suzuki inaddition to Kao.
A3: As Yamamoto explained in the presentation, we are currently at the stage ofintroducing one unit per company, with the aim of making the system in-line at thecustomer's site. The results of full-scale introduction will be subject to consultation withcustomers, but we intend to actively issue press releases. (Osawa)

Q4: The environment is changing dramatically, so I believe it is necessary to update themedium-term management plan that was formulated in May 2021. In particular, since theplan for the amusement sector field in the fiscal year ending March 31, 2024, what are
your new strategies and plans? When will the medium-term management plan be
updated?
A4: We plan to present the medium-term management plan in the form of an update in
the “Business Plan and Growth Potential,” which is released in June each year. (Osawa)

Q5: You mentioned research on generative AI. How will DMP compete in a situation
where large companies are competing to develop new products?
A5: As you say, new technologies are emerging in this field, with new papers being
published almost every day. The same is true in the field of LLM, which is the subject ofour research.

18

In such a situation, it is very challenging to develop a common compression technology
or to reduce the weight, as you have pointed out. However, we believe that we can takeadvantage of the knowledge we have gained from our past efforts in lightweighting
technologies in the areas of AI processors and GPUs.
In terms of AI, we will improve efficiency without compromising accuracy throughquantization, which reduces the number of bits in the arithmetic process. We will also
use a technology called pruning, which eliminates unnecessary processing. However,rather than using this technology for AI in general, as we have been doing for a long time,
we will optimize it for domain-specific applications, i.e., for the fields we are focusing on.
By doing so, we believe we can take the lead in optimization or lightweight in specificareas. We also believe that through such research, we will accumulate know-how thatwill enable us to respond to new models as they emerge in the future. (Yamamoto)

Q6: Sega Sammy, a major user of your “RS1,” is forecasting lower sales and profits in
its amusement machine business this fiscal year in reaction to the strong performanceof the previous fiscal year. In addition, Axell, a company in the same industry, is also
forecasting declines in both sales and profits for this fiscal year. On the other hand, you
are forecasting stable growth in your amusement business. What’s the background andreason for this?
A6: As I mentioned in the presentation, our main customer is ZEEG, a joint venture
between Sega Sammy and Universal Entertainment, so our volume forecast is based on
ZEEG's demand forecast. As ZEEG's common chassis becomes more popular withcustomers other than the two companies, sales of such machines will also contribute toour “RS1” sales.
We understand that Axell's main focus is on pachinko machines. On the other hand, weare focusing on pachislot machines with “RS1”. In the past, the pachinko market was
about twice the size of the pachislot market. In recent years, however, the pachislot andpachinko markets have become equal, with pachislot growing significantly. For example,
our forecast for this year is about the same, 800,000 units each.
Pachislots are being replaced by smart pachslots at a much higher rate than pachinko.
Pachislot machines are being replaced by new smart models, some of which areequipped with “RS1” and have become big hits.
On the other hand, in the pachinko market, hit titles have been slow to emerge and thereplacement of pachinko machines with smart models has not progressed. We believe

19that this difference in market characteristics between pachislot machines and pachinko
machines may explain the difference in earnings forecasts. (Yamamoto)

Q7: Business performance has recovered strongly and cash has been accumulated. The
accumulated losses are expected to be eliminated this fiscal year, and the financial
position is expected to improve significantly. What is your management view on the factthat the cash that has been steadily accumulating will remain as cash?
Also, from the perspective of capital efficiency, I think it is necessary to make effective
use of the cash. What is your policy on securing human resources, M&A and otherinvestments?
A7: As you mentioned, we are on track to eliminate accumulated losses if we can achieve
the performance forecast for this fiscal year. On the other hand, we also need to invest
in R&D related to the development of next-generation AI IP and semiconductors, which
Yamamoto just mentioned as a priority policy. We also believe it is necessary to hire
human resources, so we will consider shareholder returns in light of the overall situation.
(Osawa)In addition to what Osawa mentioned, we believe it is possible to strengthen our
resources through M&As in the future. For example, our investment in Cambrian has led
to a very strong growth in Cambrian's business. As in this case, we intend to expand ourbusiness performance through M&A and further deepen our grip on the industry.
(Yamamoto)

Q8: Looking at the results for the fiscal year ending March 31, 2024, the product business,
especially the amusement field, accounted for a very large percentage of the total, while
the rest of the business has decreased from the fiscal year ended March 31, 2023. Do
you expect the product business to remain a pillar of your business in the fiscal year
ending March 31, 2025?
A8: We expect the product business to remain the mainstay of our business, but we will
also promote new initiatives in the fields of safety, mobility, and robotics, as well as infields that integrate these fields. We plan to expand in these fields as well, so we are
drawing up a blueprint for growth in both areas as much as possible. (Osawa)

Q9: I strongly believe that Cambrian has great potential for the future. How much haveyou invested in Cambrian so far? Also, if Digital Media Professionals Vietnam is an
exclusive distributor, will the full-scale introduction take place this year?
20

A9: We have invested in Cambrian twice, totaling over 100 million yen. (Osawa)Exclusive rights for Digital Media Professionals Vietnam are not included in theagreement with Cambrian. As I explained earlier, the “Cambrian vision system” hasbecome quite popular among major customers over the past three years, and our main
challenge is to expand in-line adoption among our customers. We would like to increase
the volume significantly, and this fiscal year is a very important time for us. (Yamamoto)

Q10: Tell us about the status of ”ZIA A3000”. If you are bound by confidentiality or otherrestrictions, you may not answer the question.
A10: We are making steady progress in providing “ZIA A3000” for new applications as
customer evaluations progress.
We are also in the process of developing version 2 of ZIA A3000 and promoting it to ourcustomers. (Yamamoto)

Q11: What is the status of your collaboration with Prophesee in France?
A11: We are continuously working with Prophesee on solutions using their event-based
cameras. We are in the process of evaluating systems with major customers using thissolution. (Yamamoto)21