This document has been translated from the Japanese original for reference purposes.
In the event of any discrepancy between this document and the Japanese original, the latter shall prevail.

MAKING THE IMAGE INTELLIGENT

Fiscal Year Ended March 31, 2024

Results Briefing
Digital Media Professionals Inc.
May 14, 2024
The views and forecasts that appear in these materials represent determinations made by the Company at the time the materials were created.
The accuracy of the information therein is not guaranteed.
Please be aware of the possibility that actual performance and results may differ considerably due to a variety of factors.

1

Financial Results, Fiscal Year Ended
March 31, 2024

2

Business Forecast, Fiscal Year Ending
March 31, 2025

3

Priority Measures

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1

Financial Results, Fiscal Year Ended
March 31, 2024

2

Business Forecast, Fiscal Year Ending
March 31, 2025

3

Priority Measures

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Company Profile
Leveraging our experience and knowledge as one of the world's leading graphics IP vendors, we have recently been contributing
to solving customer and social issues by providing end-to-end AI services from algorithm/software to hardware and from theedge to the cloud.
Company name

Digital Media Professionals Inc. (DMP)

IP core license business

Foundation

July 2002

・AI/GPU IP core license
・AI software license

Location

Nakano-ku, Tokyo, Japan

Representative

Chairman, President and CEO
Tatsuo Yamamoto

Capital1,838 million yen

Number of
consolidated
employees

65 (as of April 1, 2024)

Number ofpatents

35 cases

Consolidated
subsidiary

Digital Media Professionals Vietnam
Company Limited(Listed on TSE Mothers in June 2011, shifted to TSE Growth in April 2022)

Product business・Image processing LSI for amusement market
・Vision system for collaborative robot
・Camera module for drone

Professional service business

M A KING T H E IM A GE INT E LLIGE NT

・AI algorithm/computer vision software contracted development
・FPGA/Board contracted development
・Customer product/service support related tosafe driving assistance system and robotics

4Fiscal Year Ended March 31, 2024

Business Highlights⚫ Net sales reached a record high and operating income, ordinary income, and net income
attributable to owners of the parent reached new records since listing.
⚫ Significant growth in amusement field sales, mainly due to the booming pachislot market.

Net Sales

Ordinary Income

Amusement Field¥3,016M¥330M¥2,642M+30%

up11.5times+45%

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Fiscal Year Ended March 31, 2024

Results Highlights: P/L

Net sales and incomes grew significantly mainly due to growthin the amusement field and product business(Unit: million yen)

FY ended March FY ended March
31, 2023
31, 2024

Amountchange

2,322

3,016

+693

Operating income

27

328

+301

Ordinary income

28

330

+301

Net income attributableto owners of the parent

22

331

+308

Net sales⚫ Net sales increased 29.9% due to significant growth in product business such as Cambrian vision system in
addition to "RS1" image processing semiconductors for the amusement market⚫ Operating income, ordinary income, and net income attributable to owners of the parent increased significantly⚫ After carefully examining the recoverability of deferred tax assets, we decided to record deferred tax assets forthe portion that is recoverable and recorded 41 million yen as income taxes-deferred
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Fiscal Year Ended March 31, 2024

Results Highlights: Net Sales by Business and Field●Sales by business●Sales by field

IP core license business ¥170 million

Same period¥261 million
last year●Recorded AI/GPU running royalties for digital equipment, recurring revenues
in safety/robotics fields, maintenance/support revenues, etc.

Product business¥2,758 million

Same period¥1,956 million
last year●Recorded sales from volume shipments of RS1, Cambrian Vision Systems,
and camera modules for drone mass production

Professional service
business¥87 million

Same period¥104 million
last year●Recorded revenues from AI/GPU contracted development services●Includes PoC* projects for broader safety in addition to dashcams in the safety
field, and drones and semiconductor manufacturing equipment in the robotics
field

Safety field¥71 million

Same period¥170 million
last year●Recorded recurring revenues (running royalties and subscription fees),
maintenance/support revenues related to dashcams, and professional
service revenue

Robotics field¥168 million

Same period¥185 million
last year●Recorded sales of products such as Cambrian Vision Systems and camera
modules for drone mass production, and professional services

Amusement field¥2,642 million

Same period¥1,821 million
last year●Recorded sales of RS1 for mass production

Other¥134 million

Same period¥144 million
last year●Recorded AI/GPU running royalties and maintenance/support revenues for
digital equipment* PoC: Abbreviation for Proof of Concept. Verification and trial about feasibility before introducing a new concept, theory or principle in full scale

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Fiscal Year Ended March 31, 2024

Results Highlights: B/S

Equity ratio remains high at 88.2%
End ofMarch 2023

End ofMarch 2024

AmountchangeMajor factors of increase/decrease

Current assets

3,683

3,272

-411

Accounts receivable - trade and contract
assets -587, Cash and deposits +167

Non-current assets

158

647

+488

Investment securities +475

3,842

3,919

+77

Current liabilities

700

443

-256

Non-current liabilities

17

18

+0

Total liabilities

717

461

-256

Total net assets

3,124

3,457

+333

Total liabilities andnet assets

3,842

3,919

+77

(Unit: million yen)

Total assets

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Accounts payable - trade -356

Retained earnings +3318

1Financial Results, Fiscal Year Ended
March 31, 2024

2

Business Forecast, Fiscal Year Ending
March 31, 2025

3

Priority Measures

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Fiscal Year Ending March 31, 2025

Consolidated Business Forecast
6% increase in net sales and growth in operating/ordinary incomes for the fiscal year
ending March 31, 2025
Under the Purpose "Making the Image Intelligent," create and offer products/services contributing to "realization of a safe
and secure society" and "solution of social issues," while aiming for stable growth in image processing semiconductors
FY 03/2025

FY 03/2024(Actual)Forecast% Change

3,016

3,200

+6.1%

Operating income

328

350

+6.5%

Ordinary income

330

350

+5.9%

Net income attributableto owners of the parent

331

290

-12.5%(Unit: million yen)

Net sales⚫ Amusement: Stable growth for RS1 image processing semiconductors⚫ Safety/Robotics• Combine technologies and products including edge/cloud-enabled AI image recognition technology, SLAM/autonomous driving technology, andCambrian vision system• Create and offer new businesses that solve social issues by integrating proprietary technologies, business expertise, customer bases, andecosystems cultivated in these fields⚫ Other (IP): Acquire new IP business in addition to stable business bases such as GPU IP running royalties

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1

Financial Results, Fiscal Year Ended
March 31, 2024

2

Business Forecast, Fiscal Year Ending
March 31, 2025

3

Priority Measures

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DMP’s Purpose

Making the Image Intelligent
Making画像を知能化する
the Image Intelligent"To"Tocreatecreateinnovative
innovativeproducts
productsandandservices
servicesthat
thatharness
harnessthe
thepower
powerofofimage
imageintelligence
intelligencetotosolve
solve
real-world
real-worldproblems
problemsand
anddrive
drivevalue
valueforforourour
stakeholders.“
stakeholders.”
画像インテリジェンスの力で現実世界の問題を解決し、ステークホルダーに価値をもたらす革新的な製品とサービスを創造する

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Amusement Field
Strong sales and high utilization rates of RS1-equipped
smart pachislot machines boosted the overall market
Industry trend:• Strong pachislot market, with RS1-equipped smart pachislot machines at particularlyhigh utilization rates• RS1 users, Sammy and Universal Entertainment, captured the leading share of pachislot market• Demand for RS1 increased due to the spread of ZEEG’s industry-standard chassis andthe increased willingness of halls to invest in smart pachislot equipment

RS1 superiorities:• Industry's only integrated chip offering high-quality 3D/2D graphics• Interactive real-time 3D in addition to 2D greatly improves game features• Supports 4K display output to support development of powerful large-screen chassis• Provides long-term investment value, including networking capabilities for future deregulation

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Amusement Field
AMUSEMENT MACHINE UNIT SALES
4,000,000
3,500,000
3,000,000
2,500,000
Pachislot market has continued to expand since 2021

2,000,000
1,500,000
1,000,000
500,000

0
2012年

2013年

2014年

2015年

2016年

2017年

2018年

2019年

2020年

2021年

2022年

2023年

2024年

スロット 1,281,000 1,347,000 1,157,000 1,112,000 826,000
Pachislot

757,000

406,000

557,000

402,000

627,000

721,000

790,000

800,000

Pachinko
ぱちんこ 2,491,000 2,223,000 2,051,000 1,985,000 1,687,000 1,424,000 1,326,000 1,148,000 955,000 1,105,000 1,037,000 850,000

800,000

Source 2012-2022: PachinkoVillage https://www.pachinkovillage.com/
2023-2024: DMP’s estimation and forecast

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Robotics Field - Cambrian Sales

Sales increase YoY
Increase in inline installation by customers

2.7times
One unit
Multiple units

Increase in customer introduction

FY2022

Cambrian Vision System

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FY2023

FY2024(Plan)• Introduction of the system has been progressing in the major
automotive, electrical, parts, pharmaceuticals, cosmetics, andfood industries• Dealer/SIer network expanded© Digital Media Professionals Inc.

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Robotics Field - Cambrian’s Superiority
Established unmatched superiority over competitors in the highly difficult
picking of transparent materials, etc.
Transparent

Competitive
Avoidance

GlossyMinute object

Recognition
TargetCambrian

Cambrian

Solid plastic
CambrianComp. A

Solid metal

Comp. B

CambrianComp. A
Comp. B

Cambrian

Cambrian has a huge advantage inrecognition performance
Customer’s Vision System Selection Criteria• Recognizable object types• Price

Difficulty
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Robotics Field - Cambrian Customer Use Case
KAO Dynamic Cell Production System
Next-generation flexible automated system for high-mix low-volume production

https://youtu.be/pYOgH94E6FY
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Robotics Field - ZIA MOVE
• Five new licensees acquired (major automotive, manufacturing equipment, cleaning
robot, AMR manufacturer, etc.)• Expectations are high for cost reduction by replacing LiDAR with cameras• Aiming to obtain licensing revenue from vehicle mass production

Features of ZIA MOVE Integrated Robot Development Platform• Camera-based (VSLAM) low-cost, high-precision autonomous robots• Integrated development platform covering self-position estimation, path creation, and driving• Supports mapping, obstacle avoidance, feature point distribution visualization, multi-robot
control, etc.
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Robotics Field - Video Inspection Business• Video inspection business leveraging Visual SLAM, Autonomous driving
control, and AI analysis• Started business validations with major partners【Data Center Inspection】【Steel Tower Inspection】

Data center operating companies

Telecommunications infrastructure
management companies
Joint R&D with Tsukuba University【In-building Inspections】 【Transport in Semiconductor Factory】

General contractors

Semiconductor manufacturingsystem companies

Offer high-value added video analysis services in the form ofrecurring model by combining ZIA MOVE and ZIA SAFEM A KING T H E IM A GE INT E LLIGE NT© Digital Media Professionals Inc.

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Generative AI Initiatives
Research on advanced safe driving assistance system based on
generative AI technology
VLM

Vision Encoder

LLM

LLM
Text Encoder

Input: Language & Image → Output: Language(Sentence) & Image

PromptIs the driver driving in a safely manner?

AnswerNo, the driver is not driving in a safely manner. In the image, awoman is sitting in a car and looking at her cell phone while
holding the steering wheel. This is a dangerous behavior as it
distracts her from focusing on the road and her surroundings,
increasing the risk of accidents. It is essential for drivers tomaintain full attention on the road and avoid distractions like using
a cell phone while driving.

Generative AI can be used to identify situations that are difficult to identify
with existing DL technology (e.g., CNN)
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Generative AI Initiatives

Research of generative AI able to function even in the edge environment
Existing LLM/VLM

DMP’s Initiative• Amount of memory: huge (tens of GB or more)• Inference processing: heavy (requires highperformance GPU)
• Power consumption: High (hundreds of watts or
more)• Response time: Slow (several seconds toseveral tens of seconds)

Research LLM/VLM that can operate athigh speed with low memory andpower consumption

Impractical to run existing technology
as is in an edge environment

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Priority Measures
Accelerating our business with the Purpose of Making the Image Intelligent• Promote ZIA MOVE and ZIA SAFE platform business• Accelerate inline introduction of Cambrian Vision System within customers• Create new business by integrating robotics and safety technology• Develop new products for the FA inspection market• Develop next-generation AI IP/semiconductor• Apply generative AI to the safety field with light-weighting efforts

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<Inquiries>
Digital Media Professionals Inc. Corporate Planning Department

Tel. +81-3-6454-0450
URL: https://www.dmprof.com/en/ir/⚫ Forward-looking statements contained within this document are based on currently
available information and involve risks and uncertainties, including macroeconomic
conditions and trends in the industries in which we are engaged. As such, actual results
may differ materially from those anticipated.
⚫ The purpose of this document is to provide information for the purpose of understanding
our company and is not to solicit investment in securities issued by our company. Pleaserefrain from making any investment decisions based entirely on this document.

M A KING T H E IM A GE INT E LLIGE NT© Digital Media Professionals Inc.

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