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

igital Media Professionals Inc.
ovember10, 2022
The v iews and f orecasts that appear in these materials represent determinations made by the Company at the time the werematerials
created.
The accuracy of the inf ormation therein is not guaranteed.
Please be aware of the possibility that actual perf ormance and results may dif f er considerably due to a v ariety of f actors .

Tsuyoshi Osawa, President and COO (hereinafter referred to as Osawa): Thank you forattending today's financial results briefing for the second quarter of the fiscal year ending
March 31, 2023.

Osawa: Here is today's agenda. First, I will explain the financial results for the second quarter
ended September 30, 2022, our initiatives and progress, and the full-year earnings forecast
for the fiscal year ending March 31, 2023. After that, Yamamoto will introduce our advanced
technologies with video clips.

1

Leveraging our experience and knowledge as one of the world's leading graphics IP vendors, we have recently
been contributing to solving problems for our customers and society by providing a full range of AI services
fromalgorithm/software to hardware , and from the edge to the cloud .
Company name

Foundation

igital Media Professionals Inc. ( MP)

IP core license businessuly 2002

AI/GPU IP core license
AI software license(Listed on Toky o Stock xchange Mothers market in
une 2011, Mov ed to TS Growth market in April 2022)

Locationakano -ku, Tokyo, apan

epresentative

Chairman and C O: Tatsuo Yamamoto
President and COO: Tsuyoshi Osaw a

Capital1, 3 million yen

umber ofconsolidated
employees

Product businessImage processing LSI for amusement market
AI FPGA module
ision system for collaborative robot(as of April 1, 2022)

umber ofpatents

3 cases

Consolidated
subsidiaryigital Media Professionals
LimitedProfessional service business

ietnam Company

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

Osawa: Before I talk about the financial results for the second quarter ended September 30,
2022, as well as our initiatives and progress, I would like to briefly explain MP's profile andstrengths.
Since our founding as a university-launched start-up in uly 2002, we have been engaged inbusiness centered on graphics technology and have achieved significant results, including
the adoption of our GPU IP in

intendo game consoles and the introduction of 2 /3graphics LSIs for the amusement market.
In recent years, we have been contributing to solving serious issues for our customers andsociety by providing integrated development systems, products, and services ranging fromalgorithms/software to hardware, and from the edge to the cloud.

2

Six-month sales reached a record high. Operating loss, ordinary loss, and net loss attributable to owners of theparent also improved year on year.
Sales by business/field are growing and steady, except for the professional service and the robotics field.
Professional service business in the robotics field is expected to recover from 3 onward.

et salesYoY

M
34

Ordinary income

YoY

M
14M

IP Core LicenseM
YoY -1

Safetyobotics

M

M
YoY - 1

YoY

Product
M

Amusement

Other

M

M
YoY 34

YoY
Professional service

YoYM
YoY - 0YoY :Year on Year

Osawa: Let me start with the six-month highlights ended September 30, 2022.

et saleswere up 34 percent year over year, reaching a record high for the first half of a fiscal year,
and losses improved year on year.
In addition, sales by business/field, except for the professional service business and therobotics field, increased or remained steady. The professional service business in the
robotics field is expected to recover from the third quarter onward.

(Unit: million yen)

0
-10
-10

-110
et sales increased 34.0 mainly due to growth in the amusement field, despite a decline in theprofessional service business in the robotics field. Operating loss also improved.
Ordinary loss and net loss attributable to owners of the parent also improved year on year, due in partto foreign exchange gains.

Osawa: Here is an overview of PL. et sales totaled 2 million yen, up 234 million yen (34.0
percent increase) year on year, mainly due to higher sales in the product business.
ue in part to foreign exchange gains, ordinary loss was
attributable to owners of parent was

4 million yen and net loss

million yen, both a 14 million yen improvement year3

on year.

Same period
last year

Same period
4 million
last year

millionecorded AI/GPU running royalties for digital equipment, recurring revenues
in safety/robotics fields, maintenance/support revenues, etc.

ecorded recurring revenues (running royalties and subscription fees) andprofessional services revenues related to dashcams
ecorded revenue from volume shipments of ZIA C3 kit for peripheral
monitoring of commercial vehicles

Same period
02 million
last year

Same period
10 million
last year

ecorded sales from volume shipments of S1, volume shipments of ZIA
C3 kit for peripheral monitoring of commercial vehicles, and Cambrianvision systems

Started to record subscription revenues
Customer & is in a transitional phase, resulting in a temporary decline insales in the professional service business

Same period
120 million
last year
ecorded revenues from contracted development services in the safety,
robotics, and amusement fields& for robotics customers is in a transitional phase , resulting in a temporary
decrease in projects

Same period
4last year
ecorded sales of

millionS1 for mass production

Same period
3 million
last year
AI/GPU running royalties for digital equipment grew

Osawa: Here are sales by business/field. First, by business, IP core license business was
million yen, flat year on year, despite a decrease in initial AI license, due to higher AI/GPU IP
running royalty income for digital equipment and recurring revenue in the safety field.
In the product business, sales increased significantly tomillion yen, up

year on year,

mainly due to strong growth in sales of the graphics semiconductor " S1" for mass
production. In addition, sales of the ZIA C3 kit for peripheral monitoring of commercial
vehicles and the Cambrian vision system were recorded.
The professional service business recorded sales of contracted development services in thesafety, robotics, and amusement fields, but sales declined 0

year on year to

millionyen, mainly due to a temporary decrease in projects for customers in the robotics field, whowere in a transitional phase in their research and development.
ext, let’s look at sales by field. In the safety field, in addition to recurring income, sales of
ZIA C3 kit for peripheral monitoring of commercial vehicles were recorded, resulting in salesof 4 million yen, up

year on year.

In the obotics field, sales of IP core licenses, Cambrian vision systems, and other products
were recorded, but as mentioned above, the professional service business declined due tothe transitional phase of customer& , resulting in sales of 31 million yen, down 1

year

on year.
In the amusement field, sales increased

year on year to

production shipments in response to large-scale orders for " S1".
4

million yen due to mass

Other segment recorded sales of

million yen, up 34

year on year, due to strong sales of

AI/GPU running royalties for digital equipment.

(Unit: million yen)nd of March
2022

2,

4

3
1
3

nd of Sep
2022

Amountchange3,033

24

Accounts receivable - trade andcontract assets 1 , Inventories 4

4 2

-23

Investment securities -1
Other intangible assets -23

4 2

103

1

0

4 0

104

Major factors

Accounts payable - trade 122

etained earnings -Osawa: Here is BS at the end of the second quarter. Total assets amounted to 3,4

millionyen, up 13 million yen from the end of the previous fiscal year.
This was mainly due to a 1

million yen increase in accounts receivable and contract assets

and a 4 million yen increase in inventories, respectively, in line with business expansion, as
well as a 1

million yen decrease in investment securities and a 23 million yen decrease inother intangible assets.
Total liabilities amounted to 4 0 million yen, up 104 million yen from the end of the previous
fiscal year. This was mainly due to a 122 million yen increase in accounts payable trade asa result of business expansion.
et assets were 3,004 million yen, down 0 million yen from the end of the previous fiscal
year. This was mainly due to a 0 million yen decrease in retained earnings due to therecording of a net loss attributable to owners of parent.
As a result, the equity ratio was.2 percent. We continue to secure sufficient working capitaland investment capital to enhance our& system.

5

Improved ZIA SLAM (MO ) functionality and robustness at the ATC(Asia and Pacific Trade Center) facility with the support of the City of Osakaeveloped MP obot Safety, a digital safety fence that supports collaboration
between humans and picking robots, and MP Picking Check, which measures
success and failure of robot picking
Cambrian's strengths such as accuracy, speed, wide range of picking targets, andstability under ambient light have been highly evaluated, leading to increased adoption
and high -probability prospects in the manufacturing industry, particularlyin the automotive industry
eveloped advanced AM that combines AM (Autonomous Mobile obot) androbot picking to support complete automation of parts delivery in factories
Started recording subscription income in the robotics field

Advanced AM
at the obo

emonstration
agoya

Osawa: I would like to discuss the main initiatives and progress of our focused fields for thesecond quarter ended September 30, 2022. First, in the robotics field, we are working on
expanding our reach to industries where robotic introductions are highly effective, specificallythe manufacturing and transportation industries, and focusing on areas and technologies
where we can demonstrate the competitive advantage of the

MP robotics portfolio andadded value.
In terms of refining and focusing on our proprietary technologies, we improved thefunctionality and robustness of ZIA SLAM (ZIA MO) in a demonstration experiment at the

Asia and Pacific Trade Center (ATC), a commercial complex, with the support of the City ofOsaka.
We also developed " MPobot Safety," a digital safety fence that supports collaboration
6

between humans and picking robots, and " MP Picking Check," which measures successand failure of robot picking, and demonstrated them at the obo

agoya exhibition. The

digital safety fence demonstrates overwhelming cost performance compared to physicalsafety fences.
The Cambrian vision system, which is the eye of the cooperative robot arm, has been highly
evaluated for its accuracy, speed, a wide range of picking targets, stability under ambient
light, and other strengths, leading to increased adoptions and high-probability prospects inthe manufacturing industry, particularly in the automotive industry. The ability to recognize
and pick items that cannot be recognized by other companies' products has been received
with positive surprise by customers.
In our pursuit of high added value, we have developed an advanced AM(Autonomous

Mobile obot) that combines AM and robot picking, which we demonstrated at the obo ex
agoya exhibition. This system supports complete automation of parts delivery that does not
generate added value in a factory.
We have also begun recording subscription income in the form of a monthly fee per robot forour software installed in customers' robotics devices. Although the amount is still small, we
intend to scale this business up and achieve higher profitability in the same way as we aredoing in the safety field.

Continued to provide total support to existing customers from edge(ZIA SAF ) to cloud (ZIA Cloud SAF )Acquired PoC projects for new customers

Acquired stable subscription revenues, but royalty revenues were not achieved
due to the shortage of semiconductors
unning royalty income from OTA for already shipped equipment will berecorded from 3 onward

Mass production shipment of ZIA C3 kits for peripheral monitoring ofcommercial vehicles
Progress in PoC relating to smart city for human flow and traffic volume survey
using edge cameras

Public safety, Smart city

Safe driving
assistanceOTA (Over-the-Air): Technology to send and receive data (software) via wireless communication

Osawa: In the safety field, we are working on achieving stable growth by providing new IP
core licenses, recurring business, and professional services, and expanding our businessfrom safe driving assistance to a wider range of safety fields.
First, we continued to provide consistent support to existing customers from the edge to the7cloud, which is one of our strengths, and we have also won PoC projects from new customers.
We aim to scale this up.
In the recurring business, subscription revenues have been stable, but running royalties havebeen affected by the shortage of semiconductors, and our revenues have not reached ouroriginal plan due to lower-than-expected shipments of dashcams by customers now.
However, from the third quarter onward, we plan to increase revenues from so-called
installed-base running royalties, in which our software will be installed in hundreds ofthousands of dashcams already installed in end-user vehicles by utilizing OTA (Over-the-Air).
As for business expansion into the broader safety field, we have mass-produced and shipped
ZIA C3 kits for peripheral monitoring of commercial vehicles. In addition, we made progress
in PoC projects for human flow and traffic volume surveys using edge cameras related tosmart cities. We believe that this field will become a very interesting business when scaledup, such as data sales to local governments and road administrators.

Continued volume shipments of S1 in response to large -scale orders
espite the shortage of semiconductors and materials, the market for . -type pachislot machineswith expanded game features has been strong. Smart Pachislot and Smart Pachinko machines are
expected to be introduced in the market during this fiscal year

Cumulative shipments of our customers' digital devices incorporating MP s AI/GPU IPs reached 1 0 million units
Current royalty business also remained strong year -on-year due to license renewals, etc.
Started recording royalty income in the second quarter from ZIA
20,
the AI processor IP adopted for T S
GZA s 4 T s for Its balance of computing
performance and silicon size
Article appeared in " TechanaLye eport o. 32" on
20 being adopted for"H 10 image processor" for T s jointly developed by HIS S and T S
GZAOsawa: Here are other initiatives and progress. First, in the amusement field, we continued
volume shipments of

S1 in response to large-scale orders.

In terms of market conditions, although the shortage of semiconductors and components has
had a certain impact on the production of machines,. -type pachislot machines, withimproved gaming performance, are selling well. In addition, the market launch of smart
pachislot and smart pachinko, which also offer improved gaming performance, is scheduledforovember and anuary next year, respectively.

In the AI/GPU IP field, cumulative shipments of our customers' digital devices incorporating8

our AI/GPU IPs reached 1 0 million units. More than half of them were forintendo's 3 S,

but the use of AI/GPU IP in digital cameras, surveillance cameras, office automationequipment, T s, etc. continues, and the business in the current fiscal year has been more
successful than the same period last year due to new adoption and license renewal.
In addition, we started recording royalty income from the AI processor IP "ZIAin T

20" used

GZA 4 T s in the second quarter. The "TechanaLye eport," in which TechanaLye

disassembled equipment and conducted chip analysis, chipset analysis, system analysis,trend research, and material analysis, featured the article on the use of "ZIAH

10 image processor for T s jointly developed by HIS

S and

20" in the

GZA. We are verymuch looking forward to the opportunity to expand the number of T models incorporating
ZIA

20, including HIS

S 's T s, which have the leading market share in the world.

(Unit: million yen)

1,

2

-12

-102

-122

- 4

-1

-

et sales progress (vs. full -year forecast) remained 3
in 2 cumulative, but growth in IP core license,
products, and professional service business is expected from 3 onward
Safety:oyalty income from OTA and professional service revenue are expected to growobotics: Sales of Cambrian products and professional service business for low -speed autonomous driving areexpected to grow
Amusement: Continue volume shipments of " S1" image processing semiconductors

Other: AI/GPU running royalties from newly adopted digital devices are expected to grow

9

Osawa: The full-year consolidated earnings forecast for the ongoing fiscal year ending March
31, 2023 remains unchanged from the forecast announced on May 13, 2022. Although thepercentage of net sales to the full-year forecast for the first half of the fiscal year remains at
3, we expect growth in the IP core license, product, and professional service businesses

from the third quarter onward.
By field, as I have mentioned, we expect royalty income from OTA and professional service
business to grow in the safety field. In the robotics field, we expect sales of Cambrianproducts and professional service business for low-speed autonomous driving to grow. In theamusement field, we will continue volume shipments of theS1 image processing

semiconductor. In other field, we expect AI/GPU running royalties for newly adopted digital
devices to expand.
We will steadily implement key measures to achieve the targets of net sales of 2. billion yen
and operating income of 200 million yen for the fiscal year ending March 31, 2024 as our
medium-term business plan.
This concludes my part of the presentation. Thank you very much for your attention.

Tatsuo Yamamoto, Chairman and C O (hereafter referred to as Yamamoto):
First of all, thank you very much for joining us today. ow let me talk about MP's advanced
technologies.

10

Big ata
ffective Hardware

Cloud Computing

Capital/Human esources

Algorithms put to practical use andapplied to a wide range of applicationsasier learning of neural networks

Widespread use of low -power hardware

Simplification and easier large -scale
deploy of development
Acceleration of development, innovation
and business deployment

Business Opportunities

eep Learning

Source: dge AI ison Alliance

Yamamoto: With regard to the AI and vision computer fields in which we operate, there aremany factors going on in parallel. By merging them together, we believe that the technology
has become something that will be widely deployed in a practical manner in the future.
First is deep learning. Until now, it has been difficult to solve specific problems at low costbecause separate algorithms or software had to be developed for each problem, but deeplearning has made it possible.
eep learning has also made it possible to efficiently process and learn big data, i.e., large
amounts of data, so that data can be utilized.
In terms of hardware, hardware that can efficiently process large amounts of data andalgorithms is emerging, and breakthroughs are now possible using GPUs, which we havebeen working on since our founding. In addition, there emerged new processors dedicatedto AI, making it possible to widely deploy deep learning. Actually, we have developed one ofthem.
As for cloud computing, in the past, critical applications that required real-time performance,
for example, had to be processed on edge computing, i.e., on devices close to the event.
However, with the development of cloud computing, large amounts of data can now beprocessed through high-speed networks, making the development of such systems mucheasier, and allowing for easy maintenance and upgrades through OTAs and other means.
In addition, the enormous amount of capital invested in people and technology has
accelerated development innovation in this area.

11

I believe that the combination of these factors has brought about unique and enormous
business opportunities to use AI and visual computing to solve real-world problems.

Source: dge AI ison Alliance

Yamamoto: Here are examples of applications using AI and visual computing, now enabling
solutions for a wide variety of social problems ranging from household, automotive,
agricultural, medical, retail, construction sites, transportation, and waste management.
The second image from the left in the top row is a system that analyzes food waste. It
analyzes food thrown away at restaurants and hotels to help eliminate wasteful consumption.
It is already on a commercial basis in urope.
We believe that AI and visual computing can now solve various social problems such as foodcrises, aging population, labor shortages, environmental disasters, and pandemics on a large
scale, while at the same time generating economic profits.

12

Optimal solutions by combining AI
and image processing technologies

Full stack development of algorithms,
software, and hardware

Optimal balance of real -time
performance and processing powerwith the edge and the cloudarious IP and optimization technologies toenable development of power -saving, high performance systems

Yamamoto: As we work in this field, we leverage our strengths, which include the ability toprovide optimal solutions by combining AI, computer vision, and image processing.
In addition, we can develop a full stack of algorithms, software, and hardware. We have avery strong base through the process of tackling the extremely difficult technology of GPUs,
the fact that we have worked on image processing and AI in stages, and the fact that wehave created a system that allows us to develop algorithms, software, and hardware in aconsistent manner.
For example, only about one-third of a customer's specific problem can be solved by AI today.
The remaining two-thirds require the use of conventional technologies such as image
processing, and solutions cannot be created without an optimal combination of thesetechnologies. We believe that there are very few vendors that can do this on a global basis,
so we have a great advantage in this area.
In terms of balancing real-time performance and processing capacity between the edge andthe cloud, we have been working on edge computing since the early days. For example, insystems such as ZIA SAF , which is designed to support safe driving, we have a system thatcan optimally deploy various functions both at the edge and in the cloud.
ZIA SAF provides various functions such as driver status monitoring, lane departure, andhead-on collision detection. For example, driver monitoring can be handled either on theedge or in the cloud, depending on the application. In addition, real-time requirements suchas head-on collisions and lane deviations are handled on the edge side.
We also provide functions such as near-miss analysis related to accidents, but the amountof processing for these is extremely large, so they are performed on the cloud side. Thus,
13one of the important points is the ability to distribute functions in the right places for the rightapplications.
We also have development and optimization technologies for various hardware IPs thatenable power-saving and high-performance systems.
It is important that we can provide AI and image processing technologies that we have built
up step by step, backed by the development of such GPUs, in a full stack through a wide
range of products and services, and optimize them for the customer's domain or our target
domain rather than so-called general-purpose technologies, which we believe is our strength.

Increase added value in the amusement businessevelop next generation AI processor IP- xpand licensing to other fields by levaraging mass production results of T s andcamerasPromote robotics business with a focus on autonomous driving and picking
xpand business in the safety field and continuously improve value proposition
Focus on next -generation sensor technology for the next stage of growth
Improve continuously quality and development process

Yamamoto: We are currently working to increase added value in the amusement business.
We have developed our business with the " S1" graphics processor, which has a very highly
competitive edge, and we would like to increase the added value by incorporating peripheraltechnologies as well.
As for next-generation AI processors, as I mentioned earlier that the ZIA

20 has been

adopted for T s, we have customers in T s and cameras. Based on our mass production
results to date, we are developing new processors that far exceed the performance of thecurrent

00 series like the

20 and

40. We hope to use them to expand ourlicenses in new fields.
In the robotics field, where we are focusing our efforts, we will promote businesses such as
autonomous driving, "ZIA MO," and picking, and at the same time, we plan to create newvalues by combining them.
In the safety field, we would like to expand our application fields to infrastructure, smart cities,
14and other areas, and provide upgrades through OTAs and other means to continuously
improve our value proposition.
Sensor technology is also an important area for us, so we will work on developing new sensor
technology for the next stage of growth and lead the industry. We will also continue to improve
our quality and development process, which is the number one priority for technology-based
companies like us and ones that deal with products at the mass production level.

Safe driving assistance system
MS/A AS
Cloud service
Amusement SoC S1Graphics processor
AI inference processor IP
GPU IPISP Stereo ision
Camera module

Autonomous driving
technologies
isual SLAM
Picking system

Yamamoto: Based on the before mentioned, we are currently focusing on three fields:
amusement, robotics, and safety. These three may seem different from each other, but they
all share the same underlying technologies.
That is, GPU, power-saving IP technology, computer vision, cloud and edge computing, andeven AI. Using these common platforms, we created a very competitive technology as a oneof-a-kind graphics processor that combines 2

and 3 , for example, in the development ofGPUs for the amusement market.
In the robotics field, you can see images of an AI inference processor IP and a camera
module at the bottom left of the slide. We will develop such eyes and brains of the robot, andapply them to and realize industrial robots, drones, wheelchairs, picking robots, or a fusionof these to create new robots, and provide our customers with licenses and even final
products.
In the safety field, we are currently developing

MS/A AS as a safe driving assistancesystem, and offering it to device manufacturers likeC

enwood,

SO T

, and

Sumitomo Mitsui Auto Service, as well as customers who provide services in the automotive
industry, or in the leasing and insurance industries.
15

We will further expand it to infrastructure, transportation, robotics, and other fields, andprovide services including cloud service.

nabling real -time high bit -accuracy signal processing and state -of-the-art super -resolution

Yamamoto: Here is one example of use cases of our AI. As I mentioned earlier, our "ZIA
20" has been installed in
As you know, T S

GZA 4 T s launched in May this year.

GZA is a subsidiary of HIS

S in China, and the combined market

share of the two companies is the second largest in the world and the first in apan, making
them very strong customers in this industry. The use of AI not only on T broadcasts but also
on devices that play any content on the Internet will enable a variety of new things.
The image on the top left of the slide shows focus based on the perspective of the scene; AI
can determine the content and match it accordingly, for example, in this case, focus on the
person’s side and blur the focus on the background side to create an image with a very strong
sense of perspective.
In the image below left, the skin expression is changed to match the content reflected in theimage. In addition, content on the Internet can have noise or stripe noise called banding
noise, depending on the speed and bandwidth of the Internet. In the upper right example, AI
determines it and automatically uses a technology called super-resolution to smooth theimage.
For the above-mentioned plus reducing various types of noise in the below right example,
our AI technology is utilized to open a new era in the expressive power of display devices.

16

Attaching the camera to a commercially available robot arm
enables various tasks such as picking, welding, and inspection
Capable of picking a wide range of parts , including transparent
parts, plastics, and shiny metals

Setup time of 2-3 days instead of several weeks required so far
ecognition time is about 0.2 seconds. With the use of a high-speedindustrial robot, a pick cycle time of -3
2 seconds can be achieved.

Unaffected by ambient light and applicable to all external light conditions

Can be attached to robot arms of major manufacturers(Also compatible with robot arms of apanese ones)

Capable of detecting and picking parts with an accuracy of 1 mm or less

Yamamoto: The "Cambrian ision System" is a vision system that serves as the eye of thepicking robot, and has been marketed by

MP since last year with exclusive sales rights in

apan.
There has been a shift from conventional mass production lines to flexible or cell productionlines for high-mix low-volume production, and in such places, cooperative robots work
together with people, and those robots operate 24 hours a day to perform a variety of tasks.
In this field, uropean robot manufacturers are by far the strongest, for example, there is arobot manufacturer called Universal

obots. By attaching a camera to the arm of a robot,

which until now has been computer-controlled, it is now possible to perform complicatedtasks very efficiently and at high speed, and we are providing this system. Cambrian
integrates for major robot manufacturers other than Universal

obots as well as for major

apanese robot manufacturers through us.
One of the features of the Cambrian system is that it can handle a very wide variety of parts.
It can handle a wide range of parts, including transparent ones and shiny metals, which isprobably almost impossible to do with any system other than Cambrian's today. It can also
be set up in two to three days, about one-fifth the time of conventional systems. ecognition
time is also so short that the work is completed in a very short cycle.
In addition, the system is not affected by various types of ambient light and can work stably
under a variety of conditions. In terms of accuracy, it can detect and pick up parts with anaccuracy of less than 1 mm.

17

Yamamoto: xamples of work with the Cambrian ision System include cable and connector
insertion, assembly, welding, and inspection.
Let me show you some videos.
( ideos were played)This video shows the bin picking of transparent and black-surfaced parts, which are usually
very difficult to handle. Furthermore, the conditions are very bad with light, but the picking
can be done in a stable manner. This is a unique point.
ext is connector insertion. Simple tasks such as connector insertion are actually a very largepart of the manufacturing process, and automation by robots is an important issue, which isrequested by many customers. The robot with the Cambrian system can also insert
connectors with great dexterity, even small ones such as USB connectors, for example.
ext is kitting. As a pre-process for assembly, various parts are kitted.
Finally, there comes the actual assembly. Besides inserting connectors, it can be used toassemble various parts.

18

Safe driving assistance system

Infrastructure: Analysis of dangerous behaviors in trains

obotics: igital safety fence " MP obot Safety"

Yamamoto:

ext is "ZIA SAF ," an integrated software platform for safe driving assistancesystem for our customers, mainly in the automotive industry.
This is applied, for example, to infrastructure and transportation. The image on the upper
right of the slide shows an application for analyzing the risky behaviors of a person in arailroad vehicle. In the robotics field, we are working on a digital safety fence. When acooperative robot works with a human, the system using an AI camera determines theskeletal structure of the human and robot and gives an alarm to prevent interference.
We are looking to expand our business by making the most of the platforms we have now, insuch a variety of fields.

Prophesee sevent-based camera- etects mov ing people and v ehicles at night and in backlight- ecord day and night with low-capacity data
- Utilize accumulated big data f or urban dev elopment and resilience

MP s ZIA C3 AI processor module

Source: estar Holdings

MP s AI processor and event -based camera (neuromorphic sensor) that imitates the function of the humanretina/brain to detect people and cars in dark areas

Yamamoto:

egarding sensors, we are currently working on an event-based sensor with a19French-based company called Prophesee. The example on the slide is a smart poledeveloped byMP,

estar Holdings, and Prophesee.

Let me explain the features of Prophesee's event-based sensor. While ordinary sensors
always output images, event-based sensors produce images only when something changes.
It imitates the movement of the human retina and brain, and is a very advanced technology
so-called neuromorphic sensor.
Using this technology, images can be taken even in very dark places and high-speed
movements can be tracked. Furthermore, it is characterized by low power consumption. The
three companies are working together to provide a system that uses this technology toanalyze the movements of people and vehicles 24 hours a day in the areas of smart cities
and the like.

G

CameraAI recognition
ISP/Stereo IP

Cambrian ision System

igital TwinZIA SAFigital safety fence

obo
AGOYA in October 2022
emonstration at MP booth

ZIA MOZIA SLAM

Yamamoto: I think it is not too much to say that this is the culmination of our technologies. It
is an advanced AM(Autonomous Mobileobot) by combining an AM

that can moveautonomously with picking technology. It can perform a variety of tasks, such as picking
things up as it moves. In a sense, I believe this is the next generation of robots, which can"see," "run," and "grab" by utilizing our technologies.
For "seeing," we use our image processing, camera, and AI technologies. For "running," weuse our autonomous driving technology called "ZIA MO", and for "grabbing," we use"Cambrian ision System."For "connecting," we are currently working with Softbank to connect the robot's environment
to a G network and enable it to do various things from the cloud. Furthermore, to "safely"use such robots, we use our "ZIA SAF " safety technology.
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For "reproducing," we use our 3 technology. We construct such robots and an environment
including the robots in a virtual space, which is often referred to as a "digital twin" these days.
By doing so, we would like to build a system whereby the development, testing, andverification of the robot system, as well as handling problems as they arise, can be done ina virtual space.
We demonstrated an actual working model at " obo" held inagoya, apan, from

October 2 to 2 , 2022.
(The video was played)This is a system in which an AM

using our autonomous driving system called "ZIA MO"

moves, and a Cambrian picking robot on top of it picks bolts from among the items in the tray.
In addition, the picked items can be transported to another location for kitting or unloading,which is called placing. This system was developed by a group consisting of three companies
and a group:

MP, Cambrian, Softbank, and i ooBO.

We will continue our efforts to realize the competitive advantage we have established ingraphics LSI in other areas. Thank you very much for your kind attention.

Inquiries
igital Media Professionals Inc. Corporate Planning epartmentTel.

1-3- 4 4-04 0

U L: 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 .

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&A Session
uestion 1: You mentioned advanced AM , do you have plans to sell finished products?
Answer 1:
Osawa: Selling finished products is naturally an option. However, we do not think it is possible
for us to do it on our own, and we believe that collaboration with partners is necessary.
A realistic solution would be to provide a combination of products and services with elemental
technologies related to autonomous driving and picking, in accordance with customer needs.
Yamamoto: For example, if a customer is developing an AM , we can develop a robot forthat application with the customer and provide the necessary technologies. In addition, we
could also provide professional services, including integration.
Besides, we would like to invest in sales of hardware products in addition to licenses, suchas sales of picking robots themselves or camera modules that we have developed.
uestion 2: For professional service in the robotics field, you explained that your customers'& is in a transitional phase. What do you mean by that?
Answer 2:
Osawa: While our customers are conducting PoC and& , they ask us to provide

professional services (contracted development services) for them.
When the PoC is over, whether to go on to full-scale development or to stop and find a newtheme depends not only on the success or failure of the PoC itself, but also on the customer'svarious circumstances.
In this sense, please understand that our professional services have temporarily decreased
because some customers have made such a choice for PoC projects. We believe that
expanding our customer base as much as possible will help mitigate the risk.
uestion 3: In terms of sales, there remains a high dependence on the amusement field, andsales in the safety and robotics fields, which are your focused areas, are rather small. How
do you plan to expand it?
Answer 3:
Osawa: We have launched

S1 in the amusement field, and our approach is to earn stable

income from this field and invest it in the AI field, such as robotics and safety, to grow those
fields.
In order to expand the safety and robotics fields, in addition to expanding our customer base,
we would like to focus on leading customers’ projects and scale them.
In terms of profit, as we have stated as a PI in our mid-term business plan, we will increase
the sales amount or ratio of our IP core license business with a relatively high profit margin.
With this in mind, we would like to further grow our focused areas by expanding our customer
base and deepening collaboration with leading customers.

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