(This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this document and the Japanese original, the latter shall prevail.)
Summary of Consolidated Financial Results for the Six Months ended September 30, 2021 (Japanese GAAP)
November 10, 2021
Company name: Digital Media Professionals Inc.
Listing: Tokyo Stock Exchange
Code number: 3652
URL: https://www.dmprof.com/en
Representative: Tsuyoshi Osawa, President and COO
Contact person: Tomoyuki Ietaka, Executive Officer, CFO, General Manager of Accounting/Corporate Planning Dept. Tel. (03) 6454 - 0450
Scheduled date of filing Quarterly Securities Report: November 12, 2021
Scheduled date of payment of cash dividends: Supplementary materials for the quarterly financial results: No
Briefing session on the quarterly financial results: Yes
1. Consolidated financial results for the three months ended June 30, 2021 (April 1, 2021 through September 30, 2021)(1) Consolidated operating results(Percentages indicate year-on-year changes)
Net income attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
6 months ended September 30, 2021
690
29.5
△109
△109
△110
－
－
－
6 months ended September 30, 2020
533
－
△191
－
△155
－
△156
－
Reference) Comprehensive income: 6 months ended Sep 30, 2021 △108 million yen; 6 months ended Sep 30, 2020 △156 million yen

Net income per shareyen△34.95△49.846 months ended September 30, 2021
6 months ended September 30, 2020

Net income per sharedilutedyen－－(2) Consolidated financial position
Total assets

Net assets

Equity ratio%
As of September 30, 2021
3,432
3,141
91.5
As of March 31, 2021
3,477
3,250
93.5
Reference) Shareholders' equity: 3,141 million yen as of September 30, 2021; 3,250 million yen as of March 31, 2021
Millions of yen

Millions of yen

2. Cash dividends
Annual dividends per share
2Q-end3Q-endYear-end
yen
yen
yen
Year ended March 2021
0.00
0.00
Year ending March 2022
0.00
Year ending March 2022 (Forecast)
0.00Note) Revision of dividends forecast during the period: None
1Q-end
yen
-

Total
yen
0.00
0.00

3. Forecasts of consolidated operating results for the year ending March 31, 2021 (April 1, 2021 through March 31, 2022)
Net Sales

Operating income

Millions of yen% Millions of yen
Full year
1,650
63.4
△200
Note) Revision of forecasts during the period: Yes

Ordinary income% Millions of yen
△200

-1-

(Percentages indicate year-on-year changes.)
Net income attributable to Net income
owners of parent
per share% Millions of yen
%
Yen
△202
△64.16

Notes:1. Changes in significant subsidiaries during the current consolidated cumulative period (changes in specified subsidiaries
accompanying changes in the scope of consolidation): None
2. Application of accounting treatments specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies(1) Changes in accounting policies resulting from revisions of accounting standards: Yes(2) Changes in accounting policies except (1): None
(3) Changes in accounting estimation: None
(4) Restatement: None
4. Number of shares issued(1) Number of shares issued at the end of the period (including treasury shares)
As of September 30, 2021

3,152,400 shares

As of March 31, 2021

3,152,400 shares

As of March 31, 2021

3,189 shares(2) Number of treasury shares at the end of the period
As of September 30, 2021

3,922 shares(3) Average number of shares issued during the period
6 months ended Sep. 30, 2021

3,148,755 shares

6 months ended Sep. 30, 2020

3,135,280 shares

Note: Explanation regarding the appropriate use of business forecasts and other special notes
The forward-looking statements such as business forecast in this document are based on information currently available to
the Company and on certain assumptions deemed to be reasonable. The Company does not guarantee the achievementof the forecasts. Actual results may differ significantly for a number of reasons.
For the conditions and notes on the use of business forecast, please refer to"1. Qualitative information on quarterly financial results (3) Consolidated financial forecasts and other forward-looking statements."-2-

Qualitative information on quarterly financial results(1) Operating results
During the six-month period ended September 30, 2021, the Japanese economy continued to face a difficult situation
overall due to the prolonged spread of COVID-19 and the resulting state of emergency declaration and focused antiinfection measures. At present, with the fifth wave of COVID-19 subsiding, the state of emergency declaration andfocused anti-infection measures have been lifted, and the resumption of economic activities has become more active.
As for the future, it is essential to take the extremely difficult task of raising the level of economic activities while taking
measures to prevent the spread of the infection and to prevent serious illnesses by increasing vaccination rates, starting
booster vaccinations, and spreading therapeutic drugs. In the world, full-scale economic activities have resumed with
the increase in vaccination rates, mainly in Europe and the United States. However, in areas where vaccination rates
are low, economic activities are greatly restricted due to the rapid increase in the number of infected people. Thus itwill still take time for the economy to recover from the damages caused by the COVID-19 pandemic.
In the semiconductor industry to which our group belongs, although the stay-at-home demand due to the COVID-19
pandemic has peaked out, the continued shortage of semiconductor supplies due to strong demand in various
industries is affecting the production of equipment including automobiles that uses semiconductors. In the medium term
as well, demand is expected to grow for IoT where all things are connected to the Internet, artificial intelligence (AI),
big data, next-generation high-speed communication standards, and automatic driving.
In the field of AI/visual computing, which is the business domain of our group, the acceleration of innovation and theincreasing roles of AI in solving social issues, including current difficulties, and in realizing a safe and secure society
are expected.
In this environment, the basic policy of our group's medium-term business plan is to achieve Creating Shared Value(CSV) management that will enhance corporate value by contributing to the resolution of social and environmental
issues and earning revenue and profits at the same time. In the core fields of safe driving assistance and robotics, wewill maximize customer lifetime value (LTV) by providing added value through the development of IP core licensebusiness, product business, and professional service business, based on our integrated development system fromalgorithms and software to our strength, hardware, throughout the development lifecycle of customer products andservices from the planning stage to mass production.

As for specific initiatives and achievements in our focused fields during the second quarter of the current fiscal year,
firstly, in the safe driving assistance field, we have earned recurring revenue from existing projects and provided
professional services to new projects of new and existing customers.
In the robotics field, we have made progress in PoC and commercialization projects for customers in various industries
including projects to implement AI in the land, sea, and air products of Yamaha Motor, a business and capital partner,
and collaborative projects that combine the event-based sensors of Prophesee in France with our edge AI softwareand hardware technologies. In addition, as for marketing vision systems for collaborative robots of Cambrian, Inc., acapital and business partner, in order to meet end customers' demand for labor-saving and productivity improvement,
we have built and deepened relationships with manufacturers of collaborative robots and robot SIers and have madeprogress in such as collaborations on specific customers’ projects.
In the amusement field, we have won a large-scale order for our image processing semiconductor, RS1, and willcontinue to aim to expand our share in the market segment where we can demonstrate the superiority of this unique
2D/3D integrated chip.
Furthermore, in the field of automatic/autonomous driving and safe driving assistance, DMP and MACNICA, Inc. have-3-

started to collaborate to solve Japan's social issues such as declining birthrate, aging population, and declining
population by combining technologies, sales capabilities, and know-hows of both companies.

With regard to business results for the six-month period ended September 30, 2021, in the product business, we
continued mass production shipments of the RS1 image processing semiconductor. In the IP core license business,
we acquired new licenses for the safe driving assistance field and the robotics field and recorded recurring revenue inthe safe driving assistance field. In the professional service business, contracted AI development services for the safe
driving assistance field and the robotics field, became more active, although contracted income from the NEDO project
was lost.

As a result, we recorded net sales for the six-month period ended September 30, 2021 of 690 million yen (up 29.5%
from the same period of the previous year), operating loss of 109 million yen (operating loss of 191 million yen for thesame period of the previous year), ordinary loss of 109 million yen (ordinary loss of 155 million yen for the same periodof the previous year), and net loss attributable to owners of parent of 110 million yen (net loss of 156 million yen for thesame period of the previous year).

As our group operates in a single segment, segment information is not provided, but a summary of results by businessis as follows.
a) IP core license businessIn addition to GPU running royalty income for digital equipment such as digital still cameras and office automationequipment, new license income in the safe driving assistance field and the robotics field and recurring income in thesafe driving assistance field were recorded. As a result, net sales amounted to 67 million yen (61 million yen in thesame period of the previous fiscal year).
b) Product businessNet sales amounted to 502 million yen (383 million yen in the same period of the previous fiscal year) due to sales frommass production shipments of the RS1 and sales of camera modules for drones.
c) Professional service businessNet sales amounted to 120 million yen (87 million yen in the same period of the previous fiscal year), due to theincreased activities in AI contracted development projects for the safe driving assistance field and the robotics field,
despite the absence of contracted income from NEDO that was recorded in the same period of the previous fiscal year.

A summary of results by field is as follows.
a) Safe driving assistance field
Net sales amounted to 45 million yen (10 million yen in the same period of the previous year), mainly by recording
revenues from new license and recurring business in the IP core license business, and professional services for projectsof new and existing customers.
b) Robotics field
Net sales amounted to 106million yen (61 million yen in the same period of the previous fiscal year) due to an increase
in incomes in the IP core license business and increased activities in AI contract development projects.
c) Amusement field
Net sales amounted to 499 million yen (382 million yen in the same period of the previous year) due to mass production
shipment of RS1.
-4-d) Other
Net sales amounted to 38 million yen (77 million yen in the same period of the previous fiscal year) due to the absenceof contracted income from the NEDO, which was recorded in the same period of the previous fiscal year, despite therecording of GPU running royalty income for digital equipment.

(2) Financial position
1) Overview of assets, liabilities and net assets(Assets)
Current assets at the end of the second quarter amounted to 2,690 million yen, down 46 million yen from the end of
the previous fiscal year mainly attributable to decreases in cash and deposits (down 162 million yen) and other current
assets (down 53 million yen), and an increase in accounts receivable and contract assets (up 191 million yen).
Noncurrent assets amounted to 741 million yen, up 1 million yen from the end of the previous fiscal year mainly
attributable to an increase in investment securities (up 41 million yen) mainly due to the acquisition of a portion of thepreferred stock issued by Cambrian Inc. in Delaware, U.S., on June 14, 2021 and a decrease of 27 million yen insoftware.
(Liabilities)
Current liabilities and noncurrent liabilities at the end of the second quarter amounted to 290 million yen, up 63 million
yen from the end of the previous fiscal year mainly attributable to an increase in accounts payable (up 79 million yen).
(Net assets)
Net assets at the end of the second quarter amounted to 3,141 million yen, down 108 million yen from the end of theprevious fiscal year mainly attributable to a decrease in retained earnings (down 110 million yen).
As a result, the equity ratio was 91.5%.

2) Overview of Cash FlowsThe balance of cash and cash equivalents at the end of the second quarter of the current consolidated fiscal year was
1,950 million yen.
Net cash used by operating activities was 114 million yen mainly attributable to positive factors such as an increase inaccounts payable - trade of 79 million yen and depreciation of 35 million yen, and negative factors such as an increasein accounts receivable - trade and contract assets of 191 million yen and loss before income taxes of 109 million yen.
Net cash used in investing activities was 48 million yen mainly attributable to purchase of investment securities of 40
million yen and purchase of property, plant and equipment of 7 million yen.
Net cash used by financing activities was 0 million yen attributable to purchase of treasury shares.

(3) Consolidated financial forecasts and other forward-looking statements
In light of recent business performance trends and the business environment, we have revised the forecast of
consolidated financial results for the fiscal year ending March 31, 2022 announced on May 14, 2021 as follows.
Net sales: 1,650 million yen (previous forecast: 1,500 million yen)
Operating income: -200 million yen (previous forecast: -250 million yen)
Ordinary income: -200 million yen (previous forecast: -250 million yen)
Net income attributable to owners of parent: -202 million yen (previous forecast: -252 million yen)
For details, please refer to the "Notice of Revision of Forecast of Financial Results" disclosed today.
Actual performance may differ significantly from the forecast figures due to various factors.
-5-

2. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheets

Previous year
(As of Mar 31, 2021)
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Accounts receivable - trade and contract assets
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Income taxes receivable
Other
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

2,066,483
157,606
345,870-6-(Yen thousand)Current Q2 period(As of Sep 30, 2021)

7,630
44,437
11,798102,832
2,736,659

1,904,180
348,716
346,392
1,680
4,641
35,78649,162
2,690,559

42,65242,260104,54525
104,570

77,46425
77,489500,630
92,789593,419
740,6433,477,303

542,361
79,781
622,143
741,8933,432,453

132,333
11,83464,065208,233

212,211
12,13647,347
271,695

1,452
17,40818,860227,094

1,348
17,537
18,885
290,581

1,838,882
1,858,093-440,462-1,5253,254,988

1,838,882
1,858,093-550,507-1,615
3,144,852-4,677-102-4,7793,250,208
3,477,303-2,9832-2,9803,141,872
3,432,453

(2) Consolidated quarterly statements of income and comprehensive income (three months ended June 30, 2021)
Consolidated quarterly statements of income(Yen thousand)Previous Q2 period (YTD)

Current Q2 period (YTD)(From Apr 1, 2020

(From Apr 1, 2021

To Sep 30, 2020)

To Sep 30, 2021)

Net sales

533,321690,532

Cost of sales

371,532

452,625

Gross profit

161,788237,907

Selling, general and administrative expenses

353,754

347,851

Operating loss

-191,966-109,944

Interest income

1,222

1,154

Subsidy income

37,900-4

24139,126

1,396

Non-operating income

Miscellaneous income
Total non-operating income
Non-operating expenses
Foreign exchange losses

1,804

399

Share issuance costs

584-

Miscellaneous loss

056

Total non-operating expenses

2,390

456

Ordinary loss

-155,229-109,004

Loss before income taxes-155,229-109,004

1,145

1,145

Income taxes - current
Income taxes - deferred

-111

-103

Total income taxes

1,033

1,041

Loss

-156,263-110,045

Loss attributable to owners of parent-156,263-110,045

Consolidated quarterly statements of comprehensive income(Yen thousand)Previous Q2 period (YTD)

Current Q2 period (YTD)(From Apr 1, 2020

(From Apr 1, 2021

To Sep 30, 2020)

To Sep 30, 2021)

Loss
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests-7--156,263-110,045

25

1,694

-102

104

-77

1,799

-156,340-108,246-156,340-108,246--

(3) Quarterly consolidated statements of cash flows(Yen thousand)Previous Q2 period (YTD)

Current Q2 period (YTD)(From Apr 1, 2020

(From Apr 1, 2021

To Sep 30, 2020)

To Sep 30, 2021)

Cash flows from operating activities
Loss before income taxes-155,229-109,004

Depreciation

29,75735,162

Share-based remuneration expenses

14,907

19,256

Interest income-1,218-1,152Foreign exchange losses (gains)

2,088

-421

-37,900-

584-

Subsidy income
Share issuance costs
Decrease (increase) in trade receivables
Decrease (increase) in Accounts receivable-trade and contract assets

317,104---191,109

Decrease (increase) in inventories-58,619

9,960

Increase (decrease) in trade payables

69,54679,877

Increase (decrease) in accounts payable - other-44,395-25,837

Other, net-39,654

50,179Subtotal

96,971-133,088

Interest received

1,518

1,246

Income taxes paid

-19,512--

10,955

Income taxes refund
Subsidies received

30,242

6,699

Net cash provided by (used in) operating activities

109,218-114,187

Purchase of securities-300,000-300,000

Proceeds from redemption of securities

300,000

300,000

Cash flows from investing activities

Purchase of investment securities--40,744

Purchase of property, plant and equipment-11,650-7,689Purchase of intangible assets-5,725-

Net cash provided by (used in) investing activities-17,375-48,433-584-

Purchase of treasury shares

-43

-90

Net cash provided by (used in) financing activities

-628

-90

Effect of exchange rate change on cash and cash equivalents-3,338931

Net increase (decrease) in cash and cash equivalents

87,875-161,780

Cash and cash equivalents at beginning of period

2,006,673

2,112,353

Cash and cash equivalents at end of period

2,094,549

1,950,573

Cash flows from financing activities
Payments for issuance of shares-8-