(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 Nine Months ended December 31, 2021 (Japanese GAAP)
February 10, 2022
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: February 14, 2021
Scheduled date of payment of cash dividends: Supplementary materials for the quarterly financial results: Yes
Briefing session on the quarterly financial results: No
1. Consolidated financial results for the nine months ended December 31, 2021 (April 1, 2021 through December 31, 2021)(1) Consolidated operating results(Percentages indicate year-on-year changes)
Net sales

Operating income% Millions of yen% Millions of yen
1,279
53.4
△91
△90
－
9 months ended Dec 30, 2020
834
－
△294
△242
－
Reference) Comprehensive income: △87 million yen as of Dec 31, 2021; △244 million yen as of Dec 31, 2020
Millions of yen

9 months ended Dec 30, 2021

Net income per shareyen△29.12△77.759 months ended Dec 30, 2021
9 months ended Dec 30, 2020

Net income attributable toowners of parent

Ordinary income%－－

Millions of yen

△91
△244

%
－
－

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

Net assets

Millions of yen

Equity ratio

Millions of yen

As of December 31, 2020
3,634
3,162
As of March 31, 2020
3,477
3,250
Reference) Shareholders' equity: 3,162 million yen as of Dec 31, 2021; 3,250 million yen as of March 31, 2021

%
87.0
93.5

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, 2022 (April 1, 2021 through March 31, 2022)
Net Sales

Operating income

Millions of yen% Millions of yen
Full year
1,650
△200
Note) Revision of forecasts during the period: None

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 Dec 31, 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 Dec 31, 2021

3,922 shares(3) Average number of shares issued during the period
9 months ended Dec 31, 2021

3,148,662 shares

9 months ended Dec 31, 2020

3,140,149 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 nine-month period ended December 31, 2021, the Japanese economy continued to face a difficult situation
overall due to the prolonged spread of COVID-19. During the third quarter (October to December 2021), although theresumption of economic activities was activated following the subsidence of the fifth wave of COVID-19, the situation
remained severe as Omicron is rampant at present and focused anti-infection measures have been applied nationwide.
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 serious illnesses by accelerating booster vaccinations, andspreading therapeutic drugs. In the world, some countries have been prioritizing more aggressive economic activities
even though the number of newly infected people remains high, but overall, the economy still needs more time torecover from the damage 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 electronic equipment including automobiles that uses semiconductors. In themedium 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 are expected in solving social and environmental issues, including a decrease in working
population due to declining birthrate and aging population, COVID-19 pandemic and climate change, and in realizing asafe and secure society.
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 third 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, in the business of Cambrian vision systems for collaborative robots, a capitaland business partner, we made progresses in the development of applications such as the joint development of an
automatic mail sorting system with Takashima Robot Marketing, which provides rental, sales, and installation support
services for collaborative robots, as well as in specific projects aimed at reducing labor and improving productivity forend customers.
In the amusement field, we have acquired a large-scale order of 1,308 million yen scheduled to be delivered to thecustomer from April 2022 onward for our image processing semiconductor, RS1, and will continue to aim to expand ourshare in the market segment where we can demonstrate the superiority of this unique 2D/3D integrated chip.
-3-

With regard to business results for the nine-month period ended December 31, 2021, in the product business, we
continued mass production shipments of the RS1 image processing semiconductor and recorded revenue of camera
modules for drone mass production. In the IP core license business, we acquired new licenses for the safe driving
assistance field and the robotics field and recorded recurring revenue in the safe driving assistance field. In theprofessional 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 nine-month period ended December 31, 2021 of 1,279 million yen (up 53.4%
from the same period of the previous year), operating loss of 91 million yen (operating loss of 294 million yen for thesame period of the previous year), ordinary loss of 90 million yen (ordinary loss of 242 million yen for the same periodof the previous year), and net loss attributable to owners of parent of 91 million yen (net loss of 244 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 recording incomes from GPU new license and running royalties for digital equipment such as digital stillcameras and office automation equipment, new license income in the safe driving assistance field and the robotics field
and recurring income in the safe driving assistance field were recorded. As a result, net sales amounted to 132 million
yen (101 million yen in the same period of the previous fiscal year).
b) Product businessNet sales amounted to 955 million yen (600 million yen in the same period of the previous fiscal year) due to sales frommass production shipments of the RS1, camera modules for drone mass production and Cambrian vision systems.
c) Professional service businessNet sales amounted to 191 million yen (132 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 78 million yen (14 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 196 million yen (102 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 919 million yen (598 million yen in the same period of the previous year) due to mass production
shipment of RS1.
d) Other
Net sales amounted to 85 million yen (119 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 the-4-recording of incomes from GPU new license and running royalties for digital equipment.

(2) Financial position
Overview of assets, liabilities and net assets(Assets)
Current assets at the end of the third quarter amounted to 2,911 million yen, up 174 million yen from the end of theprevious fiscal year mainly attributable to decreases in cash and deposits (down 98 million yen) and other current
assets (down 49 million yen), and an increase in accounts receivable and contract assets (up 364 million yen).
Noncurrent assets amounted to 723 million yen, down 17 million yen from the end of the previous fiscal year mainly
attributable to an increase in investment securities (up 42 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 in software (down 40
million yen).
(Liabilities)
Current liabilities and noncurrent liabilities at the end of the third quarter amounted to 472 million yen, up 245 million
yen from the end of the previous fiscal year mainly attributable to an increase in accounts payable (up 236 million yen).
(Net assets)
Net assets at the end of the third quarter amounted to 3,162 million yen, down 87 million yen from the end of theprevious fiscal year mainly attributable to a decrease in retained earnings (down 91 million yen).
As a result, the equity ratio was 87.0%.

(3) Consolidated financial forecasts and other forward-looking statements
Consolidated financial results for the third quarter (October to December 2021) have turned profitable, but at this point,
there is no change to the full-year consolidated financial forecast for the fiscal year ending March 31, 2022, which wasannounced on November 10, 2021.
Actual performance may differ significantly from the forecast figures due to various factors.

-5-

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

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-6-

Previous year
(As of Mar 31, 2021)(Yen thousand)Current Q3 period(As of Dec 31, 2021)

2,066,483
157,606
345,870
7,630
44,437
11,798102,832
2,736,659

1,967,925
522,260
347,671
4,957
10,245
5,382
53,2072,911,651

42,65239,268104,54525
104,570

63,923
5,025
68,949500,630
92,789593,419
740,6433,477,303

543,357
71,558614,915
723,133
3,634,784

132,333
11,83464,065208,233

368,564
8,249
76,571
453,385

1,452
17,40818,860227,094

1,296
17,601
18,898472,283

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

1,838,882
1,858,093-532,133-1,615
3,163,227-4,677-102-4,7793,250,208
3,477,303

-615
-111
-726
3,162,500
3,634,784

(2) Consolidated quarterly statements of income and comprehensive income (nine months ended Dec 31, 2021)
Consolidated quarterly statements of income(Yen thousand)Previous Q3 period (YTD)

Current Q3 period (YTD)(From Apr 1, 2020

(From Apr 1, 2021

To Dec 31, 2020)

To Dec 31, 2021)

Net sales

834,239

1,279,593

Cost of sales

567,840

835,747

Gross profit

266,398

443,845

Selling, general and administrative expenses

560,777

535,767

Operating loss

-294,379-91,921

Interest income

1,739

1,514

Subsidy income

53,500-4241

55,244

1,755

2,882

215

Non-operating income

Miscellaneous income
Total non-operating income
Non-operating expenses
Foreign exchange losses
Share issuance costs

584-

Miscellaneous loss

057

Total non-operating expenses

3,467

272

-242,602-90,437

Gain on liquidation of subsidiaries-

328

Total extraordinary income-

328-242,602-90,109

1,717

1,717

Ordinary loss
Extraordinary income

Loss before income taxes
Income taxes - current
Income taxes - deferred

-167

-155

Total income taxes

1,550

1,561

Loss

-244,152-91,670

Loss attributable to owners of parent-244,152-91,670

Consolidated quarterly statements of comprehensive income(Yen thousand)Previous Q3 period (YTD)

Current Q3 period (YTD)(From Apr 1, 2020

(From Apr 1, 2021

To Dec 31, 2020)

To Dec 31, 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--244,152-91,670

-520

4,062

-102

-9

-622

4,052

-244,774-87,617-244,774-87,617--